Why Sell on Amazon

Selling on Amazon has become an attractive option for businesses and individuals alike. With its global reach, user-friendly platform, and established reputation, Amazon offers sellers a vast customer base and countless opportunities. In this article, we’ll dive into the key reasons why you should consider selling on Amazon, how it can benefit your business, and what you need to know to get started.

1. Access to a Massive Customer Base

One of the most compelling reasons to sell on Amazon is its immense and ever-growing customer base. With over 300 million active users worldwide, Amazon offers a level of exposure that is difficult, if not impossible, to replicate on your own website. These customers aren’t just browsing—they’re actively searching for products to buy, which increases the chances of conversions and sales.

Amazon’s marketplace is designed to make purchasing easy. With features like 1-Click ordering and Amazon Prime, which offers fast and free shipping, customers have more incentives to buy products from Amazon than from other platforms or individual websites. When you sell on Amazon, you position your products in front of millions of potential customers, increasing your visibility and boosting your sales potential from day one.

2. Trust and Credibility

Amazon has spent decades building its reputation as a reliable, secure, and customer-centric platform. Customers trust Amazon to deliver products quickly and handle any issues efficiently, from returns to customer service. When you sell on Amazon, you automatically benefit from this trust.

For many small businesses, earning customer trust is a major hurdle. Building credibility from scratch on a new ecommerce site can take months or even years. By selling on Amazon, you bypass this challenge because buyers already trust the platform. They are more likely to purchase from a new seller on Amazon than from an unfamiliar, standalone website. This level of built-in trust makes it easier to attract and convert first-time buyers into repeat customers.

3. Amazon FBA (Fulfilment by Amazon)

One of Amazon’s standout features for sellers is its Fulfilment by Amazon (FBA) service. With FBA, you send your products to Amazon's fulfilment centres, and they take care of everything else—storage, packaging, shipping, and even customer service.

Here’s why FBA is a game-changer:

• Prime Eligibility: Products fulfilled by Amazon automatically qualify for Amazon Prime, which means customers who pay for Prime membership can receive your products with free, fast shipping. Prime members are more likely to purchase items that are fulfilled by Amazon because of the convenience and quick delivery times.

• Effortless Logistics: Amazon handles the entire fulfilment process, from picking and packing to shipping and returns. This takes a huge load off your shoulders, especially if you don’t have the infrastructure to manage warehousing and shipping yourself.

• Customer Service and Returns: Amazon’s renowned customer service team handles buyer inquiries and returns, allowing you to focus on other aspects of your business. You won’t need to worry about handling complaints or complex return processes.

FBA not only simplifies the logistics of running an ecommerce business but also increases your chances of making sales because customers are more likely to buy from sellers who offer Prime shipping.

4. Built-In Marketing Tools

While selling on Amazon offers significant organic visibility, there are also powerful advertising tools available to further boost your sales. Here are the key marketing tools that Amazon offers:

• Sponsored Products: This is Amazon’s pay-per-click (PPC) advertising system, where your products appear in prominent positions on Amazon’s search results pages. Sponsored Products ads target keywords relevant to your products, helping you reach a broader audience.

• Sponsored Brands: If you have registered your brand with Amazon, you can use Sponsored Brands to create ads that showcase your logo, a custom headline, and multiple products at the top of search results.

• Sponsored Display Ads: These ads appear across Amazon’s platform as well as on external websites and apps, helping you target customers who have already shown interest in similar products.

• Deals and Promotions: Amazon offers options like Lightning Deals and Coupons, which can give your products a boost in visibility and sales. Participating in Amazon's seasonal sales events, like Prime Day and Black Friday, also offers an opportunity to drastically increase sales.

All of these tools give you the ability to tailor your advertising strategy based on your goals and budget. The more you invest in these tools, the more traffic and visibility your products will receive.

5. Low Barriers to Entry

Selling on Amazon is relatively easy, with a low barrier to entry compared to setting up your own ecommerce site. Here’s why:

• Quick Setup: It only takes a few minutes to create a seller account and start listing products. Amazon provides a step-by-step guide to help you through the process.

• No Need for Web Development: You don’t need to worry about designing or maintaining a website. Amazon takes care of the technical aspects, including payment processing, security, and hosting.

• Low Upfront Costs: You don’t need to invest in a large inventory or build expensive warehousing infrastructure to get started. With FBA or third-party logistics, you can start small and scale up as needed.

6. Scalability

Whether you're a small seller just starting out or a well-established brand looking to expand, Amazon offers incredible scalability. One of the main advantages of selling on Amazon is that it’s highly scalable, meaning you can grow at your own pace without major upfront investments in infrastructure.

• Start Small, Grow Big: Amazon’s infrastructure allows you to start small, with just a handful of products, and scale up as demand increases. You can test new products, adjust pricing, and learn what works best for your audience before committing to larger inventories.

• Global Reach: Amazon operates multiple marketplaces across the globe, including in the UK, US, Canada, Germany, Japan, and more. With Amazon Global Selling, you can list your products on international marketplaces, reaching customers around the world without needing separate websites or logistics networks.

• Product Variability: Amazon supports a wide variety of products, from books and electronics to fashion and beauty. Whatever niche you operate in, chances are Amazon is already attracting customers interested in your product category.

7. Competitive Edge Through Reviews

Reviews play a crucial role in driving purchasing decisions on Amazon. Customers often rely on product reviews and ratings before making a decision. As a seller, this offers a unique opportunity to stand out from competitors.

• Social Proof: Products with high ratings and positive reviews are more likely to attract buyers. By providing excellent customer service and delivering quality products, you can encourage satisfied customers to leave glowing reviews.

• Enhanced Brand Trust: Over time, accumulating positive reviews will build your brand’s reputation on Amazon. This can increase customer loyalty and result in higher sales volumes, especially for new or niche products.

8. Data Insights & Performance Tracking

One of Amazon’s most valuable tools for sellers is the Seller Central Dashboard, which provides comprehensive data on your sales performance. You can track sales, monitor customer behaviour, and gather insights into how your products are performing over time.

• Sales Reports: These reports show you detailed data on how many units you’ve sold, where your customers are located, and which products are performing best. You can use this data to make informed decisions about inventory, pricing, and marketing strategies.

• Customer Reviews: Amazon’s review system is another goldmine of insights. Positive reviews boost your visibility and can lead to more sales, while negative reviews provide feedback on areas where you may need to improve.

• A/B Testing: You can experiment with different product descriptions, images, and pricing strategies to see what resonates best with your audience. By analysing data, you can optimise your listings for maximum conversions.

Conclusion

Selling on Amazon offers businesses access to a global audience, powerful marketing tools, and a trusted marketplace that can boost credibility and sales. Whether you’re a new entrepreneur or an established business looking to expand, Amazon’s marketplace offers the flexibility, scalability, and tools you need to succeed in today’s competitive ecommerce environment. From FBA’s streamlined logistics to data-driven insights, selling on Amazon can propel your business to new heights.