Amazon is the most famous international online marketplace in the world. Amazon continues growing each day, as more and more e-commerce businesses are turning to this marketplace for more profits.
In May 2021, this marketplace had more than two and a half billion mobile and desktop visits. There is no doubt that Amazon is a dominating empire, and it has helped a lot of businesses over the year.
But is it the right place for selling?
Here, we are sharing some most important selling on Amazon pros and cons to help you in deciding if the venture is suitable for your business.
First, Let’s See the Pros
International Expansion
Since Amazon is largest and one of the most trusted marketplace around the world, it is pretty easy to begin selling in various markets. While they have only started sites for thirteen countries, they do ship to over hundered countries globally. It is just down to the shopper if they are potentially ready for paying extra shipping fee depending on their location.
Easy to Use
Whether you are a newbie or an experienced seller, Amazon makes setting up a shop and begin selling ridiculously easy. Layout is very user-friendly for both table ends. Particularly, for the sellers, plenty of tools are available to ease the process of listing.
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More sales
By listing products on Amazon, all retailers automatically gain trust and credibility. That is because a lot of users are more likely to purchase an item from Amazon instead of from a shop they’ve never heard about. Amazon’s commitment to great service and excellence entices a lot of shoppers to purchase from their website.
Automation
Think of owning a shop for 50 years. You would have to unlock your shop at the sunrise, make sure everything is tidy and neat and good to open, greet every customers who walks in, help them in finding their product and answer their question, count cash at the end of the day, tidy up, arrange books in order, lock up everything and finally head home. However, with Amazon, automation can be used to look up on most of these things for you. In fact, Amazon will even have a 1099-K form filled out and ready for you when tax time comes around. All you need to do is upload that into your TurboTax Free program, or whatever tax preparation service you use. Ultimately, Amazon automation is everything a modern e-commerce entrepreneur needs to run and grow an Amazon shop. This is primarily done by consolidating repetitive tasks and outsourcing them to a 3rd-party service.
Cons of Selling On Amazon
Competition
Since Amazon is a very popular commodity, a tons of sellers are already on there. And unless you are dealing in very unique or rare, you’ll be facing strong competition all the time.
Fees
You do not enjoy free rides with Amazon. Whether it is fees you spend for FBA or the expenses associated with professional account, you’ll be going to shell out at different points.
Data feed is complex
Amazon needs updated product data daily. Also, They have some specific conditions. This means that merchants have to create a dedicated Amazon feed from the start.
Every product must have an ASIN-number and each upload needs to be done by the Amazon-API. To Connec with an API, technical development is required that’s very complex and costly for the merchants.
Final Thoughts
Before starting selling on Amason, these were the some pros and cons that need to be considered.
But, Before you decide onto your next move, take a view at how much money can you make selling on amazon to have a better idea of your possible future income.
