That’s true. We’ve often looked at selling on eBay in our blogs but we’ve rarely mentioned selling on Amazon so I decided it was time to fix that. For some people selling on Amazon may make more sense, but for others eBay will remain their main outlet and to be honest, that makes good sense.
One of the main criticisms of selling on Amazon appears to be that you’re not likely to get rich quick, but certainly if you’re into ecommerce and you have your own small business and you’re not really looking to set the world on fire, Amazon can help you to sell and be an important channel of business for you.
You need to go into selling on Amazon with open eyes, because let’s face it, the only person making really big bucks on Amazon is Mr Amazon himself, however you can make enough to get by, especially if you’re using other channels too such as eBay and your own website, perhaps eBid and other outlets too.Amazon has a notable strategy that focuses essentially on selection, price and convenience. It offers its customers an extremely wide selection of consumer goods, with a variety of price points (achieving this by offering USED items as well as NEW ones) and it offers fixed postage costs meaning that buyers know exactly how much they will pay for postage from the get-go and sellers can’t fleece them on packing and postage costs.
Of course Amazon wants to sell its own products first and foremostly. It’s where they get the majority of their profits from, however it is keen to have affiliate sellers especially where Amazon may not stock a particular product itself or can only offer it at a higher price. Affiliate sellers allow Amazon to hold an ever increasing variety of products and this in itself will entice new customers to Amazon.
It is impossible to buy on Amazon without registering so every customer that signs up is held on Amazon’s database and will receive marketing emails cleverly tailored to the individual’s interests in a bid to drive through repeat sales. This is a great ploy for Amazon. The customer may sign up to buy your product but thereafter Amazon will send the customer emails about its own products.Selling on Amazon UK
By selling on Amazon.co.uk Marketplace you are able to sell new, used, collectable and refurbished items alongside the products that Amazon already offers. Listing your items on the Marketplace will make them accessible to millions of customers and that is essentially the main reason to list on Amazon instead of/as well as eBay.
Unlike eBay however, Amazon is not offering items in an auction. Instead every item must be sold at a fixed price. You are encouraged to sell competitively so that it sells quickly.
How does it work?
If you search for any product on Amazon.co.uk you will see that there are “New and Used” links displayed to potential buyers in the product pages. When you list your item you have to choose between new and used (of course) and select a price.
When your item sells, you are sent an e-mail notification that payment has been taken from the buyer. You then dispatch the item to the buyer within two days of receiving the e-mail from Amazon.
Amazon will then deposit your earnings into your Seller Account.
Funds are transferred automatically into your bank account on a 14-day cycle.
You can start selling either by visiting the Sell your Stuff link or you can run a search for an item that you would like to sell. Then just as you would on eBay you can click the Sell Yours Here button in the More Buying Choices box on the right-hand side of that item’s page.Bear in mind that if it is likely that you will be selling more than 30 items per month, you may well be better off becoming a Pro-Merchant seller. The Pro Merchant subscription fee is GBP 28.75 (GBP 25.00 for sellers that qualify for VAT-exclusive fees) and this is assessed automatically once every month, beginning on the date that your subscription begins. The subscription fee is listed in the Seller Account payments summary and charged against any sales that you process and complete over the month. If you don’t make enough money, then the remainder will be debited from your credit card.
What are the positive aspects of selling with Amazon.co.uk?
First and foremostly it’s all about exposure. You get to create a new means to sell your goods.
Conversion from page to sale is pretty good – especially if you are competitive.Many buyers completely trust Amazon’s payment and checkout services – it’s easy to use and recognisable.
What are the negative aspects of selling with Amazon.co.uk?
You have to compete with the mighty beast that is Amazon.
Fees cut into your profits.
You can’t access your sales funds immediately.
If you plan to list a large product inventory, you need time and technical know-how to keep your product feed working correctly.
Amazon does not accept third-party products in all of its categories, so you will need to do your research.
There are horror stories out there about Amazon ripping sellers off etc., just as there are regarding eBay. Search around and you will find that some people have had their Amazon marketplace store closed down through an arbitrary email meaning that they have lost the income (and in some cases Amazon are said to have held onto money and goods as well) that they relied on to pay their mortgages and staff. You should never totally rely on one means of online income. Place your eggs in more than one basket and stay safe out there.
Tell us your experiences!
So what about you? Are you an Amazon seller? We’re interested in hearing your horror stories and your fairy tales. Let us know by posting in the comments section below or by coming over to our Facebook page and chatting with us there. 🙂