Starting a business in a marketplace like Amazon can be profitable. A 2016 study by BloomReach found that when shoppers look for something to buy, they usually do an initial search on Amazon. What’s even more impressive is that about 9 in 10 consumers will go on Amazon even after finding a product on a different website.
But before you take your business to Amazon, here are some tips that will help you get started:
If you’re a seller (the popular option), you will have ownership over your inventory, under your unique brand. Your business will essentially act as a third-party seller. As a seller, you can choose two arrangements:
As you can see, there’s a lot more work that comes with being a seller. However, you do have a greater degree of control over inventory and branding. You potentially get higher profits too since you get to dictate shipping and price.
On the other hand, as a vendor, Amazon takes product listings and logistics off your hands. You may just have to wait 90 days before you receive payment and you have significantly less control over market price.
With over 20 product categories, there are a lot of opportunities to make a profit. Say you want to do well in a specific category. Some action steps to take are:
Through Amazon’s platform, the amount of data you have at your fingertips can be mind-boggling. It’s easy to get lost in all the various special terms, acronyms, and specific selling requirements. Avoid information overload by focusing on specific outcomes (e.g. increase sales by X% over competitors). Once you’ve done that, use the data on customer preferences, top-selling products, and competitors to inform your strategy to achieve your outcomes.
We’ve barely scratched the surface here. Looking for more advice and tips on how to get your business into Amazon? FilePino can help you with that! Shoot us a message at in[email protected] or call (+63) 917 892 2337.