Skeptical About Selling On Amazon Marketplace? Get All Answers Here!

Posted by Alvaro Dee on January 23rd, 2019

With over 100 million Prime members worldwide, Amazon has established itself as a perfect place for businesses to expand their reach and sell their products. Furthermore, if we talk about sellers then, more than 300,000 US-based small- and medium-sized businesses have largely contributed to Amazon's success by selling through its Marketplace. With such statistics, one cannot overlook the significant role Amazon plays in the eCommerce industry.

There are some significant factors you must know, prior going in so that you can make the most of your e-commerce efforts through Amazon. Some sellers -

• who are new on the platform,

• who are not aware of the basics of selling on Amazon, and

• who are not able to spare out time to manage their eCommerce store,

I prefer to outsource Amazon Marketplace Services. It proves to be one of the easiest ways to manage your Amazon store and ensure a positive outcome. But, there are some sellers who remain skeptical about utilizing the Amazon marketplace to sell their products.

The probable reason for this can be the lack of information, unaware of its benefits and drawbacks which one may be able to work out after having proper knowledge about it.

So, if you are also wondering about selling on Amazon then here is the list of Pros and Cons you should consider prior to developing a strategy for building your business on this online marketplace.

The Pros and Cons of Selling On Amazon

Pros

• The Easiest Way To Expand Your Target Audience

It is fairly easy to get started on Amazon Marketplace and get extensive exposure to a large consumer base. You just need to build product listing and send inventory to an FBA (Fulfillment by Amazon) warehouse. That's it! You are in business.

• Unique Products And Good Profit Margins Can Benefit The Most

Amazon marketplace proves to be a great place for businesses that comprises exclusive products with adequate margins. Products that have a comparatively low mark-up, charge around 15-20% of the sale price apart from the listing fees. This cost becomes prohibitive if the margins are low.

• Sell On Amazon Or Get Left Behind

Considering the importance of having an online presence in this digital era, it is significant for every business to build and maintain their own retail website. However, your own website may not give you the same amount of exposure and audience that Amazon can. The way Amazon is dominating the eCommerce industry right now, one can say that it will only continue to grow. Further, the propensity of global consumers to look to Amazon for shopping will continue to increase too. This suggests that becoming an Amazon marketplace seller is crucial for the future success of any small business. You may get left behind if you don't adapt to this future of eCommerce.

Cons:

• Sellers Can Steal Your Listings

Your easily accessible listings make it easy for fraudulent sellers to copy it. This not only makes you lose sales but also attracts bad reviews, effectively ruining your hard-earned reputation. However, you can prevent it by carefully managing and optimizing your brand on Amazon from the start with Amazon Listing Optimization. Further,  Amazon is also making progress in controlling counterfeits through its Brand Central registry to protect the authorized brand owners. With improved Amazon policies and by smartly optimizing your listings, you can prevent such things.

• Amazon Owns The Customer Relationship

Amazon no doubt is an outstanding channel for businesses to reach large audiences. However, when it comes to customer relationship management, Amazon owns the customer relationships which makes it difficult for sellers to maintain a direct relationship with their customers. Customers that get your products are Amazon’s customer and it handles all the customer communication and concerns accordingly. The best way around is to get customer information through product warranty or free e-books sign-up.

So, the conclusion is that even after having a couple of cons, selling on Amazon Marketplace has an unmatched potential for sales. It is believed to be one of the best places to launch new products and grows into a fruitful business in just a couple of years.

If you also wish to launch your products and be successful online, drop a mail to info@suntecdata.com and know how you can get Amazon Marketplace Services to safeguard your business from the major cons.