How does Amazon fit into the context of your product’s reach in a retail landscape?
Let’s talk about why having your physical product available on the Amazon Marketplace is so important.
Amazon is simply the largest online store in the western world by transaction volume. The other big-box stores just don’t come close. If you’re trying to sell something, where do you want to be? You want to be where your customers are. The total number of Amazon customers was estimated 244 million in April 2014.
Product searches begin on Amazon >30% of the time. With more than 50% of households in the USA being members of Amazon’s ”Prime” program, many consumers are trained to immediately head to Amazon.com when they need to make a purchase. That’s because Amazon makes it so easy to buy products, because consumers’ credit cards are already on file, they get free 2-day shipping, and easy returns.
You can take advantage of Amazon’s fulfillment capabilities. Amazon has invested heavily in their national and international fulfillment capabilities. We’ve all heard about drone technology and the way their warehouses are automated with robots. They have a lean and mean operational infrastructure. And as a seller on Amazon, you have access to store your inventory at their many warehouses around the country, and leverage their logistics infrastructure using the Fulfillment By Amazon (FBA) program.
Being part of the conversation. Product reviews have become a significant marker of quality and reliability in the eyes of the consumer. Studies have found that customers trust reviews from other customers much more than the brands themselves. Amazon has put vast resources into its customer generated product reviews infrastructure. Without having a strategy around the presence of your item online, you could lose control over your brand’s reputation. Any user can add your product to the Amazon catalog and start selling it, just like on eBay. So why not opt to be part of the conversation that users are having about your product?