Why Sell On Amazon?

July 30, 2021

People will always go after the big fish!

The more success you achieve the bigger the target on your back and nobody is bigger than Amazon right now. There’s plenty to be critical about with Amazon. Any behemoth is bound to attract the critics carrying their pitchforks, not without merit.

 

Sometimes, the dissenters score some victories. Last week, in a huge win for consumers, Amazon announced that they are ending the use of arbitration in customer disputes. Arbitration has been in use by companies seeking to avoid class-action lawsuits and has been employed for years now. Score one for the little guy.

 

These triumphs are fair and just. They are also an indication that the system does work, even if slowly. Yet there are advantages to Amazon’s size for both the consumer and the businesses that sell on the platform. We’ve all gotten used to pointing, clicking, and receiving our goods at our doorstep the next day. During the Covid lockdowns, this proved to be a vital necessity.

 

Despite the ubiquitousness of Amazon delivery trucks and the ever-increasing market share of online e-commerce transactions, most shopping is still done at brick and mortar locations. This can be attributed to retailers adapting to e-commerce realities and employing supplemental online strategies, but also deeply formed consumer habits; people just like to touch and feel what they are buying. In fact, 70% of purchase decisions are made after the consumer enters a store. 

 

So, why Amazon?

The advantages Amazon offers business owners are no less monumental. For one, local retail outlets no longer need to sell only to locals and rely solely on walk-in traffic. That in and of itself can be the subject of its own post. In my mind the number one advantage Amazon offers business owners can be summed up in three words; logistics, logistics, logistics! Nobody does it better than Amazon. 

Amazon Delivery

Amazon has over 100 fulfillment centers each averaging about 1 million square feet. They also have over 1 million employees, the vast majority of whom work at filling orders and making sure they get delivered on time. They use (and create) the latest technology to ensure that the product ordered is packed and delivered safely and on time. 

 

No longer solely reliant on third-party shippers, Amazon has a fleet of nearly 100 airplanes and 20,000 tractor trailers. It’s even building its own airport hub in Kentucky. Bottom line; nobody does logistics better than Amazon. Getting the best logistics in the world for your brands doesn’t come cheap, but what you lose in fees and commissions is more than made up for in volume and access to a national/international market. 

 

Amazon’s size and strength has also increased competition which is another big win for consumers and business owners. Walmart is getting into the e-commerce seller platform as are other big-box retailers. Internationally, Amazon has a lot of competition as well. All in all, it’s a good time to be selling online. Especially on Amazon!

At AdvantiQs, we can guide you in all aspects of running your e-commerce business. Contact us today for a free consultation