simon consulting gmbh

Amazon: Advantages & Disadvantages

Selling on Amazon has different advantages and disadvantages. In addition it is necessary to make decisions about different options - we would be happy to assist you!

Advantages

  • Over 240 million Amazon customers worldwide
  • Many potential buyers are looking for products only on Amazon
  • A fair bit of "Traffic" from the very first minute without having to pay for extra advertising
  • You don´t need your own Shop Software
  • By using the option „Shipping via Amazon" (FBA) you outsource your entire shipping logistics and benefit from low shipping cost
  • Well established Amazon partner program for affiliates

Disadvantages

  • Amazon Sales Charge - depending on the product category between 7% and 20%
  • With the option „Shipping via Amazon“ shipping costs have to be included in the sale price
  • Several providers of the same product can result a price battle
  • Possibly limited opportunities to directly influence the display of a product
  • Amazon — a potential competitor
  • Dependency of Amazon

Options

  • Do you want to ship on your own or would like outsource shipping via Amazon („Shipping via Amazon“ / FBA)?
  • On which marketplaces or in which countries do you want to sell your products?
  • Currently the following Amazon marketplaces exist: Germany/Austria, The UK, France, Italy, Spain, USA  Canada  MexicoBrazil, India, ChinaJapan and Australia. However, not all marketplaces offer all product categories - for example, clothes cannot be sold in Italy or in Spain.
  • Within the E.U. you can - as desired - deliver to all countries from a single warehouse or store your products separately in each country. Both have advantages and disadvantages.
  • With an Amazon campaign you have the opportunity to differentiate your sales from the competitors.