5 Benefits of Selling on Amazon
The first thing most people realize when deciding to set up an online store is that there are an astonishing number of choices. And while each option has its pros and cons, your own circumstances will dictate which one is right for you.
That’s why we’re reviewing all of the top options and letting you know the benefits of each one. We started with WooCommerce, and now it’s time for our second review. Everyone has heard of Amazon, but did you know they offer the following benefits to sellers?
A Huge Potential for Sales
The size of Amazon’s addressable audience is likely the most obvious benefit, but worth mentioning nonetheless. When you list your products on Amazon, you have access to a huge pool of already established customers.
According to Erik Fairleigh, an Amazon spokesman, the site has more than 2 million sellers worldwide, who sold more than 2 billion (yes, billion with a “b”) items in 2014. In fact, more than 40 percent of all products sold on Amazon are from independent sellers doing business through Amazon’s platform. Fairleigh says sellers can instantly reach hundreds of millions of online customers when they sell their products on Amazon.
Earn Repeat Business without Marketing
Standalone e-commerce sites (Shopify and Woocommerce are good examples) have to spend thousands of dollars in advertising just to let consumers know they exist, but Amazon has a built-in customer base that no standalone site will ever match. And Fairleigh says that Amazon sellers get repeat customers, especially when they offer exceptional customer service.
No Need to Pack and Ship Your Own Orders
Amazon makes it easy for sellers who don’t want to worry about packing and shipping their products. They offer Fulfillment by Amazon (FBA), which Fairleigh points out is both a time- and money-saver, since Amazon handles all storage, packing, and shipping (including free shipping for Amazon Prime members). FBA also streamlines international exportation, returns, and customer service.
Fairleigh quotes a 2014 study of U.S. Amazon sellers in which 71 percent of FBA sellers say their unit sales increased more than 20 percent since joining the program.
Solid Back-End Support
Amazon’s back-end infrastructure provides everything you need to do business including inventory tracking, credit card processing, and sales tax collection (but not sales tax filing), which can be overwhelming when you sell in multiple jurisdictions. (If you currently run a standalone e-commerce site and use Avalara’s automated tax compliance software, you already understand how important this is.)
Amazon’s algorithm lets customers see a list of recommended products when on the site, and your product could catch the attention of a customer when they’re not even looking for you. In addition, Amazon has a large network of affiliates that may point people to your products by featuring Amazon ads on their own websites.
Want to learn more about selling on Amazon?
Learn more about doing business on Amazon marketplace by joining us on Amazon Business Training. As an aspiring entrepreneur, learning the tips and tricks of Amazon business would certainly help you to succeed sooner than others.
Courtesy - Avalara blogs