Entering the Amazon marketplace seems appealing, but you might be wondering if it is the right decision for you, as launching amongst elevated levels of competition can be risky. Naturally, it’s important to consider the nature of your business when reading the top pros and cons of selling on Amazon to identify whether it could work in your favor.
Although selling on Amazon might not be ideal for every business, it can be an incredible opportunity to grow and retain an audience. It is easy enough to get started if you decide it is the path to follow – and many of these points are proof of that. So, with this in mind, here are some of the pros and cons of selling on Amazon to help you decide if going down that road is suitable for you.
Pros
Quick and Easy
All that has to be done to begin an Amazon business venture is to register a seller account and provide the necessary information about the business. Registering is done online, so can be completed from home, which makes it a comfortable process.
There are also a few stages that include picking a business model and fulfillment method before proposing the products. Once Amazon verifies this information and approves the account, the selling can commence!
Safe and Secure
Amazon is a trusted platform with extensive security measures implemented, encouraging customers and sellers alike to utilize the platform to their advantage and convenience. Their trust and security protect both parties and while increasing sales, as customers are less likely to fear making online transactions on a well-established, highly reputed website.
In addition, Amazon policies also make it simple for sellers to be paid what is owed and customers to receive compensation if anything goes wrong – thus making customer service and seller reputation easier to manage.
Market Awareness
Selling on a platform like Amazon can make it easy to learn about competitors. For instance, comparing listings can help identify errors and inspire change, leading to even more success.
By prioritizing Amazon account management, valuable tools can be used to improve brand visibility, advertise, and forecast demand based on customers’ habits and target audiences. Selling on Amazon also helps make a name in a competitive market by allowing a business to reach a large, relevant audience.
Cons
Fees
Starting off with the smaller business model (individual) means losing a significant amount of profits due to paying Amazon a percentage of each sale. However, with the ‘professional’ business model, there is no per-item fee but instead a monthly charge.
If the option to have sales fulfilled by Amazon is selected, then additional charges, such as storage, will also apply. Albeit fees are common on most e-commerce platforms, they may be a dealbreaker for some businesses.
Less Control
Registering a seller account on Amazon includes agreeing to follow the rules and regulations that Amazon has set. This could mean a drastic change to business operations and loss of control over the process, as well as limitations regarding how a business can ensure customers are satisfied aside from providing a satisfactory product. Amazon’s role in each sale can take strain off a business, but for some, it can also feel like less control.
Competition
It can be helpful to be able to observe the competition, but for startups on Amazon, it might be daunting. Keeping up with the aggressive price changes can be disheartening for small businesses that cannot afford to reduce costs for customers and still make a profit.
In this case, it may feel like competing as a small fish in a big pond. Competition is everywhere, and Amazon is no exception – an important notion that’s worth factoring in when registering for a seller account.
Overall, if a business is comfortable with the rules, regulations, and operations set by Amazon, as well as facing intense competition, registering a seller account can offer benefits that make it a worthwhile entrepreneurial venture. Registering and starting up includes a quick and easy onboarding process, great market awareness, and safe and secure transactions.
After deciding to go ahead with selling on Amazon, setting up can be done within a brief time, full service Amazon Agency can help you to reach a wide audience, increase sales, brand visibility, and growth.
