Should Small Brands Start Selling on Amazon? - Consultancy Worx

Amazon is the biggest eCommerce retailer in the world, and it's no secret that they are a major force to be reckoned with. This blog post will explore whether or not small brands should start selling on Amazon.

We will look at the pros and cons of selling on Amazon and discuss how to get started if you decide that selling on Amazon is right for your business.

Let's get started!

Overview of the Market Of Amazon

The market for Amazon is expected to be around 470 billion U.S. dollars by 2021. This is a testament to the company's continued dominance in the eCommerce industry and its aggressive expansion into new markets, such as grocery retailing.

Amazon's net sales amount to close to 470 billion U.S. dollars, projected to grow by over 20% in 2021. The company's profitability has also been rising, with an operating margin of 5% in 2016. This growth is due largely to Amazon's increasing online retail sales share, estimated at more than 50% in 2023.

Is Amazon Good For Small Businesses?

Amazon is a great place for small businesses to start. It provides an easy way to get your products in front of a large audience and helps you build a brand.

Amazon also offers various services to help you grow your business. For example, it has a program called Fulfillment by Amazon that stores and ships your products for you. This program can be helpful if you need more resources to do it yourself.

However, you will need to know the costs associated with selling on Amazon. A new business will also need the help of an Amazon agency, such asConsultancy Worx, to help them navigate the complexities of Amazon's platform.

Pros of Selling on Amazon

There are several benefits of selling on Amazon:

1. Huge Customer Base - As we mentioned earlier, Amazon has a huge customer base. This exposes your product to millions of shoppers who may not have heard of your brand otherwise.
2. Strong Marketing and Promotion - Amazon is very good at marketing and promoting its products. It has a large marketing budget and uses this money to promote its products across all channels - including TV, radio, online, and print media.
3. Reliability and Trustworthiness - One of the biggest benefits of selling on Amazon is that shoppers know they can trust the site. It has a strong reputation for reliability and trustworthiness, which means buyers are more likely to purchase from you.
4. Easy Checkout Process - The checkout process on Amazon is straightforward. This makes it easy for buyers to purchase your products quickly and easily.
5. Fulfillment by Amazon (FBA) - If you choose to use FBA, then Amazon will take care of all the fulfillment for you. This takes the burden off of you, and it ensures that your products are shipped quickly and accurately.

Cons of Selling on Amazon

There are also some potential downsides to selling on Amazon:

• Increased Competition - As mentioned earlier, the market for online retail is becoming increasingly competitive, especially on Amazon. You will need to work hard to ensure that your products stand out.
• Fees - Amazon takes a cut of all sales that are made on its platform. This means you must factor in the costs associated with selling on Amazon when calculating your profits.
• Lack of Control - When selling on Amazon, you are somewhat at the mercy of their rules and regulations. Additionally, they could decide to change the terms and conditions of the marketplace at any time.

How to Get Started?

Now that you know the pros and cons of selling on Amazon, it's time to take action. Here are some tips to help get you started:

• Do Your Research - Before getting started, do your research. Learn about the different types of products that sell well on Amazon and the fees associated with selling on the platform.
• Optimize Your Listings - Make sure your product listings are properly optimized. This will help ensure shoppers find your products quickly and easily.
• Invest in Quality Images and Content - Quality images and content for your product listings is essential. This will help to attract more buyers who may not have heard of your brand otherwise.
• Use Amazon's Advertising Tools - Utilize the advertising tools available on Amazon. These can help to increase your visibility and get more shoppers to buy from you.
• Get Help from an Amazon Agency - Working with an experienced Amazon agency such as Consultancy Worx can be invaluable. They will help guide you through the process and ensure your business is set up for success on the platform.

By following these tips, you will be well on your way to running a successful business on Amazon. We atConsultancy Worx can help you navigate the complexities of Amazon's platform and maximize your potential. See our website for more details.

Is It Really Worth It?

Overall, selling on Amazon can be a great way to increase sales and expand your business. However, it is important to keep in mind that there are also potential downsides.

Weigh the pros and cons carefully before making a decision. With the right strategy and help from experts, you can make it work for you!

Conclusion

So, should small brands start selling on Amazon? The answer is a resounding yes. It offers an opportunity to reach a larger audience, and Amazon can also help you grow your brand and increase sales.

However, before making the leap and investing your time and money into selling on Amazon, make sure to consult one of our experienced Amazon consultants at Consultancy Worx.

We can help you navigate the complex world of Amazon selling and ensure you're getting the most out of this powerful platform. Ready to get started?