Pros and Cons of Selling on Amazon
Amazon now owns nearly 50% of the ecommerce selling sphere. Undoubtedly, with that much market share comes an influx of sellers, wholesalers, and small ecommerce businesses that are interested in selling on the platform.
We asked the experts at emarketing to break down the pros & cons of Amazon selling. Keep in mind we are talking about selling, not the advertising platform.
Pros of Selling on Amazon
There are a lot of opportunities to sell more on
Amazon’s Black Box
Having the technology of Amazon behind your product placement means that your ads and inventory end up being shown to people who are in the right area. Additionally, Amazon invests heavily in Google search, though Google Shopping ads still outperform.
Going beyond your local area to sell with Amazon gives you an automatic international reach. You can easily research your international prospects for Google Ads, but we haven’t been able to find a tool that does the same for Amazon yet.
No Brand Searching
The audience behavior of Amazon shoppers raises your chances of attracting new and unique ecommerce customers because they search for products over brands.
Amazon Prime Audience
“Our goal with Amazon Prime, make no mistake, is to make sure that if you are not a Prime member, you are being irresponsible.”— CEO Jeff Bezos
Fun Fact: a survey of 2,000 U.S. Amazon.com customers by RBC found that the average Prime customer spends $538 a year on the site. The average Amazon customer spends $320. There is a definite advantage to using Prime in your Amazon ecommerce strategy.
*Sometimes* Less Work
You may be able to do less work when you sell on Amazon.com. Unlike eBay, you won’t have to continually relist items, but you will have to handle the shipping and customer service basics unless you opt for FBA (US & UK).
Cons of selling on Amazon
Amazon pays sellers every two weeks plus 3 to 5 business days for funds to appear. The delays can be a little
It can be very complex.
Actually selling on Amazon is a bit frustrating
Competition is High & it’s a Pricing Game.
Repricing tools might work for Google Ads or most shop systems, but you have to stay more alert with Amazon. So many third-party sellers on the marketplace and small shops compete for sales with powerful resellers.
Selling fees can add up quickly.
- $39.99 for Professional Seller account
- Referral fees (based on product categories)
- Fulfillment fees for FBA sellers
- Shipping fees
Following Amazons Rules
- You might take a loss with some new inventory – especially with returns
- The company can take away your selling ability at any time
- Personalizing products & service isn’t avaliavle
So What Should Ecommerce Stores Do?
Personally, I’d say do yourself a favor and do not completely invest all your time in selling on Amazon. Talking to our experts, seems like going into amazon selling by being a bit reserved is the way to go. Definitely check out the options for your store, do an Amazon competitor check, and consider the fees with the advantages.
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