The Benefits Of Selling On Amazon
The global retail landscape has been drastically changing across many industries because of the financial impact of COVID-19. Further, with the introduction and popularization of new DTC platforms – like Amazon – many companies, regardless of industry, are moving away from retail sales in pursuit of higher profit margins and operational ease.
There are many features offered through Amazon which more than justify the switch over to their seller platform:
Increased Sales
With such a high consumer traffic, Amazon is the best DTC platform for any business. Amazon has such low market selling costs (usually just advertising and warehousing fees), it’s a no brainer if you are looking for increased brand exposure. Especially in the past few years, after the COVID-19 pandemic, many consumers are turning to online platforms that sell their favorite products. Amazon is often the first choice, as there are so many different varieties of product categories and because they offer such fast shipping.
International Expansion
Amazon is a global marketplace. Consumers located all around the world can purchase your product. You don’t have to worry about finding a distributor to sell your product oversees, and you don’t need to worry about managing several sales channels: you can have it all in one place on Amazon. If you have been thinking about international expansion (and increased sales), Amazon is a great option.
Amazon Advertising
It is no secret that Amazon is a highly competitive market. Regardless of the industry, there will be several competitors that your business is left to compete with. However, with the help of platforms like Helium10 and MerchantWords, you can target top performing keywords, used by your competitors, to help boost your page ranking (thus increasing sales and consumer visibility). You can bid on top keywords and phrases in Amazon’s advertising dashboard, turning off or changing the keywords you are bidding on at any time.
Influencer Store Page and Post Features
Aside from targeting keywords and phrases in your advertising, Amazon offers many different types of marketing options. For example, you can connect with an influencer to have your product featured in their store page. With this, it’s either free advertising, or, depending on the influencer’s store page popularity, the influencer can take a commission. You also are able to post branded images of your products through Amazon Mobile Posts – a feature similar to an Instagram Feed. This is completely free, and results in increased sales.
Clear Reporting Metrics
Reporting can be a daunting and tedious task for any small business owner. Luckily, with Amazon, you can simply download any sort of report you may need. Sales, advertising spend, inventory levels, and more, all at your fingertips. These user-friendly reporting metrics make it super easy to track your performance on Amazon and can provide an incredible amount of insight into areas of growth.
Fulfillment by Amazon
If inventory management is a headache for you and your business, Amazon offers a fantastic solution: Fulfillment by Amazon (FBA). By sending your inventory to Amazon, they can warehouse your product (for a small fee) and send the product to the consumer. There is nothing you need to do on your end other than track inventory levels and send your product to Amazon warehouses. This is a great option if you are considering international expansion, as Amazon has warehouses located all around the world.
Selling online certainly poses its own set of challenges, allowing bigger companies to get bigger, leaving smaller companies facing difficulties in scaling. Essentially, platforms like Amazon are tricky for those who lack in business development background. Competition is high, and with so many moving pieces and regulatory requirements, small businesses face higher barriers of entry due to the lack of funds and expertise.
With the growth of global DTC platforms like Amazon, brands from all around the world are exposed to new global markets. However, trends vary across the world, especially in the consumer goods industry, and do not necessarily align across all cultures: people have different needs and interests, thus requiring effective and targeted branding to capture global consumer interest. This can be a daunting task for startups, as the consumer goods industry is incredibly competitive.
If you are looking for a way to break into the Amazon market without sacrificing profit margin or brand identity, Helm & Stern Branding is here to help.