The Corona crisis is presenting many self-employed people with major challenges. Losses in sales have meant that many of them have already had to give up their businesses. Others have looked to the Internet for ways to cover their living expenses.
For former store owners, the Internet offers the opportunity to work independently of location and time. Web stores usually take a few months to get up and running, as a foundation of trust with customers must first be established and the web store must position itself as an expert in its field. Amazon FBA offers an alternative. In this article, you will learn what is meant by this and what advantages are associated with it.
What is an Amazon Shop?
The abbreviation Amazon FBA comes from the English language and is called “Fulfillment by Amazon”. As the name suggests, this system not only makes the products available on the Amazon marketplace, but Amazon also takes over all logistical tasks such as storing the goods, packaging and shipping to the end customer. Retailers have the advantage that they can concentrate on their core competencies and on marketing, while customer service and logistical tasks are handled by Amazon. This even allows merchants to offer customers Prime service, which ensures same-day delivery for some products.
There are two ways to integrate products into the fulfillment center: The retailer can ship them to the fulfillment center itself, or the goods are transmitted directly from the manufacturer to the center. If a customer purchases a product that is from the merchant’s assortment, Amazon employees will ship these products from the fulfillment center to the customer.
Amazon supports merchants by providing valuable tools. One of these tools is Helium 10, which provides merchants with an overview of their market situation through an extensive market and competitive analysis. These insights can be used by the merchant to align their marketing strategies and search engine optimization accordingly. As a result, the company gains greater reach and sales can be boosted effectively.
What are the conditions for having an Amazon store?
In order to use the FBA service, fees must be paid by the merchant to Amazon. These fees consist of the costs for the merchant’s account, shipping fees, brokerage fees and storage fees. How high these are in detail can be seen in the Amazon Seller Center.
Amazon stands for a great deal of quality when it comes to their products. This means that companies that want to sell high quality products through Amazon will be supported. Poor products of lower quality have worse cards to be able to position themselves successfully.
Before merchants want to build up a business with Amazon, they should of course be clear about which products they want to offer. Products that are already sold millions of times on Amazon are not necessarily suitable to build a successful business as a retailer. By conducting a market analysis, keyword research and using trends, future merchants can investigate which products are meeting increased demand and what the competitive situation in this segment looks like. Amazon has a wide range of products, which means that there is a suitable niche for almost every category.
What benefits do Amazon merchants enjoy?
Amazon is one of the largest employers in the world. The company also enjoys great trust and credibility among consumers and is known for its customer friendliness. Consumers benefit from an incredible range of products and a perfectly matched price-performance ratio. Hardly any other company is able to sell products far below the usual market price. For many products, Amazon is now used as a search engine. This means that when consumers are looking for a particular product, they immediately turn to Amazon even before Google is consulted. This increases the likelihood for Amazon merchants to be able to offer their products to consumers when shopping online.
300 million products are sold on Amazon in Germany alone. It can be assumed that every third euro of this goes to products made available by the marketplace. Amazon is constantly integrating new products and sustainably expanding its service. Amazon is constantly attracting new customers with its Prime offer, streaming services and special offers on Black Friday. In addition, sales increase many times over, especially before Christmas – sales from which retailers can earn money.
One of the main advantages of Amazon is that it already has a large customer base that places a lot of trust in it. Amazon merchants can profit from this customer base and trust.
The start-up phase in particular involves a lot of time, energy and capital, which flow into the creation of a website and into search engine optimization. Customers must be acquired in a wide variety of ways to ensure a livelihood. For founders who are at the beginning of their career, Amazon offers a good opportunity to start their business on a part-time basis. With a large customer base and extensive logistical capacities, Amazon sets the course to enter the business without much effort.
Amazon is attractive for many companies due to its brand recognition. This form is particularly suitable for founders who are just starting out in the e-commerce business. Amazon not only takes care of all logistical tasks, but also provides consumers with a comprehensive service. Today, a high level of brand awareness and trust with customers are essential prerequisites for positioning oneself successfully. Amazon gives retailers the opportunity to benefit from these advantages right at the start of their e-commerce career.
Image: https://pixabay.com/de/photos/online-einkaufen-e-commerce-4275963/[werbung] [werbung] [fotolia]