A staggering 197 million people will visit Amazon on one of their devices this month1 and over 50% of products sold on Amazon worldwide in 2017 were from third-party sellers2. If you have products to sell, can you afford to ignore this massive marketplace?
What is Amazon Marketplace?
Amazon Marketplace enables businesses to register on their e-commerce platform to sell their products. In 2000 Amazon established third-party selling and since then it has grown into an incredibly powerful digital marketplace in terms of its global reach, volumes and product offerings.
What are the benefits of selling on Amazon?
If you have products to sell, there are many reasons why Amazon may be a great outlet for you:
- Access to millions of monthly users
- Amazon’s brand gives consumers confidence in the products sold through its website
- There’s no need for your own website
- Selling across borders is easier when managed by Amazon
- Searches are usually for products, not brands, so your product is more likely to appear in a search
- You can benefit from Amazon’s brand footprint and influence
- Utilising Fulfilment by Amazon means your shipping, delivery, returns, refunds, exchanges are all managed by Amazon
What should you be aware of?
There are aspects of selling on Amazon that you should consider before committing:
- There’s a lot of competition from other third-party sellers
- You need to abide by Amazon’s rules, so there is some loss of control
- How do you ensure your products are found?
- It’s harder to build your brand because the focus is on the product
- You pay monthly fees to use the Marketplace
- You must ensure you can meet Amazon’s customer response criteria
- There is tough pricing competition
Achieving full potential
The key is how do you ensure your products are found and purchased?
To capitalise on the scale of the Amazon marketplace ensure your marketing initiatives are aligned within an Amazon strategy. It’s important to align your product and pricing strategy, with channel optimisation and management, promotions strategy, keywords optimisation, AMS, to connect with potential customers proactively and be smart about how you use imagery, content and product listening on the product page.
Amazon is like any other marketplace, it’s critical to build your reputation and maintain a good Amazon customer and product rating if you want customers to continue buying your products.
About the Ministry of Innovation
MOI is leading the growth of global ecommerce brands on Amazon & eBay, by Increasing conversions rates with our fully integrated offering on-site and off-site, and our data driven and targeting technology..
Our specialised ecommerce team works with Amazon vendors & sellers to help them improve the visibility and saleability of their products on the Marketplace.For more information visit https://www.ministryofinnovation.co.uk/amazon/