Amazon is expected to reach $100 billion in annual sales in the next couple of years. What many people do not realize is that more than 40 percent of Amazon merchandise sales are from third-party sellers. This means that outside merchants will be getting over $40 billion of Amazon sales.
There are many things that people get wrong when it comes to Amazon. Here are just a few of the common myths:
- Amazon is ‘just another website’ – You can’t accurately conflate Amazon with other websites because it is clearly the recognized king of online markets. With Amazon cozying up to the $100 billion mark, you cannot underestimate its strength. Amazon enjoys the trust of its customers and has an effective ordering and shipping system. Online sellers who want to succeed stand to gain a lot by working through Amazon.
- Selling on Amazon is difficult – Fulfilling orders is one of the most challenging tasks of running an online business. Switching to Amazon can relieve this tough aspect of online selling. Amazon can easily handle orders through its Fulfillment by Amazon program. Online sellers can avail themselves of this service in exchange for a small fee.
- You cannot succeed in selling on Amazon – Some people might discourage you with this warning, cautioning that you will simply be a little fish in a big sea. There are plenty of case studies, however, where “little guys” and newly-established online businesses made it big as a third-party Amazon seller.
- Amazon is too saturated to enter now – There are millions of Amazon sellers, making many people think that the field is already too crowded. However, Amazon is a very vast marketplace, selling over 200 million products in the U.S. alone. The site has 175 million visitors each month with no signs of slowing down. The growing market can accommodate many new sellers.
- All you need to do is list your product on Amazon – Listing your product alone will not guarantee success. You will need to put in the elbow grease to keep your product ranking high or getting the buy box.
It is never too late to sell your products on Amazon. The inherent advantages of Amazon can help your business thrive as long as you are willing to do your research, commit time and energy, and be persistent.