If you think about it, selling on a well-known and respected platform such as Amazon is like dream come true for a lot of people, interested in starting some sort of home based business. You can set your own hours, choose the types of products you wish to sell, list them and almost sit back and wait for those orders to start rolling in, if of course you do it right.
There are both points and bad points of selling products on Amazon as you would expect, let’s have a look at a few shall we.
The Advantages of Selling on Amazon
It’s easy to recite the pros of selling on Amazon, one of the most trusted and well respected commerce websites of all time.
Just being on Amazon will automatically garner you more sales than if you were not there. They have a huge, “ready to buy” customer base that trusts Amazon a lot, so they will buy if they find your item and need it. Think of this; every member of Amazon pretty much has already given their credit card information to them to save on file; the customer never even has to give it much thought. They just see your item, want it, and press a button. That’s it.
More Trusting Customers
If you’re on Amazon, you’re not going to have to build up the trust of the customer to convince them to buy as much as you would if they were buying directly off your website. Amazon has built-in trust that transfers to you when the customer makes a purchase. This is especially true if you use fulfillment by Amazon (FBA) to ship your goods.
Amazon has in place a large number of affiliates who will refer traffic to your store when you are selling items in their niche. You don’t have to go out and find these affiliates, set up a way to pay them, or track sales; they’re already in place.
Fantastic Marketplace Infrastructure
The ease by which Amazon customers can check out, and the enormous amount of goods and services that are offered are unparalleled by any other marketplace. Being part of that is going to almost automatically make your business successful if you have a wanted product that you’ve priced correctly.
The Disadvantages of Selling on Amazon
It’s not as easy to list the disadvantages because they’re just not that big of a deal in the overall scheme of things.
While some people may feel like the fees are too high, the truth is that they aren’t really when you consider what you’re getting. Imagine if you had to set into place the type of infrastructure that Amazon provides, the technology to check out, the customer base and more yourself? What is that worth?
Difficulty of Understanding the Marketplace Infrastructure
While the infrastructure is indeed awesome for some people, the technology may be too hard to understand. This may require that you hire someone to help train you on how to do shipments and list your inventory properly. Thankfully there are virtual assistants that do only that for their customers.
No Branding Control
On Amazon you’re one of many sellers, and unless you are manufacturing a unique item only known to you as a merchant on your own, it will be hard for you to brand yourself. The brand that is on Amazon is simply Amazon.
You’ll have to decide for yourself if selling on Amazon is worth it or not for you. But do consider this: if you can price something well enough or have a unique enough product, you can make plenty of money on Amazon as a seller.