Why You Should Sell on Amazon
1. It’s the biggest online sales channel
Amazon is the biggest online sales channel for an online retailer. With over 300 million active Amazon users and 50 million Prime members, Amazon proves to be a powerhouse. With such a large customer base, shoppers will find best selling items on Amazon first. . The massive ecommerce store carries over119,928,851 products as of April 2019 but that doesn’t even include books, media, wine, and a few other exceptions. Don’t be discouraged by the amount of competition you might face. It’s better to be where your customers are by selling stuff on Amazon. Don’t let your competition take all of your potential sales.
2. Additional stream of revenue
The main reason you should learn how to sell on Amazon is that you’ll have access to a second stream of income. When it comes to selling through Amazon, you’ll want to be wherever your customers are. If your customers are on Facebook, create Facebook ads to reach out to them. If your customers love reading and learning about your niche, create a blog so that they’ll find you easily. If your customers shop on Amazon, sell on Amazon. You’ll be able to grow your sales and even find connect with new customers by selling on Amazon.
3. Trusted brand
Amazon is a recognized and trusted brand. Amazon was founded in 1994. Thus, it has over 24 years of relationship and trust building under its belt. If your store lacks brand recognition because it’s relatively new, customers may feel safer buying stuff from Amazon than your store. By selling stuff on Amazon through your own store, you can build a great reputation and brand. And when selling on Amazon, you can get access to the customers who may be a bit more risk averse. Over time, the customers who consistently buy from you may eventually start buying directly from your store.
4. Many people have an account
As mentioned earlier, Amazon has millions of active users. In the US, 45% of households have an Amazon Prime account. The average Amazon Prime user spends $1400 a year on Amazon products alone. Thus, when it comes to ecommerce, Amazon has a huge chunk of market share in the industry. Those with Amazon Prime accounts will likely search on Amazon for items they want since they have special perks as a member. It’s important to be where your customers are. If your primary audience is in the US, then selling products on Amazon is worthwhile.
5. No listing fee
One of the perks of selling on Amazon is that there aren’t any listing fees unless selling as an individual rather than a merchant account. You can add as many products to your Amazon store as your heart desires. With an Amazon Pro Merchant account, you’ll be required to pay $39.99 a month and a percentage of your sale. If you sell a lot of items on Amazon, the monthly fee seems minimal.
6. Proven success model
Many of those who sell stuff on Amazon have achieved big payouts on the platform. About 0.3% of Amazon sellers make over $100 million in sales on Amazon alone, with 0.6% making over $50 million. The number may seem small but $100 million is a lot of money for a brand to make off only one sales channel. Notably, 51% of Amazon sellers make over $100,000 in sales each year so odds are definitely in your favor. With consistent effort, you too can be an Amazon success story.