Top Pros And Cons Of Selling Goods On Amazon

Whether you have a small business or a large organization, selling products on Amazon is a valid consideration. It’s actually a solid way that businesses of all sizes grow their brand and acquire more customers. However, there are some cons to consider before you invest your time and money in it. Here are some pros and cons of selling goods on Amazon.

Let’s start with the pros…

Increases Sales

As Amazon is such a high-traffic site, having a presence there helps to immediately improve your visibility. With nearly 200 million visitors a month, there’s a greater chance you will be seen and chosen by consumers. A simple way of selling online, you could start to see financial benefits fairly quickly. 

Grows Your Brand

Because of the visibility potential, selling on Amazon naturally expands your audience. This, in turn, helps your business to be recognized by more consumers. If you have established branding, it has the potential to expand quickly. Do make sure you stay consistent with your brand, however. Don’t go changing things up every other day.

As your business grows, make sure you are able to support your brand with amazing customer service and fulfillment. If you need to, outsource the work to a company that specializes in it (such as Channel Supply Experts). 

Acquire New Customers 

Through Amazon selling, the potential to acquire new customers is outstanding. Your current ones may also buy more due to convenience and faster service. By searching for particular products, your products (which they might not have discovered by searching organically) will appear; this will, in turn, also help to increase the reach you have globally.

Now onto the cons…

Increased Competition

Just as more people shop on Amazon, there are more businesses selling. This creates a larger pool that is harder to get noticed. Unless you offer one-of-a-kind or unique products, you could get lost. Of course, there are ways to stand out from the crowd – such as sponsored ads and optimization, but if you don’t have the budget, you could find that your competitors are more successful. 

There Are Marketplace Fees

Unfortunately, it’s not free to place your products on Amazon. Marketplace fees are charged for each sale you make. There is also a monthly listing fee. Look into the different plans available, to see if it works for your business.

Limited Control

While there are many positive points for selling on Amazon, this is one that you’ll want to thoroughly consider. They might restrict the amount that you can communicate with customers, dictate what items you can sell, or limit your brand’s presence, etc. I recommend talking to other business owners who have sold products on Amazon to get a grassroots opinion about their services.