What distinguishes a successful amazon retailer from its less successful competitors? In many cases the answer to this question is: the sales concept or the amazon business strategy. A look at the data of the e-commerce industry shows that the path to long-term success is almost always closely linked to the question of how massively your own offers are presented on the market. Anyone who is limited to selling in his own online shop, is already fast at his growth limits.
It is better to spread products over as many marketplaces, platforms, prisso machines and web catalogs as possible, in order to reach the maximum of potential customers. For many online retailers, this finding is not really new. After all, a large proportion of the market participants got their first e-commerce impulse by selling products at the world’s largest online auction house eBay. But not only during the starting phase of a young Internet company, but also in the product’s development, it makes sense the market opportunities repeatedly by expanding the available channels to increase.
Anyone who is dealing with the largest and most successful marketplaces on the Internet will find the market leader Amazon, which has been offering its trading partners for a long time to sell their own products on the shop pages of the Group for sale. Amazon’s market power is undisputed: in most countries, the company represents almost a quarter of the total e-commerce and offers online merchants several million interested customers, who are eagerly awaiting new offers. For most Amazon customers, buying on the marketplace is safe, comfortable and affordable. Exactly from these image values, every external dealer who decides to offer his products additionally in the Amazon store, profits largely.
One interesting aspect is the option to reach not only customers from their home country, but consumers from all over the world. In this way, the internationalization of the company’s own business model is achieved with the least possible effort. Many other Amazon services also offer interested online merchants valuable ways to optimize and extend existing structures. This includes, among other things, the storage and dispatch of goods, the use of the proven Amazon payment system and the turn-key Amazon Web stores, or the use of Amazon Web services, which automate many business tasks in e-commerce and make them more efficient.
This whole package does not come completely without disadvantages and risks. On one hand, the comparatively high costs that Amazon demands from its trading partners in the event of successful sales. In addition, one must keep in mind that the platform is not only associated with increased sales opportunities but also with a strong competition from other dealers and Amazon itself. Last but not least, it should also be taken into account that Amazon has recently come into the negative headlines due to its dealings with partners and employees. Corresponding imagery damage could also have a negative impact on one’s own reputation if, as an Internet company, the consumer is closely associated with the Group. That calls for questions like – how to sell your product on amazon?
According to a study by Alexa, Amazon.com was rated as the sixth most visited website in the world. This means that it is the most visited e-commerce website in the world. It is therefore not surprising that merchants want to sell their goods on the most popular platform in the world. The location is so serious that Google has recently classified Amazon as its strongest search engine competitors. Yes, it is surprisingly not Yahoo or Bing, it is Amazon.
If you already sell on Amazon, you are certainly interested in big sales. The best way to improve your visibility at Amazon is to win the coveted buybox, which is responsible for 82% of all sales on Amazon. This box is next to the Pandora Box probably the most valuable in the world. However, it is just as difficult to air the secret of these boxes. Only Amazon knows exactly which algorithms are needed to land in the BuyBox.
While the BuyBox is a great thing for any online retailer, there are corresponding difficulties. There are over 2 million vendors fighting for the valuable box. The fact that everyone wants to win them creates a strong competition. Often the prices are reduced so much that even the profit margins are eliminated.
Furthermore, Amazon is known to hold the lowest prices. Customers are happy, but most companies have problems on this basis to maintain a healthy price policy. However, pricing is an important part of the notorious BuyBox equation. In addition, as additional factors, the inventory, the fulfillment of the order and the customer service does also matter. Many merchants also use Amazon’s order management (FBA) because it protects them from erroneous orders. In addition, you can request an annual sales report within the framework of the FBA, which costs something and is only recommended for those who generate high sales.
At first it might seem discouraging to use this platform on account of such a strong competition, the potential gain, however, calls for trying. However, if you are new to the market and your business activity has just begun, it is advisable to use eBay as the first sales platform.
Lets look at it in a detailed perspective
The advantages of Amazon
The brilliant success of Amazon is already the subject of many marketing studies. Let’s take a look at how much a dealer can grow when he decides to sell his products at this giant platform.
It is as easy as a child’s play. Millions of active customers visit the Amazon store every month looking for products.
The figures do not lie: With more than 300 million active customer accounts, crossing 170 million individual monthly visitors, and an income of 100 billion dollars, Amazon is the first choice for most buyers.
Each retailer gains credibility and confidence when listing their products on Amazon. This is because some customers would prefer to buy products at Amazon rather than any other store. Amazon’s promise of excellent quality and best service entices many shoppers to buy their products on this website.
In countries where online shopping is not yet widely known, most trust Amazon when compared to other individual online store.
Since Amazon is one of the largest and most trusted global sales platform, it is very easy to sell in different sales areas. The product reach increases tremendously by expanding business overseas. Of the total sales of amazon, 40% comes from international markets.
With Amazon, every trader can test whether his products are also appealing to a global audience by creating a listing for the local Amazon. You do not have to struggle with local payment systems, logistics and transactions.
Low marketing costs
Amazon is already attracting millions of customers daily to their website, and you get access to them.
Depending on your niche and how crowded the market is, you can start selling from the first day without any obvious marketing efforts.
Of course the competition is great and you will have to stick out of the crowd, a dedicated presence can help you with the efforts of hot linking on Amazon’s huge customer platform.
No need to maintain your own store house
With more than 100 sales offices around the world, you can send your products massively to Amazon, where it is stored, packaged and shipped.
Amazon FBA (Fulfillment By Amazon) is your stock, management and shipping for little money (compared to the cost you would have without FBA). Not only will you be freed from shipping shards, but your products will also qualify automatically for Amazon Prime and Buy Box Priority, which will have a big impact on your overall sales.
Why go Gobal?
There are several advantages of going global with Amazon. To list the significant ones:
The Amazon Brand Benefit
Amazon is a well trusted brand and essentially people see the product coming from Amazon primarily than from the seller. So when selling with amazon, irrespective of your own country, the trust comes inherently. Thus going global with amazon is a safe way to establish your own reputation without it being very hectic or expensive.
Simplicity of Amazon Marketplace Account
If you are considering expanding your Amazon storefront to multiple countries, only one consolidated account on Amazon Marketplacesis required to manage all the products across the world.
Local Language Customer Support (FBA)
If you’re an FBA seller, that you preferably should be initially if you’re going international, you get access to tools that help you navigate international markets. FBA sellers have access to Amazon’s customer support services in the marketplace language, without any extra cost. Thus language doesn’t become a barrier.
Amazon Currency Converter for Sellers
The ACCS tool of Amazon simplifies payment process. You receive customer payment to your bank account that’s already converted in your local currency.
Tips for selling on Amazon Global
Select the right Global Marketplace
Analysis of the marketplace with respect to the demand and supply of the products, sellers intend to sell in a particular marketplace, is a must. You must have answers to questions if the marketplace your are looking at is already saturated with products you’re thinking to sell or the demands for your product is actually unmet. Product specifications matter a lot internationally as the standards could differ, e.g. voltage standards for electronics, safety standards etc.
Prices that reflect international fees
Selling internationally, the seller should be responsible for the customs fees, duties and taxes. Many sellers have these costs included in the product prices.
Understand International VAT
Sellers not complying with the country’s sales tax can face stringent penalties. So it’s essential that sellers that are non native sellers understand how the tax laws of the country where you’re selling are.
Sell AN Amazon.
Sell AN Amazon is a program to which you must be invited by Amazon. The direct sale to Amazon means that Amazon is the rightful owner of your goods inventory, and products marketed and sold to customers is by Amazon.
How it works: brand, model or online retailers to sell their inventory at wholesale prices at Amazon.
As soon as this commodity is sent to Amazon, Amazon will pay the inventory and become the legal owner. Amazon sells this stock on the Amazon volume as Amazon (selling by Amazon) chooses at its own price and shipping options.
Sell AN Amazon: the benefits.
Direct selling to Amazon can be an option for brands or vendors, virtually eliminating the entire sales force, including sales, marketing, and pricing.
Other advantages of direct sales to Amazon include:
- Avoid trouble with respect to pricing, shipping and logistics for product sales
- Mass orders
- Presentation and product detail site functionalities of Amazon
- Tools for inventory projection and data analysis that are not available via Amazon Seller Central
Change from Selling ON Amazon to sale TO Amazon.
If you are already selling on Amazon and are thinking about selling directly to Amazon, here are a few things you should consider:
- The remuneration for FBA products meets after approximately 2 weeks, whereas suppliers often wait up to 90 days of remuneration.
- Amazon will encourage EDI introduce.
- As a direct supplier, you can have large sales at a time, but that often means 20 to 30% lower yields than your normal selling price.
- Suppliers have no control over market prices as Amazon determines the sales prices.
- Suppliers are in danger by new suppliers to be replaced.
- Amazon determines which order to be supplied, as opposed to FBA orders.
Sell on Amazon vs. Sell to Amazon?
Which program you choose to sell on Amazon depends on your brand and your products. In addition, your decision depends on your online store, your processing abilities, your ROI goals, as well as other variables and factors. If you sell as a supplier, directly to Amazon, you bypass some headaches when it comes to logistics, but are limited when it comes to areas like marketing capabilities.
Selling ON Amazon is an option for you as a brand or manufacturer if you want to sell on Amazon, and want to take advantage of a higher range as well as other benefits of the Amazon Marketplace.
Co-Founder At SellerApp
Senior IT executive with over 13 years of product development and global consulting experience in large-scale, complex systems and deep technology delivery and management.