There has been a sharp increase in the number of small and medium-sized businesses as more and more Millenials try to get out of the mundane and monotonous, corporate 9 to 5 life. The use of the Internet and eCommerce platforms have also helped expedite processes, subsequently simplifying the way business is done, while adding value to it. Online marketplaces and platforms that connect buyers and sellers have sprung out of nowhere to take over some of the world’s oldest retailers and trading companies.
Amazon.com, after starting off as an online book retailer back in 1994, has become the fourth most valuable company in the world, selling literally everything you could imagine buying off the Internet. This has opened up a whole new world of opportunities for existing businesses, as well as, aspiring entrepreneurs. Here are four reasons you need to get your products listed on Amazon.com right now.
Low Initial Capital Requirement
For most people looking to start their own business, raising the initial capital seems to be the number one problem. This is also because businesses require hefty amounts of cash to be sustainable. However, with Amazon, your startup costs are automatically minimized. Apart from keeping inventory to a bare minimum, in case you want to test the waters and check demand for your product, all you need are a few basic tools.
A smartphone, a computer, packaging boxes, a printer, and labels are all you need to take off. Of course, you can add to your list as your business grows, but these items and some space in your home or garage is all you need.
Almost every household in the United States and most of Europe has an Amazon.com account. In the first quarter of 2016, Amazon.com, Inc. reported 310 million active customer accounts. This goes on to show the brand’s credibility and gives you a chance to tap into an already fertile customer base.
Also, due to its sheer size, credibility, and reach, most businesses are now focusing on advertising on Amazon rather than spending thousands of dollars on marketing their products through other mediums that barely get any traction. A recent study also showed that 50% of shoppers, online or brick and mortar, search for their desired products on Amazon before making a decision.
Back End Support and Infrastructure
For sellers, Amazon offers excellent back-end infrastructure and support so you can concentrate on growth. With support for everything from credit card processing to inventory tracking and taxation, you can focus on expanding your core business.
Additionally, Amazon.com’s Fulfillment by Amazon service allows sellers to ship their products to Amazon’s Fulfillment centers (warehouses) from where Amazon handles the sales, returns, and customer service of the product. With Amazon, it has also become very easy to ship products off to international customers, so you don’t have to worry about making trips to the postal service.
Data to Capitalize On
Amazon provides sellers with some of the most comprehensive data tracking tools and software. These can be used to improve upon your marketing techniques and look ahead to organize inventory. With Amazon, you’ll have data related to your customers’ location, their searches, and their buying habits. You can also forecast buying trends and seasonal shifts for advertising spend and inventory management.
Customer reviews and feedback can also be used to improve products and develop better products in the future.
In addition to the above advantages you get with selling on Amazon.com, there are a number of other ways it will benefit your business. Expanding into foreign markets, maximizing margins, and minimizing advertisement costs – all of this becomes as easy as ABC as you grow in the Amazon ecosystem.