Amazon basics: what to know before you decide to sell (1)

Like any platform, the most famous marketplace requires some strategic planning and a certain knowledge of at least the most basic operational aspects.

That said, first of all, it is advisable to reflect deeply on the convenience of taking this step, to know the advantages and disadvantages and, in short, to be very clear about what you need to know before deciding to sell seriously on Amazon.

Pay attention, we are going to tell you all about it.

That is the first big question you need to answer. It seems like a no-brainer, but the reality is that not everyone is interested in selling on Amazon.

It is clear that it has certain important advantages, but we should not overlook the disadvantages. It is always advisable to put both things in the balance before making a decision

The most powerful is undoubtedly its ability to reach millions of users. The reach of this platform is unprecedented in e-commerce (at least in the West, because in Asia it continues to go after AliBaba and AliExpress).

Today, Amazon has one of the largest customer bases in the world and its sales continue to grow.

In fact, even in a situation as delicate as the one of coronavirus is causing for the economy, it was the eCommerce company that grew the most in the hardest part of the lockdown. In the first quarter of last year alone it reached 6.3 billion in profit and smashed sales with a 37% increase.

Beyond reach, we cannot forget the positive impact on our brand of being associated with Amazon.

For our customers, it is still a platform that they know and trust, so they have fewer doubts and brakes when it comes to buying on this platform. In fact, they probably even have a customer account, so they do not need to register again.

It is not only a matter of trust: it must also be recognized that their logistical capacity is absolutely overwhelming. Not for nothing were they among the first to popularize same-day delivery.  

The positive part is quite obvious, but we cannot make a really useful analysis if we do not also evaluate the negative aspects. They are probably more important before you decide to sell and are part of the real Amazon basics.

First of all, it should be noted that a marketplace format in which the platform itself is your competition... must always generate some doubts. You should always be aware that there is no such thing as impartiality and that they will always prioritize their products and their business over any external seller.

You lose control of your product and, as we will see later, in some cases even of the shipping process. We are limited to providing a product that goes out with our brand, but we have no say over much of the user's shopping experience.

As a result of delegating the logistics part to Amazon, and because of the weight that its own brand has in the collective and particular imaginary of its buyers, the task of building loyalty and achieving recurring sales becomes very complicated. In a way, what we are doing is boosting Amazon to continue growing thanks to customers who never end up being ours.

That is to say: they consider themselves Amazon buyers and it is to Amazon that they will return when they want to buy again.

This also means that we are our own competition. In this marketplace, one of the most influential factors when it comes to selling is the price; so if we go to the margin limit with our products there, we will not be able to raise prices in our own eCommerce either. The customer who compares (and they are the majority) will find this discrepancy and will end up making their purchases outside our store. This is something we do not want in the medium term.