Should You Sell on Amazon? Yes!
Selling your products on Amazon should be an important part of your marketing mix, if you are serious about selling your products. By selling on Amazon, you can increase brand awareness, reach new customers and increase your sales.
Why you should sell on Amazon?
- Your products will be in search results where 90% of America’s online shoppers shop
- Listing your product on Amazon will increase find-ability, reaching new audiences, not just your email list or social media following
- Amazon is the largest online retailer
- It makes it easy for your customers to find and purchase your products
- Encourages sharing your products via their affiliate programs with targeted customers
- Amazon is just another distribution channel, just like using a distributor or selling wholesale
Not convinced? Here are some reasons I’ve heard people are hesitant to list their products on Amazon:
- Amazon will compete with my online shop. So, if people actually find your product on Amazon and buy it, isn’t that the goal? And, if you don’t list it on Amazon, your distributor or someone else who is purchasing it wholesale might just list it on Amazon. Wouldn’t you rather your customer buys directly from you via Amazon?
- It’s just one more thing to manage, and I have too much on my plate right now. Amazon really streamlines your processes. Once you are set up, you receive emails when someone buys one of your products with all of the information you need to ship the product.
How it works to sell your products on Amazon:
There are two ways to set up your products. One is fulfillment by Amazon where you ship product to an Amazon Fulfillment Center and Amazon ships the products for you. Amazon maintains inventory of your product in their warehouses. I recommend this only after you have consistent daily sales of the same products.
The other option is to drop ship your product when an order is placed at Amazon. I recommend starting with drop shipping. If you are selling a product with multiple units every day, then I’d look into switching to a FBA (Fulfillment by Amazon) vendor.
Who does well on Amazon?
Brands and businesses that are selling their own products. As a maker, your products are unique to you — it’s your pattern, book, kit, finished item. When you set up your Amazon profile, you link to your website and Amazon is smart enough to know that you own your brand. This gives you, as a seller on Amazon, an extra layer of credibility and authority, and customers on Amazon would rather buy directly from a brand, giving you higher brand awareness.
You are given an advantage over resellers of your brand, like distributors and such. You’ll have a better chance showing up in the Buy Box, which means you’ll have a better chance of getting the sale.
This doesn’t mean to give up your own ecommerce website and branding – they are an important part of your business. Your own ecommerce site gives you the ability to communicate directly to your loyal customers. Amazon just lets you get your products in front of a larger audience.
Listing your product on Amazon:
Amazon does not allow two pages for the same product. If someone has already listed your product on Amazon, you’ll need to match your product to the product detail page that already exists. What this means – you know how you’ll find something on Amazon and then you’ll see you can buy used or from other vendors? And click into the other options? That’s what will happen. Your listing will be one of the other options — until your credibility puts your listing on the Buy Button.
What is the Buy Button on Amazon?
The Buy Button is the big yellow Buy Now button on an Amazon listing that puts a product into a customer’s cart.
What are the downsides to listing your products on Amazon?
- You will incur extra costs and your profit margin will be lower. But, you’ll reach new audiences – consider that marketing costs. Generally the fees are 15%. The key is to make sure you list your product pricing so that you still make a profit.
- Competition. Anyone can sell your products on Amazon and someone might start a pricing war, lowering prices to get the sale. The key is to not play – if you aren’t profitable at the listed price and it’s your product, they can’t be profitable. Let them sell at a loss – they are getting your product from somewhere. So somewhere you got that sale!
Getting started selling on Amazon
It only takes a few minutes to set up an account, and not many more to start adding your products to Amazon.
Want to get started? Here is a link to learn more about setting up an account and selling on Amazon.