10 Reasons Why You Should Start Selling on Amazon

Although there is high competition, there are still many reasons why you should start selling on Amazon. Did you know that in 2019, 13% of shopping purchases were made online? Global online sales are already counted in the trillions of dollars and are growing steadily every year. Guess who is topping the list of TOP 10 online retailers? You’ve guessed it right, Amazon.

In this blog, we will discuss the top 10 reasons why you should sell on Amazon. But before we dive in, let’s have a look at some financial reasons to “join the club.”

Amazon Sales Are Increasing

In 1994, the company had a turnover of more than $200 billion in 2018 and employed around 600,000 people. Sales through Amazon in the United States alone are 4.5 times higher than Chinese giant JD.com, the world’s second-largest online retailer.

In 2018, the market leader Amazon generated $42 billion through the sale of physical goods in electronics and media worldwide. Apple, on the other hand, was ranked second with a revenue of $26.6 billion.

While Amazon accounts for more than half of all online sales in the United States, more than 30% of sales are generated outside the US, about 17% in the UK and Germany, the most important markets for America.

How important they are is also shown by the fact that they plan to open as many as 1,300 new warehouses across Europe. They want to bring the Prime Now service closer to European customers with delivery within 2 hours.

Despite the COVID-19 pandemic at the beginning of 2020, Amazon doubled its net profit in the first six months of the year to $5.2 billion, compared to $2.6 billion at this time in 2019.

Every online retailer’s dream is to do a successful growing business where products stand out, incomes rise, and profits grow. However, Forbes reports that as many as 80% of businesses fail before they start. However, a big opportunity for such companies as Amazon, which, as we saw, dominates the world of online commerce.

Suppose your business isn’t yet part of Amazon. In that case, it’s worth considering why it would be good to become part of this incredibly growing and recognizable business. To help you, continue reading the 10 reasons why you should sell on Amazon.

1. Shopping Habits Are Changing

Not only do people spend more time shopping online, but they also spend more money every time they shop online. It is predicted that consumers worldwide, by 2021, will spend up to $4.8 trillion online.

Why such an increase in online shopping? Because it is simple! Shopping online has become more meaningful, convenient, practical, and often even cheaper than has ever been before.

Consumers can buy e-books, clothes, and practically anything through their smart tablet, phone, and computer. When shopping, they get feedback, opinions, and reviews from other customers. With a few clicks of a button, consumers can get quality goods and services delivered right in front of their door, often the same day.

If you only have a local shop where you sell your products, this is the time to sell things on Amazon.

2. People Search for Products on Amazon, Not Google

Most companies spend a lot of their time and money on marketing strategies to improve their visibility on Google. For many years, Google has been the right and first place to search for various answers, products, and brands.

Of course, Google is still very important, but 56% of people say they start searching for new products on Amazon, and 72% use this site to find specific products. This fact puts Amazon ahead of Google as the number 1 search engine for online shopping. 

3. Equal Conditions for All

Each beginner first faces a similar question: Can I sell things on Amazon? Of course, you can—one step at a time. Amazon offers a level playing field for both large retailers and new, smaller retailers. This way, you (as a new and small seller) can compete with the bigger ones easier, especially if your product stands out from the majority.

If you only sell on your website, it’s hard to compete with larger, more established companies. No one notices your products if Google ranks them and your website on its 15th page. (You’ve probably heard the joke: Where do you hide a dead body online? On the second page of Google.)

At the beginning of your selling journey through Amazon, you don’t have to invest in thousands of products and lose large amounts of money on advertising. You can start with a small amount of inventory, send it to Amazon and grow gradually. Try FBA (Fulfillment by Amazon) reseller service, where Amazon takes care of your products and sends them to customers.

4. Selling on Amazon = Good Reputation for Your Business

How does Amazon work for buyers? It has an excellent reputation in the eyes of customers. When customers shop on the Amazon platform, they are confident that they will receive genuine and quality products and receive them within a couple of days.

They also trust that their credit card information is secure and that they will not receive unsolicited emails from merchants unless they want to.

With other e-commerce sites, it’s often the other way around. For many, it takes weeks for customers to receive their package, and sometimes the product is not as it should be. Fewer people choose to shop through online stores such as AliExpress or Banggood, where products are mostly shipped from China. It usually takes weeks for the products to arrive.

Either way, when someone is shopping on Amazon, customers don’t have to worry about things like that. They know they will receive good service, and if they buy your products there as well, you get all the benefits of Amazon’s excellent reputation.

5. Higher Profits

There is one of the biggest and most important reasons you should sell things on Amazon. You can usually charge higher prices for your products. 

Amazon is essentially a retailer and makes money by selling products at a competitive price. As opposed to a wholesaler who charges the lowest possible price. Have you tried comparing prices on eBay and Amazon? For example, on eBay, women’s T-shirts can go as low as $5, while the average price for the same T-shirt on Amazon can be around $40. 

You still should not overcharge your products. Amazon regularly strives to make customers happy with its overall shopping experience. That is why prices must not be much higher than elsewhere. 

We understand that setting the right price for the product to sell on Amazon can be difficult. We have to consider your costs and now also the cost of selling your stuff on Amazon. But with a little bit of help, nothing is impossible. With Amazon data scraper, you can collect prices from different products and online retailers and see how they set up the prices. 

Note: Although there are usually no significant price differences for Amazon’s same products, sometimes someone offers an extremely low non-profit price to make it easier to compete with other sellers and speed up sales. This is not the best sales promotion strategy, but it might work for some people. 

6. Acquire New Customers

One of the most challenging things in starting a new business or growing an existing one is gaining new customers. This should go beyond you asking your friends and family to buy your product.

How do you reach a large customer base without worrying unnecessarily by gaining new customers who are already used to buying online? Simple, sell things on Amazon, who has over 150 million monthly mobile users. Some statistics even describe that Amazon is visited by about 2.48 billion people a month. Many of them are already used to shopping on their platform.

7. Amazon Prime Members Are the Best Customers

As you may know, Amazon offers Amazon Prime membership, which offers special benefits: 

• Fast and free delivery
• Exclusive deals and special discounts 
• Savings for member’s family 
• Savings on grocery shopping 
• Free access to Amazon’s Prime Video and Prime Music services
• And many more. 

Amazon Prime members are one of the best and most loyal customers in the world. These people are happy to pay $119 a year to access the program, which offers them more benefits and advantages when shopping on Amazon. 

We estimate there are over 100 million members, spending an average of $1,400 on Amazon per year. Their loyalty is shown in the number of reviews they leave on the products. You can leverage the information from reviews to see how consumers react to similar products. How is your product better… Collect them with Amazon Data scraper. These insights are a good source of ideas on setting up your customer relationship model, where your service can stand out, and how to provide the best user experience. Consider joining Amazon FBA and sell on Amazon prime. 

8. Best User Experience 

One of the many reasons Amazon is so popular is that it offers customers an exceptional shopping experience. As mentioned, they provide fast delivery. Many Amazon customers become frustrated by a delivery that takes longer than 2 to 3 days. 

Amazon allows its customers a very simple replacement of the product or a quick refund if they are not satisfied with the purchase.

Amazon is responsible for excellent customer support, including third-party vendors. This means that Amazon will take care of your customers’ satisfaction instead of you and send them emails about the shipment. However, if your customers have trouble ordering or shipping, Amazon will handle it all directly. If a customer replaces your product or requests a refund, the product will be sent back to Amazon Warehouse.

9. No Need for Your Website

When individuals start an online business, one out of many concerns is that they do not have a website. A good website requires a lot of time, knowledge, and money in advance to make the final website look professional and ready to sell products.

When you sell products on Amazon, you don’t have to have your website! At least in the beginning. You don’t have to worry about various hosting, SEO, security systems, and all the costs that come behind.

Of course, it’s still a good idea to consider your website once your business takes off. Then, you will be able to make good use of Amazon to gain traffic on your website and your brand’s visibility.

10. All You Need is the Internet Connection

The easiest way to sell on Amazon is through FBA (Fulfillment by Amazon). You don’t have to worry about where you put the inventory and how you send the products to customers because Amazon does all this for you. Of course, it has to be paid for, but most sellers believe this method still pays off the most.

This way, you will be able to do your work from anywhere in the world; all you need is an internet connection and a computer. 

What to Do Now?

Have we convinced you to sell on Amazon? Great. Let us know if you’ll need any insight information on Amazon. 

Amazon data scraper gives you insights on products, customers, shipping, competition, and more! We provide highly customized and personalized service to get you the relevant data to your needs—all on simple dashboards. Get in touch with us.