Why and How You Should Be Selling on Amazon

It’s Easy to Sell on Amazon

Selling on Amazon is one of the easiest ways you can make money. If you have a quality product that is in demand and has the potential to yield a decent profit, you are in business. Plus, a third party seller can benefit from Amazon’s years of experience, an established brand, a reliable business model, consumer confidence and a shopping venue through which massive amounts of marketing dollars flow.

Simply acquire the high quality, in-demand products you want to sell – such as Houseware Warehouse wholesale kitchen items. Then, just follow a set of simple instructions to create an account for the magic to happen. You will be notified when a customer purchases your product and, if you choose to have Amazon handle your product fulfilment for you, your customer will be notified when his or her order has shipped. All you have to do is to wait for your profits to be deposited into your account!

Amazon Has a Huge Customer Base 

The sheer numbers say it all. Amazon reaches over 95 million unique viewers every month in the United States and has sold well over a billion items this past holiday season. Shipping millions of packages a day, accounting for almost half of all online sales and with over 288 million square feet of warehouses space, offices, retail stores and data centers; Amazon can easily claim the title of Mega Corporation. Plus, did you know that one out of every four adults is an Amazon Prime member?

Just to give you an idea of the velocity of Amazon’s growth, by 2011, Amazon had 30,000 full-time employees which rose to 180,000 by the end of 2016. Then, in 2017, Amazon acquired Whole Foods in a $13.4 billion deal that put Amazon on the brick and mortar map. 

According to Bloomberg Businessweek, Amazon enjoys a close to 50% of all American online spending and a 5% share of U.S. retail spending, only excluding cars and their parts, as well as restaurant and bar patronage. Recent reports indicate that Amazon revenues topped $87 billion in the fourth quarter of 2019.

Okay, so let’s talk about these shoppers. If anyone in the Amazon customer base is online searching the Amazon website, that person is most likely either browsing for something in particular or ready to pull the trigger and purchase an item. He or she has also probably shopped there before and may even purchase the same item time and time again. 

Amazon Is a Reliable Business Partner

Over the many years it has been in business, Amazon has developed an unsurpassed online shopping company run by a highly qualified team of professionals. When you sell your wares or services on Amazon, this unique venue with a massive amount of industry knowledge and reliable service becomes an extension of your own business. The industry standard that Amazon sets has resulted in a colossal base of qualified customers – a customer base that is also yours when you partner with Amazon.

Amazon Is an Established Brand

Amazon is an established brand that has labored for many years to create a well-oiled machine. Today, Amazon is a reputable mega corporation where anyone can get just about anything, simply and affordably. Amazon makes customers never want to shop in a brick and mortar store again and third party sellers want to ride on its beautifully built coattails.

Third party Amazon sellers benefit from becoming an extension of Amazon – a brand that is truly enviable…and one they didn’t have to work to acquire! Why spend marketing dollars you may not have and years establishing a brand that consumers can trust when you already have one right at your fingertips? 

Amazon Has Built-in Consumer Confidence

When a certain level of trust is established between a customer and a vendor, that customer is much more likely to make a purchase, spend more and to become a repeat customer. Amazon has earned that trust.

Amazon has been around for quite a while, consistently building a reliable reputation and unparalleled consumer confidence. Through those years of stellar service and by getting the word out through effective marketing, Amazon has become the well-established brand it is today.

Amazon sellers and customers benefit from the knowledge the professionals at Amazon have accumulated over the years…with customer satisfaction and a business model beyond compare. Sellers have confidence that their products are sold within a dependable venue that produces results; and consumers are confident that they are purchasing from a vendor who will competently provide them with quality products for an affordable price.

History tells a very positive story about the rise of Amazon, and consumers tend to trust vendors with proven viability. They want to be sure that business is profitable enough to maintain stability, but that its goals extend far beyond just profits – ensuring the provision of high quality products and reliable delivery. Amazon customers have come to expect first-rate customer care through a knowledgeable support team they can trust. 

Amazon also keeps in constant contact with the public through social media, providing education and information, and continually updating potential customers about the benefits of ordering through Amazon. Additionally, Amazon studies the market to determine and implement measures that make being an Amazon customer convenient. This all helps to establish, build and maintain excellent customer relationships and a high level of customer confidence.

Handling Your Own Order Fulfillment on Amazon

If you are already set up to conveniently handle your shipping yourself and would like to bypass the cost for Fulfillment by Amazon to handle all your shipping concerns for you, by all means, feel free to do so.

Here’s how it works. Go to the Amazon website. Click on “Orders” to manage your orders. Then go to “Unshipped Items”. There will be two shipping options from which to choose. “Buy Shipping” is the option where Amazon handles your shipping. Any products under 15 ounces get sent First Class. Products that are over a pound get sent Priority Mail. There is also an option for Flat Rate Envelopes. Amazon sends an email to your customers once the package is sent and tracking is handled by Amazon for you as well.

Click on “Confirm Shipment” if you have decided to handle your shipping directly to your customers yourself. With this method, you will need to take your package to a UPS Store, Fed Ex location, USPS or some other carrier, pay for postage and track your package.

There ARE certain benefits to handling your shipping on your own:

One is that you get to take charge of your own quality control. I know, Amazon has been at this for years and also has that packaging that everyone recognizes – a benefit given the comfort level it provides customers. However, if you think you might have any shipping issues, such as those that might accompany shipping something fragile or edible, self-shipping could be best. 

Amazon also has strict rules when it comes to shipping anything flammable, so products as simple as certain beauty products and craft supplies may not even qualify for Fulfillment by Amazon.

In certain instances, it is also possible that storage fees could eat into your profits. Amazon requires a certain amount of stock, so this could create a financial hardship for smaller sellers. Additionally, if stock piles up, you could be faced with out of date inventory or an overstock issue.

What Is Fulfilled by Amazon Shipping?

Here’s how Amazon Fulfilment Works. When a customer places an order, Fulfilment by Amazon will pick, package and ship the order for you. Then, the customer will receive tracking information from Amazon and their order within two days with Amazon Prime shipping.  As Amazon says, “You sell it, they ship it!”

Profitability will depend on the product you are selling. You will need to “do the math” as they say to see if Fulfilled by Amazon is right for you; but if you determine that Fulfilled by Amazon does allow you to remain competitive, it sure does offer a whole lot of benefit.

The best perks of using Fulfilled by Amazon are not having to worry about storing inventory, picking orders, sending them to customers or having to provide any customer interaction for customer service or product returns…AND gaining an edge over products that are not Fulfilled by Amazon. Fulfilled by Amazon products appear higher on the list when customers conduct their Amazon product searches. Research indicates that this alone leads to better ranking and sales.

The Moral of the Amazon Story 

Amazon can be a great way to run a successful business; or if you already sell your products on your own and choose to continue to do that, it could be an excellent additional profit center to grow your business.

To learn more about how to incorporate Houseware Warehouse products into your Amazon business plan, call 800-868-1234. Our friendly and knowledgeable Houseware Warehouse customer service team will be happy to help with your new business venture!