Should I Sell On Amazon?

We all know about Amazon. But with that there must be competition and a whole load of negatives right? But to ask should I sell on Amazon opens you up to a load of positives as well. Some would also argue that the positives greatly outweigh the negatives.

To many this list might seem obvious. Go running into Amazon!

Sure we are going to cover some of the main positives. But remember those negatives (as covered with the Fulfilled By Amazon section here)

Loss of Control: Relying on Amazon for fulfillment means relinquishing a degree of control over the shipping and handling process. Any mishaps or errors in packing and shipping are attributed to Amazon, but they can still impact the seller's reputation and customer satisfaction.
Competition and Saturation: The popularity of Amazon has led to a surge in competition among sellers on the platform. As more businesses join, product niches can become saturated, making it harder to stand out and gain a competitive edge. People might take your idea/ product if it is going well (the competitive tools you use, they can too).
Restricted Access to Customer Information: Amazon handles customer interactions, making it challenging for sellers to build direct relationships with their customers. This limits opportunities for marketing, customer retention, and personalized communication.

As long as you remember those and therefore make Amazon a selling platform to spread a message further (rather than relying 100% on it) you will do better than most.

Customer base

One of the most compelling reasons to start selling on Amazon is the sheer size of its customer base. As of my knowledge cutoff in September 2021, Amazon boasted over 300 million active customers worldwide. This means your products have the potential to reach millions of potential buyers, significantly expanding your market reach.

Amazon's extensive customer base isn't limited to a single country; it operates in multiple countries, including the United States, Canada, the United Kingdom, Germany, and many others. Selling on Amazon can be your passport to international markets without the complexity of setting up a physical presence in each country.

Amazon encourages customers to leave reviews and feedback on products they purchase. While this can be nerve-wracking at times, it also provides invaluable insights into what customers like and dislike about your products. Positive reviews can boost your sales, while constructive criticism can guide product improvements.

Brand

Trust is a critical factor in online commerce, and Amazon has worked diligently to establish itself as a trusted brand. Customers associate Amazon with reliability, quality, and excellent customer service. By selling on Amazon, you automatically benefit from this trust factor (called selling by association), making it easier to win over new customers who might be hesitant to buy from lesser-known online stores. Amazon has made it possible that people feel more comfortable with Amazon and in some cases will buy the same product on Amazon rather than if it was listed somewhere else.

FBA

When you type into search "should I sell on Amazon" most will tell you about FBA.

Amazon offers a unique and game-changing service called Fulfillment by Amazon (FBA). With FBA, Amazon handles the storage, packaging, and shipping of your products to customers. This takes the burden of order fulfillment off your shoulders, allowing you to focus on other aspects of your business, such as product sourcing, marketing, and expansion.

Amazon has invested heavily in its logistics network, including warehouses, distribution centers, and delivery infrastructure. This means your products can be shipped quickly and efficiently to customers. Amazon's expertise in logistics can help reduce shipping costs and delivery times, which is a significant advantage in e-commerce.

FBA also makes your products eligible for Amazon Prime, which offers two-day (or faster) shipping to millions of Prime members. This can lead to higher sales and greater customer satisfaction, as many buyers actively seek out Prime-eligible products.

Internal Amazon

Selling on Amazon doesn't just mean listing your products on the website. It grants you access to Amazon's vast ecosystem of services and tools designed to help you succeed. Here are a few of them:

Amazon Advertising: You can run targeted ads on Amazon to increase your product's visibility and attract more customers. The platform offers various ad types, including Sponsored Products, Sponsored Brands, and Sponsored Display.
Amazon Web Services (AWS): If you're tech-savvy and need hosting, cloud computing, or other technical services, AWS is an option. Amazon sellers even receive some exclusive benefits and credits for AWS usage.
Amazon Seller Central: This is your hub for managing your seller account. You can monitor sales, track inventory, respond to customer inquiries, and manage product listings through this platform. Amazon provides detailed analytics and data on your sales and customer behavior. You can use this data to refine your product offerings, marketing strategies, and inventory management. Data-driven decisions can lead to increased sales and profitability.
Amazon Business: If you sell B2B products, Amazon Business offers a marketplace tailored to the needs of businesses and organizations, opening up new opportunities for sales.

Prime and Holiday

Amazon has created its own retail events, such as Prime Day and Black Friday. These sales events generate massive revenue and traffic, and as an Amazon seller, you can participate and take advantage of the increased customer activity. Prime Day, in particular, has grown into a significant shopping event, attracting millions of buyers worldwide.

Scale

Selling online is hard. What makes the question "should I sell on Amazon" kinda easy is the ways that Amazon can help you if you know very little. Selling on Amazon can be a great way to learn the ropes of e-commerce without the complexity of starting your own online store from scratch. You can start small, test different products and strategies, and gradually scale your business as you gain experience and confidence.

As you sell one product you will realise that selling won't be your issue- finding product and keeping that product flowing is the issue. As long as you get it to Amazon (which Amazon holds and distributes for a fee) then the selling is done. By selling one product you will find out how to construct a mini supply chain (sounds complicated but it is not). By adding products you just tweak your supply chain. Finding more products is the easier section. The hardest part is the initial product and working out a system to produce and deliver on time.

Logistics

Amazon has invested heavily in its logistics network, including warehouses, distribution centers, and delivery infrastructure. This means your products can be shipped quickly and efficiently to customers. Amazon's expertise in logistics can help reduce shipping costs and delivery times, which is a significant advantage in e-commerce.

As your business grows on Amazon, you can explore opportunities for global expansion. Amazon's international marketplaces, such as Amazon.ca, Amazon.co.uk, and Amazon.de, provide access to customers around the world.

Should I sell on Amazon?

As you can see the positives are very attractive. We could go into the fact that:

due to that there is competition it will force you to work out better sales pitches, better products and better customer service
Amazon accommodates various business models, from traditional retail to private label brands, dropshipping, and more. You can choose the model that aligns best with your goals and resources.

The question "should I sell on Amazon" makes it very tantalizing to try everything. But what we have found on our travels is that you need to find a selling model that you find helpful, you like and works within your budget. You then get used to that model and find the tips and tricks that most people will not notice.

The massive customer base, trusted brand, and robust ecosystem of tools and services make it easier than ever to start and grow an e-commerce business. While challenges and competition exist, the potential for success on Amazon is vast, and with dedication and the right strategies, you can carve out your niche and achieve your business goals.

Check out more Amazon info here.