Why sell on Amazon?

Why sell on Amazon?

Bear with us; this post is slightly longer than our usual golden nugget blogs, but it’s worth the read…

Running an independent online store is a tough job. Before you even think about ways to drive traffic to your site, you first need to invest thousands of pounds in infrastructure and technology to create an amazing, seamless buying experience, which is now demanded from consumers.

But why sell your products on Amazon? What benefits does this marketplace have and how can it boost your sales? Let’s have a look at some of the key reasons.

Shear volume
300 million: the staggering number of estimated users that Amazon boast (100m of which are European). It doesn’t take a genius to realise that by listing your products on the Amazon platform, your potential customer reach gets a significant (slight understatement) boost.

Amazon also has an aura around it, with loyal customers flocking back day after day to spend their hard earned cash (the average Primeuser spends £900 a year). Even if you tapped into a fraction of that buying frenzy, you’d see your revenue soar.

Link up
Not everyone will visit Amazon searching for your store, BUT, there’s every chance they’ll randomly land on one of your listings and hit the buy button.

By gathering data from these new customers, you then have the freedom to drive them direct to your website, luring them in with offers or products that aren’t available on the Amazon marketplace. If you own the relevant trademarks, you can also create an Amazon Store, which can replicate your own website, but is present on Amazon.

This is obviously a longer term strategy, but by planting the seeds early, the harvest could be fruitful.

No Sale. No Fee
We often hear about the fees that Amazon charge, but like a good steak, you get what you pay for. Where else could you display an unlimited number of products in front of 300 million potential customers and only pay a fee once you sell something?

Sure, Amazon may take a 15% slice of your revenue, but once you tally up how much you spend on Google Adwords, Facebook ad campaigns and direct marketing to drive consumers to your website, this percentage suddenly doesn’t seem so large.

Consumers Love Amazon
There’s a reason it’s the largest and most trusted company on the planet; from single-stream checkout to next day delivery, the entire platform is aseamless experience for buyers.

The variety and all-in-one aspect of the marketplace draw in millions of customers who prefer shopping from their sofa over your traditional high street, and with Amazon’s cutting edge technology, the customer experience is only going to get better. Research has actually revealed that 40% of purchase related searches now originate on Amazon, beating Google!

Amazon users are also primed and ready to buy. When they search for something on Amazon it’s because they have a willingness to buy, they aren’t just browsing to kill time. Another monster upside is that their credit card details are saved, all they have to do is hit one button and voila, purchase made. Customers won’t have the same risk tolerance on other websites or the willingness to buy, hence why conversion rates onindependent stores are significantly lower.

Their infrastructure is mind-blowing
There is simply no competition with Amazon when it comes to any kind of brand recognition, logistics operations or business opportunity.

Amazon’s world-class fulfilment centres are expanding into more and more countries, which is brilliant for your brand, as it allows you the opportunity to tap into foreign territories that would have been a no-go zone previously.

Amazon is also investing heavily in international growth markets, such as India and Brazil, whilst building their own logistics carriers by scooping up aircrafts, trailer trucks and ocean shipping companies.

Work less. Sell more.
Eh? Yep, thanks to Amazon’s FBA (Fulfilled By Amazon) service you simply send your inventory direct to an Amazon fulfilment centre (a.k.a, a big warehouse) and let them handle everything; from packing and shipping to customer service.

This is a huge upside for brands that don’t have the infrastructure or logistics to deal with hundreds of monthly orders and two-day delivery targets. If you are based within the UK, you can also tap into the European markets and Amazon will deal with all of the logistics for you.

All you need to do is keep an eye on your seller central platform, ensuring the inventory that you are sending it is being churned out quickly and efficiently. Amazon has recently increased their fees for holding inventory that sticks, therefore, it’s essential that you keep on top of things to avoid unnecessary fees (shameless plug, we can manage all of this for you).

Summary
Like everything, there are negatives associated with selling on Amazon, yet from what we have seen the upsides heavily outweigh the downsides.

You not only get the opportunity to expand into international markets where loyal customers are willing and ready to buy, but you also have the opportunity to outsource the logistics, freeing up your time to concentrate on growing your brand.

In summary, listing your products on Amazon is like having a storefront in the world’s most popular shopping centre, but without the overheads. No brainer.

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