To Sell on Amazon or Not to Sell on Amazon?
It doesn’t matter what type of product you sell nowadays, as long as it isn’t quickly perishable, you can sell it on Amazon. eBay used to be the default marketplace for selling products, but with the popularity of Prime Next Day Shipping along with zero listing fees, Amazon has been able to take over that spot as the marketplace for everything. So, are your products right to sell on Amazon? Possibly. But, you should know some of the advantages and disadvantages before committing to the Amazon marketing place.
Why sell your products on Amazon?
Amazon is the biggest online retailer worldwide so there is no better place to quickly attract a wide audience to your products. Amazon customers enjoy finding products on their site and getting them quickly with Next Day Prime — and even in some areas, the same day. This experience is very difficult to replicate with your own online store even if logistics is handled by a third party. You can start your own Shopify store to get a nice shopping experience for your customer, but can you get the item to your customers the next day cheaply? Doubtful.
Why not to sell products on Amazon?
Creating an online store that promotes your brand, provides an exceptional user experience, and draws in customers is easier than ever. With platforms like Shopify and Squarespace, creating a custom company website is is quicker and more affordable than ever — this even includes user-centered design and SEO! If you go with Amazon, you will still need to optimize for search within search engines like Google and Bing, and within Amazon’s search. Why do all that work for Amazon when you can do it specifically for your products on your own site that keeps your brand cohesive and allows you to retain all the revenue.
That brings us to another issue that early Amazon sellers don’t always realize: The sellers fees can get very costly for a consumer priced product. A significant portion of your profit could be eaten up by affiliate and shipping fees, as well. Utilizing a third party logistics company along with your own online store can be much cheaper if you shop put in the initial work.
Another reason to put Amazon on hold is knock-off products. A knock-off product comes in many forms, from pirated products produced and sold illegally to similar products that undercut yours due to cheaper manufacturing costs and quality. Once your product is on Amazon, it is open season for whomever wants to steal your marketshare on amazon. And, they can be quite swift and deadly to your business by crashing the prices customers expect of similar type products. Another type of knock-off is Amazon themselves deciding they want your marketshare by selling an AmazonBasics version of your product or an Amazon Brand version of your product. Any type of these knock-offs would severely impact your sales on the Amazon platform.
At the end, the choice is yours.
If the math makes sense and you don’t see knock-offs being an issue on Amazon.com, it might make sense to register to be an Amazon Seller. You will still want to create a web presence outside of Amazon, but that can be completed along with your Amazon listings. If the Amazon pricing is too expensive or the marketplace is full of knock-offs, it might make more sense to focus on your own ecommerce store. With Shopify or Squarespace along with a third party logistics company, it’s easier than ever to run a successful online store.
Still not sure how to sell your products online? We can help! Contact Blue Chair Digital today to schedule a risk-free consultation with St. Louis digital marketing experts that are passionate about ecommerce.