Is Selling On Amazon Safe And Profitable?
Amazon is becoming a titan of a company. It is so big and has the infrastructure to always handle newcomers, so it’s going to get even bigger! You only need a few minutes to sign up and a few minutes to create listings for your products to begin selling on Amazon. If you’re selling certain products, you might need your items to be approved before they’re available for customers. But just like that, you’d be a few clicks away from millions of potential customers all over that world which could help boost sales and your brand recognition. But the decision of selling your products on Amazon shouldn’t only be based on the simplicity of the process.
There are plenty of resellers on Amazon that sell the same products at different prices. And they all look like they have been getting the number of customers they hoped for when they took the initiative of using Amazon to support the sales of their product. The question is whether the continuity of those resellers’ success is guaranteed or not. Are they going to keep making a profit even when new clients are more educated and have more options available?
Before we get to the details of understanding if Amazon is good for your business or not, we need to understand its drawbacks to see if it’s going to be worth the hassle.
The real challenge with having almost every other reseller selling their products on Amazon is the price competition and the fact that this competition allows people to buy products only from those who advertise or get more exposure on the site. Not only that but also you have to remember that Amazon itself manufactures products so if you’re competing directly with Amazon, you will most likely not get the sale.
Susceptibility to Counterfeit
Furthermore, Amazon makes it very clear that it is every brand’s responsibility to protect its products against counterfeiting and it will not make any attempts to remove resellers. You will not have anyone to blame if your product is being manufactured and sold by others on the platform. The good thing about Amazon’s rules though, is that it requires you to answer customer’ inquiries within 24 hours. So if you make sure your team can handle being that quick and professional, you will most probably be able to handle the competition.
There are a few other challenges and issues that you might face while selling your product on Amazon, like the fact that you will not be able to properly track your order or clearly understand issues if they arise. Sellers on Amazon reported that they kept getting complaints from clients who asked for refunds because they did not receive the original copies of the online games they were selling, even though the right ones were sent out. The problem was that the games were refunded but customers never sent the mis-sent games back. Luckily, this problem can be easily avoided because there are many tools to make use of for better monitoring of the shipments of your products. Some of those platforms even notify you if there has been a problem with the delivery so you can take action proactively and avoid negative feedback. These tools will even allow you to get a detailed analysis of what happened with the delivery of each and every order.
You Need Strong Marketing
In order to make sure you’re going to be profitable, you need to plan for a few things like marketing. You must become a proactive marketer to get the word out for your products and be able to get on top of your competition. The world is not the same anymore; you have to advertise on social media, use email marketing, content marketing, and display marketing to make sure people know about you and where to find your products.
When it comes to selling something online on a credible and reliable platform, selling on Amazon certainly comes to mind first. Selling through Amazon can be much easier and cheaper than selling in a brick and mortar store. However, you still need to do your research and make sure that this is the right decision for your brand and product. You also need to make sure that you have the team and capacity to handle that exposure so you do not lose your credibility in the market. For small businesses, selling on Amazon is a make it or break it kind of thing. With these potential issues in mind, you can clearly assess the viability of selling on Amazon and determine if it’s the right move for you and your company.