A lot of people already know that Amazon is a big deal. More than 200 million unique customers choose to buy things each month than from any other store. It was a big deal in 2019 when they said that small and medium-sized businesses sold about 4,000 items a minute. In light of these numbers, it is clear that all retailers should at least think about putting their products on Amazon at some point.

It’s an excellent way for online businesses to make money. However, what works for one store may not work for another, and one store may not work for another. Amazon has both good and bad things about it, and we’ll go over everything else you should think about before making a choice.

The Advantages of Amazon Selling

Many people are interested in how Amazon has been able to get a piece of our brains and become the number one place for many people to shop. Today, we will look at how much money a store can make if they sell things with the giant colossus on them.

More sales

Many people come to Amazon each month to look for things to buy. And the numbers don’t lie: The website made more than $280.5 billion in revenue in 2019 and had 150 Prime members all over the world. We can see that most people go to Amazon first to buy a thing.

Every time a retailer lists their products on Amazon, they gain credibility and trust. Some people are more likely to buy something on Amazon than at a store they’ve never heard of. Many people buy products because they promise high quality and excellent customer service. They are likely to have had a good experience buying things on Amazon before, so your shop gets a boost from that.

If you live in a country where online shopping hasn’t yet caught on in total, most people trust Amazon more than almost any other online store. Many people know now that more than 100 million Alexa devices have been sold. It’s even possible for people to buy things with their voices.

Amazon global

International Expansion

If you want to start selling in different countries, Amazon is one of the most well-known and trusted places. Although they only have websites for 13 countries, they ship to more than 100 other countries worldwide. It’s up to the shopper to see if they might be willing to pay more for shipping because of where they live.

When you use this ecommerce giant to go global, it’s a lot easier than most shopping cart systems. In Magento, you can set up multiple store views. Other systems require you to set up a new shop for each different language. You have to do a lot of work without knowing how well the product will do in that market.

With Amazon, any retailer can quickly see if its products are famous worldwide by setting up a listing. They take care of everything, from international order fulfillment and customer service in your language. It takes a lot of the work off your hands because you don’t have to figure out local payment systems, logistics, and operations.

Low marketing costs

Amazon already has millions of customers coming to their website every day, and you can get in touch with them. As long as your niche and the market aren’t too crowded, you can start selling right away and not spend a lot of money on marketing. Shopping for the products you sell is easy because the website acts as its search engine.

So, of course, you need to stand out from the crowd. Amazon has a lot of customers, and you can use that to your advantage if you have a well-curated website. Any work you put into making your listings better has the potential to pay off big time.

No stock

With more than 175 fulfillment centers around the world, you can send all of your products to Amazon at once, and they will store them, package them, and send them to your customers for you, so you don’t have to. Easy! The main benefit of this is that you don’t have to think about shipping things. You can work on other important business tasks while having a good time watching your orders grow.

Because Amazon FBA (Fulfillment by Amazon) is a service that helps you store and ship your products for a minimal fee, it saves a lot of money for you. On top of that, your products will automatically qualify for Amazon Prime shipping and the Buy Box, which will make a big difference in your sales. Seeing the Prime logo is a great way to get people to buy things.

The Disadvantages of Amazon Selling

No one can argue with the many benefits of selling your inventory on Amazon, but there are many things to think about before you make a move. Some things will affect your strategy and pricing, such as high competition, high selling fees, and order management. These things need to be thought about carefully.

High competition

There is a lot of competition, and you may have already guessed this one. A long-term plan is essential. As long as you’re selling the same thing as other merchants on Amazon, then you’ll be competing with them for the “Buy Box” on the site. If you look at Google Shopping, sellers arrange that product pages. Amazon’s pages are organized by-products.

So, when many people sell the same seller, Amazon will choose the best one. When a customer clicks Add to Cart, it will be added to their shopping cart. The items from the featured seller will be added to their shopping cart.

There may be many people selling the same thing, but only one seller will get the highest Buy Box Score and win the sale. Invariably, the winner gets everything. It is even more critical to have the Buy Box on mobile devices because people are less likely to scroll down and look at other sellers on these devices.

When more people join the Amazon Marketplace, there is more competition.

We don’t know how to win because Amazon keeps changing its factors to choose the winner. Because we know a lot about how the score is made, we can improve it.

Selling fees

They don’t come for free. Amazon charges retailers a lot of money for every product sold through them. It’s best to know how much you’ll pay each month before you start. Let’s figure out how much each thing costs. When you sign up for a business account, you’ll be able to choose from two different types.

Order Management

If you’re selling your goods on many different websites, you need to think about syncing orders. You need to make sure that Amazon orders are brought into your system immediately to have a central order management system that is always up to date. Amazon does not work with shopping cart systems. That puts merchants who sell their products on many different websites in a challenging situation because they have to keep orders and keep their stock levels up to date.