Things To Consider When You Expand Your Ecommerce Business To AmazonIf you closely follow the trends in the market, you will notice that there is a rise in the number of consumers shopping online. Whether you have your e-commerce website or you are selling your goods and services through another established e-commerce website, you have scope to grow in the current market condition.
Why Sell On Amazon?Amazon, being the biggest e-commerce website, offers you a lot of benefits of selling through its platform. It has built loyalty and trust with its users, which benefits your business too if you sell on Amazon. When you choose to sell your products on Amazon, you get access to their loyal customer base. If you opt for Amazon FBA (fulfillment by Amazon), you won’t have to worry about logistics, Amazon will take care of it, in exchange for a fee. Amazon offers so many benefits to sellers on their platform, that it is worth considering expanding your business to Amazon. Here are some things to watch out for before expanding your business to Amazon:
- What type of seller are you: There are certain types of sellers that benefit the most from Amazon’s platform. If you have products that are unique to your brand, sell niche products that Amazon is less likely to sell themselves, or sell refurbished products, you are more likely to face much less competition and succeed in the Amazon ecosystem.
- Should you opt for FBA: Amazon has the option to opt for their logistics service called FBA, short for Fulfillment by Amazon. In this, the seller would just have to send their products to the Amazon warehouse and Amazon will take of how to ship them to buyers. Amazon offers the FBA service in exchange for an FBA fee. Based on whether you can afford it or not, you can choose FBA.
- How do listings on Amazon work: Amazon lists products on their website by seeing things like pricing, product description, etc. You need to do your research and optimize your product listing to maximize your chances of landing on the first page of product results so that your product gets visibility.
- How much can you earn by listing on Amazon: Before you decide to list your e-commerce business on Amazon, do research about the profit margins. If you cannot earn more by listing on Amazon compared to what you already earn, there’s no point in going through all the trouble of putting your business on their platform. With that said, many sellers have been able to earn profit margins of 20% or higher by selling on Amazon.
- Amazon’s policies: Amazon has certain policies that every business selling on its platform must abide by. Things like Amazon’s shipping and return policy are important for every seller to stick to, regardless of how it affects the business. So check their policies and make sure you’re comfortable with them before listing on Amazon.