Home Business Insights & Advice Five reasons you should start selling on Amazon

Five reasons you should start selling on Amazon

by John Saunders
28th Jul 20 9:03 am

Whether you’re new to selling products, or have been selling on sites like eBay and Etsy for some time, it’s likely that you’ve considered selling through Amazon.  Amazon is the largest e-commerce giant in the world, and with over 100 million Prime members worldwide, there’s no shortage of people to sell to.  But is Amazon a good marketplace to sell on?  Will your small business be noticed among all the competition?  And, is it easy to get started?  We’ll answer all of these questions in this article as we look at the top five reasons you should consider expanding to Amazon or hire an amazon product consultant.

1. It’s very easy to get started

Launching your business on Amazon is relatively simple; however, it should be noted that getting started in some categories is easier than others.  Sellers in certain categories must be approved before they can make any listings.  These include streaming media players, personal safety and household products, and Covid-19 supplies.  You can find a full list here.  In some categories, however, it is arguably too easy to get started with new sellers flooding the marketplace on an almost daily basis.  That said, getting set up on Amazon is still a lot easier than starting your own website, and you don’t need to know anywhere near as much about marketing and SEO.

In addition to the above, getting started on Amazon requires very little upfront cash.  There are no website and hosting fees to pay for, no payment processors to shell out for, and no marketing tools required.  All you really need to get started are some basic office gadgets, an internet connection, and some accounting software.  You can also hire an Amazon agency for faster and better results. This is ideal for those who want to break away from traditional employment but don’t have the cash reserves to get started.

2. Millions of potential customers

One of the hardest parts of launching a new business is trying to find people to buy your products.  You may be selling the most amazing item the world has ever seen, but if people don’t know about it, they can’t buy it.  Amazon eliminates much of the legwork where this is concerned, as millions of people browse the site on a daily basis looking for their next purchase.  Amazon constantly works on brand recognition and bringing in new customers, so you don’t have to!  In fact, statistics show that in the US – Amazon makes up 49% of e-commerce sales alone!  As long as you have a product that people want, Amazon will handle the rest.

3. You’re not reliant on reviews

If you’ve ever sold items via Etsy or eBay, you know how important customer reviews are, especially as a new seller.  One bad review can literally break your business overnight, and unfortunately, the support teams on Etsy and eBay very rarely remove reviews – even if they can see they’re unfair.  This isn’t the case with Amazon.  While customers can review sellers, the majority don’t.  And, reviews aren’t at the forefront of your listings.  This means that it’s much easier for a small business to compete against a large one on Amazon than it is on Etsy and eBay.

With the above in mind, it is important to note that you can be suspended as an Amazon seller if you have a low customer satisfaction rate.  If you regularly ship late, sell poor quality items, or buy fake reviews, it’s likely you’ll be removed from the marketplace.  Those who are legitimate, however, should be able to fight an Amazon suspension if you follow the right steps.

4. Amazon has a good reputation

Another thing that new businesses often have to contend with is proving that they are trustworthy.  This is especially the case when launching a website with no customers ready to buy.  Amazon, however, has a very good reputation.  When customers shop through the site, they know that their credit card information is protected, that the goods they are buying are legitimate, and that Amazon will have their back if anything goes wrong.  If you choose to sell via the marketplace, you will receive all of the benefits of Amazon’s reputation.

You may think that this is true for other marketplaces as well.  However, let’s take a look at eBay.  While lots of big brands do now sell via eBay – Curry’s and PC World being a large one worthy of mention in the UK – eBay still has a reputation of being a second-hand goods marketplace for many.  Customers shopping via this marketplace expect knock-offs from China, and clothes that smell of cigarettes.  This may not be doing your business any favours.

5. FBA can help you grow

Once the excitement of launching a retail business has worn off, many people struggle with the monotony of taking trips to the post office to send out parcels.  Even if your business is large enough for you to get Royal Mail to pick up parcels daily from your home or warehouse, it is a lot of work to package and ship items.  However, Amazon has an option available to sellers in the form of FBA (Fulfilment by Amazon).

With Fulfilment by Amazon, sellers can store inventory in one of Amazon’s warehouses.  When an order comes in, Amazon will package the item, print off the delivery slips, and send it out – all without you having to lift a finger.  This leaves you free to focus on the more fun parts of running a business, such as sourcing new inventory.  Sellers who make use of FBA also don’t have to concern themselves with customer service as Amazon handles all of this for them as well.  At the end of the day, it’s a great way to grow your business without needing to prematurely take on employees for basic daily tasks.

As you can see from this article, there are plenty of fantastic reasons to start selling on Amazon.  Just ensure that you read their rules beforehand so that you don’t do anything that could lead to your account being suspended.

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