When deciding whether or not to post your products on Amazon, there are a few things that must be considered. Many pros and cons come into play depending on the type of product you are selling. Marketplace fees, restrictions, and the intensity of your competition are all important things to think about. Here is a guideline to help you determine if Amazon is right for you:
Think about your product
First, you will want to think very closely about your product and whether or not it is something that will be widely accepted by the online marketplace. Amazon puts your product in front of a huge base of potential customers so you’ll want to be sure you are prepared.
Check out anything that would be your competition on Amazon and examine their quality and cost. Also, remember that many registered Amazon shoppers think of the site as a shopping mall. It is a “one-stop shop” experience and is designed to make it easy for consumers to buy a variety of products all at once and check-out in one easy payment.
Think about the Amazon marketplace
After doing some thinking about your product, you’ll want to think about the way that it will fit in with the bigger picture. Before deciding to sell on Amazon, remember that this site will always sell the entire range of its products and it is likely that you will be selling next to your competitor. This can work in your favor and against you. The advantage here is that without knowing your brand, a consumer may still come across your product. The disadvantage is that if your product is successful, Amazon will seek out similar merchants so they can expand the category with which your product is listed under.
Think about the future of your company
According to Amazon Executives, sellers report an average of 50% increase in sales after joining. This can be a huge starting point for a company that is looking for its first big tipping point, but make sure you have thought about the future of your brand as well.
Don’t forget that customers must register to use the site so they tend to associate the purchase with the name “Amazon” rather than the name of your company. Although you will be in charge of shipment and quality of the product, many people will still identify Amazon as the customer service provider and continue shopping there rather than be driven to check out your own website.
If you are considering selling your product online and are wondering is Amazon is right for you, please give us a call at (763) 548-2297
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