Why Make Amazon Your Partner? Because There’s Big Business In It For You

Why Make Amazon Your Partner? Because There’s Big Business In It For You

Posted on 14. Jul, 2013 by in Archived Post

When you add your product to Amazon’s Marketplace, it’s much like having your product in Walmart’s or Target’s stores. You will certainly receive an extremely large potential audience from a trusted brand, but Amazon will help you with payment processing and, if needed, will store, package, and ship your products from their facilities.

Amazon’s strategy is fairly straightforward which is to become the largest and most trusted online shopping center. Now, with you starting your online business selling products, you can either attempt to put up a fight with Amazon to keep them from overtaking the online marketplace or piggyback them on your way to success.

For some physical stores, using Amazon as another sales channel can provide a big boost to your overall sales. For example, a seller of used video games would see Amazon as a potentially great sales partner due to its expansive customer base and the huge demand for video games.

When we started our handbag business, we could have sold our handbags on Amazon, but we chose to have our own site built and offer our products on Ebay instead. Why? Because Amazon was not known as a handbag haven….a place to go for handbags. Even now, they are still not known as a place to buy handbags.

Another issue we had with Amazon was related to how many distractions a potential customer would be exposed to when they landed on our Amazon page. Have you noticed the “What other items” and “Customer who bought this item also bought…” when you visit a sales page on Amazon? To me, that’s much like my competitors setting up shop in my store. That’s a problem….especially if I’m a newbie with no Seller Rating. Potential customers are tempted to easily navigate away from my Amazon sales page.

With our own site, we control the “sales flow”. Of course, we lost out when it came to the number of potential customers, but we made up for it with a proper SEO strategy.

That was then…..now, with my pursuit of passive income and the fact that I’m not on Ebay right now, I’m pouring my resource into other ventures such as Amazon. Thankfully, Amazon has made available a range of ecommerce resources such as Amazon Marketplace, Amazon Payments and Amazon Webstore. Of course, I’m utilizing Amazon Marketplace to sell my products and, someday soon, I will be leveraging their service Fulfillment By Amazon (FBA) to store, pick, pack, ship, and support my orders.

You see, the more volume you do on Amazon, the more useful the Fulfillment By Amazon service could be to you. As you expand, storing, processing, and managing your orders may become a difficult mission. With this service, all you need to do is send them your products which they will warehouse, pack and ship, and provide post sales support…..your involvement is kept at a minimum which frees up your time to cultivate other passive income streams.

Of course, there is a cost with their FBA service (for what I’m selling, it is $1.43 per item – a reasonable cost and one that I can roll over to the customer with little negative impact), but wouldn’t you have a similar cost with the expansion of your business? It’s normal and worth the tradeoff.

What Amazon is lacking is an app for mobile sellers. For example, Ebay has an app that gives you gives you the ability:

  • Create/Remove listings using your phone
  • Receive instant sell notifications
  • Receive Ebay messages (ex. Questions from potential buyers, etc.)

If Amazon or someone could create an app similar to Ebay’s, that would be outstanding.

Regardless, all in all, if you aren’t currently selling on Amazon, I would highly recommend you at least take a look into it. You may find that Amazon can be well-positioned, profitable partner.

The next blog post in this series is “How To Sell On Amazon”

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15 Responses to “Why Make Amazon Your Partner? Because There’s Big Business In It For You”

  1. Andrew

    16. Jul, 2013

    following on the coat tails of Amazon sounds like a great plan Dave… i would like to see a comparison between your porduct sale on ur own portal vs sale of your product on ebay.. That would be a revealing data point,

    Reply to this comment
    • Big Dave

      Big Dave

      17. Jul, 2013

      Once I’m back on Ebay, I should be able to do those comparisons for you. That’s a good idea….

      Reply to this comment
  2. nomansalehzada

    17. Jul, 2013

    I have read about amazon’s affiliate program some where, it’s some thing like selling amazon’s product on your site, i have no further idea, would like to listen your thoughts.

    Reply to this comment
  3. Ali Raza

    19. Jul, 2013

    Do Amazon have a monthly fee Dave? Like Ebay’s $14.99

    Reply to this comment
    • Big Dave

      Big Dave

      21. Jul, 2013

      Hi Ali,

      For their store, yes and it’s $39.99 per month with the first month free.

      Reply to this comment
  4. Matt

    20. Jul, 2013

    Do you know how large amazon’s customer base is?

    Reply to this comment
  5. Rebecca

    20. Jul, 2013

    I think the FBA sounds like a marvelous idea, something I’m very keen to get into.

    Reply to this comment
  6. Sky

    13. Aug, 2013

    I think the FBA is a great program, especially if you are trying to build up multiple streams of passive income. The more time you have free, the better. Amazon is already such a huge marketplace, it seems silly to compete when you can simply, as you say, piggyback the success.

    Reply to this comment
  7. John

    18. Aug, 2013

    Like Sky said, there’s no reason that you have to put up a fight with Amazon, let their scale help you!

    Reply to this comment
  8. Gale

    19. Feb, 2014

    If you can beat them, join them. I guess this is true in this post. You can’t just simply outdone and compete with a site like Amazon. A site like that, which is already a well-known online market, will be hard to go up against. You’d do better to join them or ride on their success.

    Reply to this comment

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