Let’s face it - brick and mortar retail is challenging in this day and age. Online shopping (especially since the COVID-19 outbreak) has become a staple for many. Reason dictates that the more customers who see your product, the more you are able to sell. And what is the one of the top online shopping sites in the world? Amazon. The online shopping giant that sells everything from housewares and bedding to clothing and groceries. You can even buy a house on Amazon.
But should you be selling your products on Amazon?
P R O S
Increase customer base
What your business sells may not be known much outside of your community. Even if you sell on your own website, your customers are limited. Millions of shoppers search Amazon daily and is often one of the first sites to pop up when customers make a random internet search for a product. In addition Amazon has a detailed cataloguing system to ensure your product is placed in the most appropriate location.
Not only will your product be seen by more customers, it will be purchased by more as well. This can be especially beneficial if your product is unique. Selling on Amazon gives you the ability to sell your products worldwide. Plus with Amazon’s shipping times, it can help customers get your product quicker.
Amazon is the name that customers know and trust. Selling on Amazon automatically gives your products more credibility. In a nutshell customers are more likely to buy from a website they know and trust than one they do not.
Selling on Amazon will increase your sales. However you don’t need to worry about where to keep the bulk products you will need to produce to keep up with sales. Amazon has warehouses throughout the country to house your products in addition to shipping the product for you.
While selling on Amazon does have plenty of perks, it does have a downside.
C O N S
Being able to sell your product worldwide is great, but just know every other business is doing the same thing. Selling on Amazon increases your competition tremendously. There may be thousands of products just like yours on the site.
When you sell your product on your own website you can market it however you like. On Amazon, however, there are specific rules and guidelines every business must follow making it difficult to make your product stand out from the rest. Amazon focuses more on it’s buyers than its sellers.
The visibility and reach of your product all comes at a price. While your revenue will increase by selling on Amazon, it doesn’t come cheap. Commissions are charged for products sold through them. According to datefeedwatch.com depending on the category where you sell your product Amazon fees can range from 8 percent to 15 percent. So it is important to make sure your margins are high.
Selling on Amazon is not a decision that should be made lightly. There are many factors to consider. While it can be highly lucrative, it is also highly competitive. Be sure to do your research before taking the leap to selling on the online shopping giant Amazon.