fbpx

Why Ecommerce Brands Should Sell On Amazon – Here’s How To Get Started

5 minute read
In this article:

So, you’ve got a killer ecommerce brand and you’re wondering how to catapult your success to the next level? Look no further than the online shopping titan – Amazon.

Let’s be real, who hasn’t heard of Amazon? It’s big, it’s powerful, and it’s got the kind of customer reach that can turn your brand into a household name. 

But, there’s a whole lot more to it. In this guide, we’ll unpack why Amazon is more than just a crowded marketplace. It’s a golden ticket to scaling your brand, boosting your ecommerce sales, and making your mark in the ecommerce world. So, grab a cup of coffee and let’s get started!

Five Benefits Of Selling On Amazon

Here are five compelling reasons, backed by stats, illustrating why Amazon is an essential platform for ecommerce brands:

1. Unparalleled Customer Reach

Amazon averages over 2.4 billion global visitors each month, providing brands with an extensive audience base. A fantastic way to expand your reach to customers and drive acquisition.

2. Consumer Trust

As per a 2020 PwC survey, 89% of consumers trust Amazon, highlighting the value of its established reputation.

3. High Purchase Intent

Consumers on Amazon often have a higher purchase intent. A 2018 Feedvisor study revealed that 74% of consumers go to Amazon when they’re ready to buy a specific product.

4. Prime Membership

Amazon Prime has over 200 million subscribers worldwide. These customers spend an average of $1,400 per year, compared to non-Prime members who spend around $600.

5. Robust Advertising Opportunities

Amazon’s advertising business is booming, with its ad revenue reaching $21.5 billion in 2020. This reflects the platform’s effectiveness as a marketing tool.

Huge Brands Selling On Amazon

The proof is in the pudding here. It’s clear that huge ecommerce brands are selling on the World’s biggest marketplace for a reason. Various brands have leveraged Amazon’s potential to expand their reach and drive sales. Here are a couple of notable examples:

Anker

Known for its tech accessories, Anker used Amazon to transform from a fledgling startup to a global electronics giant. They capitalised on Amazon’s user reviews and search algorithm to gain visibility and trust among consumers.

Lego

The world-renowned Danish toymaker, has a substantial presence on Amazon. This partnership allows Lego to tap into Amazon’s massive customer base, making its products accessible to millions of consumers worldwide.

Puma

One of the leading sportswear and equipment companies, Puma, has a substantial presence on Amazon, allowing it to reach millions of potential customers around the globe. As an officially recognised seller, Puma ensures that consumers shopping on Amazon receive genuine Puma products.

Samsung

Samsung, one of the world’s most valuable and recognised brands, has a significant presence on Amazon, expanding its product accessibility to millions of Amazon’s customers worldwide. It’s an officially recognised seller on the platform, ensuring that consumers receive authentic Samsung products when shopping on Amazon.

The Continuous Growth Of Amazon

As the digital revolution continues to redefine business norms, ecommerce has become an increasingly pivotal channel for retail. Ecommerce brands are thriving and consistently seeking to tap into new markets and platforms. Among these platforms, Amazon stands out as a behemoth, having generated $514 billion in net sales in 2022.

Given its user base of more than 300 million active customers worldwide, it’s evident why ecommerce brands are drawn to this platform. However, the Amazon ecosystem is much more than just a large customer base, and understanding its intricacies is key to leveraging it effectively. Numerous methods exist for selling on Amazon. Let’s explore each option in detail to pinpoint the one that aligns best with your needs.

Amazon Fulfilment Models

Fulfilment is all about ensuring your customers receive their orders. This process encompasses a variety of tasks, from receiving and storing inventory, packaging products, and shipping orders, to managing returns and keeping customers informed throughout the journey. 

In-house Fulfilment

In this model, you manage the entire fulfilment process, encompassing inventory receipt, storage, selection, packing, and shipping, usually from your business location or home.

Third-Party Logistics

The Third-Party Logistics (3PL) approach entails delegating part or all of the fulfilment process to an external company, which could manage anything from inventory to returns. By fully outsourcing fulfilment, you can concentrate solely on product sales on Amazon.

Fulfilment By Amazon (FBA)

Fulfilment by Amazon (FBA) is a model where Amazon takes care of picking, packing, and shipping your orders. To streamline the process further, many sellers opt to utilise additional services such as Amazon FBA Prep Services. You send your packaged products to one of approximately 40 UK-based Amazon fulfilment centres. After the products are sold, they are delivered to customers through Amazon’s logistics network. Amazon also manages any customer service queries that arise.

Multi-channel Fulfilment (MCF)

Multi-Channel Fulfilment (MCF) functions similarly to FBA but encompasses products sold outside Amazon. If you’re a MCF user, your inventory stored at Amazon fulfilment centres can be utilised to fulfil orders from Amazon and other sales channels.

Some sellers choose to oversee these operations themselves, whereas others opt for the ever-popular FBA & MCF models. Still, others might prefer a hybrid approach, using a mix of in-house and third-party fulfilment options. Now we are going to cover the general steps you can take to sell on Amazon, using any type of fulfilment. 

How To Sell On Amazon Through Fulfilment

Step 1: Receiving Your Inventory

Receiving inventory involves ordering the desired products to your distribution point, depending on the type of fulfilment, this could be your own business stockroom, an ecommerce warehouse, or an Amazon distribution centre. After ordering, choosing the most suitable storage option for your products becomes the next critical task.

Step 2: Choosing A Method Of Storage

Inventory storage refers to the method of storing your products, often dictated by the size of your business. For instance, businesses with high order volumes may opt for warehousing as their storage solution.

Step 3: Processing Customer Orders

After your inventory is with Amazon & you’ve set up your listing you’re ready to start selling on Amazon! Once you’re marketing your ecommerce you’ll no doubt start seeing transactions come through, then the order is processed for shipment. After items are picked and packed, they are ready for dispatch. It’s vital to choose appropriate packaging to avoid transit damage, ensuring that products reach customers in excellent condition.

Step 4: Shipping To Customers

After packaging, a product is prepared for shipment to the customer. However, who manages this process, whether it’s you or Amazon, depends on the type of fulfilment method you choose. The chosen method usually depends on the business’s size. Small companies often ship orders via local post offices, while larger ecommerce businesses might ship directly from their storage location or utilise a fulfilment service. 

Step 5: Processing Returns

Returns are a common aspect of ecommerce, as evidenced by 49% of UK online shoppers reporting product returns in the past year. Regardless of the fulfilment strategy, it’s crucial to have an efficient process for handling returns, replenishing defective items, and issuing refunds.

Utilising Amazon To Expand Your Ecommerce

In a fiercely competitive ecommerce landscape, Amazon provides brands with an unparalleled platform for growth and expansion. From its immense customer base to the flexibility of its fulfilment options and robust marketing tools, Amazon offers significant benefits to brands that strategically engage with its ecosystem. 

Despite the challenges and competition within the marketplace, the successful expansion of brands like Anker and Lego demonstrates how effectively navigating Amazon can lead to substantial rewards. 

Therefore, ecommerce brands aiming to amplify their reach, increase sales, and build trust with consumers should seriously consider the opportunities offered by selling on Amazon.

Subscribe for more articles like this!

Subscribe for more marketing expertise