We all know that the rife competition on eBay is making it difficult for some sellers to make consistent sales. However, thanks to alternatives such Amazon.com, there are still plenty of opportunities to make money online. Here’s why Amazon is one of our top picks to expand to in order to boost your sales.
Amazon buyers have higher incomes and higher education than eBay or Walmart customers. According to Quancast data, 29% of Amazon buyers earn between $60,000 and $100,000 per annum, while 31% make over $100,000 per year. Another interesting fact is that 16% of Amazon buyers consider themselves to be “Amazon addicts”.
Because Amazon buyers are less concerned with finding a bargain, and have more disposable income, it makes the sales process easier for you and results in more sales being made.
One third of all Amazon sales are from third party merchants (that means people like you). While Amazon does sell items themselves, a significant number of the sales are by small home businesses just like yours. You can view Amazon success stories here and also download their quick-start guide for sellers.
We know that one of the biggest pains that online sellers have is the time required for the day to day operations of the business like shipping orders. Amazon have eliminated this issue with Fulfilment by Amazon. It works by allowing you to store your items at an Amazon fulfilment centre and when you make a sale, Amazon ships the order for you. You might be thinking that the fulfilment system is going to be complicated and expensive, but Amazon have kept the cost down and the process simple. In fact, at a recent Amazon Seller’s Conference, the majority of Amazon/eBay sellers were using Amazon FBA to fulfil both their Amazon and eBay shipments.
One sore point among sellers on Amazon.com is the fees. In comparison to other marketplaces online, they are on the high end of the spectrum. The fees system is also complicated at first glance:
When you sell on Amazon, you pay a referral fee of 6-25%, a variable closing fee ($0.80-$1.35) and a fixed fee of 0.99 cents. Note: The $0.99 per-item fee is waived for Pro Merchant Subscribers. You can get a full run down of Amazon fees here.