You’ve probably purchased something from Amazon.com, but have you ever considered selling on it?
Starting as a small online retailer of books and DVDs in the summer of 1994, Amazon is now one of the world’s dominant retailers, operating in 15 countries with a market capitalization larger than Walmart. Amazon sales are projected to reach $100 billion in annual revenue within in the next two years - 40% of which is attributed to third-party sellers. Pair this with Amazon’s ongoing investments in infrastructure, and it is clear the company has no intention of slowing down.
So, how can your company increase sales and revenue working with Amazon?
Place Your Products Where Customers are Shopping
Amazon is the king of e-commerce. It has a well-trusted brand, buyers’ payment information on file and ready to go, and more than 40 million Amazon Prime members who have proven to be frequent, high value purchasers. If you’re serious about selling online, chances are you stand to gain by being on Amazon. Those who visit Amazon have one objective: to learn about and purchase products.
A Low Barrier to Entry
Entering the Amazon marketplace requires a minimal initial investment of capital and product. Regardless of sales volume and catalog size, Amazon makes the same powerful promotional and analytical tools available to all sellers.
Starting can be as simple as listing a single, current best-selling product, likely to generate good feedback and consistent sales velocity for your company. Over time, you can build on that early success by adding to your catalog.
Within Amazon, every product category is like its own store, with separate guidelines and listing specifications. It is simple to list in most categories, while others must first be “ungated” to permit access. This is done with proof of an established business entity, basic company information, and existing assets like a website or warehouse address.
The Market is Huge and Diverse
Amazon’s 285-million and growing customer base means there is demand for nearly anything. While most categories are competitive, there are under-served segments where the demand for quality products outstrips current offerings.
Protecting Your Brand and Boosting Credibility
Amazon is used by shoppers for its quality reviews, and serves as a credibility check. Savvy consumers check multiple sources for product reviews while investigating a purchase, and don’t always trust reviews on a company’s website.
Even if they don’t purchase through Amazon, potential customers may have informed their decision by reading Amazon’s product specifications, descriptions, and reviews. Amazon provides a powerful way to promote and protect your brand and products.
If you rely on other companies to sell your products via Amazon, is your brand being well represented? We often see well-regarded brands with a sub-par Amazon presence, because they rely on others to market their products.
Fulfillment By Amazon - you sell, they ship
Don’t have an existing direct-to-consumer fulfillment infrastructure? No problem, Amazon offers that also. Amazon’s “Fulfillment By Amazon” (FBA), provides everything sellers need to take advantage of Amazon’s world-class warehousing and fulfillment network.
Through FBA, Amazon handles the majority of fulfillment and customer service tasks, resulting in much less work and time for you. Besides the time savings and potential for massive scale, FBA provides a number of benefits which give a seller an edge in the Amazon ecosystem when compared to sellers doing traditional Fulfillment By Merchant (FBM). These FBA advantages include Prime shipping eligibility, and a boost in product rankings.
Consider placing your products on Amazon and using the company’s FBA services to grow your business and boost product and brand awareness.