To Be or Not to Be another Amazon Seller
In January of 2019, Amazon reported that 50,000 sellers exceeded $500,000 in sales, and 200,000 sellers sold more than $100,000. As our world is reeling from the shock of COVID-19 pandemic, is selling on Amazon still going to be a profitable business in 2020-2021? The economic gurus are predicting an economic downturn. There is talk of recession and even an economic depression. Many entrepreneurs are born in the lull of the economy. Netflix started in 1997 when most companies were hit by bursting of the dot-com bubble. The same recession was the time that Apple blossomed into the icon we know today. Airbnb was born in the Great recession of 2008. If history is something to build on, this may be a good time to start a business.
Two factors that an entrepreneur looks for getting a foothold in any industry are opportunity and capital. In this time of devastation from the virus, new niches are being identified. A great example is the designer masks that are flooding every e-commerce site. Those sellers found an opportunity of the times. Yes, it is a risky time to invest in a business but no business is without risk. The beauty of using Amazon as your business platform is that it requires little capital while it showcases sellers’ wares to a huge number of buyers.
Coronavirus or not, e-commerce is here to stay and grow. In fact, it is going to be the preferable way to shop considering that a lot of people will stick to social distancing for a while. According to Marketplace Pulse, “So far this year 255,000 sellers joined all Amazon marketplaces. This equals to 2,435 new sellers every day, or 101 every hour, or even 1 every minute. At the current rate, 888,000 new sellers will have joined Amazon by the end of the year.” So the $500,000 question is: is this a good time to start selling on Amazon? We think it is.
What is involved?
Whether you take the leap or not, it is a good time to research opportunities and look to the future. Because this too shall pass. When it does, we want to be at a crossroads of our choosing not where destiny dropped us. Starting a business is not a cakewalk, even if it starts and hums like a well-oiled machine. The day to day operation is hard work and often all-absorbing. And though selling on Amazon is comparatively an easier business it is still quite a bit of work. It would be misleading to not mention that there will be some heartache along the way. You may run into an unreasonable customer. Amazon itself may become one of the hurdles. If hard work does not scare you, it is time to get inspired.
So to help your research, we are posting a series of blogs to add to your knowledge of becoming an Amazon seller. We will cover questions such as the cost involved, opening an account, shipping, etc. Cost is a major factor in the decision-making process. That’s why it is the topic of our first blog.
How to sell on Amazon: Upcoming titles in the series
- Startup Costs for Amazon Sellers
- Pricing your products
- What to sell on Amazon
- Opening an Amazon Account
- How to Create an Amazon Listing
- Amazon policies – Be compliant or be sorry
- Shipping – Quick & Reliable
- Communication with customers – Feedback & Returns
- Product Listing Optimization – Standing out