November 30, 2021

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PROS AND CONS OF SELLING ON AMAZON

3 min read
Pros and Cons of Selling on Amazon - Still Worth It 2021?

Amazon is the most renowned international online marketplace in the world. Amazon.com continues growing day by day, as more online businesses are turning to the site for more profits.

In the month of May 2021, this marketplace had more than 2.5 billion mobile and desktop visits, increasing by around a half-billion visits in February. There is no doubt that Amazon is a dominating empire, and it has been helping businesses for a long time. But, is it the most suitable place for selling?

In this article, you will find the pros and cons of selling on Amazon to help you decide whether to start selling on this platform or not.

SELLING ON AMAZON: PROS

MORE SALES 

 Millions of active customers look to Amazon every month for shopping.

By listing your products on Amazon, you will automatically gain trust and credibility. That is because many shoppers prefer to shop from Amazon instead of shopping from a shop they’ve never heard of. Amazon’s commitment to great service and excellence attracts many shoppers to buy products from their website. 

WORLDWIDE REACH

Since Amazon is an internationally trusted brand, it provides businesses with the opportunity for expanding their products into different markets. It provides businesses the chance to expand beyond their local geographical region and extend their reach to the other parts of the world where there are swathes of customers eager to buy your products.

EASY TO USE

Whether you are an ace webbie or don’t have any idea what goes on behind the scenes, Amazon makes it extremely easy for you to set up your shop and begin selling. The design is very user-friendly on both sides of the table. For sellers, in particular, there are plenty of tools available on the website for the ease of the listing process.

CUSTOMER ACQUISITION

One of the best things about online marketplaces is that buyers don’t use them to look for a particular brand – they use them to look for a particular product. This increases your possibility of attracting unique and new customers since the possibility of them finding your business is increased.

SELLING ON AMAZON: CONS

HIGH COMPETITION

You apparently saw this one coming, and yes, the competition is tough. A long-term approach is necessary. 

If you’re marketing the same products are other sellers, then you will be competing with them for the Amazon Buy Box.

Therefore, when different sellers offer the same product on sale, Amazon picks which seller is the best fit. When someone adds a product to the cart, then the product of the featured seller will be added to their shopping cart.

FEES

Although the revenue of your business will possibly increase, however, it comes with a cost, and it may not be effective if you are selling products with low-profit margins.

LACK OF CONTROL

After you sign up for a marketplace, you must continue by its rules. Amazon does not focus on the sellers, it focuses on the products. This indicates limited means are available for you for showcasing your brand presence.

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