Reviewed By Jason Guerrettaz
Written By Matt Perkins
Published September 27, 2018
Updated October 29, 2024
If you haven’t yet branched out into online opportunities to grow your business, the options are now better than ever. You can’t afford to wait when it comes to selling products and tapping into the power of Amazon FBA might be one of the easiest and fastest ways for you to move forward.
Becoming an Amazon FBA seller is a highly profitable and exciting prospect if you know what you are doing and if you have gathered the right advice. Many Amazon FBA sellers ultimately choose to exit their business when they have built it to the point that it becomes very profitable to sell the company and hand over the reins to another person. If you are just contemplating getting involved in an Amazon FBA selling, however, there is a good chance that you have questions. According to recent research, more than 60% of Amazon sales over 2024 were made by third-party vendors, which are from small to medium-sized businesses.
The e-commerce monster has had a significant impact on small businesses, and many people are choosing to join Amazon FBA as their best option to protect themselves from Amazon’s increasing corner on the market. It can be challenging for small and medium-sized businesses to get their products onto the shelves of big-box retailers like Walmart or Target. The vendor application process can take an extremely long time. In contrast, however, listing your products for sale using the Amazon FBA system can be accomplished exceptionally quickly. This can help you get your product in front of more than 310 million customers around the world, and the process of online registration takes just a few minutes rather than the months associated with trying to get your products in a big box store. You can definitely make sales when you put your product in front of millions of users.
An online study recently found that consumers prefer online marketplace sites such as Amazon because they provide a broad catalog of products, convenience, cheap shipping options, and competitive prices. Online product reviews and outstanding customer support also increase brand loyalty and trust, which means that when people trust Amazon, they might also trust your brand when you’ve begun to build your company there. When you sign out for fulfillment by Amazon, you get access to many different benefits of working with this major retailer, including their shipping, customer service, and warehousing divisions. Your box and send your inventory to an Amazon fulfillment center. At the same time, you concentrate on your production and many other aspects of running your business; Amazon selects, packs, and ships off your products and can even provide customer service. Amazon will keep the customer information to itself and charge you for this service, but plenty of businesses find this to be a powerful and still meaningful trade-off.
It is no longer news that Amazon businesses are doing very well. With thousands joining the ecosystem on a daily basis, one can only imagine how large it will get in the coming years. Increased sales, product listings, and a wide range of potential buyers are only a few benefits Amazon offers. Let’s look at some benefits of small business selling on Amazon in detail:
Millions of active and quality customers visit the Amazon store each month, looking for products to satisfy their never-ending needs. It has been discovered over time that users often trust Amazon products more than a store that’s just gaining recognition. Small business owners can significantly increase sales based on the trust the customers have built for Amazon over the years. The Amazon store is known for excellent customer service and smooth transaction processes, hence the level of trust among online shoppers.
There is only an increase in sales with a corresponding increase in the number of customers, at least in most cases. Most people only look for product details when they shop at Amazon stores; they only pay a little attention to the brands and a small business or newly established brand that can work in your favor. Once a first-time customer buys your product from a long array of others, his or her return is solely in your hands. The better your product, the higher the chance of a customer returning. So you might want to put more effort into the quality delivery of your product.
Amazon has a customer base across nations of the world, which means when you choose to sell on Amazon, you get to sell in different markets of the world. It is always up to the shopper to buy from stores in their country or overseas with extra shipping fees.
When compared to the cost of setting up local stores in different countries, you can have access to more customers simply through the Amazon FBA. Without doing so much, your business is gaining global relevance and recognition; what better way to scale up your small business?
Selling on Amazon means that you have access to a place where customers already exist. Depending on how your products satisfy a need, you can make your first sale on your first day without spending extra fees on marketing.
The Amazon store has a search results feature that allows customers to find your products quickly. Of course, the competition among small businesses on Amazon is vast, and this is why you can gain ground further by investing in Amazon Ads. It could be sponsored products, sponsored brands, sponsored displays, or lock screen ads. All these give your business a higher visibility on the Amazon store.
Amazon has a large fulfillment center across the world, which means that you don’t have to incur storage costs. You get to ship your products in bulk to Amazon, and by signing fulfillment by Amazon FBA, they provide warehousing, management, and shipping functions for you.
The benefits of selling on Amazon are unarguably, but it is definitely not all roses there. There are some challenges worthy of your consideration as you take the step of selling on Amazon.
You don’t need a sorcerer to tell you that the competition on Amazon is fierce, and you would need a long-term strategy to always stay on top of the game. There may be hundreds and thousands of other small and medium-sized businesses that sell the same products you’re offering, and unlike some stores, Amazon’s pages are arranged by-products. Amazon often automatically decides which product is best when a customer does a product search.
Amazon is definitely not a charity organization, and that would mean that there are financial implications for selling on its site. Their selling fees are known as commissions and are charged for every product sold on behalf of a seller. You might want to consider having a thorough financial outlook of what the month’s sales will look like before deciding to take the step.
From looking through the benefits and challenges of selling on Amazon, why not sell on your website rather than on Amazon? Easy access to the trust of customers cannot be stressed enough, and of course, you get to worry less about maintaining a website or fixing bug issues that are familiar with websites.
Thank you for your interest. We're happy to help in your acquisition search.
Please help us by providing an honest review. We focus on those that take the time to review our company.
Leave a Review