Posted by: Laura Hills, VP of Marketing
Amazon is one of the top ten sites in the world and undeniably a major force in eCommerce. It is one of the most customer-centric companies and according to Practical eCommerce, it attracts the most unique visitors of any online marketplace. The latest information from Alexa, the well-known web information company, reports that close to 950,000 sites link to Amazon, making it a powerful tool for retailers that are looking to grow their online business.
Amazon’s goal is to enable shoppers to find anything they want at the lowest possible price and third party merchants are helping Amazon to achieve this goal. We have often pointed out that offering products on the Amazon Marketplace can help you reach new customers and retain existing ones. Many of you have taken this advice and are experiencing the benefits of increased sales through products sold on Amazon. Amazon provides programs and services to Amazon retailers to help them get noticed on Amazon and simplify the order fulfillment processes.
Fulfillment by Amazon (FBA) enables retailers to grow sales without worrying about increases in packaging and shipping costs associated with rising sales as products become visible on Amazon. FBA says, “You sell it, we ship it.” Retailers are able to store their products in Amazon shipping centers until orders are ready to be fulfilled, transferring essential order fulfillment, packaging and delivery tasks to Amazon. This enables multichannel eCommerce retailers to sell higher quantities of products without having to worry about having the space to store and resources to process orders and ship their products.
FBA also manages customer support and returns, giving you additional time to focus on other aspects of running your online business. Inventory with Amazon is secure and insured against possible loss or damage, another relief to multichannel retailers with limited space and budgets. Utilizing FBA allows your products to be treated as if they were Amazon products and sorted by price without the added cost of shipping which can greatly increase product visibility for shoppers. FBA can also help you to achieve Amazon’s Featured Merchant status which also increases the visibility of your products on Amazon.
Another feature of FBA is that with no additional effort, you are registered for Amazon Prime which provides two-day free shipping with no minimum order size to its members. In addition, Prime includes unlimited instant streaming of thousands of movies and TV shows through Prime Instant Video and enables members to read free books each month through Kindle First and the Kindle Owners’ Lending Library. More than one million worldwide Amazon customers became Prime members in the third week of December 2013 alone.
Although there is an annual cost for membership (presently $99), Prime members spend up to 150% more per order and offering products through Amazon Prime can have a tremendous impact on your sales. Robbie Schwietzer, vice president of Amazon Prime stated: “In all my years here, I don’t remember anything that has been as successful at getting customers to shop in new products lines.” According to Amazon, the number of products available for two-day shipping has grown from 1 million to 20 million and that is currently has “tens of millions” of Prime members worldwide.
When selling products through Amazon, you may find increased competition with many vendors offering similar products and prices. Offering the opportunity for customer to order with Prime may be the deciding factor in picking your product over a competitor’s.
Listing your products on Amazon Marketplace will get your products in front of a significant volume of traffic but you now need to find ways to differentiate yourself in the Amazon universe. To sell even more products, consider Fulfillment by Amazon and Amazon Prime to help you increase overall sales and revenue. Click here to understand how FBA works.
Dydacomp has created a special on-demand webinar that provides additional information on selling through Amazon Marketplace. Access this on-demand webinar to learn how you can Achieve 60% Growth on Amazon.