Pros And Cons Of Being An Amazon Seller
Introduction
Being a seller on Amazon is not so bad, it has proved over past years that you can earn a lot of profit at home through Amazon. This is because 200 million people prefer to purchase products from Amazon.
Although the competition is very high profits can be earned by using some techniques. A seller on Amazon can indeed earn a lot but it is a bit tricky, a little mistake can cause the loss of a huge amount of money.
For that, most of the companies prefer to hire Scale Fortune which is well known for private label service and tells about the defaults. There are a lot of pros to being a seller on Amazon but there are also numerous cons. All the pros and cons of being an Amazon seller are explained below.
Pros Of Being An Amazon Seller
- More Sales
The biggest advantage of being a seller on Amazon is that you get a lot of sales because millions of people visit Amazon each month looking for products to shop for. Not only that but Amazon has also been considered the number one place where people go looking to buy products.
It is because nowadays people prefer to buy products online, and Amazon is considered as the most trusted online store. If you manage your seller account correctly then you can also earn a lot of profit, all you will need to do is to gain credibility and trust which can be done by listing your products.
- International Expansion
As Amazon is the most trusted and biggest online store globally, it has become very easy for anyone to become a seller there. Your brand can become internationally famous as Amazon’s products are shipped to over 100 countries worldwide.
If you wish to expand your products selling business globally then using Amazon would be the best option. In Amazon, you can also test the appeal of your products in the market just by creating a listing on the local Amazon.
- Marketing Costs Are Low
Amazon is crowded by numerous customers every day which gives sellers a chance to sell their products anytime they want even without any significant marketing efforts. If the customers are interested in the products you are selling then you will not even need to promote them, customers will search for you in the search engine.
We know that Amazon is crowded by millions of customers, just like sellers have also crowded this place. Because of this you may need to put some effort into perfecting the listings and advertising on Amazon. You can also make small profits on Amazon without putting much effort, but hard work is needed if you want to become a better seller than others.
Cons of Being An Amazon Seller
- High Competition
As we have told you above the crowd of sellers is also very large just like that of customers. Every seller on Amazon is giving its best to become the best seller and get more sales, so you cannot stand it if you do not put in a lot of effort and apply multiple tricks.
You will need to find which is not sold by other sellers and is highly demanded, then you will need to research that and start selling it. It is because when you sell a product that is already offered by another seller, then when a customer searches for that product Amazon recommends the product of the featured seller.
- Selling Fees
Although there are a lot of benefits to being a seller on Amazon it all comes at a cost. The commission is charged by Amazon from retailers on each product they sell. The monthly profit of seller of a seller may look good but after all the charges it may not look very good.
If you choose the professional plan as a seller then Amazon charges about $39.99 monthly and does not charge per item. And in the individual plan as a seller, Amazon charges about $0.99 for each sold item.
- Order Management
The management of orders is very difficult for a seller, as Amazon does not participate in the cart systems. You will need to properly manage the orders and keep the system up-to-date. The process after an Amazon seller receives his order has two serious disadvantages for sellers. Amazon updates the stock status only when the orders are fulfilled. Another difficulty that the seller needs to face is that he has to look for orders from both his store and Amazon.
Conclusion
To conclude, you must know about the pros and cons of doing business on Amazon. It is because this platform requires a lot of investment that helps in growing the business in the future. So, always do research before starting a business.
