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Is Selling with Amazon Right for You?

4 Tips to Help You Decide

If you’re looking to expand the reach of your business, chances are you’ve considered Amazon at some point. The online retail giant sets a low cost of entry to start selling on their platform, and once you’re there, your product will get thousands more views. However, selling on Amazon isn’t for everyone. Once you get started, the company has strict standards that may be challenging to meet.

Is selling on Amazon worth it for you? Read on for our best tips.

Evaluate Your Business Model

While almost anyone can sell on Amazon, certain business models and sellers may perform better. The first step to deciding whether selling on Amazon is worth it is to evaluate your business model. What are you selling, and how are you selling it? If you’re selling bulky products that don’t ship well or hazmat material, Amazon may not be the best choice. While you can still decide to sell, you’ll have to follow specific rules, and the results may not be worth it. Are you selling a common product? Unless you have a very competitive price point or some other unique feature, you may not sell as effectively against other platform competitors. However, if you’re selling branded products or unique items that people are looking for, Amazon may be a perfect fit.

Play by Amazon’s Rules

To sell with Amazon, you’ll need to play by their rules. That means being careful when you sell what they’re selling. The “buy box” determines who gets a sale if multiple sellers are offering the same product, and Amazon will almost always win if they’re in the market. Play it smart and try to offer unique products rather than competing in a crowded field for an almost unattainable result.

Be Prepared to Compete

While Amazon has fairly low thresholds for entering the market, expect to compete against hundreds of other sellers who might offer a product very similar to yours. If your pricing isn’t as competitive, you might find yourself struggling to keep up. This doesn’t mean you can’t sell on Amazon—it simply means that you’ll need to be ready with a product that sets itself apart from the crowd of other contenders vying for each shopper’s dollar. In addition, you should also keep in mind that Amazon has its own label and sells many different types of products at a lower rate. 

Have a Plan for Shipping

You’ve made a sale on Amazon—congratulations! Now what? It’s time to ship, but don’t write this step off. Shipping with Amazon is no walk in the park. You’ll need to have a plan in place, as FBA (Fulfillment by Amazon) shipping can be a real headache, with high fees, strict standards, and costly returns. It’s usually better to find a third-party fulfillment partner that can help you navigate the complexities of shipping with Amazon without charging an arm and a leg.

The bottom line? Selling with Amazon creates huge opportunities, but some sellers will benefit more than others. You may find that selling on Amazon opens doors for your business, or you may realize that your time and effort are better spent elsewhere. Whatever you choose, our tips can help you make the best decision about selling on Amazon for your business.