5 Reasons to start selling on Amazon
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Amazon, founded in 1994 by Jeff Bezos, has become one of the largest and most successful companies in the world. Originally started as an online bookstore, it has since expanded its product offerings to include everything from electronics to groceries, and even operates as an entertainment provider with its own streaming service. With a strong focus on customer service and quick, reliable delivery, Amazon has revolutionized the retail industry. Its vast selection of products, competitive pricing, and easy-to-use platform has made it a go-to destination for shoppers around the globe. Additionally, Amazon’s innovative technologies, such as its AI-powered virtual assistant Alexa and its automated Amazon Go stores, have continued to push the boundaries of retail and technology.
Amazon is a giant in the online marketplace industry, and its growth is showing no signs of slowing down. If you’re an entrepreneur or small business owner looking to increase your customer base and scale your business, then Amazon should definitely be on your radar. From its ease of use to its reach, Amazon is among the best platforms for an online seller. Here are five reasons why you should start selling on Amazon.
Brand Visibility
One of the best ways to increase your revenue as an online seller is to expose your brand to a larger customer base. Amazon’s number of users is outstanding, and as a result, Amazon provides small businesses and entrepreneurs with a tremendous opportunity to promote their products to a wider audience than ever before. Amazon’s algorithms also make it easier for brands to be discovered. When potential buyers search for specific products related to your business, they’ll stumble across your shop, resulting in more exposure and sales.
Easy to Use Platform
Amazon is equipped with a user-friendly interface, and the fact that it takes care of product listings, shipping and handling, and customer service makes it even easier for online sellers to start growing their business on Amazon. The convenience of having an all-in-one solution removes much of the burden, allowing sellers to focus more on product development, marketing, and sales.
Cost-Effective
Starting a business can be expensive. With Amazon, that’s not necessarily the case. While it’s true that Amazon takes a percentage of your revenue, the cost of setting up and running a storefront is significantly lower than the cost of setting up your own e-commerce platform. This allows small businesses and entrepreneurs to begin selling on Amazon without having to worry about upfront costs.
Global Customer Reach
Another advantage of selling on Amazon is that it allows small businesses to expand their reach to the global marketplace. This access to a more extensive customer base means more potential customers from different parts of the world. Amazon has warehouses located worldwide that make it possible to deliver products to customers everywhere, making it an ideal platform for sellers looking for global growth.
Trust and Credibility
Amazon is a household name. Its reputation for quality customer service is excellent. As a result, it gives small businesses and entrepreneurs selling on Amazon the advantage of having a trusted platform to work with. Customers who buy from Amazon are comfortable with their experience, meaning that they’re more likely to trust sellers on the platform. This provides small businesses with an excellent opportunity to build trust and credibility with customers and creates an ideal environment for long-term business growth.
In conclusion, Amazon provides a fantastic opportunity for small businesses and entrepreneurs looking to expand their reach and build a sustainable business. From its far-reaching customer base to its easy-to-use interface, Amazon provides sellers with a reliable and trusted platform for growth. So if you’re considering selling online, it might be time to give Amazon a try.
Amazon FBA vs. FBM
FBM
Fulfillment by Merchant (FBM) is an alternative to Amazon’s FBA program, where sellers fulfill their own orders rather than using Amazon’s services. With FBM, sellers store their inventory in their own warehouses or storage facilities and handle the entire fulfillment process, including packing, labeling, and shipping.
One of the main advantages of FBM is that it can be cost-effective, especially for sellers who deal with small or low-margin items. FBM eliminates the need for sellers to pay Amazon’s storage, fulfillment, and other associated fees. Additionally, sellers have more control over their inventory and can adjust their prices based on their own costs and margins.
FBM also offers sellers more flexibility, as they can handle custom or unique orders that may not be possible with FBA. They can also personalize the customer experience by including handwritten notes or special packaging. However, with FBM, sellers have to handle all customer service issues, returns, and refunds themselves.
Another advantage of FBM is that it can be a better fit for certain types of products. For example, large or heavy items that require special handling or packaging may not be suitable for FBA. Additionally, FBM can be a good option for sellers who use multiple sales channels, including their own website, social media, or other marketplaces.
On the downside, FBM requires more upfront investment and work than FBA. Sellers have to find their own storage solutions, pack and ship the orders themselves, and handle all customer service issues. Additionally, FBM sellers may not be eligible for Amazon Prime, which can affect sales and customer loyalty.
Overall, FBM can be an effective fulfillment option for sellers who are looking to save money, offer unique customer experiences, or sell items that are unsuitable for FBA. However, sellers should carefully evaluate the costs and benefits of FBM and consider their business needs and goals before making a decision.
Amazon FBA
Amazon’s Fulfillment by Amazon (FBA) program is a service provided by Amazon to sellers who want to have their products stored, packed, and shipped by Amazon. By using this program, sellers can focus on other important aspects of their business, such as product sourcing and marketing, while Amazon handles the entire shipping process.
The first step for sellers to start using FBA is to create an FBA account and then send their inventory to Amazon’s fulfillment centers. Amazon charges a fee for storing the products and then picks, packs, and ships the items when an order is placed. Amazon also handles any customer service issues, returns, and refunds for the seller.
One of the benefits of using FBA is that the seller’s products become eligible for Amazon Prime, which can increase sales and attract new customers. Amazon’s Prime members receive free and fast shipping on eligible products, and they tend to prefer buying products that are FBA-eligible. FBA also provides a multi-channel fulfillment option, which allows sellers to fulfill orders from other marketplaces, such as eBay or Shopify, using Amazon’s shipping and customer service services.
Another advantage of FBA is that it offers access to Amazon’s international marketplaces, such as Amazon UK, Amazon Canada, or Amazon Germany. By sending their inventory to Amazon’s fulfillment centers in those countries, sellers can reach new customers without having to worry about shipping and handling the products themselves.
On the downside, FBA can be expensive, especially for small or low-margin items. Amazon charges various fees, including monthly storage fees, fulfillment fees, and long-term storage fees. Additionally, sellers have to cover the cost of shipping their inventory to Amazon’s fulfillment centers, and they may need to adjust their prices to account for Amazon’s fees.
Overall, FBA is a powerful tool for sellers who want to streamline their operations and expand their customer base. However, it’s essential for sellers to calculate the costs and benefits of using FBA and to consider other fulfillment options if FBA is not cost-effective or suitable for their business model.