Advantages & Disadvantages Of Selling On Amazon

    Thomas G
    Asked by Thomas G Answers (1)

    What are the Advantages & Disadvantages Of Selling On Amazon? or What are Pros and Cons of Selling on Amazon?

     

    1 Answers

      • Thomas G
        By Thomas G

        Pros of selling On Amazon

        The seller will get huge customer base. Amazon is one of the largest online e-commerce with retailers and shopping users.

        As earned customers Credibility and trust. Most customers may be more comfortable purchasing from Amazon rather than from private websites.

        Has modern and great back-end infrastructure and support, including tax collection and shipping. Amazon has an excellent infrastructure to support selling of goods and services.

        Amazon excellent Referrals for purchases. Amazon has built-in algorithm for recommended purchases by your product might show up in a recommended purchase.

        Cons of selling On Amazon

        Higher Fees.  Amazon fees normally start at a minimum of one dollar and up to 25 percent of the item's price. For you to set up a store on Amazon, you will pay a total monthly subscription fee: $39.99 per month+ additional selling fees. You will be charged $39.99 per month once you complete setting up your account on Amazon

        As a seller or merchant, you’re a commodity! When you are selling on Amazon, you're viewed as a commodity and therefore, someone who can sell the same product less price than you will end up selling more than you. Also, you are competing with Amazon directly if they decide to sell your product on the site therefore you sales might be hurt in the process of this direct competition.

        On Amazon, there is No control over branding for the sellers. There are not many branding options on Amazon. Everything on Amazon is Amazon branded. This means that you have only control over text description and your photos' products. Hence, as a customer, you cannot strengthen your brand on Amazon because customers does not know who is the main vendor or owner of the product is unlike when you are selling on your own site.

        All of the customers emails address belong to Amazon. Hence you cannot re-market to them directly because Amazon does not allow you access your Amazon's customer’s emails for future newsletter, sign up drives, or even new products re-marketing purposes.

        There is no customer loyalty on Amazon. All Customers on Amazon are loyal to Amazon and not to owners of the brands on Amazon! As a result, vendors lose repeat business through up selling or cross-selling of products.  "Upselling is the practice of encouraging customers to purchase a comparable higher-end product than the one in question, while cross-selling invites customers to buy related or complementary items. Though often used interchangeably, both offer distinct benefits and can be effective in tandem."