Saying that Amazon’s customer base is HUGE is an understatement. It caters to an extremely large number of customers around the world and it continues to bring in new buyers every single day. There were 2.63 Billion total visits to this marketplace in January alone. That is roughly 746 visits per second! By comparison, eBay receives only 1.16 Billion total visits in the same period. That’s less than half the traffic Amazon receives. And how many visits does your Shopify site get? Unless you're Alibaba, it's probably a blip on the screen. And this is the simple reason you need to be on Amazon - your customers are there!
Why Sell on Amazon?
Just in case the 746 visits per second on Amazon is not a good enough reason for you to jump on the Amazon bandwagon, here are 4 more reasons why you should absolutely sell on Amazon.
Amazon dominates the world of online retail.
No other website matches the dominance that Amazon has in the ecommerce space. As of the third quarter of 2018, Amazon captures half of all online retail purchases. eBay is the second largest retail site with a paltry 6.6% market share. You may already have your own virtual store on Shopify or other ecommerce platforms, and your website’s SEO may already be top-notch as people are able to search your store, but the truth is that your market share does not even reach a fraction of Amazon. Your business is at risk of getting left behind if you don’t put your products on Amazon as there is no competing with the traffic it gets.
Amazon is the go-to platform for product searches.
Even mighty Google is lagging behind! Three surveys aimed at determining the share of product searches between Amazon, Google and other digital marketplaces has found out that nearly half of all US digital shoppers start their product search on Amazon, followed by Google.
This was not the case in early 2015 when Google used to be the first platform that consumers turn to each time they want to search and buy products online. Amazon has now exceeded Google, and according to a data report from Jumpshot, almost 90 percent of all product views on Amazon come from its own product search and not from merchandising, ads or product aggregators.
And people browsing on Amazon are not simply browsing for products; they add items to their cart and check out! A study conducted in 2015 by Milward Brown Digital has found out that Amazon Prime members convert in a massive 74% of the time. Tap into this mix of high quality traffic and equally high purchase intent and your business will surely skyrocket in no time!
With Amazon, you are equipped with indispensable tools that will help you make data-focused decisions at your fingertips.
You'll get access to an enormous amount of customer data like location, reviews, customer searches and behavior. With the aid of reasonably-priced, game-changing research and marketing tools, you'll also have access to a list of keywords that shoppers use to search for products, your competitors' performance, sales trends and an abundance of other tools that are continuously developed to help you hack your way into utilizing the full spectrum of data made available by Amazon.
Use the Fulfillment by Amazon service and and enjoy hands-off fulfillment and shipping.
Amazon has an impressively expansive distribution network and sophisticated system and infrastructure to take care of the picking, packing and shipping of orders to your customers. Fulfillment by Amazon offers quick and simple steps to help you scale your business. Whether you decide to sell your products on Amazon or authorize a reseller to put your merchandise up on Amazon, you are assured that your products get delivered to your customers in the most efficient way possible. Now that is less work and more profit on the horizon!
What If You DON’T Sell Your Products on Amazon?
The short answer is someone else will.
You lose control of your product’s pricing on Amazon.
Consumers don’t care who sells the product they want and resellers don’t care about the long-term effect of how they price your products on Amazon. Making sure that you establish your brand on Amazon through a single authorized reseller puts you in control of your product pricing. The possibility of a seller violating the Minimum Advertised Price (MAP) of your products, which has a negative impact to your brand’s reputation if you intend to maintain premium pricing for your brand, is also eliminated. Just imagine somebody selling your merchandise on Amazon for $70 while you sell it for $135. Shoppers may become wary of this inconsistency and lose trust in your brand.
Your relationship with your brick-and-mortar distributors may get damaged.
This is a direct consequence of your lack of control on the pricing of your products. If your products get listed on Amazon at a lower price by unauthorized sellers who happen to have acquired your merchandise at an exceedingly low price from grey market distributors, chances are you will get complaints from your offline distributors. Sales will get driven away from their stores and their shoppers will lose loyalty in them because of the steep price difference in obtaining your product from their store versus online. In return, distributors may threaten or decide to stop carrying your product. Think about the amount of sales that you’ll possibly lose should one of your offline distributors decide that they no longer want your products on their shelves.
You lose control of how your product is listed on Amazon.
As mentioned, your products will most likely be sold on Amazon even if you don’t sell them or assign an authorized seller to sell them on your behalf. And more often than not, your brand will get represented in a different manner on Amazon. Applying for a trademark and signing up for Amazon Brand Registry makes it possible for you to have sole control your storefront as well as each individual listing of your product, including its EBC and image listing.
Say hello to counterfeit versions of your product.
Whether you like it or not, setting little to no barrier for unauthorized sellers to put your items on Amazon will only invite other sellers to create a poor facsimile of your product and sell them at a much lower price. Once consumers receive these counterfeit products, there’s a big chance that they’ll leave a negative review on Amazon or other websites for what they thought was your product. Not only is your brand’s image being tainted; you also get robbed of what could have been YOUR profit.
You lose the opportunity to capitalize on Amazon’s HUGE customer base.
It’s an established fact that Amazon is leading the ever-competitive ecommerce space. Why not leverage on that and establish your brand’s presence to a higher degree? Amazon is no doubt an arsenal that is waiting to be utilized for your brand to gain visibility, so you are on the losing end if you don’t get your products on Amazon right away.
These advantages and disadvantages make selling on Amazon a necessity for manufacturers and brand owners. However, as small business owners ourselves, we understand that you may not have the time or resources to invest in the Amazon channel.
Why not focus on developing your products and have Wurawe Trade take care of the rest? We got your back every step of the way as we know the ins and outs of selling successfully onAmazon. Not only that, we’ll make sure that your brand is represented exactly the way you want your audience to perceive it. Contact us and we’ll do what it takes to help you maximize your profit on Amazon.