6 Things To Think About Before Selling On Amazon

Amazon is a well-known worldwide brand that, in 2020, sold more than $386 billion worth of goods. It was the fourth tech behemoth to exceed a $1 trillion market value and appears poised to soar past that mark soon.

Amazon is one of the most popular online shopping platforms in the world. It has over 300 million active user accounts and is expanding at a rapid pace for that reason and more.

This is an excellent e-commerce business opportunity for merchants, retailers, and small business owners that have potentially profitable private-label products to sell on Amazon. However, there are a few things to think about before diving straight in.

1. Amazon’s Fees

Amazon charges a range of fees for putting items on its marketplace, including a listing fee, referral fee, storage costs, and others. It’s critical to anticipate these charges in advance so there are no unpleasant surprises down the road.

There are several drawbacks to consider when comparing Amazon’s costs against those of other sites. The listing fee, for example, might be prohibitively expensive for firms with large inventories. The referral fee is also a percentage of the selling price at closing.

2. Consider Your Competition

Amazon is a fiercely competitive market. On Amazon, there are well over a million sellers of all sorts competing for consumers’ attention, and the platform has a restricted amount of virtual selling space available for exposure. Expect a price war if you want to sell in large quantities.

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To succeed on Amazon, businesses must differentiate themselves from the competition by studying the Amazon Marketplace and identifying their niche or distinct selling points. This might be achieved in a variety of ways, such as offering cheaper prices, unique or highly branded goods, or exceptional customer service.

If you’re establishing a brand, register it with the marketplace Patent and Trademark Office and use the Amazon Brand Registry to secure it and gain access to enhanced vendor services.

3. Fulfillment by Amazon (FBA)

Fulfillment by Amazon (FBA) is a service that allows you to outsource your fulfillment needs to Amazon. You keep your inventory at Amazon’s facilities, where they handle the delivery of your purchases. This is an excellent option for businesses that don’t want to deal with fulfillment on their own.

In addition, because your FBA product is now Prime Eligible, you may reach a pool of more than 200 million current Prime members in the United States alone, with 147 million of them located in the United States.

You will receive a lot of new sales, but at the expense of your margins. FBA expenses reduce your margins, and there may be a lot of complicated FBA rules and requirements to follow. This might take away some of your seller’s control, so think carefully before diving in.

4. Uploading a Listing is just the Beginning

Don’t expect to make a guaranteed sale out of your beautifully shot and constructed product listing when there are thousands of other choices in your product category already piled high with alternatives.

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To stay competitive, you’ll need to keep your listings, keywords, advertising, inventory, and other elements of your business up to date with Amazon’s platform tools. You can’t be too careful when it comes to competition; there are a slew of third-party Amazon Seller tools on the market to keep a keen eye on them!

5. Marketing and Advertising

Despite its tremendous traffic and popularity, Amazon by itself isn’t going to instantly promote selling your items. To get the word out about your company and drive people to your products, as well as have them show in the top search results, you’ll need to do some platform marketing on the inside.

Use Amazon’s advertising platform to promote your items and increase sales by getting them into the top search results and having increased page exposure. However, it can be expensive, time-consuming, and difficult to maintain.

6. The Learning Curve Maybe Steep

There are several moving parts when it comes to selling on Amazon, and they must be understood if you want to be a bestseller. You are essentially joining the Amazon brand and must adhere to its myriad of strict policies and regulations. 

It’s easy for new users, and even experienced users, to be baffled and confused by the complexity of such a huge and global e-commerce platform.

You must be prepared to put in the time and effort required to sell on Amazon. Getting familiar with the site, their seller regulations and standards, understanding costs, and even mastering customer service skills all come into play. Fortunately, Amazon provides a wealth of assistance for those seeking help, including forums, webinars, and its own Seller University of self-study courses.

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Amazon is a highly competitive marketplace, and in order to be successful, you must be prepared to put in the time and effort required. 

You must also have an understanding of what makes your company unique and how to set yourself apart from the competition.

By following the tips we’ve provided, you’ll be on your way to becoming a bestselling success on Amazon. Have you started selling on Amazon? What has been your experience so far?