With the convenience of online shopping, finding products in high-street stores is slowly losing popularity. These days, online sellers offer temporary high-street shops while entrepreneurs are similarly moving to establish an online existence.
With so many businesses serving millions of customers, the online selling trends evolve while the motto of most online stores remains the same, “attract more customers”. When you think about online stores, Amazon is what comes to the minds of many. This online shopping mall has proven its credibility and reliability with the quality of services it offers, something that brings consumers back for more. However, the question still remains: “Is Amazon a friend or foe for the online seller?”
Is Amazon Helpful as an Online Seller?
Sellers trust Amazon to help improve their sales volume. Most online shoppers search Amazon when they are looking to buy. According to a study by the trade publication Internet Retailer, Amazon sells more online than the next 12 big internet retailers, including Target, Staples, and Walmart. More visitors go to Amazon, which means the rate of potential purchases far outnumber that on any other online shopping site.
It says that, even though most people start their shopping with a search engine like Google or Yahoo, they end up at Amazon’s storefront. You can find anything in this site, from the book to products such as Xerox ink here.
Amazon invests heavily in Search Engine Marketing (SEM), and it shows. Amazon provides reliable services to sellers, like efficient shipping, customer support, and payment processing. Sellers marketing products through Amazon are discovered faster. Customers can find almost everything about your products, like pricing, details, rating, and more.
For small business owners, reaching people across international borders can be difficult. However, selling your products on Amazon helps you reach a much wider customer base, around the globe.
Amazon can work for business owners looking to sell, for several reasons:
- They want to employ minimal staff and keep operational costs low. Amazon’s marketplace offers them support.
- If they deal with products for niche groups, then Amazon is an easy way to reach a wide market.
- If they would like to sell off excess stock or if they want to introduce a new product and measure demand, then Amazon can allow this without the cost of setting up a dedicated e-commerce site.
When is Amazon Not a Good Fit for an Online Retailer?
If you want to create your own brand awareness and if your business relies on repeat customers, then Amazon may not be the best option. If your niche categories crisscross with that of Amazon, for instance, books and electronics, your sales volume would probably not benefit from an Amazon presence.
Unless you have complete knowledge of the price margin your business can allow, in addition to the inventory and volume estimate, selling through Amazon would only hurt you financially, as you would be paying fixed or variable fees in an attempt to boost sales through Amazon.
Despite the fact that Amazon may not benefit all online sellers, it is clear that Amazon has become a sine qua non for most. The dizzying climb of 65% growth in marketplace selling is proof as to why online sellers trust Amazon to expand their reach, sometimes far beyond what they ever imagined.