Reasons Why Your Start-Up Business Needs Amazon in 2022

Amazon is a powerhouse when it comes to e-commerce. Not only is Amazon the most visited website on the internet, but they are also one of the biggest players in the e-commerce space. Amazon has a huge and loyal customer base, and they continue to grow at a rapid rate.

If you're not selling on Amazon, you're missing out on a tonne of potential sales.

In this blog post, we will discuss a few compelling but obvious reasons why your e-commerce start-up business needs Amazon.

THE REACH IS UNRIVALLED

The acquisition of high quality traffic to your website has always been one the toughest challenges for start-ups, small business owners and marketeers alike.

Amazon has traffic in abundance, with their customers mostly located at the bottom of the sales funnel, browsing to purchase at a moments notice. This is evident when comparing the average conversion rates for a Shopify store against Amazon conversion performance.

Shopify stores have an average conversion rate of 1.4%, whereas Amazon stores have an average conversion rate between 8-10% - depending on the niche/category. Meaning 1 in 10 who visit your listing will turn into buyers on average, and we've seen much higher conversion rates than that time and time again on the platform -once listings have been fully optimised! It's a fantastic way to qualify your product and bring it to the masses quickly.

The e-commerce giant is most definitely reaping the benefits of a pandemic that has pushed more shoppers to its marketplace and potentially changed shopping trends and behaviours forever. Third party merchants, most small and medium sized businesses are seeing growth in sales over 50% higher than pre-pandemic levels. Amazon has certainly invested heavily to help make the growth they are experiencing possible.

LET AMAZON HANDLE THE HEAVY LIFTING

Time alleviation can mean everything to an early stage start-up, and Amazon is essentially plug & play. Amazon allows brands the bandwidth to take their mind off driving traffic or dispatching products on time, and instead enables them to pivot their focus towards delivering an unbeatable product experience that delivers immense customer satisfaction.

Running a small business can be overwhelming at times. There are many tasks that need to happen in order for your company grow and succeed, but without the right systems put into place it will become too difficult! For a company that needs to get their product into the hands of customers quickly, Amazon can be an attractive option.

According to an article by Forbes, Amazon is the ultimate destination for any company that needs quick access and low overhead. The e-commerce giant offers a one stop shop with everything from physical stores as well as logistics services which can significantly reduce time spent on planning or deploying new products into circulation; all at once!

EXTREMELY CAPABLE STORAGE & LOGISTICS NETWORK

Amazon has offered its FBA program since 2006 to help sellers get their products from point-of origin, through the fulfilment process and onto your doorstep.

Sellers on Amazon can list their products and start selling. The company offers a fee-based program called Fulfilment by Amazon which warehouses your items, handles customer service & ships them for you through the mail service known as "FREE" (or faster delivery), has been available since 2006 - making it an excellent opportunity if one wants quick turnaround times without having to worry about finding storage space!

FBA services can also include picking, packing, labelling, as well as other traditional 3pl services.

GET WITH AMAZON OR BE LEFT BEHIND

To be clear, we are not suggesting to throw all your eggs into one basket with Amazon. But, whereas start-ups may have had a choice 4-5 years ago on whether to include marketplace in their strategy, it is now extremely important that brands embrace marketplace instead of ignore it. Chances are if you are not selling your own brand on Amazon, then resellers or retail arbitrage opportunists will be instead.

Amazon have also recently overtaken Google as the first place shoppers go to browse when looking to purchase a new product. The marketplace also ranks extremely high up on page 1 via Google (for both product and brand related keywords), thus highlighting Amazon's key part to play in the customer journey and therefore the benefit of listing your products on the marketplace.

Brand awareness, control, high demand and often tapping in to a new pool of customers (that you may not have found through your own D2C channel) are all good reasons to give Amazon more attention.

Looking for help with your marketplace strategy?

The Amazon landscape is constantly evolving. Get in touch with B2C if you are unsure how best to navigate marketplace performance growth. Book a free Marketplace account audit today by contacting george@b2c.consulting

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