In today’s competitive marketplace, it’s difficult to find success without the use of an ecommerce platform like Amazon. There are a host of benefits that come with using Amazon, but there are also some drawbacks as well.
In this post, I will explore both sides so you can make an informed decision for your ecommerce business and its needs.
Let’s take a look…
The pros of selling on Amazon
Huge customer base
Amazon is the world’s largest online marketplace, with over 310 million active customers. For businesses looking to sell products online, Amazon offers a huge potential customer base.
It’s estimated that Amazon Prime members spend an average of $1,400 per year on the site. And with Amazon’s recent expansion into new markets like Australia and Brazil, that number is only going to grow.
This gives businesses selling on Amazon a huge opportunity to reach a global audience and scale their sales.
Easy to use platform
Amazon’s ecommerce platform is easy to use and navigate, both for businesses and customers. This makes it an ideal choice for businesses that are just getting started with selling online.
The Amazon marketplace is also well organized, which makes it easy for customers to find the products they’re looking for.
Wide range of products
Amazon offers businesses the ability to sell a wide range of products, from books and electronics to clothes and home goods. This gives businesses the opportunity to reach a large number of potential customers with their product offerings.
Flexible pricing options
Amazon offers businesses flexible pricing options for their products. Businesses can choose to sell their products at a fixed price or offer them as part of Amazon’s “Buy Box” program, which allows customers to purchase products at a discounted price.
The cons of selling on Amazon
High competition
Because Amazon is such a popular ecommerce platform, there is a lot of competition among businesses selling similar products. This can make it difficult for businesses to stand out from the crowd and attract customers to their products.
To succeed on Amazon, businesses need to have well-optimized listings and offer competitive prices for their products.
Potential for counterfeit products
Although Amazon takes steps to prevent it, there is always the potential for businesses to sell counterfeit products on the platform. This can damage a business’s reputation and cause customers to lose trust in the business.
To protect against this, businesses need to be diligent about the products they sell and only source from reputable suppliers.
Amazon controls the customer relationship
Because businesses sell their products through Amazon, they do not have direct control over the customer relationship. This means that businesses cannot collect customer data or contact information, which can make it difficult to build a relationship with customers.
It also means that businesses are at the mercy of Amazon’s policies and algorithms, which can change at any time.
Amazon Pro Subscription can be expensive
To sell products on Amazon, businesses must sign up for an Amazon Pro Subscription. This subscription can be expensive, especially for small businesses or businesses just starting out.
The subscription fee is $39.99 per month, plus a percentage of each sale made on the platform. This can add up quickly, making it sometimes difficult for businesses to turn a profit on Amazon.
How to sell on Amazon
If you’ve decided that selling on Amazon is right for your business, there are a few things you need to do in order to get started.
1. Create an Amazon seller account and set up your seller profile.
Go to Amazon Seller Central and create an account. Enter your business information, including your business name, address, and contact information. Next, choose the type of seller you want to be: professional or individual. Professional sellers pay a monthly subscription fee, while individual sellers pay a per-sale fee. Then, enter your payment information. This will be used to pay your Amazon seller fees.
2. Set up your Amazon product listings.
To list a product on Amazon, you will need to create a listing. Start by going to the “Inventory” tab in Seller Central and selecting “Add a Product.” Then, enter the required information about your product, including the product title, description, price, and product category. You will also need to upload photos of your product.
3. Ship your products to Amazon’s fulfillment centers.
If you are using the Fulfillment by Amazon shipping option, you will need to ship your products to Amazon’s fulfillment centers. To do this, create a shipping plan in Seller Central and print out your shipping labels. Then, pack up your products and drop them off at a UPS location.
Final thoughts about selling on Amazon
Selling on Amazon can be a great way to reach a large number of potential customers and grow your business. However, there are some downsides to selling on Amazon, such as the high level of competition and the potential for counterfeit products. Before you decide to sell on Amazon, be sure to weigh the pros and cons carefully to decide if it is the right platform for your business.
I hope you find this post useful! If you have any thoughts or experiences you’d like to share about selling on Amazon, please leave a comment below. And if you enjoyed this post, please share it with your friends and followers.