When it comes to online retailers, Amazon has arisen as the king of kings. Since its inception as an online bookstore, Amazon has continued a trend of rapid growth and is now the number one online retailer. Recent statistics tout approximately 310 million customers with 90 million U.S. based Amazon Prime members. If you have considered expanding your digital market, there are several reasons to sell on Amazon.
The Sheer Numbers
Amazon has a larger customer base than found on any other ecommerce platform. It is estimated that Amazon has three times as many users as eBay. This allows sellers to get their product in front of the largest number of potential buyers. The more people exposed to your product, the more likely a conversion. Even if they choose not to make the purchase, you are still establishing a pattern of brand recognition.
People Like and Trust Amazon
The average Amazon customer spends between $320-700 annually on the site, and about twice that much for Prime members. The easy to use shopping platform (both desktop and mobile) makes shopping less difficult. Amazon has wish lists, comparing features, movies and even grocery delivery options. Many consumers look at reviews before making a purchase, which also gives a sense of confidence and cuts down on the amount of research they would normally do before making a purchase. Amazon has an overall positive reputation of reliable customer service. Trust is not easy to earn, but essentially Amazon has already done that for you.
Fees Upon Purchase
As is standard for most online marketplaces, Amazon does have fees in place for using their service. There are a few different options including a monthly subscription to sell, individual items fees (15 percent on average) or selling to Amazon. The good thing about fees on individual sales is that there is no charge unless the item sells. Fees are predictable and therefore, they can be worked into the price of the item.
Market Testing and Easy Entry
It is often difficult for smaller companies to get their products into large-scale retailers without either capital or connections. Amazon does not have those same barriers to entry. The ability to test your product in a large market and get reviews are two more reasons to sell on Amazon. This could also be a good way to experiment with product descriptions and images to discover what generates the most engagement. Depending on your goals, being able to make evaluations from engagement and reviews could be provide valuable information to steer growth.
Reasons to Sell on Amazon
Even if you have your own ecommerce site, selling on Amazon can still provide all of above benefits. The brand exposure and market information will also be important in building your personal site. Even if people are choosing not to purchase at the time, they may still venture to your site to gain more information about your product or company.
Let the experienced professionals at Tree Ring Digital assist you in getting the most out of your ecommerce business.
- On March 15, 2018