Since launching in 1994, Amazon has grown from its humble, book-only, beginnings into a global marketplace that has become the perfect gateway for businesses looking to sell in the online space.
The popularity of the platform is such, that retailers are benefitting from Amazon’s worldwide brand recognition to market their products to potentially millions of customers.
With dedicated marketplaces in 11 countries, and a customer base from nearly 200, there has never been a better time for businesses to take the leap into eCommerce retailing, than now with Amazon.
On this blog, we’ll run you through some of the key reasons why you should consider selling on the Amazon marketplace, if you haven’t already, to hike up your sales.
As mentioned at the top, in addition to its 11 global marketplaces, Amazon currently boasts a customer base from nearly 200 countries. Compare its net revenue in 2016 at 135.99 billion U.S dollars to its closest competitor, eBay, at 8.98 billion U.S dollars, and it becomes abundantly clear just how large a market share Amazon holds on the eCommerce industry.
The platform’s year-over-year revenue growth also sits at 27%, indicating that this significant lead over its competitors is unlikely to change anytime soon, and is bolstered by its recent expansion into countries such as India and Australia. More specifically however, Amazon’s active user base sits at over 310 million, nearly doubling that of eBay (168 million), and certainly dwarfing that of other eCommerce applications. The online versus in-store debate is a significant one to have (although at Hike our position is clear – go omnichannel!) but considering the reach Amazon gives retailers, the choice to sell on its marketplace should be an easy one.
Whilst it’s significant to have the lion share of customers, where Amazon really thrives is in its ability to keep users logged on and searching for products to buy.
A recent survey, showed that more than 50% of shoppers use Amazon as their first point of call when it comes to online shopping. We often acknowledge the message of ‘repeat business’ as being key to running a successful store, which is why selling on Amazon is so appealing.
Given the popularity of Amazon’s services, you can be confident that as a retailer your products will find an online audience, and be doing so in a service that has a proven track record of keeping customers glued onto their website.
Among other things Amazon also sets itself apart by being an intuitive and expansive website that has been designed with the modern consumer and aesthetic in mind.
It’s product reviews and seller ratings are not just luxury add-ons but important features that have strengthened the Amazon brand to become what it is today. Even more pertinently, Amazon makes it easy for customers to search for products, as it encourages its sellers to use long titles, product descriptions and keywords. It all adds up to why Amazon is considered as the online marketplace for millions of users around the world.
Moreover, it’s mobile app gives shoppers the chance to shop anytime, anywhere, and its range of hardware devices like the Echo and Kindle have made it become ecosystems of customers and retailers alike want to be a part of.
The Amazon Domain
As mentioned, Amazon gives retailers freedom in being able to market their products on the marketplace with lengthy details and keywords. It’s a great way to ensure a customer get’s a specific result to a specific search.
More than that however, Amazon is also quite useful for customers that don’t use the site as their first point of call when shopping online. This is because Google’s search algorithms, places a high value on the Amazon domain. So anytime someone searches for a product online, any Amazon listings with said product, will appear at the top of Google’s search results.
In many instances, retailers will find that they receive more online traffic from customers buying their products through the Amazon marketplace, than their own online website, simply because of Amazon’s ranking in Google’s search algorithms.
In providing one of the better service platforms, retailers can be assured that the bulk of their workload is covered by Amazon. This is primarily seen with the Fulfillment by Amazon program, which enables sellers to send their inventory to an Amazon warehouse, who will then ship the products to the buying customer.
All shipping notifications, customer service enquiries, cancellations and returns are done directly through the Fulfillment by Amazon program, with you having to go anywhere near the goods directly. It’s this type of service that sets Amazon apart from its competitors, and enables retailers to focus more of their time and energy developing other aspects of the business.
Amazon does also set strict regulations on the timeliness and interactions you have with regards to sending out deliveries to the fulfillment centres and that you have prepared your products so that they are ‘e-Commerce’ ready. Metrics that can be viewed on your Seller Central Dashboard. Yet, you’ll find that this level of two-way partnership is exactly what’s needed to operate in a high-performing manner.
Forefront of Innovation
When talking about the retail space in 2018, inevitably Amazon is a name that everyone will eventually circle back to. Its story is legendary, and considered a success in American intuition, but what has fuelled its growth and longevity hasn’t been simply just one idea.
Rather, it’s been Amazon’s commitment to developing and nurturing new ideas that has it at the forefront for retail innovation. It doesn’t simply wait for customers to ask for something, but instead sets the agenda itself and points its customers in its direction.
Whether we’re talking about Amazon Prime, Alexa, Amazon Go Supermarkets or Drone Delivery, the world is not only waiting for the company’s latest invention, but are ready to actively embrace it.
Therefore, Amazon makes a perfect match for retailers that wish to grow their business online. Its resources are plentiful, it’s innovation continually game-changing, but also perhaps most significantly, its established platform and customer base is the envy of all else.