Introduction
For decades, Amazon has been one of the most popular shopping destinations for consumers. In fact, nine out of ten online shoppers visit Amazon to purchase products on a monthly basis.
And now that the company is selling more than half of all new items on the internet, it’s safe to say that this trend isn’t going away anytime soon.
Check this chart below to get a picture of the eCommerce net sales of Amazon from 2014 to 2022:
So, why not take advantage of this opportunity by selling your products through Amazon?
Here are ten reasons why sell on Amazon in 2024:
Reasons to Sell on Amazon
Amazon is an Established and Trusted Platform
Heads Up!
Planning to sell on Amazon and want to know reviews of available seller tools, then head to our Amazon Seller Tools category page and find it out.
Amazon is a big platform, and it’s growing. It has more than 12 million products for sale that are available in countries around the world. This means you will have access to a vast audience of potential customers.
There are more than 200 million Amazon Prime members around the world, which means there are plenty of people who shop on the site regularly and may be looking for your products right now.
Plus, over half of all US shoppers start their product searches on Amazon before going elsewhere—that’s a lot of potential business right there.
Amazon is perceived as a safe and secure place to shop, which means your products and brand will be trusted by consumers from the offset.
MORE: Amazon Statistics: Brand Value, Market Share, and Product Supply
Amazon Prime Members Shop More
If you’re looking for a way to grow your business, Amazon is the place to be.
Amazon Prime members enjoy many benefits, such as free next-day delivery, exclusive discounts, access to streaming platforms, and more.
The majority of these consumers have an annual subscription to Prime and are likely to spend four times more on Amazon than non-Prime shoppers. This means that if you want your products in front of this segment of buyers, then selling on Amazon makes sense for you.
Buy More Frequently
According to recent study, Amazon Prime members spend more on the platform, buy more frequently and are generally more loyal to Amazon than non-members.
Prime members are also twice as likely to buy multiple items when shopping on Amazon as compared to non-prime members.
With free two-day shipping, Prime members have access to everything from paper towels to a new Kindle or mattress (and you can even get it same-day in some cities).
Prime Members Make Higher Purchases
Prime Members are also much more likely to purchase higher-priced items than non-members. In fact, Prime Members spent an average of $1,400 per year on Amazon compared with $600 for non-members.
Amazon is not expecting the number of Prime subscriptions to slow down anytime soon. Check out these predictions for Amazon Prime user growth in the US over the next few years:
| Year | Number of Users |
|---|---|
| 2022 | 157.4 million |
| 2023 | 161.7 million |
| 2024 | 165 million |
| 2025 | 168.3 million |
MORE: Amazon Launchpad: Seller’s Questions Answered
Shoppers Start on Amazon with Their Product Searches
Amazon is the most popular search engine for online shoppers. Millions of people use Amazon to find new products and compare prices with other retailers.
If your products are listed well, you have a huge opportunity to make sales before customers look into other options. Having well thought-out descriptions and images will make product searches easier for customers.
In fact, if your products have great reviews and fast shipping, many customers will hit “buy now” before exploring other options. This is due to the reliability and positive perception of Amazon.
MORE: 5 Steps to Blast Off a Successful Amazon Product Launch
Convert Traffic into Sales with Amazon Ads
While there are millions of people who could potentially buy your products and services on Amazon, this does not automatically translate into sales. You need to be able to convert that traffic into sales.
Amazon Ads
Formerly called Sponsored Products, Amazon Ads is one way for sellers to reach new audiences and get more traffic for their products. It’s also an effective tool if you’re looking for new ideas on how best to promote your brand/product through paid advertising channels like Facebook Ads or Google Shopping Ads.
Amazon Ads work similarly to PPC ads on Google, and setting them up is easy. Check out this guide on creating Amazon Ads that meet your goals.
Brand Awareness
Amazon will also help you build your brand by promoting your products across their own platforms. This is done via paid advertising campaigns. Your brand can also be promoted on third-party websites via organic search.
Sellers Who Use Fulfillment by Amazon (FBA) are Reporting Higher Conversions and More Sales Overall
For eCommerce entrepreneurs in the early stages of their journey, “Is it good to sell on Amazon?” is a frequent question. And one very good answer is selling with Amazon FBA (Fulfillment by Amazon), which simplifies logistics.
FBA is a service that lets you store your products in Amazon’s fulfillment centers. When a customer orders your products, they are shipped from the fulfillment center to your customer.
To take advantage of FBA, you need to ship your products to an Amazon warehouse and label them as FBA inventory. This will enable you to make changes on demand later if necessary.
Products in the FBA program also enable you to sell on Amazon Prime and target that exclusive group of 112 million devoted Amazon buyers.
If you would rather not ship all of your inventory to an Amazon warehouse, then another option for selling on the platform is Seller Fulfilled Prime (SFP). This allows sellers who have a high volume of sales and product availability to opt out of storing their goods in Amazon’s warehouses.
You can still receive free two-day shipping for Prime members on eligible items bought from their own websites and fulfilled through their own logistics systems. This is a much bigger benefit than just having access to a marketplace like eBay or Etsy.
MORE: Best Amazon Tools for Tracking Account Health Performance
Selling on Amazon is Quick and Easy
One of the best things about selling on Amazon is its ease—it only takes a few steps to get started. Here’s a quick rundown of what you need to do:
- Sign up for an Amazon seller account (it’s free).
- Create an individual or business listing for your product(s).
- Add photos and details about your product(s), including price, size, color options, etc.
If you’re selling multiple items from one shop or websites like Etsy or eBay, you can connect those accounts with just a few clicks so that everything stays together in one place for easier management later on down the road.
Professional Seller Accounts are Free
You can sell and distribute your own products or existing products on a professional seller account for free. You can also sell other people’s products like books, DVDs, CDs, or even craft items.
When selling your own branded product, it’s important to remember that you’ll need to have a UPC code assigned to the item before listing it on Amazon as some countries require this information.
Individual Seller Central
The most basic level of seller account is called Individual Seller Central (ISC) and allows you to list items in one category with 50 units per month limit in physical products and unlimited items in digital downloads.
You don’t pay any fees when you sign up for ISC but if you want more benefits from the platform such as being able to create listings with different variations like color/size options etc., then you need to upgrade your account type by paying an annual fee which varies based on what kind of plan suits your needs best.
An individual seller account allows discounts on shipping costs and special offers that aren’t available with free accounts; however, there are still some limitations on what types of promotions can be used.
In addition to paying monthly subscription fees directly from their own bank accounts (i.e., not paid through Amazon), sellers using individual seller accounts must give up certain tax advantages in order for Amazon to handle their sales tax reporting requirements for them
Professional Sellers
Professional Sellers have access to all benefits listed above plus the ability to use multiple shipping methods (such as flat rate boxes and ground shipping) which makes them eligible for better pricing than either individual sellers or non-professional ones.
Access to Helpful Resources and Free Tools
One of the main benefits of selling on Amazon is that it equips you with an impressive arsenal of resources and analytics that help you adapt and thrive.
The platform makes it easy to scale your business by providing access to millions of customers and offering tools that help you grow your sales. This can include product listings, Amazon’s Seller Central dashboard, customer reviews, and more.
The Amazon Seller App
The easiest way to manage your inventory on the go. The app allows you to manage your eCommerce businesses anywhere from the palm of your hand.
The good news is that the app is completely free to use and enables you to easily manage reviews, feedback, inbox messages, orders and listings.
Amazon Seller Central
This is the main hub for all things related to selling on Amazon. It includes detailed information about sales data, product reviews, customer service tickets and much more. You can also see how other sellers are doing with their own listings right here in one place.
Seller Support
Need help getting started or finding out how something works?
There are plenty of self-help articles available on Amazon. The seller support section has all the relevant contact information if you need additional assistance from an actual person.
The online chat function is also very helpful for quick concerns and questions, and you can expect a speedy response.
Marketplace Web Service (MWS)
You can use MWS to manage your inventory on other marketplaces like eBay or Shopify. You’ll also be able to access customer information with new API access for third-party apps that link to your Amazon account.
With this knowledge of raw data and actionable insights, you can fine-tune your strategies and manage price adjustments, inventory, and targeted marketing with precision. They allow you to adjust your offerings to meet the market’s demand with agility.
This strategic advantage helps you maximize the potential of your Amazon presence, make informed decisions, and achieve higher profitability.
Tap into a Global Market
Your listings will be available to customers looking for your products from around the world. Amazon’s search engine is very good, but it can only show you results that are relevant to your location and language.
If a customer in Japan is looking for a new suitcase, they may not come across yours if the only listings that are shown are those posted by people living near you.
If you sell on Amazon, you get access to a global marketplace where shoppers can find exactly what they want. That’s why so many people opt to sell on Amazon instead of through their own websites or eBay—because there are more options when it comes down to price and selection.
Amazon Sellers are Competitive
This is a great thing. The more sellers there are, the more competition you’ll have to deal with — but it’s also beneficial because it means you’re entering an extremely competitive marketplace.
Amazon sellers are fiercely independent entrepreneurs. They want to do business in a way that doesn’t compromise their values or quality of life. Many started out selling on Amazon because they couldn’t find anything else that was as flexible and profitable. Others saw the potential for growth in selling used books online (which has since become one of their biggest sources of revenue).
Regardless of why they got into eCommerce, most remain there because they enjoy running their own businesses and being independent of corporate structures.
How to Decide What to Sell on Amazon
Selecting your offerings on Amazon should be based on a thoughtful, strategic approach that involves:
- Understanding current trends, consumer demand, and competition,
- Researching what drives Amazon buyers to click the ‘buy’ button and considering how your products can uniquely fulfill those desires and
- Closely examining items that consistently rank as popular purchases on Amazon, a.k.a. bestsellers, as they can reveal lucrative niches or emerging trends.
When successfully applied, this approach aligns your product selection with market demand, your unique strengths, and your value proposition. Thus, you will be capable of capturing and engaging a dedicated segment of consumers.
Key Takeaways
So why sell on Amazon? Simply put, it’s profitable. That is, if you take advantage of the benefits the platform provides: A vast customer base, a trusted brand name, efficient logistics, and numerous seller tools.
Profitability on Amazon is marked by potential yet requires astute navigation. Unlocking financial success lies in meticulously optimizing your listings, using resources like FBA, and continuously analyzing product performance data.
The upfront investment in time and resources may pose a challenge, but the rewards can be significant.
At the end of the day, while Amazon offers a fertile ground for financial gain, the extent of your success largely depends upon your commitment to leverage its capabilities to their fullest extent.
This platform transcends traditional market limitations. It ensures that regardless of your products’ niche or broad appeal, the right customers will discover and buy them. With such reach, your “Should I sell on Amazon?” question will be put to rest.Why to use Amazon as a seller?
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