Amazon has become the go to marketplace for online shoppers offering convenient and a one-stop shopping experience for its customers. Shoppers can find everything on this marketplace from apparel, books, grocery to electronics and much more. With over 310 million active customers on the platform, there are a lot of opportunities and benefits for selling on Amazon. Statistics show that the majority of online product searches are coming from Amazon over Google. Amazon is the clear choice for businesses looking to expand their business and increase their revenue. In this article we discuss the benefits of using Amazon for your business to gain visibility and increased sales opportunities. It is often advisable to speak with a specialist E-Commerce service provider to get the best advice available.
Existing Customer Base
First and foremost, Amazon already has an existing customer base. By expanding your business on to this platform, you are automatically given the opportunity to sell to millions of active users. Customers associate the Amazon brand with high trust and credibility. An existing customer base means a lower customer acquisition cost when starting your online business. As a seller on the platform, online retailers are able to leverage the Amazon brand name that is highly trusted and a name customers are loyal to. Customers may be hesitant to purchase something from a new business or a brand that is unheard of but because of the trust that customers have with Amazon, it automatically gives brands and vendors the instant credibility. One of the main advantages of being Amazon’s third party seller is its solid reputation as a trusted brand. This opens up the chance for new business opportunities for third party sellers. Amazon is a trustworthy site therefore customers shopping know that they are browsing through good quality products at a fair price. Amazon is able to provide its customers especially Prime members with convenience in shopping, fast delivery, quality products at a good price and hassle free returns. Selling on Amazon gives customers the confidence to shop and purchase your products due to the built-in level of trust that they have with the platform.
Fulfillment By Amazon
Amazon offers third party sellers and consumers with simplified processes through the fulfillment infrastructure that is already in place. Third party sellers have the option to have Amazon fulfill and manage their orders if they use the Fulfilled by Amazon (FBA) program at a cost. This program allows sellers to send their inventory to Amazon’s warehouses and fulfillment centers across the countries where they stock the products and ship the items directly to the end customer. Under the FBA model, Amazon is responsible for the product as soon as It’s been sent into the inventory warehouses. Not only does Amazon manage the entire process of order picking, packing and logistics, they also handle customer service including managing refunds and returns. Your business can massively benefit from Amazon’s advanced fulfillment network and outsourcing tedious tasks to the experts. This opens up your time to concentrate on building your brand and focusing on your core business. Through the use of FBA program, sellers can benefit from prime eligibility to their product listings which results in higher organic search result ranking within Amazon’s search results pages. This increases your product listing visibility and click through rate. Not only does using the FBA program offer convenience for selling on Amazon itself, but sellers are able to integrate FBA into other sales channel like their own ecommerce website or other marketplaces with the Multi-Channel Fulfillment (MCF) option. The MCF program offers cost effective one-day and two-day delivery selections. The opens up the option for customers on your other sales channel to enjoy the fast and convenient shipping timeframes offered by Amazon. Multichannel fulfillment option uses the existing inventory in the Amazon warehouses. The benefit of using this is centralizing your inventory in one place and all managed by Amazon’s FBA teams. You are able to take advantage of the multichannel fulfillment option offered by Amazon to expand your business to other sales channel.
Expanding your online business globally can be a daunting and intimidating concept. However, Amazon makes it easy for their existing sellers to reach millions of customers locally and internationally. By expanding your business internationally, brands are able to leverage Amazon’s infrastructure and operations in place for increased visibility and revenue. Selling on Amazon opens up opportunities for third party sellers on the platform to become international players by using Amazon’s existing programs such as FBA export or Amazon Global Selling. The FBA export program helps sellers export their product overseas to over 100 countries reaching millions of customers around the world. Amazon is responsible for exporting the orders to the end customer using your existing FBA inventory in the warehouses via Amazon.com platform. This requires no additional work from the seller, streamlining the process for expanding your business and presence internationally. This program assists business owners with identifying and analyzing the opportunity for which country to invest a presence in. Amazon Global Selling program on the other hand gives sellers access to top international retail markets through its marketplaces in USA, Canada, Mexico, United Kingdom, Germany, France, Italy, Spain, Japan, China, India, Singapore and Australia. Amazon provides their FBA program in these international marketplaces to manage order fulfillment, warehousing and logistics eliminating the challenges that sellers might experience when selling in a foreign country. Amazon is definitely the perfect starting point for online retailers and merchants looking to sell their products internationally.
Getting launched as a third party seller on Amazon is relatively straight forward. Amazon offers the tools and the infrastructure they have in place allow for brands to easily jump start their business online through the Amazon platform. However, keep in mind that it is crucial to follow all the policies and guidelines set up by Amazon to avoid the risk of selling account suspension. Nearly half of all online shoppers start their product searches directly on Amazon. If sellers aren’t leveraging Amazon’s marketplace, they are not just missing out of Amazon’s users but also online shoppers as a whole. All in all, expanding your business using Amazon helps you to scale your business and reach a wider audience.