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Why Businesses Should Sell on Amazon

February 23, 2023

Originally founded in the garage of a rented home, it would be an understatement to say that Amazon has now come on leaps and bounds since it was first set up 27 years ago. First opened to sell books only, Amazon now sells just about anything - with some of the most in-demand products being named as cookery equipment, laptops, home office furniture and fitness equipment - and the marketplace is now estimated to have a total net worth of $958.45B as of the end of November 2022.

As the #1 go-to online marketplace, with the added benefit of next day delivery through Prime, Amazon is now relied on by thousands of consumers everyday to provide a range of essential and non-essential goods. As of 2021, there were an estimated 2 million small and medium businesses selling on Amazon worldwide, which makes it clear that companies can see that selling on this popular marketplace can hold a lot of potential.

If you’re looking to start selling your products on Amazon, then this blog will explain how easy it is to start selling on this platform, as well as listing some important facts and figures that illustrate the benefits of this. 

How to Start Selling on Amazon

Covering a wide range of categories, from arts and crafts, to electronics, garden, sports, home improvement, toys and many more - it’s likely that Amazon has a space for even the most niche products. However, before you get started registering as a seller, it’s worth taking a look at existing items currently being sold on the marketplace that fit under your chosen area. This might help you evaluate whether this platform is right for your business, and will attract the intended consumers.

Whether you already have a successful business through selling on your own website and are looking to expand to Amazon, or you're just getting started, with a wide customer base (which boasts over 19 million Prime subscribers in the UK), it’s likely that there will be someone interested in your products. So, once you have established that selling on Amazon is right for your business, you’ll need to create a seller account, choose the right selling plan for you from the individual and professional plans, as well as consider your overall strategy. Amazon has prepared a handy selling guide to completing these processes if needed.

However, if you’re still undecided on whether Amazon is right for your business, we’ve listed a few benefits of selling on Amazon below.

Benefits of Selling on Amazon

1. Almost 90% of shoppers are using Amazon

A report from Mintel has shown that, in the UK, almost 90% of shoppers are using Amazon and around 70% of Amazon UK customers use this marketplace at least once a month. This means that there’s all kinds of consumers who can easily use this platform as a search engine to find your products. But what is it that these users are interested in?

The most popular product categories were cited as: 

  1. Hardcopy media: books, DVD’s and video games (39%)
  2. Electricals (30%)
  3. Fashion/Jewellery (30%)
  4. Toys (20%)

Therefore, if you sell products across any of these categories, it’s likely that selling on Amazon may hold some potential for your business. 

2. Millions of monthly visits

According to Statista, 374.2 million visits to Amazon UK were recorded in May 2022. With so many visits to this popular marketplace being recorded in just one month, it’s amazing to think about the potential that selling on Amazon - even for just a few months - could do for your business. And with millions of visitors, no matter what you sell, it’s likely that at least a few of these customers may show an interest in your products. 

3. Prime has opened new opportunities for sellers

Having reached around 19 million users in the UK, Prime has opened up a brand new opportunity for its estimated 281,257 sellers - including you! Among its other features, Amazon Prime provides its members with free delivery, meaning they are free to add however many products they would like to their baskets to even be delivered the next day, without worrying about incurring additional costs, such as the usual expensive fees of ordering next-day delivery. 

The above benefit means customers are likely to spend an increased amount of time looking at products than they normally would, as they won’t feel restricted by delivery fees. Therefore, 

due to much more time spent browsing, there's an increased likelihood of visitors discovering 

your products. And, once they’ve made their first purchase, if they’re pleased with the product, it’s likely they may come back.

4. Market your products within the Amazon ecosystem

Even just by selling on Amazon, providing you’ve worked on perfecting your product descriptions to be clear, accurate and to include the relevant keywords, the items you're selling have the potential to be visible to millions of customers through the simple search engine tool. But that isn’t to say that competition isn’t tough - because there may be a particular demand for the products you sell, meaning there’s likely to be many other companies selling similar items.

Therefore, if there happens to be lots of competition for your area, to help put you at an advantage, the Amazon marketing features you can use include sponsored products, sponsored displays and more. With multiple advertising opportunities to allow you to reach a wider customer base, getting the name out about your products and brand has never been easier.

It’s also important to note that by marketing on Amazon via sponsored listings, you are already capturing an audience while they are shopping for products similar to yours. This can mean there are less steps the customer will need to make in order to reach the checkout, compared to marketing your wares on social media platforms, for example. This has the potential to be more efficient than marketing elsewhere (depending on your product offering, competition levels, search volume and more). 

5. Amazon is trusted and well-established

With a high amount of consumer trust, Amazon has earned the confidence of nearly 70% of US customers, while it also holds the title as the UK’s most trusted online marketplace. Having built an established reputation over the years, where many people have gained faith in how the company stores and uses their personal information, customers are likely to feel more reassured and confident when entering their details during the Amazon checkout process, compared to on other, less well-known platforms.

Therefore, due to the fact that some web users may not have heard of your website, or come across it before, as a result, they could be skeptical about how their information is going to be used and stored when they enter their payment details. Hence, customers may be more likely to purchase your products if you branch out to more established ecommerce marketplaces, like Amazon.

Free Amazon Integration Demo

One of the main things that can put sellers off using ecommerce platforms can be the tedious admin tasks involved, where, depending on the CMS or API they use, sellers can often encounter difficulties with uploading and updating products. Not only this, but managing and keeping track of every product and listing across multiple platforms separately can also be a difficult and time consuming task. But, you may be pleased to know that there’s an easy solution.

StoreFeeder’s convenient integration software allows you to manage all your inventory across Amazon, your website, and other ecommerce platforms, such as eBay. And, everything can seamlessly be updated through this useful system, including pricing and product information. You can also keep everything in clear view by monitoring real-time data, including orders, inventory information and more, without the need to switch between multiple websites to do this. 

As well as allowing you to keep a close eye on your online activity, StoreFeeder also offers a warehouse management system. Providing live stock updates, no matter which platform you’re selling your products on - the real-time data will allow you to stay organised by reducing the risk of overselling or missing out on a sale.

Learn more about how integrating your website with Amazon using StoreFeeder’s software can benefit your business by booking a free demo today. 

Frequently Asked Questions

How do I sell on Amazon with StoreFeeder?

Once you have StoreFeeder all set up, you can start to integrate your products, as well as their individual images, pricings and descriptions across all the ecommerce platforms you use, including your own website, Amazon, Ebay, ETSY, and Not On The High Street. Not only this, but you can also complete other essential tasks with ease that would otherwise take a lot of time to do. These include real-time stock updates, integration with payment gateways and accounting software, as well as the ability to manage inventory levels across every marketplace.

What if I want to use different couriers for my own website and Amazon?

StoreFeeder partners with many couriers, including DPD, DHL, Evri, Parcel Force, UPS, Royal Mail, and many more, which gives you the flexibility to use multiple couriers. This freedom of choice helps you save money by allowing you to select couriers based on cost-effectiveness.

What other services can StoreFeeder offer?

Even though StoreFeeder offers many convenient features through its integration software, all businesses will have different needs, and may want to use the software in different ways. Therefore, to find out how StoreFeeder can help take your business to the next level, we 

would recommend booking a free demo with one of our friendly and knowledgeable experts.

Book your free demo today

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February 23, 2023

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