Pros and Cons Selling on Amazon – What Every Business Should Know
James Gordon | On 21, Mar 2014
Without a doubt, the eCommerce giant Amazon is one of the leaders on the market, together with eBay and Rakuten. Such online marketplaces became even more popular and attractive for big and small business to sell products and develop brand awareness.
In this article, we will “show off” the advantages and disadvantage of selling on Amazon. Despite the fast speed of development and excellent customer oriented strategies, there are still things to have in mind.
- The most important thing, every business looks is the traffic or visitors per month. For Amazon the statistic is around 200 million customers across 10 countries – fair reason to start selling.
- Amazon has already developed for you an online marketplace with lots of traffic, so don’t have to waste a lot of time, money and energy to achieve that. Of course, nothing comes for free and every business will have to calculate upfront a transaction fee of $0.99 and additional fee, which is between 6 – 25% (depends from the product category). As an additional advantage, sellers can create custom Amazon web store and create better experience for their users.
If you want to create custom Amazon or eBay shop design, there are companies which can provide this service for you. This will save you ages!
- Last, but not least pros working with Amazon marketplace is the cut of fulfillment and shipping costs. Amazon gives you option to send all goods in bulk to them and they to take care about storage, packing and shipping. This can saves every business owner a lot of time and money.
- Amazon is very price competitive and can put small business in downward pressure. The company is also selling some of the goods directly to the end clients. Combine this with the fact as a business you also pay transaction fee, the strategy your business create must be extremely cautious, especially the end price of the products.
- In order to stay competitive among others, you have to have excellent quality of the products, clear purchase & shipping rules and good customer support. Based on you can win or lose listing visibility in Amazon.
- If you think that you can build great brand in Amazon, you`re wrong. Amazon stores are limited by terms and conditions, which decrease the chance to “shout loud” your brand.
Don`t stay disconnected from the opportunities in front of you to sell more and secure the future of your company. Consider starting your online selling strategy with Amazon.