The Amazon marketplace is where the companies can partner with Amazon to list and sell their items, preferring Amazon to complete their customer orders. According to the Bezos report, most of the units sold on Amazon worldwide were from their third-party market sellers.
Amazon marketplace is very lucrative for many retailers who are selling their items through Amazon’s marketplace. Now, many manufacturers are jumping into the competition!
The difference between Amazon and Amazon Marketplace?
Amazon Marketplace is an online platform for third-party retailers to sell their wares using the Amazon site. Amazon is the owner of Amazon Marketplace and a seller on this platform as well.
What are the top sellers on Amazon Marketplace
Three marketplaces are leading since 2018. The United States still leads with 514 of the top 1200 sellers. The second one is the United kingdom with 224, and the third one is Germany with 110 sellers. The United States obtain many sellers in the top 1200, adding 29 to the list, a 6% growth. Germany follows them with ten sellers. In this list, the United Kingdom failed to lead and had a loss of 15%.
Even though Amazon.com, the US marketplace may be the biggest market, the third-party sellers from China are fast overtaking any other country. Most recent statistics show that in January 2021, the 3rd-party sellers from China made up 75% of the new sellers.
Over 80% of net sales come from Amazon.com (USA) and 43.3% of the traffic coming to Amazon is direct. What does that mean? When the general public wants to go shopping they go to Amazon.
Is Amazon Marketplace worth it?
The question then arises, is there room for more sellers? Believ it or not, Amazon is still a growing business. There are still marketplaces to be tapped. Amazon has added Saudi Arabia, UAE and Sweden in the last two years. There will be more.
Additionally, Amazon is growing their product offerings. This also gives the 3rd-party sellers a leg up. Prospective sellers have a lot of products to look into as an item to sell. Besides that there is the ability to be bale to brand your own merchandise.
So, yes it is a big marketplace geographically and in variety. That in itself is a good reason to sell on Amazon. The sellers with little retail background but business smarts have found it to be an extremely profitable business. A word of caution though, it is not a get rich quick or outsmart-the-system kind of proposition.
Like any other business, it requires research, hard work, and extreme adherence to Amazon rules. The ease comes in because there is a low barrier to entry, meaning not a lot of capital is required. And for the least amount of investment, you can get exposure to millions of buyers. How cool is that!
The potential is there. How big the potential is, depends on the seller.
One of Amazon’s claim to fame is the speedy delivery. The sellers can promise fast delivery by signing up for the FBA program. Through this service, sellers can give the job of picking, shipping, and returns to Amazon. It’s a load off the sellers’ plate! Not to mention that buyers love the fast delivery and have unknowingly been opting for FBA sellers. So it turns out to be a huge benefit for sellers to sign up with FBA.
How to join the Amazon Marketplace
- Visit the page of Amazon.com and press the sell button, which is present on the Amazon link.
- After the Sell on Amazon page appears, press one of the two initial selling buttons; it depends on whether you want to be a professional seller or an individual.
How to start selling on Amazon Marketplace
Here are a few tips for beginners to start selling on the Amazon marketplace:
1. Choose A Proper Selling Plan
Before you start selling on the Amazon marketplace, you should choose an appropriate selling plan. Create a selling strategy and after that create a seller account.
2. Add Your Products
Add your items to the list you are selling with complete product details, images, and product categories.
3. Gain Customer Satisfaction
Impress your customers by providing them some extra services, free and fast shipping. And advertise your offers to attract and gain customer satisfaction.
4. Get The Reviews
After the sale, get customer reviews and share them. In this way, it will be possible for you to grow your business on Amazon.
What is the fee for sellers on Amazon Marketplace?
Fees depend on an individual that plan he chooses; the price of selling on Amazon is different. Mainly there are two subscription plans.
· Individual Plan
- A fee of $0.99 is going to be charged for each product that is sold.
- There is no monthly subscription fee.
- There is a variable closing fee that differs by category. The cost is usually between $0.45 to $1.35.
· Professional Fee
- In professional fee, it includes the monthly subscription fee, which is $39.99.
- Variable fees would differ according to the category.
- Referral fees would be charged for each sold product. It is usually between 6% to 25%, and averaging 13%.
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