Almost anyone can start selling on Amazon today, but, if you already have a business, perhaps you should ask yourself. Should you start selling on Amazon? Will it be profitable? Will it replace the store you already have? And, can you make money? Let’s explore this idea so that you can determine whether or not your business is right for selling on Amazon.
You Have Enough Inventory
Once you list on Amazon, it’s possible your sales could skyrocket depending on your product. Ensure that you have enough inventory before you list so that you can easily fulfill the orders. Amazon really wants you to use FBA (fulfillment by Amazon) where they fill the orders, but if you do that you don’t own the customer. However, it can still be a wonderful additional income stream if you don’t have the manpower to package and ship orders. Plus, most Amazon shoppers prefer FBA and the ability to use Prime.
Your Profit Margins Are High Enough
Look at other listings for similar products to yours to find out if there is any way to compete with the other sellers. Then, using the information Amazon offers regarding fees, determine if you can still make enough profit. Remember, your volume of sales is likely to go up, so put that into your equation when determining profit margin.
You’re Ready to Give Up Some Control
You must follow Amazon’s rules regarding returns, shopping protocol, and more. If you’re okay with giving up some control over your business model, then using Amazon will certainly help you.
You Have a Physical Product
The best types of physical products are consumable products, in other words, products that need to be bought again and again. But, some of these categories are harder to get approved in as an FBA seller.
You Have a Service Business
If you’re a plumber, handyman, house cleaner or other professional service business, you can sell your services on Amazon too. You just need to sign up, get verified, and follow their instructions. This is a wonderful way to get more business due to the trust people have for Amazon with their payment information.
You Can Understand Amazon’s Costs
Before signing up for anything, try to read all of Amazon’s information. You can read other people’s information, of course. But because Amazon changes their rules sometimes, you want to get the most up-to-date information from them so that you understand what it costs.
You Already Have an Online Store
If you have an online store selling almost anything, there are ways to integrate those sales with selling on Amazon. If you can make a profit, selling on Amazon is always a good way to build another income stream. It’s also a good way to get more customers to your branded store.
You Have a Bricks and Mortar Store
If you sell products in a bricks and mortar store, it’s likely you can also sell on Amazon. Amazon is open to all sorts of brands selling their products on Amazon; all you do is apply. In some cases, various categories are blocked due to rules and regulations, but don’t let that stop you from applying.
Selling on Amazon is a great addition to the other ways in which you run your business. But, it can also replace everything and become a single channel for selling a new product or service if you want to. The best of both worlds is probably the wisest choice, so that you can maintain more control of your business. But, if your customers are there, and you can legally list your items on Amazon and make a profit, then, yes – you should be there.