Selling on Amazon can be an incredible opportunity for an ecommerce business, but there are some things sellers need to know before jumping in.
The growth of Amazon has transformed how we do business and how we shop. The typical ecommerce company uses its website to draw in customers, sell products, ship orders and provide support. But a seller listing products in the Amazon Marketplace accesses both a range of services to facilitate sales and its huge amount of users.
While it offers opportunities for everyone, not all find success on the other side. If you’re thinking about selling on Amazon, here are a few things worth knowing.
1. Amazon has a lot of fees
For every income opportunity offered, expect there to be something in it for Amazon too. For example, their Fulfilment by Amazon (FBA) programme gets your product to more customers, but set up and storage can cost hundreds or even thousands of pounds in feeds. Find out the exact charges from Amazon to get your products to your customers before you sign up. This way you can recalculate your profit margins instead of being surprised along the way.
2. Competition is fierce
With 1.5 million active sellers and counting, competition is inevitable. It’s essential to make an effort to stand out. Research the Amazon Marketplace to find your niche. If you’re building a brand, file for trademarks and notify the Amazon Brand Registry to protect it.
Want volume sales? Get ready for a price war, but still, standing out from your competitors can give you an extra advantage.
3. FBA – yes or no?
The FBA programme lets you store your products at Amazon fulfilment centres, where they ship your orders for you. Your product will be listed as Prime Eligible, accessing a pool of more engaged shoppers. Your order volume will skyrocket, but at a price. The FBA fees bring down your margins. It can also take away your independence as a seller, so consider it carefully before you sign up.
4. Amazon is global
Amazon can ship your products anywhere, so think beyond the borders of your country. You have the ability to access more consumers and bring in more sales, so do the work and research potential international markets to make the most of what they can offer.
5. Buyers like a unique selling point
When the process of purchasing provides a better experience for your customers, this USP can determine whether or not they purchase from you. Whether it’s a witty product description, free bonus or good guarantee, something in your selling point should draw your customers into purchasing from you. Ask for customer feedback to discover why people choose your products.
6. It’s a huge opportunity
Even given all of the hoops you have to jump through, Amazon does offer amazing opportunities for anyone willing to put in the work. If your margins and competition don’t put you off, the volume, scale and resources available are unmatched. It might be the perfect marketplace for your products, but with so many options, tools and services available, take the time to research them all to find what fits best.
Not every ecommerce business lists on Amazon. Both are viable options for conducting business online, but stay alter to new opportunities for growth that come with emerging technologies.