For merchants, the volume of sales and reaching wider markets are of prime importance. For this, just having your own web-store might not be enough. You have to plan on reaching out to a larger customer base. Established and proven marketplaces like Amazon provide you the opportunity to do this easily.
Amazon is one of the biggest marketplaces in the world
Why Sell on Amazon?
You have probably heard of how Amazon focuses on offering products at competitive prices leading to price wars between Amazon sellers. Maybe you are afraid that listing your product on Amazon will drag you into these price wars, or maybe you are afraid that Amazon might eat into the sales from your own Shopify store and other channels.
While some of the fears are justified, there are ways to mitigate these dangers. Which is why you shouldn’t ignore the opportunity provided by the world’s largest marketplace. So, utilize Shopify’s smooth integration with Amazon and list your products on this huge marketplace. Here are the benefits of doing this:
World’s Largest Marketplace
As everyone knows, Amazon is huge. Its customer base is much larger than even that of eBay. It has a global reach, making it easy to expand your sales across borders. Amazon’s popularity is growing, and Fortune magazine has predicted that 50% of all US online sales will be through Amazon by 2021.
Regulate Unauthorized Sales
Remember, Amazon is an open marketplace. Anyone can sell any product there. Your own products will be sold by third-party sellers. Some of these might indulge in sales tactics that can damage your brand image. So, why not sell directly on Amazon yourself and regulate unauthorized sales? Amazon’s Brand Registry program helps you identify brand infringements and take appropriate action.
For Amazon, the customer experience is its first priority. It gained the customer’s trust by being entirely customer-focused. So, consumers trust this marketplace. A study done by The Values Institute found that Amazon was the most trusted brand in the US. Why not tap into this huge asset, which will take the least amount of time and effort to build?
Amazon offers many benefits to its vendors
Product Research Begins At Amazon
Most people now begin researching products on Amazon, rather than on Google. They use Amazon’s search tools to find products and read the reviews and ratings to see if a product is worth buying. Even if they find a product on the brand’s own website, many people still research the item on Amazon. So, as customers search for your product on Amazon anyway, utilize this to drive more sales.
Use Amazon To Get Attention For Your Products And Brand
Listing your product on Amazon is free. You will have to pay a good percentage as a referral fee and if you’re in the FBA program, the cost will increase. However, these apply only to the sales you make. It may be worth all the cost to gain visibility for your products on a trusted, vast marketplace.
Amazon Customer Programs
Amazon offers many programs aimed at attracting customers. Prime Members enjoy many privileges and so they spend twice as much or even more than non-prime members. It’s estimated that around 50% of Amazon households have a Prime membership. If you become an FBA seller on Amazon, you can tap into this huge customer base.
Besides Prime, there are other programs like Subscribe and Save, Pantry, etc. If you qualify for these, you can really increase potential sales volume.
Easy And Economical To Get Started
As stated, you can get started for a low fee even for the FBA program. This gives you many advantages. You can also enroll in other seller programs like Unified marketplaces (North America, EU, etc) and expand your reach with very little investment. This opens up a global market even for small businesses.
FBA Program Reduces Your Workload
If you choose to be an FBA seller, you will have fewer issues to worry about. While you will have to pay the referral and fulfillment fees, you will not have to worry about shipment, returns, etc. Amazon takes care of packaging, shipping, delivery, returns, etc for FBA sellers. You just list your products and ship them to an Amazon Fulfillment Center and Amazon takes care of the rest.
Also read, 15 FASCINATING FACTS ABOUT AMAZON COMPANY
Retail Horizon And Amazon
Amazon is much more than just an online marketplace. Amazon is a technology company that is on the cutting edge of retail technology, online and offline. So, if you sell on Amazon, you will also benefit from Amazon’s expansion of its retail horizons as it experiments with new techniques and innovations.
Add Amazon sales channel to your Shopify store to sell on Amazon
As a merchant, your main focus is on increasing your sales and your reach. Amazon Marketplace enables you to increase both, easily, with little investment. There are drawbacks, as with any other sales channel. If you exercise enough care to avoid price wars and still provide customer satisfaction, Amazon can be a great additional sales channel for you. It can even eventually help drive traffic to your own Shopify Store. Sell on Amazon, tap into its customer base, its trustworthiness, and its many good seller and customer programs.