There was once a time where Amazon focussed all of its attention on books, although over recent years it could be said that it has become more of an online department store. As well as this, the website has become a great source for business expansion and while sales of its own products are its primary concern, they have made significant progress with the marketplace concept as well as sales from third party sellers.
While the company will charge a fee for selling on their site, it goes without saying that it’s a fantastic way to promote your business and also boost your sales. Taking this into account, we’ll look at all of the issues that you should consider before taking the plunge and enlisting Amazon as a source for your products.
Take to the marketplace or become a third party seller?
If you have taken the plunge to sell on Amazon, the decisions don’t stop there. If you are looking for a long-term relationship with the company, it’s probably advisable to become a standard third party seller – although this does entail additional costs. You will be subject to a monthly fee, as well as a referral fee for each product that can range from 8.05% to 40.25% in some cases. Of course, the main benefit with this approach is that all of your stock will be integrated in the Amazon search results and considering the fact that 40% of the company’s sales originate from third party sellers, this is obviously a huge advantage.
Of course, if you merely wish to test your foot in the water the marketplace option could be advisable. While the referral prices are generally the same, you won’t have to pay the monthly subscription and your prices will still be displayed on each individual product page. Whether or not you receive the same volume of sales is questionable, but you may be provided with a good indication if you are considering the first option in the future.
Integrating your current business
While Amazon could boost your business tremendously, if you can make it as little work as possible you will be onto a real winner. To achieve this, an integration system is essential – whereby your products and sales data will be transferred between your stock control system and that of Amazons, meaning that they will correlate with each other. This means that customers will constantly be provided with up-to-date information for each product, which will obviously do your customer service the world of favours. Amazon integration from Etrackit is one of the most recommended in the industry if such a route does interest you.
Possible delivery considerations
This could have perhaps been integrated into the first issue, particularly as the delivery cost is something that Amazon specify for Marketplace sellers. If you happen to pay the subscription and become a third party seller, you will be able to set your own prices and this flexibility can obviously positively affect your profits.
If you have never dabbled in online sales before, delivery issues are something that you will have to familiarise yourself with and if you happen to sell large items, this could prove to be a stumbling block. Therefore, you need to get to grasps with the general costs of delivery and if it’s worth enlisting the services of courier companies, before you even think about listing your products. Unfortunately, for some businesses, the cost of delivery means that an online business is simply not viable.