Amazon has become a household name, and a growing number of people are coming to the mega e-tailer's site in search of everything from clothing to grocery items. The site's success resulted in $72.4 billion in revenue in the fourth quarter of 2018, with all signs pointing to a financially stunning 2019.
The site's notoriety and success aren't just great for customers — they're also helping small businesses looking to sell more products.
If you've been considering selling items on Amazon, here are a few reasons why you should take the plunge.
Huge customer base of hundreds of millions of people: Amazon's popularity creates a ready-made audience for selling your products. The most recent figures from Statista show Amazon has 310 million active customers worldwide. Another report found the company's Amazon Prime memberships are taking off, with 100 million subscribers globally willing to pay an annual fee for free two-day shipping.
Amazon has a positive reputation: Amazon has become synonymous with quality products and sound customer service. The company is one of the largest e-commerce sites in existence, but still keeps the focus on the consumer — and customers love it.
Fulfillment by Amazon makes life easy: Amazon sellers have two options for order processing. Businesses can handle order management, shipment and customer service questions themselves or utilize Amazon Fulfillment services for a minimal fee. This program allows you to store product at Amazon’s storage space and they fulfill the orders for you. This service includes shipping fees and is especially economical for those working with a small staff.
No listing fees: Unlike its competitor eBay, Amazon doesn't charge listing fees. Without such costs, sellers can list more products for as long as necessary, increasing profit. .
Amazon does, however, charge a fee for items sold. The cost is approximately 20% of the sale price and should be factored in when pricing items.
Even small companies can list products: Amazon's platform gives selling power to small companies who often struggle to compete with bigger stores. Customers can easily find unique products they may not otherwise know where to find.
Consumers trust Amazon: Americans have more confidence in Amazon than they do in the government or the press, according to a recent survey conducted by Georgetown University and New York University. When your brand sells items on Amazon, it's associated with a trusted company,which reflects on your own business. .
With a little work, businesses can thrive on Amazon. The e-commerce giant offers opportunity a range of companies who want to increase both product awareness and sales.