Amazon Is Different From Other E-Commerce Sites. Let’s begin by examining how Amazon differs from every other platform in existence. It is the only one that comes to mind that is named after a rainforest, to start. More significantly, it outshines the opposition. These data should give you a sense of the scale we’re referring to:
1. Amazon has more than 300 million active users across 180 countries.
2. Third-party sales are increasing by 52% annually.
3. There are almost 150 million AmazonPrime subscribers worldwide.
4. The second-ranked mobile shopping app from Walmart is only half as popular as Amazon’s.
5. According to 89% of online shoppers, it is their preferred retailer.
6. The website sees 4,000 sales from small and medium-sized firms in America every minute.
As you might expect, entrepreneurs from all over the world are eager to sell on this platform. In actuality, there are already about 2 million sellers registered, and there will soon be many more.
It is undoubtedly a key factor because you will be competing with millions of rival vendors on Amazon. It’s never enough to just be adequate on the platform since competition is tough. You must have a plan and then successfully carry it out if you want to stand out from the crowd.
How Should You Proceed With Your Sales On Amazon?
With Amazon, there is not much of a barrier to entry, which is both a blessing and a problem. It won’t be too difficult for you to get started, but because of this, there will be more competition than you would find elsewhere.
Another aspect of the platform’s competitive environment to be mindful of is the possibility of going up against Amazon. The corporation sells a mind-bogglingly wide range of goods under its own private label, Amazon Retail.
The problem goes beyond the fact that Amazon Retail may occasionally outsell you. For many merchants, it happens every day. Additionally, given that Amazon collects more customer data in a single day than you could ever receive in a lifetime, things for these vendors might become extremely challenging. With the use of these data, Amazon can set its prices with unerring accuracy and then put its own products front and centre.
Here are a few things we may take away from this situation:
1. Avoiding competition wherever feasible is a good idea.
2. Utilizing Amazon FBA minimises the drawbacks
The initial point is clear cut. You will probably lose if you engage in competition with someone who also happens to own the game and has the power to alter the rules at any time.
Instead, let’s concentrate on the second lesson. You can take part in the great world of Amazon Prime if you choose the FBA path. Recall that this programme has 150 million devoted members. So you benefit greatly when your FBA products are featured.
You have the choice of choosing AmazonSuper Saver Shipping if you sell on Amazon FBA. Because of this, even if a consumer isn’t a Prime member, they may still receive free delivery if your product either passes the Super Saver Shipping level or we purchase in combination with other qualified items.
It demonstrates that AmazonPrime and Super Saver Shipping are excellent resources for small business owners. These initiatives can also help you establish connections with clients that would be practically impossible otherwise. Keep in mind that you won’t have the same customer relationship management (CRM) capabilities when you sell on Amazon’s platform as you would have if the sale came through your own website. It’s a “one and done” deal, making it impossible for you to resell it or establish a lasting relationship.
Is selling on Amazon Worth It?
Because of the benefits the program offers, you should think very carefully before paying the Amazon FBA fees unless you are very sure in your abilities to market your products and then handle the delivery with accuracy.
Time to Test and Learn. If It is Worth It?
Let’s go over some of the main advantages and disadvantages of selling on Amazon.
• Wide-ranging access to a large international audience
• Support and resources for sellers
• A ready-made platform for selling
• Amazon’s reputation serves to boost reputation
You’ll probably experience these extra perks if you sign up for Amazon FBA, including greater sales through Amazon Prime and Amazon Super Saver Shipping, no need to carry stock, and no need to ship to customers. The time and effort you’ll save could more than offset the costs associated with using Amazon FBA.
We wouldn’t want to overstep our bounds by advising everyone to use Amazon FBA, though. As was previously stated, this programme can only be successful if it complements your business strategy and you employ cost-cutting measures.
