Not all businesses will be suited for Amazon sales. Therefore, don’t jump into it just because you’ve heard it could be profitable you should also know how to use sales estimator. Consider the following factors when determining whether Amazon is a suitable fit for your company:
- Many rivals selling essentially the same things as you are likely to be found. You can anticipate that others will have gotten there early and be selling the same things you are unless you have rigorous restrictions over your goods.
- The laws are set by Amazon. Amazon itself is frequently your biggest rival on the site because it sells comparable goods that it sources from 1P merchants. The Buy Box, the white box on the right side of the Amazon product detail page, where shoppers can add items to their shopping basket with a single click, is one place where Amazon almost always places its own products in the top positions on the website. If at all possible, try to stay away from competing directly with Amazon Retail.
- Because Fulfillment by Amazon is one way Amazon can ensure a consistent level of service for all of its customers, Amazon encourages sellers to use it. One issue with using FBA for sellers is that Amazon views these as one-time sales, thus there is no chance for remarketing.
- You are accountable to Amazon for distribution security. Amazon often won’t assist you in removing the other seller’s listings if they undercut you while selling your product on the platform unless you can demonstrate the item is a fake.
- You must respond to customer questions sent to Amazon within 24 hours, every day of the year. It also has stringent rules for other things like shipment timelines and confirmation emails.
- Brands that adhere to certain criteria, including a registered trademark, Universal Product Codes provided from Global Standards One, and branding on both the packaging and actual products, receive more favorable treatment from Amazon.
On Amazon, reselling might be challenging.
On Amazon, several companies try to resale goods. If you decide to take that path, you must exercise caution. You can find yourself in a situation where you must compete not just with other people selling the same goods, but frequently even with the company who originally sold it to you.
Since you are all effectively selling the same thing, you will be vying for the coveted Buy Box spot, which is often awarded to the seller with the lowest price (presuming Amazon Retail doesn’t also offer the item). Frequently, you will find that a tiny company that does not fully comprehend its cost structure will under price everyone else in order to obtain the Buy Box at the expense of earning a loss.
You should look for an exclusive sourcing arrangement with the company from whom you are purchasing your inventory if you want to successfully resale on Amazon. Additionally, you need the brand’s promise that it won’t open an official Amazon vendor account or start selling directly on Amazon without giving you adequate notice. However, it can be challenging to locate companies that will comply with the requests.