Perks and Pitfalls of Selling On Amazon



Amazon has taken the world by storm in a way that’s transformed the e-commerce space.  As many storekeepers know, back in the day, it was no easy process to set up a brick and mortar shop.  Humble beginnings, community-built relationships and customer service were the core characteristics of a successful small business.  Today those characteristics remain as the pillars of a successful business.  In the age of the internet it’s easier than ever to market your products or services which may lead you to consider Amazon as a platform that can offer a simple and profitable means of getting your product or service in front of thousands of customers.  Before undertaking such ambitions here are some e-commerce tips you should be aware of before you start selling on Amazon.


Tip #1: Find your niche

Based on the what you choose to sell on Amazon, you have a variety of product categories to choose from. You’re going to have to categorize your product into one of the 20-30 options Amazon offers. Categories can range from sports collectibles and home improvement tools to handmade furniture, electronics and more.  Whether you’re selling your own products, hobby or  refurbished products or used items or professional services, you’ll want to categorize your offering accurately keeping your ideal customer in mind.  Keeping your niche top-of-mind means that you can enhance your marketing position to your customer in a relevant and timely way.


Tip #2: Lockdown Fulfillment

When you have a physical product, manufacturing, distribution and service are always top-of-mind. Fulfillment is a key thing to consider on the customer service front.  Amazon’s Fulfillment program means you can send your merchandise to the many Amazon fulfillment centres to be stocked. Which means Amazon can keep track of the inventory and shipment process while you focus on other areas of your business.  Finding ways to optimize your online orders, is a core component to selling products online. Shipping and handling can be a challenging process, so this Amazon service can be incredibly beneficial to those who would prefer to outsource it.


Tip #3: Make sure you’re compensated accurately for shipping

Like most shipment services, Amazon determines how much they think it should cost to ship a product based varying factors. In their assessment, Amazon is going to take into account things such as: the merchant’s origin, customers address and given weight of the product. You need to be aware as a new seller on Amazon.  If your product or weight dimensions are off, that could alter Amazon’s reimbursement accuracy for shipment costs. Make sure that your item weight and dimension are listed correctly to make your shipping estimates as accurate as possible.


Tip #4: Give a great customer experience

Varying factors will affect your success selling on Amazon, but just as in every small business, you can assure that customer service remains as one of the most significant factors.  Just as word-of-mouth has always been a driving factor of storefront credibility, with Amazon, your reviews and ranking are your reputation – and they’re posted for all to see!  Building a credible seller ranking will help drive more people to your Amazon storefront, which means a greater likelihood of making a sale.  Start with knowing about competitive pricing, developing your value-proposition to compete well in saturated markets, understanding the merchant’s history with the platform and how many seller reviews they have.  Make sure you’re responding to customer inquiries, shipping the products in a timely fashion and staying in consistent contact with your customers along the way. Customer service is key.


As with anything, there isn’t a secret formula for guaranteed success online, but doing your homework and keeping these tips in mind is a terrific place to start.


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