Amazon seller

5 Reasons to Sell on Amazon Today (Plus 2 Drawbacks)

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Written by David
29th July 2013 • 4 min read

Selling everything from books to board games, DVDs to three piece suites, teddy bears to kitchen timers, Amazon is the world’s biggest department store, albeit online.

Part of Amazon’s success lies in inviting anyone to sell products on the shelves of its store. Right now, you can list your products for sale on Amazon.

What’s so great about selling on Amazon? And what’s the deal with Amazon being generous enough to put your stock on their shelves?

1. No Website Needed

Maybe you’ve got an idea for a product that you expect the world by storm. Or you’d simply like to reduce your DVD collection, and make some money doing so.

Setting up shop on Amazon is a simple and easy way to start an online business. You don’t need a website or any technical expertise.

What’s more, the customers are already there. Talking of customers, Amazon allows your business to…

2. Reach More Eyeballs

With over 120 million customers worldwide, and 85 million unique monthly visitors to its website, Amazon puts your products out there on a scale that would be close to impossible on your own.

3. Drive Sales

In giving more people access to your products, you boost your potential for sales. Tom Taylor, Amazon’s vice president for fulfilment, says sellers typically report a 50% increase in sales when they put their products up for sale on Amazon’s marketplace.

4. Pick Up New Customers

People will discover you on Amazon who wouldn’t have known how else to find your products. And once you’ve sold to them, you can include details of your website and other products with their delivery.

In other words, being on Amazon is a way of generating leads while making money.

5. Smell What Sells

Split testing is vital to the success of any eCommerce business. That includes testing which products fly off the shelves like hotcakes, and which are left to gather dust in your warehouse.

Setting up shop on Amazon, you can see whether there’s a market for your product in a low-risk way. Before you invest in a big order, or in adding a product page to your website, Amazon shows you whether the demand is out there.

Problem 1: What’s In It For Amazon?

As I’m sure you’ve guessed, Amazon doesn’t give you space in its marketplace out of the goodness of its heart. It’s a ruthless, profit making business. So what does it get out of giving you selling room?

Every time you sell a product, Amazon takes its cut with marketplace fees. These eat away at your profits, and can prevent you from pricing your products as competitively as you’d like to.

But that’s not Amazon’s main concern.

Like you, Amazon is an eCommerce trader. If it sees the products you’re offering selling well, it will compete with you. In other words, by listing products on Amazon, you’re testing the market for Amazon.

Problem 2: Managing a Multi-Channel Inventory

Selling products in more than one place – on your own website and on Amazon, for example – can make managing your inventory tricky.

Software such as Veeqo can help with this, allowing you to manage your inventory from one place.

What do you think? Do the pros of selling on Amazon outweigh the drawbacks?

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Written by David

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