Over the past few years we've had many online retailers ask us if they should be selling the same products they sell on their ecommerce website on Amazon.com also. Some online retailers see the experience as positive, while many are starting to view it as Amazon taking advantage of online retailers.
What's right for one retailer isn't always right for another.
There are definitely many pros and cons to doing so but it eventually comes down to the preference of each retailer that must be weighed on their own goals and preferences. Many see the Amazon Marketplace as a fantastic way to test new products, pricing, blowout overstock, etc. as long as they outweigh any risks. In which case you will always want to have an exit strategy.
Get up and running quickly and testing products and strategy.
You can quickly tap into the world's largest e-retailer's expansive shopper audience currently estimated at over "150 million unique monthly visitors". That means jump starting sales without having to do much of the leg work associated with creating and marketing your own online store. However, it should never replace your own online store. Once your own store is up and running is when many retailers begin to see the shortfalls of selling on Amazon.
Is the Amazon Marketplace fair?
When you choose to sell on Amazon you are agreeing to share your pricing and buyer info with Amazon to use at their own discretion, exclusively to use as they please. This info tells Amazon what products are selling and at what price. This may seem harmless enough but what happens if Amazon decides to sell the same product you are selling and cuts you out of the picture entirely? Theoretically this can happen and some companies have even gone so far as to say "Amazon basically wanted us to be a fulfillment center for them." So basically the more online retailers feed this info to Amazon, the more Amazon can use that info to undercut online retailers on similar products.
If you choose to sell on Amazon, proceed with caution.
Amazon maintains that they collect vital product info so they can provide their visitors with the best shopping experience possible so that both buyers and sellers reap the benefits. As truthful as this may or may not be, the best piece of advice we give our clients is to look out for yourself. It's unfortunate but nowadays everyone is out to make a quick buck. That means not everyone will be completely forthright with you or their loyalties change from day to day, month to month. Nobody in this world is looking out for you, so you need to look out for yourself. If you have weighed the pros and cons of selling on Amazon do not use it as a replacement for your own online store but rather a place to sell selected items or a way to grow brand awareness.
Periodically evaluate your performance on Amazon and do careful planning to make sure it's in your best interest. In internet time, things change quickly. What was once beneficial can easily become hurtful to your online business. It's up to you and you alone to decide whether this is a good or bad situation for your company.
