Pros and Cons of Selling on Amazon


Pros and Cons of Selling on Amazon
Share on Facebook twitter linkedin reddit tumblr pinterest

Serving the worldwide market, Amazon now has nearly $640 million in earnings per day. The company's owner Jeff Bezos became the world's richest person on the planet last year. The best part about Amazon is you can earn being a seller and that too in handsome figures. Many sellers say it's easy money. But, before you decide to jump into the business, you need to understand the Pros and cons of selling on Amazon.

According to Jungle Scout, amazon sellers earn an average of $42,000 in annual profits. The market is huge, people from all over the world shop online nowadays. It's true that most consumers still prefer shopping in physical stores, but many people prefer to buy their products online instead. This means that if you want to sell something, there will surely be someone willing to buy it.

What are the pros of selling on Amazon?

First things first, you should have reasons to jump into the business and the set target and products you want to market. Understanding the pros of selling on amazon should help you decide why it’s beneficial.

1. Anyone can become a seller

Selling using an FBA account makes it very easy for people interested in becoming an amazon seller. All you have to do is find a product that hasn't yet been sold, purchase it yourself and send it over to Amazon, after which they will give you the necessary resources to list your product online so that customers can start buying them straight away.

This system works well since there are advantages of being an Amazon seller for both parties involved, so it's worth looking into if you want to sell products on Amazon.

2. It builds a good reputation for you

Amazon sellers have been shown to have a great track record of building long-term relationships with their customers. In general, people buy from someone who they trust and build a good working relationship.

By selling on amazon using an FBA account, you can also enjoy the positive reviews from your clients and improve your seller rating, which affects whether or not you can attract future clients. So, it is important to use the advantages of being an Amazon seller effectively.

3. Easy payment system

One thing about selling on Amazon is that it offers a very easy way to pay online. This will remove any worries or doubts from your customers about whether or not their credit card information is safe since they are dealing with amazon.

You get a separate amazon seller account which you can use as a wallet to make transactions which is one of the pros of being an Amazon Seller.

4. You can manage multiple listings simultaneously

Selling on Amazon does not mean that you must do all of those tedious tasks manually, though. All you need is to choose which products you wish to sell and then send them over to Amazon.

They store the products and handle all of your customer inquiries and any returns that might occur. You can also manage listings simultaneously, so you only have one account to deal with instead of keeping track of multiple accounts at once.

5. High profits are the main pros of Selling on Amazon

Have you ever noticed how products seem to be priced quite cheaply on Amazon compared to physical stores? This is because Amazon sellers need to cover the fees that come with selling on Amazon, including the Commission rate, closing fee and referral fee.

This means that if you want to buy a product on Amazon yourself, it might be cheaper for you to become an amazon seller, purchase your product and sell it at a profit instead! By mastering the advantages of being an Amazon seller, you can start making money today.

What are the cons of selling on Amazon?

Besides the benefits, you must also understand the cons of selling on amazon especially, if you are new to it. Some concerns like fees and competition must always be closely considered.

1. The fees

All of the advantages of being an Amazon seller come at a cost, though, which means if you aren't profitable enough, it could be a costly adventure! Amazon charges many different fees for selling on their platform, including referral fees, closing rates and commission rates. You also have to pay for all sales tax, storage fees and shipping costs that might occur since this is one of the cons of being an Amazon seller.

2. Sellers have a Limited choice

This might not be much of a concern to people who are interested in becoming an amazon seller. Still, it can be frustrating to customers who want a wider selection of products available online so that they can purchase a variety of different products for a lower price.

The limited choice might be a drawback to people who want to sell on Amazon, but it also means that you have less competition, so there are advantages of being an Amazon seller.

3. You will have very little control over the buying experience

This is another drawback to selling on Amazon since customers won't usually buy from you directly, so they won't be able to provide feedback or reviews about their buying experience with your business.

This might be a concern if you're worried about customer satisfaction, but it can also be seen as a benefit since there are disadvantages to being an Amazon seller. This means that none of your competitors will have any reviews or feedback scores either, which gives you a competitive advantage.

4. Not everyone is allowed to sell on Amazon

It is important to note that not everyone will be allowed to sell on Amazon, so if you want to become an amazon seller, it's worth checking out the guidelines and rules they have currently in place. It might also be a good idea to look into what products are permitted since some items may not ship worldwide.

The disadvantages of being an Amazon seller can vary depending on your situation but learning more about them can help you make a better decision about whether or not it's right for you.

5. Customer service and returns

Since you don't offer any customer support for the products you sell on Amazon, this means that customers won't be able to contact you directly when they need or want assistance.

Disadvantages of being an Amazon seller also include dealing with all kinds of returns since Amazon only offers a limited return policy, so it's crucial to consider this before becoming an amazon seller.

Conclusion on Pros and Cons of Selling on Amazon

Amazon is a great place to sell your products, but it's not the only option. If you want to control how and when you make money from selling your product, then this may not be for you. But if you're looking for an easy way to generate sales without having to do all the work yourself, give amazon selling a try. Decide whether or not amazon selling is good or bad based on what works best with your business model and goals.

Frequently Asked Questions

What are the disadvantages of selling on Amazon?

1. Amazon's Customer Loyalty.
2. Amazon sellers don't have access to data.
3. Amazon limits your brand.
4. Amazon FBA puts your company under their control.
5. Amazon may take advantage of your success.

Is selling on Amazon worth it 2022?

The simple answer is that, while it's still lucrative to start an Amazon FBA business in 2021, it's not as easy. Even though many pessimistic views discuss a saturated market, starting your own Amazon company is still a good idea.

Is it still profitable to sell on Amazon?

In 2020, Amazon's income was a staggering $386 billion, up from $280 billion in 2019 ? and third-party vendors generate the majority of it (54%)! So, the answer is yes.

Can you sell on Amazon and your own website?

Not only is it possible to sell on Amazon or through your own website (both with success), but it's something you should seriously consider. It's integrating both e-commerce methods into a single, integrated sales funnel.

Why is it harder to make money with Amazon FBA?

You'll need a thorough plan to sell successfully on Amazon in 2022. Unfortunately, the only technique that worked for us in 2021 (simply uploading your product and waiting for the profits) isn't effective.