Before e-commerce, things were very basic, and have a business, you needed a large capital to start with because you’re responsible for the cost of things like packaging, delivering, and a place to display your products in. All this has added a financial burden on people, which usually hindered many people from actually pursuing their dream and getting their products to life. However, the rise of companies like Amazon provided small business owners with the opportunity to get their products sold through their platforms. So if you want your business to thrive, you can always focus on Amazon.
How Does it Work?
There are two ways you can sell your products to customers. The first option is to sell your inventory directly to Amazon; they then handle all the logistics, with minimal control, from your side. The benefit you gain from being a vendor is that you save yourself from the headache of marketing, pricing, and packaging your product because, technically, your inventory is now owned by Amazon.
The second option is to become a third party seller. Becoming a third party seller means that you handle the marketing and pricing of your product, and Amazon just list the products on their marketplace and ships it. This way, you have more control over your products; and in addition, your business gets more exposure. When you get exposure, people will not rely solely on Amazon to order your products and will order directly from you, which will help in getting more traffic and expanding your business further.
How Does it Help Your Business?
Whether you choose to sell your inventory to Amazon or become a third party seller, you are making huge financial gains. People who go to Amazon are going with the intent to buy, so it’s a no brainer that no matter how you decide to sell your product, it will be sold. However, if you want people to be able to recognize your brand, it’s recommended that you opt for being a third party seller.
Amazon Seller Tools
Another huge benefit is that there are tools that you can use to help you learn more about your customer, evaluate the demand for your product, and find out more about your competitors if there are any. According to experts from https://infinitefba.com/best-amazon-seller-tools/, by using Amazon seller tools, you make more money and save time. Amazon seller tools protect you from spending long hours doing market research and product research. Some tools can also locate profitable opportunities, as well as provide you with product monitoring so that you are able to track the performance of your product. Additionally, you will have sales analytics to give you an overview of how you can boost your revenue.
Shipping
Whether you have a small business or a medium-sized business, shipping to a large customer base is unlikely. Due to the size of your company, you are more likely to be confined to your local geographical location.
However, when you work with Amazon, you are able to ship your products globally, which guarantees that you are able to reach as many customers as you can, and as a result, you generate more profit. Amazon gives you shipping options; you either deal with a service that ships the product to your customer, or your product can be fulfilled by Amazon. Having your product fulfilled by Amazon means that you send your product to Amazon’s warehouse, and in turn, they handle shipping, packaging, and customer service. This method also gives you the benefit of reaching an Amazon prime customer who tends to shop more frequently than regular buyers. You simply pay a fee to Amazon based on what selling plan you choose. For instance, if you sell fewer items a month, you should go for an individual selling fee.
When you are an individual seller, Amazon charges you a fee of $0.99 for each item sold, and you don’t need to pay for a subscription. However, for a professional merchant, you have to pay a subscription fee of $39.9, but you are exempted from paying $0.99 for each item sold. A professional merchant selling plan is recommended if you sell more than 50 products monthly because it’s more cost-effective.
Many business owners overlook the great potential of using Amazon as their online store. It gives you the opportunity of being an entrepreneur no matter how much the capital you are starting with is. On top of that, you get to reach a global audience, instead of being confined to local markets.