amazon business account pros and cons

Currently, you need to have a Professional Seller Account and qualify for Amazon Premium Shipping to even be considered for SFP. Now, let's think seriously about the disadvantages you may face if you The 40 bucks a month you'll spend on your seller account does. Quick Look – Pros & Cons · Accounts are free to sign up for and open to sole traders, SMEs, and larger companies. · Free One-Day Delivery on. amazon business account pros and cons

Amazon business account pros and cons -

Selling on Amazon has different advantages and disadvantages. In addition it is necessary to make decisions about different options - we would be happy to assist you!

Advantages

  • Over 240 million Amazon customers worldwide
  • Many potential buyers are looking for products only on Amazon
  • A fair bit of "Traffic" from the very first minute without having to pay for extra advertising
  • You don´t need your own Shop Software
  • By using the option „Shipping via Amazon" (FBA) you outsource your entire shipping logistics and benefit from low shipping cost
  • Well established Amazon partner program for affiliates

Disadvantages

  • Amazon Sales Charge - depending on the product category between 7% and 20%
  • With the option „Shipping via Amazon“ shipping costs have to be included in the sale price
  • Several providers of the same product can result a price battle
  • Possibly limited opportunities to directly influence the display of a product
  • Amazon — a potential competitor
  • Dependency of Amazon

Options

  • Do you want to ship on your own or would like outsource shipping via Amazon („Shipping via Amazon“ / FBA)?
  • On which marketplaces or in which countries do you want to sell your products?
  • Currently the following Amazon marketplaces exist: Germany/Austria, The UK, France, Italy, Spain, USA  Canada  Mexico, Brazil, India, China, Japan and Australia. However, not all marketplaces offer all product categories - for example, clothes cannot be sold in Italy or in Spain.
  • Within the E.U. you can - as desired - deliver to all countries from a single warehouse or store your products separately in each country. Both have advantages and disadvantages.
  • With an Amazon campaign you have the opportunity to differentiate your sales from the competitors.

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    What happens when an entrepreneur leverages the power of a big business to create a small one?

    Eric Broder Van Dyke

    The pros and cons of putting your small business on Amazon

    Jeff Bezos, Amazon’s founder and CEO, realized early on his site would never be the “everything store” he imagined if it had to purchase and store every product it sold like a traditional retailer. It would need an infinite supply of warehouse space and capital.

    Instead, in 2000 the company launched its own marketplace, allowing independent sellers to use Amazon as a platform to offer their goods for sale. It let Amazon become the e-commerce giant it is today and has fueled the company’s staggering success.

    While the small- and medium-sized businesses that largely make up that marketplace have been great for Amazon, it’s less clear whether Amazon has been equally great for them. The company has undoubtedly siphoned sales from retailers of all sorts around the US. On the other hand, it has given many entrepreneurs the chance to reach a larger audience than they ever could have otherwise.

    But then that access can carry its own costs, too. For individual companies considering selling through the site, there can be some major pros and cons involved.

    Here are some of the most notable items on the pro side of the ledger:

    The reach is hard to beat

    The most compelling reason for any small company to sell on Amazon is because of the sheer volume of customers it draws. Its Prime membership program alone has more than 150 million global subscribers, and more keep signing up. Access to that audience is valuable. From June 2019 to May 2020, US small and medium businesses on Amazon averaged $160,000 in annual sales, according to a report from the company (pdf). In that period, the number with more than $1 million in sales grew 20%. Owners of some small businesses attribute their prosperity to Amazon and there are the occasional stories of sellers who make millions on the platform.

    The pandemic has only pushed more shoppers to the e-commerce giant, and the company says sellers on its marketplace are reaping the benefits. During the recent holiday season, sales by third-party merchants, most of them small and medium-sized businesses, grew more than 50% compared to the same period in 2019, it said.

    Amazon will handle the grunt work

    The tasks of managing a website, processing payments, storing inventory, and picking and shipping items to fulfill orders can be a lot for a small business to handle. Amazon allows sellers to easily sign up, list items, and start selling. For those interested, it will also warehouse and ship items for a fee through the Fulfillment by Amazon (FBA) program it has offered since 2006. These items can also be eligible for Prime, making them more likely to be purchased by Prime subscribers who want the fast, free shipping than alternatives not included in Prime. For a company simply looking to start selling quickly and outsource a lot of the logistics involved in retail, Amazon can be attractive.

    It has incentive to support its sellers

    Since 2017, sellers on Amazon’s marketplace have been responsible for most of the company’s product sales. Amazon is happy to see them sell as much as possible. The more sales they rack up, the more money Amazon generates. In a recent report (pdf), Amazon said over the course of 2019 and 2020 it invested more than $30 billion in logistics, tools, services, and employees to help small and medium-sized businesses. It also provides assistance such as technical support, loans, and credits for its cloud-computing platform, Amazon Web Services.

    As for the cons of working with Amazon…

    Sales can come at a high price

    In addition to levying a monthly charge on professional merchants and collecting its slice of each sale via a ”referral fee” that can exceed 15% of the price depending on the item, Amazon can also charge a number of other fees, depending on which services a seller uses. Features such as FBA, advisory services to help sellers, and advertising all come at additional cost.

    Amazon says these add-ons are voluntary. It doesn’t force anyone to pay for them, and many sellers on its marketplace don’t. But sellers have reported feeling obliged to take part. If they don’t advertise to boost the visibility of their listings, those listings can easily be buried in the deluge of products on the site. If they aren’t part of FBA, their items might not be eligible for Prime shipping. (Amazon has a program it calls Seller Fulfilled Prime that lets merchants fulfill orders from their own warehouses, but so far it seems relatively few sellers have been able to join and meet Amazon’s shipping standards.)

    The costs involved in being successful on Amazon can quickly mount. One marketplace seller detailed in 2019 how Amazon kept about half the revenue from the sale of a $15 toy.

    There’s tons of competition, including from Amazon

    Got a great product you know would sell a ton if you could just get it in front of Amazon’s customers? Get in line. Marketplace Pulse, an e-commerce intelligence firm, estimates there aresome 2.4 million active sellers on the platform. They aren’t just small US businesses. Chinese merchants have flocked to the site, some selling goods straight from Chinese factories at prices that are tough to match. If a product is successful enough, knock offs can proliferate on the marketplace too.

    And then there’s competition from Amazon itself. The company has launched dozens of its own private label brands that vie with its third-party merchants for customers. They haven’t all been successes, but Amazon has been accused of giving priority to its own labels in search results. Maybe more concerning to many small businesses is the evidence gathered by the Wall Street Journal that Amazon used data it collected on sellers to launch competing products, despite Amazon’s repeated statements that it strictly prohibits the practice.

    Amazon has all the leverage

    The e-commerce giant may depend on its merchants in the aggregate, but individually they don’t have much power. Sellers say Amazon effectively punishes them if they’re found offering their items for lower prices on rival sites such as Walmart, dropping them lower in search rankings for instance. Many feel Amazon also pushes them to pay for FBA and advertising. Even larger companies such as Tumi, a luxury bag maker, and PopSockets, which produces cellphone grips, have described Amazon as trying to control what they sell as well as how and where they sell it.

    The feeling among such sellers is that Amazon squeezes them for as much money as it can with little concern for their interests. Small businesses in particular may feel they have no alternative but to bow any demands if most of their sales happen on Amazon.

    There’s no simple answer on whether a small business should sell on the marketplace. Some suggest if you’re a business with unique products and good margins, allowing you to make money even as Amazon takes its cut, you have a better chance of thriving on its marketplace. But then some do well buying random stuff like mouthwash and lipstick wholesale and reselling it on the platform. Results vary greatly, and companies have to decide for themselves whether the rewards are worth the costs. A large number of small and medium businesses feel they are. For everyone else, there’s always Shopify.

    Источник: https://qz.com/1957408/the-pros-and-cons-of-putting-your-small-business-on-amazon/
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    For an increasing number of small business owners, the answer can be found in the Fulfillment by Amazon (FBA) business model.

    The FBA model is exactly what it sounds like: business owners provide products, and Amazon handles packing, shipping and contextual customer support.

    FBA businesses have grown in popularity since Amazon launched the service in 2006, but both creation and sales of FBA businesses really began to skyrocket between 2015-16.

    With FBA trending hot and heavy, is buying an Amazon-based business right for you? In this post, I'll explain the pros and cons of buying an FBA business, and let you decide.

    Five benefits of buying an Amazon FBA business.

    The appeal of an FBA business might seem obvious to you.

    After all, who wouldn't want to hand off most of the headaches that come with fulfillment to someone else? But that's just the primary benefit of acquiring an FBA business. Consider these five benefits as well.

    1. Outsourcing fulfillment frees you up to handle higher-level tasks.

    With Amazon handling the - sometimes literal -- heavy lifting, you can focus on growth-oriented tasks such as conversion rate optimization (CRO), targeted marketing and new product development.

    2. You and your customers benefit from Amazon's perks.

    From free two-day shipping with Prime to greater product visibility in the marketplace and the automatic credibility that comes with selling your wares on the site of an established, trusted retail giant, your FBA business will provide customers with a next-level experience that's hard to replicate via traditional ecommerce. And don't forget, Amazon will also provide top-notch customer service.

    3. Scalability is built-in.

    Beyond the perks of Prime and processing, Amazon's worldwide reach, massive warehousing and fulfilment capabilities, and well-established infrastructure give you the power to grow your business more effectively as time and demand dictate.

    In addition, FBA businesses can act as a nexus for multiple sales channels. Offering your products across the web, and directing those sales through your FBA business, can attract customers, who may not start their search for your goods on Amazon, yet still fill the needs of those customers through its system.

    4. You don't need to pound the pavement for customers.

    Amazon has already built the world's largest customer base, and you're gaining access to it with an FBA business. This base can be expanded further with multiple channels.

    5. Reduced costs mean increased profits.

    Without the need for a website or your own shipping and customer service, profits will likely be higher, even with Amazon's service fees.

    An FBA business is definitely not "hands-free," but it does leverage the power of Amazon to give you the ability to make the most of your time, effort and resources in building a steady earner in the ecommerce space.

    Three challenges of an FBA business.

    Of course, it's not all wine and roses. As with most acquisitions, FBA businesses come with their own set of challenges and potential dealbreakers for potential buyers.

    1. It's a jungle in there.

    Every FBA business is fighting for survival and prominence in a complex ecosystem ruled by Amazon's own Buy Box algorithm. FBA businesses receive greater prominence than non-FBA businesses in Amazon's model, but that's still no guarantee of survivability or even profitability.

    The company's main product is, after all, information, and it leverages data - data it does not share --with ruthless efficiency to decide where, when and how products will appear to consumers. It will also track the popularity and pricing flow of items, and use this information to produce its own competing products in an effort to supplant third-party businesses as sales leaders for those products.

    Related: Business Plans: A Step-by-Step Guide

    2. You might need to be more hands-on than you think.

    You'll need a working knowledge of Amazon's marketplace and the performance metrics it uses to gauge success and failure.

    You'll probably also want to keep a close eye on competition, which can wildly surge (as can the performance and profitability of all the items in the business), to have real-time information on your best performers in the short and long term.

    Related: Need a Business Idea? Here are 55

    3. You'll need a game plan for growth.

    In addition to negotiating the perilous waters of Amazon's Darwinist marketplace, you'll need to keep a sharp eye out for growth opportunities at every turn.

    The same expanding competition and market saturation that eat into your profits will work against you inside the closed walls of Amazon's ecosystem, so be prepared to pursue multichannel opportunities if you're keen on serious growth.

    To FBA or not to FBA - that is the question.

    FBA businesses are an exciting, evolving part of the small business marketplace. And as with any other small business, deciding whether or not an FBA business is right for you begins with answering a few simple questions.

    • Does this business match my interests and goals?
    • Does this business have the current or potential power to achieve my desired profitability, sustainability and growth?
    • Do I have the necessary understanding of Amazon's marketplace, the FBA business model and the potentially punishing algorithms that drive success on Amazon?
    • Am I prepared to put any work into this business?

    Related: Starting a Business: The Idea Phase

    If answered "yes" to all of these questions, you're on your way to FBA success.

    But if you're not sure about one or more, it's a good idea to sit down with your broker, and discuss whether buying an FBA business is the right for you. A little due diligence, along with taking the time to develop your subject-matter mastery, can help you make an informed - and profitable -- decision.

    Mark Daoust

    Written By

    Mark Daoust

    Mark Daoust’s passion for creating sales agreements that benefit both sides of the table led him to create Quiet Light Brokerage in 2007. Guided by the bedrock values of honesty, integrity and transparency, Daoust built Quiet Light to help sellers of internet businesses. His own business recently was selected as the #1 brokerage for buying and selling websites valued at over $1 million. Quiet Light and Daoust are headquartered in Minnesota, where Mark sometimes gets to run home to help his wife teach a quick class to his four children.

    Источник: https://www.entrepreneur.com/article/280495

    Amazon Prime vs. Business Prime: Cost, benefits, more

    Anyone can shop on Amazon for personal use. But, for those wanting exclusive deals, discounted shipping, and other perks, Amazon offers a membership program known as Prime, which is paid on a monthly or annual basis. Small business owners can access all the benefits of Amazon Prime with a personal account -- but they can get added benefits from a Business Prime account. 

    Here are some comparisons (and differences) to consider when deciding which is best for you.

    Also: What is Amazon Business and how does it work?

    What is Amazon Prime?

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    Amazon Prime is a paid membership that, for an annual or monthly fee, gives access to a number of Amazon services and enhancements. It's now used by millions of people who have signed up to receive a swathe of benefits, such as free same-day or two-day shipping and streaming of movies, TV, and music. Prime Day is an annual sales event offering discounted products to Amazon Prime members as an added benefit.

    View now at Amazon

    Which benefits are included with Amazon Prime?

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    With an Amazon Prime personal account, your membership fee unlocks a number of benefits for shopping, streaming, delivery, reading, and more. Some of these include free shipping at shopbop.com, two credits to try Audible, and upgraded shipping at Zappos. You also have the option to link one other adult to your Amazon Prime account to share all the same benefits for free.

    Delivery benefits

    • Amazon Day: Pick a delivery date and shop through the week, then have your packages delivered on your chosen day.
    • Key by Amazon: Where eligible, Amazon will deliver packages to your home, garage, or vehicle for free.
    • Free One-Day and Two-Day Delivery: No minimum purchase required on over 10 million items.
    • Free Same-Day Delivery: Where available, qualifying orders of $35 or more can receive delivery by 9 p.m. if ordered before noon.
    • Free Ultrafast Grocery Delivery: Available areas get free two-hour delivery on groceries.
    • Free Release-Date Delivery: Choose this delivery option to get new books, movies, music, and more by 7 p.m. on the date of release.
    • Free No-Rush Shipping: Earn rewards toward future purchases if you don't need your order right away.
    • Prescription Delivery and Savings: Get prescriptions delivered with free two-day shipping and discounts for paying out-of-pocket.

    Reading benefits

    • Amazon First Reads: Choose one free editors' pick per month to keep and read prior to the official publication date.
    • Discounted Prime magazine Subscriptions: Pay just $0.99 for four-month magazine subscriptions.
    • Prime Reading: Use any device to access over a thousand comics, eBooks, magazines, and more.

    Shopping benefits

    • Amazon Family: Make shopping easier and save on everyday supplies with subscriptions.
    • Amazon Prime store or rewards card: Earn 5% on purchases at Amazon.com and Whole Foods.
    • Member Deals at Whole Foods: Discounts and promotions online and in-store.
    • Prime Exclusive Deals: Get deals exclusive to Prime members.
    • Prime Early Access to Lightning Deals
    • Prime Day: Two-day annual sales event.
    • Prime Wardrobe: Try on accessories, clothes, jewelry, and shoes at home and send back what you don't want.

    Streaming and digital benefits

    • Amazon Kids+: Get up to 40% in discounts for access to over a thousand kid-friendly books, educational apps, games, and movies.
    • Amazon Music Prime: Millions of songs and podcast episodes available, ad-free, including offline. Upgrade to Amazon Music Unlimited for over 70 million songs and podcasts with a 20% discount as a Prime member.
    • Amazon Photos: Unlimited storage to back up and share photos, viewable from all linked devices.
    • Prime Gaming: Exclusive discounts on pre-order video games, a monthly Twitch subscription, and free games to play every month.
    • Prime Video: Use almost any device at home or away to access thousands of popular TV series, movies, and Amazon originals.
    • Prime Video Channels: Pay $4.99-$14.99 per month for access to HBO, Showtime, and STARZ channels with the ability to cancel at any time. 

    How much is an Amazon Prime membership?

    Amazon Prime has a flat cost for everyone. You can choose to pay the annual fee of $119 for an account or pay monthly at $12.99 per month. If you pay monthly, you'll pay a total of $155.88 per year.

    The cost of Business Prime membership varies by the amount of users:

    Existing Amazon Prime accounts can add a Business Prime Duo (single user plan) to their personal Amazon account for an additional $69 per year. This allows you to keep all the shopping and entertainment features while also accessing work benefits including free analytic tools, discounts, and business shipping.

    How much is Amazon Prime for nonprofits?

    The size of the nonprofit will determine how much you pay for Amazon Prime. The annual fee can be as low as $69. Most 501(c)3 charity organizations can qualify for multi-user, tax-exempt status with Amazon Business. Amazon also provides access to AmazonSmile charity lists, COVID-19 supply hub, a Live Amazon nonprofit business advisor, and more.

    How many household members can share a Prime account?

    An Amazon Prime account can be shared with other family members to make up an Amazon Household. The Household can hold up to two adults, four teens, and four child profiles. The main account user has primary control of the account.

    With a Business Prime account, the number of users depends on the plan. Business Prime accounts can have anywhere from a single user to more than 100. The primary business owner can limit access and create roles in the admin account for other users. 

    What is Amazon Business Prime?

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    With Business Prime, business owners can access perks like creating logins for their employees, applying purchasing rules, getting corporate credit, collaborating on documents, and more. With a 30-day free trial, they can take their time considering whether Amazon Prime or Business Prime is right for them.

    Users can sign up for a free Amazon Business account to become a registered seller, get incentives and discounts on purchases, and other benefits. The Amazon Business account also comes with free Business Analytics tools to track business spending, monitor sales, make adjustments as needed, and make plans for future growth. Other free tools include:

    • Setting preferred suppliers
    • Opening an Amazon Corporate Credit line
    • Granting access to users to make purchases
    • Creating approval procedures and applying spending caps for purchases
    • Setting up consolidated delivery for large items to your preferred personal or business address

    Registered sellers can use their Amazon Business account to make fulfilling orders easier by taking advantage of Fulfillment by Amazon (FBA). With FBA, you ship your products to an Amazon warehouse. When someone places an order, Amazon picks, packs, and ships the item to the customer. Amazon will also handle refunds and returns. FBA comes with a fee that varies by product and order.

    View now at Amazon

    Which benefits are included with Amazon Business Prime?

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    The benefits offered in the Business Prime account depend on the membership plan. All plan levels have the same shipping and shopping benefits. Not all shipping speeds and methods are available on all items or in all areas. Deliveries default to business days only, but can be changed to daily if requested. 

    Shipping benefits include:

    • Free Amazon Day Delivery
    • Free 3-5 day Consolidated Shipping
    • Free One-Day, Same-Day, or Two-Day Shipping on certain items
    • Discounted Expedited Delivery

    Shopping Benefits include:

    • Prime Day Deals
    • Prime Early Access to Lightning Deals
    • Progressive Discounts

    Amazon WorkDocs allows for collaboration on invoices, receipts, and other business documents in one secure location. Amazon WorkDocs is available on:

    • Essentials: 1 user and 250 GB of space 
    • Small: 3 users and 750 GB of space
    • Medium: 5 users and 1.25 Tb of space
    • Enterprise: 10 users and 2.5 TB of space 

    These same plans allow the business owner to set rules for preferred and restricted buying for employees who are provided user access. Owners can also use spending pattern insights to plan budgeting and buying decisions. Small and Medium membership plans include 45-day fee and interest-free payment terms on invoices, while Enterprise plans get 60 days plus Amazon Business Professional Services assistance.

    Small businesses who are tax-exempt can use the Amazon Tax Exemption Tool to enroll online for the Amazon Tax Exemption Program. Once approved, you can apply tax-exemption status to qualifying purchases when reviewing your order.

    Does Amazon Business Prime include TV?

    The Amazon Business Prime account does not include TV, but you can link a standard Amazon Prime account to your Business Prime account to access TV features. If you already have an Amazon Prime account, you can add the Business Prime Duo plan for $69 per year to access both standard and business benefits. 

    Is it worth having an Amazon Business Prime account?

    An Amazon Business Prime account has perks that are beneficial to small businesses compared to a personal Amazon Prime account. With Business Prime, you can get discounts on large quantities of products and may qualify for tax exemptions. You also have access to business analytics tools to track business spending and Amazon Workdocs for team collaboration.

    Are Amazon Business Prime prices cheaper?

    Amazon Business Prime prices can be cheaper than a standard Amazon Prime account. If you're buying in large quantities, you can get discounts or tiered pricing on certain items that the general public can't access. You can also flag preferred suppliers and products using the Guided Buying tool. Amazon Business Prime members can also consolidate shipping to a personal or business address for large purchases.

    Does Amazon Business pose any disadvantages to buyers or sellers?

    An Amazon Business account can provide sellers exposure to a wide range of consumers and B2B merchants, which can boost sales and revenue. FBA also helps sellers by letting Amazon do the work of shipping orders and handling refunds and returns. However, disadvantages to an Amazon Business account include limited buyer communication and limitations on what can be shipped to customers. Selling on Amazon can both increase and limit brand awareness and restrict the buyer/seller relationship. 

    Is Amazon Prime or Business Prime right for you?

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    Should you choose Amazon Prime or Business Prime? If you're a business owner, the perks offered by Business Prime may be worth the extra cost. However, if you're only purchasing products as needed and aren't purchasing in bulk, you may not need Business Prime. You can still take advantage of the free tools offered in your Amazon Business account, even if you don't purchase Business Prime.

    Both Amazon Prime and Business Prime come with a 30-day free trial. To register for Business Prime, use your business email and provide your business address and tax ID. Amazon will verify your business within 24 hours, and you can track your status online. To help you determine if Business prime is right for you, Amazon Business has partnered with Forrester Consulting to calculate the potential return on investment (ROI) for your business if you purchase a membership. 

    E-Commerce

    The Pros and Cons of Selling on Amazon and eBay

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    Ashely John Hacker Noon profile picture

    Selling your products on Amazon and eBay seems like an irresistible deal at first. You have their entire customer base at your disposal, and these sites get a hell lot of traffic; what could be a more profitable way to start an eCommerce business?

    I mean, Amazon is the world’s largest eCommerce platform and an example of one of the best online marketplace software –both in terms of features and technology stack. It’s a 25 years old brand. Each month, at least 197 million shoppers around the world purchase their favorite stuff from Amazon. Who would not like to do business with a giant that holds a 49% share in the US eCommerce market?

    On the other hand, everybody knows eBay. Founded in 1995, eBay is the most popular C2C eCommerce giant. E-bay is still one of the biggest eCommerce giants in the US with a market cap of $33.5 billion, as of September 2019. Can anyone overlook a platform that made $10.7 billion in 2018 and still growing?

    You might now ask, how not is everyone selling products online on Amazon and eBay then? Why 46% of the eCommerce business owners in a survey in the UK preferred their own sites to sell on a third-party marketplace?

    Is the Mutual Benefit a Thing While Selling on a Marketplace?

    Like I said earlier, selling your products on marketplacesseems quite beneficial. You can, in fact, create an online storewithout worrying about product-warehousing, shipping, packaging, managing a website, or fussing about the SEO and website traffic. However, if you take a closer look, you would still find the benefits, but the actuality of profits for the sellers experiences a bit of change their definition.

    Nevertheless, should you be selling your products on AmazonandeBay, or not? The answer varies from person to person and business to business. While marketplaces may be a profitable way to start with the eCommerce business for many, some of us might just overlook the potentials for massive growth with a proprietary business, and behave just like a frog in the well.

    There are N numbers of aspects that a merchant must analyze beforehand: types of products you sell, their demand, competition in the general market, competition on the marketplace itself, the revenue you share with the marketplace, restrictions, and scope beyond the marketplace to name a few.

    Based on these aspects and many others, you should makes this decision by yourself. That’s why I have talked in detail about the Pros and Cons of Selling on Amazon and eBay in this article, so you can make a well-informed decision after comprehending the fluctuations in all the alternatives.

    The Pros of Selling on Amazon, eBay, or Any Marketplace

    Selling on a popular marketplace would have its own perquisites. One of the biggest examples would be the ease at with anyone can set up an Amazon or eBay account to start selling on the go. These are some very big corporations backed by fortunes, you can’t just overlook the local as well as international recognition they have already secured in the market.

    One of the Biggest Traffic Channels at Your Disposal from the First Day

    As we talked earlier, Amazon and eBay are two of the biggest traffic generators on the internet. Each second millions of online shoppers purchase something from these platforms. Having a storefront on one of the busiest streets in the town has its own rewards.

    You will have instant access and would be selling products online to over 184 million monthly visitors on Amazon and at least 164 million active shoppers on eBay. Whether you are selling on Amazon, eBay, or on your very own platform, you should be looking for such serious eyeballs to do business. We can’t deny the fact that many merchants have admitted getting a 50% boost in their sales after joining Amazon as a seller.

    Generate Sales through Inherited Trust Factors in the Brand by Default

    Even if shoppers don’t visit Amazon or eBay looking specifically for your store, the people who trust these platforms already trust your listings by default. They know that Amazon and eBay care for customer experience and they collaborate with only genuine businesses. Once, a customer is there on the site, your listing as trustworthy for them as the platform itself.

    So even without your unique brand identity, you work in an environment where you get new customers every day. You may further intrigue the customers into your unique identity as a trustworthy seller via quality services and excellent order fulfillment experiences. Amazon uses its FBA service to take away shipping and storage hassles from sellers and encourages them to focus on customer experience. It is something that a small seller or one-man army merchant cannot deny.

    Many People Just Love the All-In-One Nature of the Online Marketplaces

    The reason why supermarkets and hypermarkets exist is their ease of finding everything under one roof. If I can purchase everything of my needs with just a single checkout, why would I prefer to visit tens of individual sites to purchase them separately?

    The strength of eBay and Amazon lies in the variety of products they offer on a single platform. Considering Amazon and eBay combined, they sell everything from pin to an airplane. Seamless one-stop shopping is what many people love about online marketplaces and visit these sites very often.

    The Cons of Selling on Amazon, eBay, or Any Third-Party Platform

    It’s no brainer; sellers on Amazon and eBay enjoy a plethora of benefits, which play a significant role in the early development of their businesses. They take away many hassles and offer a range of B2B services that otherwise are not easily accessible to independent merchants who are looking to create an online store of their own. However, like every good thing, the benefits from marketplaces come at some price.

    Marketplaces Take Huge Fee from Sellers

    It hurts to lose even a minute percentage of your hard-earned revenue; Amazon and eBay take away a significant percentage of it from you. There is a complex list of different types of fees and commissions these platforms take from sellers in lieu of letting them use their platforms. If you are willing to take your storefront in the premises set by Amazon and eBay, be ready to lose a significant portion of the revenue you generate during your stay. The range of fee and commissions differ from product to product and categories to categories. Be ready to do some homework about the charges before you take your products to these marketplaces for selling.

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    Source: salehoo.com

    Besides, sellers can opt for various premium services like sponsored listing, featured listing, FBA, and others to secure a better chance of visibility on the platform. Yes, despite you are ready to give away a portion of your revenue you still cannot make sales unless you are visible to the customers.

    You need to opt for premium services to gain good visibility. FYI, Amazon takes 26.7%-60.6% of the sales revenue for the products listed under-advertised categories. This fee is in addition to the regular 6–15% selling fees per-sale.

    You Have No Control over Your Business

    While you pay the extra premium to get all those infrastructure benefits, you still are not the actual boss of your own business. All that a marketplace cares about is its own benefits. They focus on promoting and selling products online, not the sellers.

    Despite spending so much on the platform, you cannot call them your own. All the customers you get while on Amazon or eBay are the marketplace’s customers, not yours. You are just a third-party seller whom they can easily replace with some other seller. Besides, you cannot just upload a product you like. All your listings first go through an inspection and approval process before they are live on the site. They can take your listings down if they don’t find them viable for their business.

    In short, even after spending fortunes to compete on Amazon or eBay, you don’t own anything on the platform. They reserve the right to control everything about you, including your product listings, storefront information, and communication with customers; they regulate everything that identifies you as a brand.

    Competition Is Insane and Expensive

    Apart from all these, you have to compete with the in-house products from Amazon and the giant sellers who capture the listings in almost every category. Hence, selling products online on a marketplace might seem like a seamless way to start with no investment in technology, but you would find it difficult to stand unless your products are really out of this world, or you pay fortunes for premium services and get better visibility.

    Therefore, not just the commission-per-sale is inevitable, but also many other overhead costs are involved, which somehow marketplaces present as optional, but a seller is not good without opting for them. If you don’t opt, your rival sellers will opt for sure, and gain an upper hand.

    To conclude

    Nothing is easily accessible in the eCommerce market. Anything with a benefit comes with a corresponding price. If marketplaces offer the easiest way to start your eCommerce business, they also encompass the cruelest ways to claim a part of your revenue. There is a cost involved in every opportunity.

    I don’t say starting your own eCommerce site is an easier alternative, but that also gives you absolute control and ownership of your business. These days, it’s so easier to set up and launch a proprietary eCommerce store. All that you need a good eCommerce script or an online marketplace software, which you can set up, customize, and host on a server of your choice.

    Of course, setting up a site is a big commitment and requires some groundwork, but don’t you think it’s worth it, considering all the revenue you can claim for yourself? Even if you are a one-man army, there are simple yet competent eCommerce solutions in the market that you can use to create an online storeand manage the same without any help. You don’t have to compete with the likes of Amazon or eBay. Just be a little creative and start something very niche, which can stand out from the rest of the competitors.

    Now that you know the pros and cons, analyze your case, and you will have an idea of where to start and how to start selling products onlineusing different ways.

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    Источник: https://hackernoon.com/the-pros-and-cons-of-selling-on-amazon-and-ebay-ls1r32q5
    Shutterstock

    For an increasing number of small business owners, the answer can be found in the Fulfillment by Amazon (FBA) business model.

    The FBA model is exactly what it sounds like: business owners provide products, and Amazon handles packing, shipping and contextual customer support.

    FBA businesses have grown in popularity since Amazon launched the service in 2006, but both creation and sales of FBA businesses really began to skyrocket between 2015-16.

    With FBA trending hot and heavy, is buying an Amazon-based business right for you? In this post, I'll explain the pros and cons of buying an FBA business, and let you decide.

    Five benefits of buying an Amazon FBA business.

    The appeal of an FBA business might seem obvious to you.

    After all, who wouldn't want to hand off most of the headaches that come with fulfillment to someone else? But that's just the primary benefit of acquiring an FBA business. Consider these five benefits as well.

    1. Outsourcing fulfillment frees you up to handle higher-level tasks.

    With Amazon handling the - sometimes literal -- heavy lifting, you can focus on growth-oriented tasks such as conversion rate optimization (CRO), targeted marketing and new product development.

    2. You and your customers benefit from Amazon's perks.

    From free two-day shipping with Prime to greater product visibility in the marketplace and the automatic credibility that comes with selling your wares on the site of an established, trusted retail giant, your FBA business will provide customers with a next-level experience that's hard to replicate via traditional ecommerce. And don't forget, Amazon will also provide top-notch customer service.

    3. Scalability is built-in.

    Beyond the perks of Prime and processing, Amazon's worldwide reach, massive warehousing and fulfilment capabilities, and well-established infrastructure give you the power to grow your business more effectively as time and demand dictate.

    In addition, FBA businesses can act as a nexus for multiple sales channels. Offering your products across the web, and directing those sales through your FBA business, can attract customers, who may not start their search for your amazon business account pros and cons on Amazon, yet still fill the needs of those customers through its system.

    4. You don't need to pound the pavement for customers.

    Amazon has already built the world's largest customer base, and you're gaining access to it with an FBA business. This base can be expanded further with multiple channels.

    5. Reduced costs mean increased profits.

    Without the need for a website or your own shipping and customer service, profits will likely be higher, even with Amazon's service fees.

    An FBA business is definitely not "hands-free," but it does leverage the power of Amazon to give you the ability to make the most of your time, effort and resources in building a steady earner in the ecommerce space.

    Three challenges of an FBA business.

    Of course, it's not all wine and roses. As with most acquisitions, FBA businesses come with their own set of challenges and potential dealbreakers for potential buyers.

    1. It's a jungle in there.

    Every FBA business is fighting for survival and prominence in a complex ecosystem ruled by Amazon's own Buy Box algorithm. FBA businesses receive greater prominence than non-FBA businesses in Amazon's model, but that's still no guarantee of survivability or even profitability.

    The company's main product is, after all, information, and it leverages data - data it does not share --with ruthless efficiency to decide where, when and how products will appear to consumers. It will also track the popularity and pricing flow of items, and use this information to produce its own competing products in an effort to supplant third-party businesses as sales leaders for those products.

    Related: Business Plans: A Step-by-Step Guide

    2. You might need to be more hands-on than you think.

    You'll need a working knowledge of Amazon's marketplace and the performance metrics it uses to gauge success and failure.

    You'll probably also want to keep a close eye on competition, which can wildly surge (as can the performance and profitability of all the items in the business), to have real-time information on your best performers in the short and long term.

    Related: Need a Business Idea? Here are 55

    3. You'll need a game plan for growth.

    In addition to negotiating the perilous waters of Amazon's Darwinist marketplace, you'll need to keep a sharp eye out for growth opportunities at every turn.

    The same expanding competition and market saturation that eat into your profits will work against you inside the closed walls of Amazon's ecosystem, so be prepared to pursue multichannel opportunities if you're keen on serious growth.

    To FBA or not to FBA - that is the question.

    FBA businesses are an exciting, evolving part of the small business marketplace. And as with any other small business, deciding whether or not an FBA business is right for you begins with answering a few simple questions.

    • Does this business match my interests and goals?
    • Does this business have the current or potential power to achieve my desired profitability, sustainability and growth?
    • Do I have the necessary understanding of Amazon's marketplace, the FBA business model and the potentially punishing algorithms that drive success on Amazon?
    • Am I prepared to put any work into this business?

    Related: Starting a Business: The Idea Phase

    If answered "yes" to all of these questions, you're on your way to FBA success.

    But if you're not sure about one or more, it's a good idea to sit down with your broker, and discuss whether buying an FBA business is the right for you. A little due diligence, along with taking the time to develop your subject-matter mastery, can help you make an informed - and profitable -- decision.

Mark Daoust

Written By

Mark Daoust

Mark Daoust’s passion for creating sales agreements that benefit both sides of the table led him to create Quiet Light Brokerage in 2007. Guided by the bedrock values of honesty, integrity and transparency, Daoust built Quiet Light to help sellers of internet businesses. His own business recently was selected as the #1 brokerage for buying and selling websites valued at over $1 million. Quiet Light and Daoust are headquartered in Minnesota, where Mark sometimes gets to run home to help his wife teach a quick class to his four children.

Источник: https://www.entrepreneur.com/article/280495

Amazon has rapidly become one of the largest online marketplaces — in fact, it’s one of the biggest marketplaces of any kind. The site sells everything from paper towels to luxury TVs to jewelry and has grown rapidly from its humble beginnings as a simple bookseller. With a business model that prioritizes consumer convenience and features like two-day shipping and free returns, it’s little wonder how this online retail behemoth has grown so substantially. While almost everyone is familiar with Amazon’s function as an online market, not everyone realizes it can be a great money-making opportunity for small business owners as well.

If you’ve got amazon business account pros and cons great product to sell, or you want to expand your existing sales to a vast online market, selling on Amazon might be one of the simplest and most effective ways to grow your online retail presence. In this post, we’ll go over the basics of what you need to know before you start uploading your products to Amazon. We’ll cover the startup process, how being an Amazon seller actually works, and the pros and cons of becoming an Amazon seller. For a start-to-finish guide to starting an Amazon business, read through this whole post. If you only need a refresher on some areas, simply click on one of the links below to jump straight to the section you need.

What is an Amazon business?

Most people are familiar with Amazon as an online store. You log on and search for nearly anything your heart desires, and you’ll quickly be met with dozens of options at varying price levels — and usually a few at a serious bargain. Amazon does actually have its own brands (Amazon Essentials and Goodthreads, for instance), but the site mainly exists as a marketplace for other brands.

These other brands are able to sell through Amazon by building a partnership with them; they become Amazon sellers. This is why you can purchase Levis and KitchenAid products from Amazon. However, it’s not just nationwide corporations that can have a selling agreement. Small businesses can, too. If you have a small business, it may be worth considering registering with Amazon and listing your products on their site. This expansive inventory is part of why Amazon has over 150 million unique monthly visitors in the US alone. Let’s go over how you can get started.

How to sell on Amazon

If you’re wondering how to become an Amazon seller, getting started may seem like an impossible task. Luckily, Amazon makes it pretty easy to get started. The first thing you’ll have to do is register with them as a seller. The process is pretty simple.

Getting started as an Amazon seller

  1. First, you’ll pick a category that your product falls into. There are over 30 total, but only 20 for individual sellers. The other 10+ are reserved for professional sellers. If your business is large enough to qualify, however, this option may be available to you.
  2. Next, you’ll pick your selling plan. Amazon doesn’t let you list your products on their site for free. They charge for the service and convenience, but the pricing can be pretty reasonable. There are two selling plans to pick from: Professional plans, which cost $39.99 per month, and Individual plans, which charge $0.99 per transaction but do not cost a monthly fee.
  3. Once you’ve established your product category and picked the right selling plan for you, you’ll register with Seller Central. This is where you’ll be able to manage your seller account, view sales, and communicate with Amazon.

It’s also up to you whether you use Fulfillment by Amazon (FBA), which is their proprietary shipping, delivery, and customer service (including returns) option. You can choose to manage this aspect yourself or pay a per-package fee to have Amazon handle it for you.

Note: In order to be eligible for a Prime badge (those that appear next to products that qualify for free 2-day shipping), you must sign up for FBA.

Assessing startup costs

You gotta spend money to make money, as the old saying goes. If you already run a small business, you may already be familiar with startup costs. While the day-to-day management of your business — like managing inventory, paying for accounting services, and maintaining a healthy advertising budget — are things you’ll want to take into account, startup costs are an additional one-time expense that tends to be more than your average monthly budget. If you’re trying to start an Amazon business and be your own boss, there are some startup costs you may want to consider:

  • Initial purchase of inventory: Before you’re ready to build a profitable Amazon business, you’ve first got to have a stock of product you intend to sell. Your inventory cost can vary a lot based on the kind of product you’re selling. Rubber bands and paperclips might not set you back that much, but if you’re selling hardwood furniture, your inventory costs may be more substantial. Be sure to calculate how much you can invest in this.
  • Amazon seller plan: Those looking for a little cash on the side to boost their side hustle can probably get by with an Individual plan — that’s the one that charges $0.99 per transaction — but those who are hoping to build a more robust Amazon business may want to invest in the Professional plan for $39.99. That’s not necessarily a huge cost, depending on your business volume, but it’s something to keep in mind as you plan out your finances.
  • Fulfillment by Amazon: If you choose to have Amazon handle all aspects of shipping, packing, and customer service, you’ll be charged a per-package fee. Be sure to factor these costs into your startup, as these fees are added when you ship out your first batch of inventory. The rates can vary from just over $2 to almost $140 for oversized, heavy packages.

Startup advertising: We’ll cover advertising in more detail below, but be sure that you add costs like product photography, logo development, branding, and possible web advertisements to your total startup budget.

Now that you have a clearer picture of how to start an Amazon business and some of the costs you should expect, you’re probably wondering how selling on Amazon actually works. Let’s dive into that now.

How do Amazon businesses work?

The way your Amazon business works will depend in large part on your products and your own business plan. However, there are some general themes that are true for sellers regardless of their specific situation. Amazon outlines four steps that go into transactions through Amazon.

Step-by-step guide to transactions through Amazon

  1. Create your product listing: Once you’re registered and have chosen your pricing plan, decided american national bank of texas customer service you’ll use FBA (Fulfillment by Amazon shipping), and completed your other account details, you’ll have to create your product listing. This involves uploading appealing and informative photos of your products, writing the descriptions that will accompany those photos, and including details like specifications, features, and any warranty you may offer. Making an Amazon product listing is tricky, and the content and quality of your listing will largely affect how likely customers are to buy. This is something you’ll want to spend some time on.

Note: Those with Professional seller accounts can upload products in bulk, but those with Individual accounts cannot, and must post them one at a time.

  1. Amazon notifies you of sales: When you make a sale on Amazon, they’ll notify you through Seller Central or via email. This way, you’ll be able to keep tabs on how often your products sell, so you have a better idea of your business’s performance.
  2. Your product is shipped: If you’ve decided against using FBA, you’ll need to ship the item yourself at this point. However, if you have you have decided to use FBA, your product will be picked up and shipped to your customer. A per-item fee will apply based on the size and weight of the items you’ve shipped.
  3. Amazon deposits your portion of payment: Once your seller fee, per-item shipping fees, and other FBA fees have been assessed (more on those in the next section), the remaining revenue from the sale of your product will be deposited in your bank account. Once all other operating expenses are accounted for, the remaining balance is your net income.

The process is relatively simple, which is why so many sellers — both from big brands and small businesses — have decided to add Amazon to their portfolio of revenue streams. However, before you jump in and rush to make an Amazon sellers account, it’s a good idea to get a thorough idea of what you’re getting into when you start an Amazon business.

Pros and cons of selling on Amazon

As with any business venture, there are pros and cons to consider before listing your products on Amazon. If the relatively low price, ease of shipment, and access to a huge market all sound a little too good to be true, that’s because there is a catch — or two or three. While running an Amazon business can definitely be a wise move for your company, part of knowing how to sell on Amazon is knowing what the potential disadvantages are. We’ll cover the pros and cons, then move on to describe some savvy tricks you can use to make your Amazon business more profitable.

Advantages

First, let’s list the biggest advantages to listing your products on Amazon.

  • Amazon has one of the largest customer bases in the world. With more than 150 million unique monthly visitors in the US, you can be sure that your products will receive maximum exposure. While having your inventory on your small business’s website is a great way to draw in a loyal following, it may be hard for first-time users to find your site to begin with. Having a clickable Amazon listing mitigates this problem and can increase your earning potential.
  • Shipping, logistics, returns, and customer service can be a massive headache when you’re trying to grow your business. By allowing Amazon to handle these aspects of your business, you can focus on scalable growth models, investor outreach, marketing, and whatever else you need more time for.
  • Having Amazon handle customer service and returns is not only a huge benefit to your personal schedule, but it also increases amazon business account pros and cons chances of making sales. That’s amazon business account pros and cons when customers see the Prime badge under your product listing, they will feel much more secure knowing they can expect free shipping, easy customer service, and free returns. That peace of mind is all many buyers need to pull the trigger.
  • Because Amazon already has a massive infrastructure in place for product listing and fulfillment, you won’t have to worry about that as you grow your business. The only limit is how quickly you can produce more product — no worry of a warehouse full of supply that’s been purchased but is stuck because of lagging logistics providers. Focus on your own supply chains and marketing strategies while Amazon handles the B2C side of your brand.

Disadvantages

Now, let’s think seriously about the disadvantages you may face if you decide to work with Amazon.

  • All that ease of use, next-level fulfillment, and simple customer service does come with a hefty price tag. The 40 bucks a month you’ll spend on your seller account does sound pretty cheap — and certainly much cheaper than rent for a storefront. Sadly, though, that’s not the end of the price. If you decide to use Fulfillment by Amazon, there’s an entire list of potential FBA fees. You won’t necessarily be responsible for all of them, but depending on what aspects of FBA you use, there are quite a few: everything from barcode labeling to warehouse storage comes with a per-item fee attached.
  • The next thing you may want to worry about is that you give up a lot of control to Amazon when you decide to sell on their site. Specifically, they have been known to force sellers to raise or lower prices on their home sites to match the price found on Amazon. Amazon thrives due to its pricing model that beats out most competition, so they don’t want their sellers offering a better bargain If your prices have been specifically calculated to make sure your business keeps turning a reasonable profit, this may be something to think about before giving pricing control up to Amazon.
  • Amazon has recently been under scrutiny for its problematic and sometimes predatory labor practices. Fulfillment center workers — the people who package items, move them, and prepare them for shipment — are often overworked and expected to keep up with unrealistic and demanding schedules, leading to burnout and even serious injury. The convenience of two-day shipping, rapidly stocked inventory, and quickly-processed returns comes at a serious human cost. By using FBA, many of your products will be processed at fulfillment centers making use of these questionable practices.
  • Because of the problems just described, some people have decided to boycott Amazon. It depends on your likely customer base, but that could potentially hurt your profits. Those selling something like electronics or bathroom supplies mankato state university admissions address won’t suffer from an affiliation with Amazon. However, lifestyle brands promoting reduced consumption or social justice — as well as producers of goods that amazon business account pros and cons associated with progressive values, like certain books or clothing brands — may lose customers by having a relationship with the tech giant. It’s 1st grade addition and subtraction worksheets to be aware of your customer base’s values before going all-in on an Amazon business strategy.

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If you do decide that an Amazon business is right for you, you’ll want to make sure that you run it well. We’ll offer some tips on how to make sure that your Amazon business is profitable in this next section.

Making your Amazon business profitable

Disadvantages aside, there’s no question that with the right strategy an Amazon business can be a huge revenue stream. According to a 2018 survey, 40% of Amazon sellers made over $250,000 in yearly revenue. Bear in mind, however, that this figure does not state the average profit these businesses made, which is revenue minus the amount the seller invested. Still, that’s a sizeable percentage making a lot of money.

What else can you do to make your Amazon business profitable?

Understand your market and competition

The first step in having a successful business of any kind is northfield savings bank staten island what niche you’ll market your product to. Are you making strollers for new moms? Do you buy toothpaste wholesale and distribute it via FBA? Are you an artisan who hand-makes vegan leather bags and shoes? While any of these business owners can operate an Amazon business successfully, each will have its own strategy. In general, however, it’s a good idea to follow these steps:

  1. Assess competition: Before hopping into the market, check out what similar sellers are up to. How do they photograph their products? What features do they name in the product description? Do they include customer testimonials? Take extensive notes on what the most successful sellers (the ones that rank high on keyword searches on Amazon and also have good reviews) do with their product listings.
  2. Survey customers: There’s nothing quite as useful to businesses as data. If you’ve already got a reasonably sized customer base, send out a survey to find out how satisfied they are with your products, what they’re favorite things about your brand are, and what they would like to see improved. Plus, getting customer feedback has two benefits: you find out what parts of amazon business account pros and cons business work and which ones don’t, and you show customers that you’re invested in their satisfaction; that can seriously boost retention.
  3. Make a good product: This one should go without saying, but in today’s heyday of viral marketing strategies and data-based business solutions, this core business principle often gets tossed out the window. Nevertheless, people value a product that does what it’s supposed to, lasts a long time, and comes amazon business account pros and cons with solid customer service. If you’re unsure where to start, making something useful that people actually want to buy is probably the best place.

Market your Amazon business

Another important thing to consider is how exactly you will market your products on Amazon. The first thing to keep in mind is your product’s niche. That’s basically the group of people who are likely to find your products appealing. Finding your niche is necessary for building the right kind of marketing campaign and branding to accompany your product. Do you make bomb board shorts that are perfect for relaxed Gen Z beach bums? — Or custom engraved fountain pens often purchased as gifts for lawyers and executives? Your marketing strategy is going to be very different for each of these markets, so be sure your brand development matches the people who are likely to buy your goods.

One of the most important ways to market your Amazon business is with web marketing. The days of bus banners and billboards are slowly fading away. If you want to keep up with competition and market your products to younger generations of web-savvy consumers, you’ll need a web marketing strategy. Here are a few web marketing basics to get you started:

  • Market on social media either by using paid ads that are data-directed toward likely consumers, or by purchasing partnerships with influencers that potential customers in your demographic follow.
  • Start an email newsletter that keeps loyal customers informed of your brand’s upcoming promotions. This is a great way to retain existing customers and grow your base of loyal buyers.
  • Start a blog that provides readers with reliable information about your area of expertise. If you make shoes, your blog should provide fashion advice; if you make home goods, it should midland states bank effingham il about interior design and lifestyle; kitchenware companies can post blogs about seasonal food and recipes, etc.
  • Invest in search engine optimization. When people Google keywords that relate to your brand, you want your website or Amazon listing to come up on the first page of results. Tactics like keyword research, user experience improvement, and developing a healthy number of links to your site can all help boost your ranking on results pages.

On all your social media, email, and blog content, it’s a good idea to have well-placed links to your Amazon listing. Users love convenience: pointing them to an easy way to buy a promoted product makes it much more likely that they will follow through. Having a well-developed web presence is essential for any brand that hopes to succeed in the 2020s, so no matter what your small business sells, be sure you invest in online strategy.

Stay on top of best practices

Lastly, Amazon has a list of best practices that its sellers should follow. Complying with these means you avoid running into trouble with Amazon’s admins, but it also makes it more likely that customers will find your product listing trustworthy and desirable.

Some best practice guidelines may seem so simple that they don’t need a second thought, but it’s a good idea to check back in periodically and make sure you’re following all the rules. You wouldn’t want your business to suffer from a silly mistake like an ambiguous description or pixelated product image.

Key Takeaways: How To Sell on Amazon

Expanding your small business by learning how to become an Amazon amazon business account pros and cons can be a fruitful decision. The important thing to know is how best to create and post a listing that brings in consistent revenue. If you do decide to start an Amazon business, remember these key takeaways:

  • Make an account with Seller Central to get started.
  • Choose the right plan for your business: either Individual or Professional.
  • Create an eye-catching and informative product description.
  • Manage your sales and keep records of your revenue.
  • Invest in advertising and web marketing strategies.
  • Be mindful of the pros and cons of using Amazon business.

Getting started may seem daunting, but if you carefully follow each step and cover your bases, you’ll be well on your way to starting a successful Amazon business. 

Sources: Amazon.com, Start Selling Online, Seller Central © Otto Simon

Источник: https://www.simonconsulting.at/amazon-vn_EN.html
ProMarket.org, How Amazon’s Pricing Policies Squeez Sellers and Result in Higher Prices for Consumers

The Pros and Cons of Selling on Amazon and eBay

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Ashely John Hacker Noon profile picture

Selling your products on Amazon and eBay seems like an irresistible deal at first. You have their entire customer base at your disposal, and these sites get a hell lot of traffic; what could be a more profitable way to start an eCommerce business?

I mean, Amazon is the world’s largest eCommerce platform and an example of one of the best online marketplace software –both in terms of features and technology stack. It’s a 25 years old brand. Each month, at least 197 million shoppers around the world purchase their favorite stuff from Amazon. Who would not like to do business with a giant that holds a 49% share in the US eCommerce market?

On the other hand, everybody knows eBay. Founded in 1995, eBay is the most popular C2C eCommerce giant. E-bay is still one of the biggest eCommerce giants in the US with a market cap of $33.5 billion, as of September 2019. Can anyone overlook a platform that made $10.7 billion in 2018 and still growing?

You might now ask, how not is everyone selling products online on Amazon and eBay then? Why 46% of the eCommerce business owners in a survey in the UK preferred their own sites to sell on a third-party marketplace?

Is the Mutual Benefit a Thing While Selling on a Marketplace?

Like I said earlier, selling your products on marketplacesseems quite beneficial. You can, in fact, create an online storewithout worrying about product-warehousing, shipping, packaging, managing a website, or fussing about the SEO and website traffic. However, if you take a closer look, you would still find the benefits, but the actuality of profits for the sellers experiences a bit of change their definition.

Nevertheless, should you be selling your products on AmazonandeBay, or not? The answer varies from person to person and business to business. While marketplaces may be a profitable way to start with the eCommerce business for many, some of us might just overlook the potentials for massive growth with a proprietary business, and behave just like a frog in the well.

There are N numbers of aspects that a merchant must analyze beforehand: types of products you sell, their demand, competition in the general market, competition on the marketplace itself, the revenue you share with the marketplace, restrictions, and scope beyond the marketplace to name a few.

Based on these aspects and many others, you should makes this decision by yourself. That’s why I have talked in detail about the Pros and Cons of Selling on Amazon and eBay in this article, so you can make a well-informed decision after comprehending the fluctuations in all the alternatives.

The Pros of Selling on Amazon, eBay, or Any Marketplace

Selling on a popular marketplace would have its own perquisites. One of the biggest examples would be the ease at with anyone can set up an Amazon or eBay account to start selling on the go. These are some very big corporations backed by fortunes, you can’t just overlook the local as well as international recognition they have already secured in the market.

One of the Biggest Traffic Channels at Your Disposal from the First Day

As we talked earlier, Amazon and eBay are two of the biggest traffic generators on the internet. Each second millions of online shoppers purchase something from these platforms. Having a storefront on one of the busiest streets in the town has its own rewards.

You will have instant access and would be selling products online to over 184 million monthly visitors on Amazon and at least 164 million active shoppers on eBay. Whether you are selling on Amazon, eBay, or on your very own platform, you should be looking for such serious eyeballs to do business. We can’t deny the fact that many merchants have admitted getting a 50% boost in their sales after joining Amazon as a seller.

Generate Sales through Inherited Trust Factors in the Brand by Default

Even if shoppers don’t visit Amazon or eBay looking specifically for your store, the people who trust these platforms already trust your listings by default. They know that Amazon and eBay care for customer experience and they collaborate with only genuine businesses. Once, a customer is there on the site, your listing as trustworthy for them as the platform itself.

So even without your unique brand identity, you work in an environment where you get new customers every day. You may further intrigue the customers into your unique identity as a trustworthy seller via quality services and excellent order fulfillment experiences. Amazon uses its FBA service to take away shipping and storage hassles from sellers and encourages them to focus on customer experience. It is something that a small seller or one-man army merchant cannot deny.

Many People Just Love the All-In-One Nature of the Online Marketplaces

The reason why supermarkets and hypermarkets exist is their ease of finding everything under one roof. If I can purchase everything of my needs with just a single checkout, why would I prefer to visit tens of individual sites to purchase them separately?

The strength of eBay and Amazon lies in the variety of products they offer on a single platform. Considering Amazon and eBay combined, they sell everything from pin to an airplane. Seamless one-stop shopping is what many people love about online marketplaces and visit these sites very often.

The Cons of Selling united online Amazon, eBay, or Any Third-Party Platform

It’s no brainer; sellers on Amazon and eBay enjoy a plethora of benefits, which play a significant role in the early development of their businesses. They take away many hassles and offer a range of B2B services that otherwise are not easily accessible to independent merchants who are looking to create an online store of their own. However, like every good thing, the benefits from marketplaces come at some price.

Marketplaces Take Huge Fee from Sellers

It hurts to lose even a minute percentage of your hard-earned revenue; Amazon and eBay take away a significant percentage of it from you. There is a complex list of different types of fees and commissions these platforms take from sellers in lieu of letting them use their platforms. If you are willing to take your storefront in the premises set by Amazon and eBay, be ready to lose a significant portion of the revenue you generate during your stay. The range of fee and commissions differ from product to product and categories to categories. Be ready to do some homework about the charges before you take your products to these marketplaces for selling.

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Source: salehoo.com

Besides, sellers can opt for various premium services like sponsored listing, featured listing, FBA, and others to secure a better chance of visibility on the platform. Yes, despite you are ready to give away a portion of your revenue you still cannot make sales unless you are visible to the customers.

You need to opt for premium services to gain good visibility. FYI, Amazon takes 26.7%-60.6% of the sales revenue for the products listed under-advertised categories. This fee is in addition to the regular 6–15% selling fees per-sale.

You Have No Control over Your Business

While you pay the extra premium to get all those infrastructure benefits, you still are not the actual boss of your own business. All that a marketplace cares about is its own benefits. They focus on promoting and selling products online, not the sellers.

Despite spending so much on the platform, you cannot call them your own. All the customers you get while on Amazon or eBay are the marketplace’s customers, not yours. You are just a third-party seller whom they can easily replace with some other seller. Besides, you cannot just upload a product you like. All your listings first go through an inspection and approval process before they are live on the site. They can take your listings down if they don’t find them viable for their business.

In short, even after spending fortunes to compete on Amazon or eBay, you don’t own anything on the platform. They reserve the right to control everything about you, including your product listings, storefront information, and communication with customers; they regulate everything that identifies you as a brand.

Competition Is Insane and Expensive

Apart from all these, you have to compete with the in-house products from Amazon and the giant sellers who capture the listings in almost every category. Hence, selling products online on a marketplace might seem like a seamless way to start with no investment in technology, but you would find it difficult to stand unless your products are really out of this world, or you pay fortunes for premium services and get better visibility.

Therefore, not just the commission-per-sale is inevitable, but also many other overhead costs are involved, which somehow marketplaces present as optional, but a seller is not good without opting for them. If you don’t opt, your rival sellers will opt for sure, and gain an upper hand.

To conclude

Nothing is easily accessible in the eCommerce market. Anything with a benefit comes with a corresponding price. If marketplaces offer the easiest way to start your eCommerce business, they also encompass the cruelest ways to claim a part of your revenue. There amazon business account pros and cons a cost involved in every opportunity.

I don’t say starting your own eCommerce site is an easier alternative, but that also gives you absolute control and ownership of your business. These days, it’s so easier to set up and launch a proprietary eCommerce store. All that you need a good eCommerce script or an online marketplace software, which you can set up, customize, and host on a server of your choice.

Of course, setting up a site is a big commitment and requires some groundwork, but don’t you think it’s worth it, considering all the revenue you can claim for yourself? Even if you are a one-man army, there are simple yet competent eCommerce solutions in the market that you can use to create an online storeand manage the same without any help. You don’t have to compete with the likes of Amazon or eBay. Just be a little creative and start something very niche, which can stand out from the rest of the competitors.

Now that you know the pros and cons, analyze your case, and you will have an idea of where to start and how to start selling products onlineusing different ways.

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Источник: https://hackernoon.com/the-pros-and-cons-of-selling-on-amazon-and-ebay-ls1r32q5
Hardware

Selling on Amazon has different advantages and disadvantages. In addition it is necessary to make decisions about different options - we would be happy to assist you!

Advantages

  • Over 240 million Amazon customers worldwide
  • Many potential buyers are looking for products only on Amazon
  • A fair bit of "Traffic" from the very first minute without having to pay for extra advertising
  • You don´t need your own Shop Software
  • By using the option „Shipping via Amazon" (FBA) you outsource your entire shipping logistics and benefit from low shipping cost
  • Well established Amazon partner program for affiliates

Disadvantages

  • Amazon Sales Charge - depending on the product category between 7% and 20%
  • With the option „Shipping via Amazon“ shipping costs have to be included in the sale price
  • Several providers of the same product can result a price battle
  • Possibly limited opportunities to directly influence the display of a product
  • Amazon — a potential competitor
  • Dependency of Amazon

Options

  • Do you want to ship on your own or would like outsource shipping via Amazon („Shipping via Amazon“ / FBA)?
  • On which marketplaces or in which countries do you want to sell your products?
  • Currently the following Amazon marketplaces exist: Germany/Austria, The UK, France, Italy, Spain, USA  Canada  Mexico, Brazil, India, China, Japan and Australia. However, not all marketplaces offer all product categories - for example, clothes cannot be sold in Italy or in Spain.
  • Within the E.U. you can - as desired - deliver to all countries from a single warehouse or store your products separately in each country. Both have advantages and disadvantages.
  • With an Amazon campaign you have the opportunity to differentiate your sales from the competitors.

Translations for German Marketplace

Do you need your English product listing translated for the German marketplace? We provide content translated by German natives that not only sounds good but also sells well. Read more about this expertise or get in touch now!

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    Print model from Gujarat, India


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