Sometimes people ask me why I’m so pro-Amazon (and eBay). Well, it’s not that I’m so in love with Amazon, but I’m a realist. And, I think that if you want to make money, Amazon is a pretty good option for many small businesses. Not every one, but many. You do need to know what you’re doing (which is where I can help you). I think many people have thought about selling on Amazon, but dismissed the idea because of some misconceptions. Those misconceptions aren’t addressed in this YouTube video, but it’s still pretty interesting and worth watching.
So why is it a good idea to sell on Amazon? To be honest, that’s a long conversation, and any small business (or even any large biz) should weigh the pros and cons. But think about, and remember these key points:
- When you sell on Amazon, you’re most likely appealing to customers that have never seen your own website before, or, would never buy from your site anyway.
- When you sell on Amazon, you’re taking advantage of the highest-traffic retail site on the web. Your site will never come close, despite all the money you might spend on Google Adwords, social media, email, or any other marketing tactic.
- It’s easier to support Amazon selling. If you operate your own website, you need to have web developers and designers, web merchandisers, and pay for your own domain name, web hosting, and a myriad of other services. Sure, you have to pay a commission to Amazon on every sale, but you don’t need all the other people and services I mentioned above. You do need someone or a method to upload your listings and respond to customer communications, but you’d need that on your own site as well.
These are NOT the only reasons – there are many more, but these are the ones I wanted to mention today. There are also some drawbacks, but those are the topic of a future post.
In my experience, most of your Amazon customers will be new customers – they never bought from you before. Some of them will buy from you again on Amazon, and some will buy from you via your own website – the holy grail. So, Amazon is great not only for incremental sales to a customer segment you would not otherwise appeal to, but also because of new customer acquisition. It’s a little harder to market to these people in the future, but there are some things you can do in that regard.