Pros and Cons of Selling on Amazon

AMZ Seller Financing   •   August 27, 2018

pros and cons of selling on Amazon

We have already talked about 3 reasons why you should sell on Amazon, but it is time to delve deeper and find out way more. To become a successful Amazon seller, you need to know the subject matter inside-out. Let’s see what the pros and cons of selling on Amazon are.

Pros

1. Worldwide exposure

Of all the global selling platforms, Amazon is the most trusted one. And you can use it to market to a huge target audience. Literally, there are millions of customers, from all over the world, and they can become your customers as well. To put it in numbers, Amazon has over 300 million active customers. Working from the comfort of your home, you can grow your customer base and increase your income as you go along. And the best thing is that, in the years to come, Amazon will only get bigger and bigger because it shows no signs of stopping. But what is also really great about selling on Amazon is that it stores your inventory and handles the packaging and shipping.  

2. Ease of use

What so many online sellers love about Amazon is that it’s so easy to use. First of all, you don’t have to have a lot of experience in selling online. In fact, you can be a complete novice and still set up your account without any problems. In no time, you will start adding products to your list. Amazon has really done a lot to simplify the whole process and help you out along the way, so you don’t have to worry about anything. With a bit of effort and determination, almost anyone can become a successful online seller and make a living through Amazon.  

3. Affiliate program

This features revolutionized the way we see online business today. If you have a blog or website of your own, and you want to use it to make money – Amazon actually helps you do this. Basically, you can add an Amazon link to your own website and get a commission every time someone clicks on the link. In order to earn a steady income, you will definitely have to work hard, but it’s possible. So many people earn a living through Amazon’s affiliate program. Opening an account is not complicated and doesn’t require a lot of time.

Cons

1. Fierce competition

On the other hand, it is not as easy as showing up on time. To become a successful Amazon seller, you first have to realize one thing – you are not alone. There are thousands of people who want to do the same thing as you and they, too, have your will and determination. And there is a lot of competition in every single niche (or the vast majority of them). However, this should not discourage you, on the contrary. If you put in enough hard work, and stay determined even in the toughest of times, you will eventually make it. The problem is that too many people don’t have the patience, and give up way too soon.

2. No control over reviews

In most cases, online customers are fair and give honest, straightforward reviews based on reasonable factors. But unfortunately, there are also those you react on the spur of the moment and leave reviews not based on reason, but on their initial reaction. For example, if the shipping company delivers the product one day later, this can be your next product review. They might write something like “The delivery was late, I’m disappointed!” – and nothing more. And if you only have three reviews for one product, the bad one will definitely stand out. You simply cannot plan these things, and you definitely cannot prevent them.

3. No access to customer info

When it comes to online sales, a business should try to sell not just one item per customer, but dozens of items per (the same) customer. The best way to do this is through acquiring customer information (such as their email address), and storing it in your database. But Amazon doesn’t allow you access to this type of customer information (except the shipping address), so you cannot grow your customer base that way.

So, should you sell on Amazon?

Absolutely.

Despite the cons, Amazon is a great online platform with so many possibilities, both for newbies and more experiences online sellers. In specific aspects, it’s better than eBay and other similar platforms, and it’s definitely here to stay.

Feel free to check out the other articles on our blog as well as download our FREE ebook on how you can fund your Amazon business. Follow us on FacebookTwitter, and LinkedIn, and subscribe to our mailing list to get the latest news and offers!