Richard Foy At Large Member | River Falls Area Chamber of Commerce and Tourism Bureau
Richard Foy At Large Member | River Falls Area Chamber of Commerce and Tourism Bureau
Small businesses considering selling on Amazon may find the platform offers significant opportunities for growth. With over 60% of its product sales now coming from independent sellers, Amazon has become a key marketplace for small businesses in the U.S., generating more than $2.5 trillion in sales over the past 25 years and supporting over 2 million jobs.
For those interested in selling on Amazon, understanding the available selling plans is crucial. The Individual Plan charges $0.99 per item sold with no monthly fee, suitable for new sellers or those testing products. In contrast, the Professional Plan costs $39.99 per month and offers tools and exposure beneficial for scaling operations.
Potential sellers should be aware of various fees associated with using Amazon's platform. These include referral fees ranging from 8-15%, fulfillment fees if using Fulfillment by Amazon (FBA), and inventory storage fees that can increase during holidays.
Amazon provides two fulfillment options: FBA, where Amazon handles storage and shipping, making products Prime-eligible; and Fulfillment by Merchant (FBM), where sellers manage their own logistics.
Creating effective product listings is essential to attract buyers. Sellers are advised to use high-quality images, clear titles with keywords, bullet points highlighting features, and compelling descriptions.
Pricing strategies also play a critical role in success on Amazon. Sellers should monitor competitor pricing and consider using tools like Automate Pricing to remain competitive without necessarily being the cheapest option.
Advertising through coupons, discounts, and sponsored ads can help increase visibility among numerous competing products on Amazon's site.
Sellers have access to a Seller Central dashboard to track performance metrics such as order defect rate and customer feedback. Programs like Amazon Vine can help generate early reviews while Multi-Channel Fulfillment allows leveraging Amazon’s logistics for website orders.
Selling on Amazon might not suit every business model but offers substantial benefits for consumer products with scalable inventory seeking exposure in a high-traffic environment. Businesses must weigh their options carefully if they sell low-margin or niche items or desire full brand control.
Despite these considerations, many businesses view selling on Amazon as an enhancement rather than a replacement for other sales channels such as websites or physical stores. With strategic planning and preparation, it could open doors to new customers and sustained growth.
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