When thinking of selling products online, it is almost impossible to ignore the retail giant, Amazon. With the recent upsurge of both its sellers and users in the past decade, it is only natural that businesses turn to Amazon for gaining high levels of exposure. In the past year, the company hit $232.9 billion in revenue with a net income growth of 30.9%, and this number is continually on the rise. However, there are some downsides to selling through such a highly visited and cluttered online market. In this post, we’re highlighting the pros and cons of selling through amazon that you should keep in mind before you make the switch.
Note; you can also use this list to assess other selling platforms such as Etsy, Bonanza, and eBay.
Pros and Cons of Selling Through Amazon: The Pros
1. Easy and Quick Set Up
In a lot of ways, setting up your business through Amazon is generally easier than setting up your own website. This is due to the various programs and tools that the company includes for businesses of any stature. Additionally, Amazon takes care of fulfillment processes, shipping complications, and payment procedures — which means less logistical work for the seller.
2. Dominant Force in Ecommerce
No matter how amazing your SEO strategy is, having your own website just can’t compete with the amount of daily visitors that already utilize Amazon as their online shopping mall. Selling your products through a market like this might lead to greater exposure and can even get your products seen by a large audience. This is due to the fact that listings on Amazon are usually shown higher up in google searches than those coming from personal websites.
3. Trustworthy Platform
When people shop through Amazon, they know that their needs and concerns will be addressed by a large, reputable corporation. Although it comes in a less personal form of customer service, it is a very credible source. This gives users an increased sense of security when they are making the decision to purchase products from you.
Pros and Cons of Selling Through Amazon: The Cons
1. Amazon Owns the Relationship
When customers buy from you via Amazon, they are primarily just Amazon clients who have stumbled upon your product through searches inside the platform. Due to this, there is a lack of brand loyalty. Instead, the customer is only loyal to the way in which they found your product. In this sense, Amazon tends to own many businesses’ customer relationships, which can harm your chances of gaining independence and recognition online.
2. Reviews Can Make or Break You
This con can also be considered a pro, depending on how your product does on Amazon. Customer reviews are king on Amazon. More often than not, a few bad reviews make potential customers click away, even if the product is within their needs. Buyers place a lot of weight on reviews on this site, and negative reactions can plunge your product to the bottom. This can also leave a lasting impression on your brand.
3. High Competition
Due to the large amount of sellers and products offered on Amazon, your items need to be unique to stand out among the clutter. This can be a problem for many businesses, as the products that were once unique to their personal sites might become lost when they are placed against other brands with similar offerings.
Decided the cons outweighed the pros for your business? Learn how we can help you set up your own online retail store!