Jeff Bezos is an American internet entrepreneur and founder & CEO of Amazon. The Amazon Marketplace is one of the most renowned marketing ways for online retailers. Launching on Amazon as a seller is right but easier in some categories than others where proposed sellers must be approved and meet specific selling requirements.
Amazon itself is a major website that sells everything from baby’s diaper to electronics. When you’re shopping from Amazon.com, you are buying directly from Amazon’s complete product inventory and individual sellers. Amazon Marketplace is the third-party retailer market combined into the same platform. Retailers can sell new and used items, anything sold directly by the namesake’s domain is new and owned entirely by Amazon.
The price Amazon charge from its third-party retailers is a referral fee for every sale minus the sale price, sellers using FBA must pay additional fees which include a pick, pack and weight charge. Meanwhile, Amazon is very selective about who they allow selling on Amazon Marketplace. Some of the countries are allowed to participate in it and sellers must have financial accounts registered to those rules & rights.
Traditional Export refers to selling those commodities which have historically been produced, and exporting is the method of sending or transporting goods or services to a foreign country for trade or sale. Whereas, if It’s your website, you can control it: from content, to design. It’s not just the display you’ll have control over, either, because you’ll have the say on how, when, and where you present your products.
Selling on Amazon is not easy because the competition will be sky-high. Amazon is one of the biggest players in its field, so there may be thousands of other sellers that your business will have to compete with. By signing up to a marketplace, you must abide by its rules. Amazon focuses on the products, not the sellers. This means that you have very limited means to showcase your brand presence. Although your revenue is sure to increase by being on Amazon, it does come at a cost. Regardless of whether you have a professional account or you opt for FBA (Fulfilment by Amazon), you’ll still be faced with fees. It’s definitely worth doing your research on your Amazon fee plan before setting up your marketplace account.
So, there are pros and cons of using Amazon as a marketplace, but before you make your mind up, let’s take a look at the pros and cons of using your own website as your go-to selling platform.