Pros and Cons of selling on Amazon Marketplace

As data suggests, over 200 million unique monthly customers prefer making their purchase with Amazon over any other store. In 2019 alone 4,000 items per minute were sold by small and medium businesses. Every retailer should consider listing after knowing about these data.

For online merchants, this is a great platform, but the sales depend on many factors like something that works for one merchant will not necessarily work for another one.

Below there are pros and cons of selling on Amazon so that merchants will go over everything and make an educated decision:

Pros:

Sales: If a merchant follows all the rules and guidelines of Amazon and listed their product accordingly, then sales and revenue will surely increase. 
There are millions of users who use this website on daily basis, so it is virtually impossible not to see the huge benefits of wide exposure.
Some might not believe in just words, but numbers don’t lie and according to numbers, in 2019 alone website gain over $280.5 billion and 150 prime members worldwide, that is why Amazon is the number 1 place for buyers and sellers.
Speaking of the increase in sales on Amazon, Amazon’s wide network help sellers built their customer base, so selling on amazon is easier than everyone thinks.

International Reach: Amazon gives your business the opportunity to go beyond your local geographical location and extend your reach to others parts of the globe where there are sheathe of customers ready and eager to buy.
To reach and start selling on international markets, the customer base should be far off and Amazon give all the necessary facilities, and Amazon ships to over 100 countries all over the world.

Get with Amazon or get left behind: Amazon has helped to grow our business immeasurably. Amazon is not only the dominant force behind e-commerce right now, but you simply can’t compete with the number of eyes that can find your product on Amazon.
Amazon only continues to grow and the propensity of global consumers to look to Amazon to make purchases only continues to grow. Amazon is the future (if not the present), and businesses will either adapt to it or get left behind.

Cons:

High competition: The competition is fierce, a long-term strategy is essential and If you're selling the same product as other merchants then you'll be competing with them for the Amazon Buy Box. Unlike Google Shopping, which organizes product pages by sellers, Amazon's pages are ordered by products so, when multiple sellers have the same product on sale, Amazon will decide which seller is the best fit. When a customer clicks the Add to Cart button then the items of the featured seller will be added to their shopping cart. Moreover, when new entrants hit the Amazon Marketplace scene, the competition increases.

You don’t own the platform: Amazon is the second-largest retailer in the world for a reason, as it owns the platform and the assets. Building your assets may seem harder and often takes a long time but it pays off over time.
The largest retailers like Walmart, Nike do not sell on Amazon for a reason. There is a saying that goes:” you get what you pay for”. In the end, you have to give away control over some important parts of your business. It is rightly said everything comes at a price.

Conclusion: 
Ultimately, the decision is yours. For some merchants, Amazon Marketplace could turn out to be beneficial to their retail strategy, but for others, it will not work from the start. Amazon not only helps to solve the next-day delivery issue, but it also gives e-commerce businesses a huge boost. Generating revenue and increasing sales in any business is not unachievable but it requires a lot of planning and forethought. After reading this all the sellers can make an educated decision and grow accordingly.

Evantage offers a wide array of services including maintenance of your Amazon website. Right from amazon catalogue management and amazon content management to Amazon SEO, Amazon PPC, image correction, Evantage can manage the operation for you to maximize conversion rate.
 
Get in touch with us today to discuss your business!

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