Have You Considered Selling on Amazon?

Have You Considered Selling on Amazon?

Amazon is a powerhouse. When it comes to retail, there are few places that give you the reach and opportunities that Amazon can. But, is Amazon right for your business?

While adding Amazon to your sales channels can sound tempting, you have to carefully consider what it entails and if it makes sense for your particular product. A few pointers to keep in mind are:

  • Amazon is great for niche products. If your product is unique or has a very distinct differentiator, Amazon could be a great alternative for you.
  • Do you need to get rid of old inventory? People are looking for all sorts of products here, so if you have old inventory that’s difficult to move, you could consider putting them on Amazon to test your luck. Keep in mind that it could take some time to sell, but you have nothing to lose.
  • Getting started on Amazon is not as simple as you might imagine. It could take months to set up your online store. There are two options when it comes to the type of store you can have, and each come with their own set of rules and fees:
    • “Fulfilled by Amazon” means that you will send your product to Amazon’s warehouse. This can save you money on storage and shipping, but there is a fee. They will store your inventory for you and ship it. You only have to worry about promoting your store. This makes your product eligible for free two-day Amazon Prime shipping, an important decision-making aspect for people that are looking to receive their products fast and without additional shipping costs.
    • Selling as a third-party is when you basically rent storefront space from Amazon. You manage your inventory, warehousing and shipping. You can earn two-day shipping, but only if you demonstrate reliable service.
  • Shipping is a big deal. Customers on Amazon are accustomed to having a variety of free and fast shipping options. The only differentiator between you and another seller with the same product could be the type of shipping you offer. Think about that.
  • Customer reviews are critical on Amazon. A store can succeed or simply fall short by what their past customers say about their products and service. Make sure to offer exceptional service and resolve any issues fast. Communication is key. And, as with any other sales channel, make sure you’re actively asking for reviews, don’t leave them up to chance.

As with any other sales channel, Amazon has its benefits and challenges. This is not a set and forget strategy – you must invest time and effort into an Amazon store to make it work for you. But if you get it right, there’s not another place online that offers even similar revenue potential. Are you ready to “think different”?

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