Should I Sell on Amazon? Things to consider BEFORE you start selling on Amazon (The Secrets).

Updated: Dec 13, 2019

The hottest flavour of the year has been FBA (Fulfilment by Amazon). With thousands of people screaming and shouting FBA on every street corner, there is a good reason why this trend has been exploding. Simply put, it’s a game changer for all eCommerce.

Amazon is one of the world leaders in online sales and because of this, EVERY eCommerce and small business owner should be paying close attention to what Amazon is doing.


This article will outline the most important factors to consider before you decide to sell on Amazon!


The things Internet marketers won’t tell you. (FYI this is basically a free crash course)


Does Size And Weight Of My Product Matter? (Amazon)


Size matters… when we are talking about Amazon at least. If you have a product that has large dimensions, and/or is heavy in weight, FBA is not your friend. Although you will get great exposure on Amazon, you will be handcuffed by: storage fees, shipping costs, and risk of shipping damage.


Amazon FBA is ideal for smaller lightweight products with quick turn around and easy to handle. If your product doesn’t fit the descriptions of small and lightweight in comparison to a coffee table (Furniture), then the odds are you should not be using Amazon FBA. You should consider just listing on amazon and shipping your product to customers privately.


The Gold is in the products that require regular purchases over time. Winning with the same customers OVER and OVER again!

Amazon Market Research


Take a quick look at your competitors and look at their product reviews… especially the bad ones! These are the clues as to how to make your product better and/or the best marketing offers to present. For example (A water bottle) if everyone is complaining that all the competitors water bottles “leak”… Make sure your product is advertised with no leaks! (Make sure it doesn’t leak before saying this obviously).


Competitive Advantage on Amazon


Competition: Spend some time searching your competition to see what they offer and at what price point? If there is something about your product that no one else can offer or compete with, you should have great success on Amazon!


**** Hint: if your product is proprietary to you, you will have minimal competition… If your product is something you have rebranded from China, Alibaba, aliexpress, or DH Gate… then you can ride the wave long enough before a large fish comes around and crushes your product. *****

The simpler the product, the easier it will be ripped off by the competition. Spend more time on product development and less time on rushing to market.


Amazon Pricing Points


The idea is to have the highest perceived value. We hear a lot of people talk about value propositions and providing value. The truth is - VALUE MATTERS. PRICE MATTERS, & QUALITY MATTERS. Your goal is to offer the BEST product, with the best QUALITY at the BEST price possible.


The only way to last on Amazon is to have high margins that allow you to adjust your price with competition. 2019 and moving forward (Studied through all Generational Marketing) VALUE. PRICE, & QUALITY MATTER on Amazon.


95% of luxury brand start-ups fail within the first 3 years, and 99.5% fail within 5 years. Luxury is dead… perceived luxury it thriving.

Manufacturing Volume: (Supply Chain - Amazon FBA)


At this point, you will have a good idea if your product is worth pursuing on Amazon based off of: Product Size, Weight, Market Research, Price, Quality, Competitive Advantage, Etc…


Now, can you produce the product in a timely manner and/or do you trust your suppliers?


Having a quick dummy proof supply chain is important for multiple reasons.

  1. You don’t want be left with no inventory.

  2. In the case of large orders, you will need a fast turn around.

  3. Allows you the opportunity to grow and scale faster.


Similarly, manufacturing volume is important in the price context. Do you or your suppliers have the ability to produce enough products for a low enough price to stay in business?


Which Countries Should I Sell? Amazon.com, Amazon.ca Etc?


This one is going to be quick… You want to sell in areas with the largest volume of people and searches. Selling is a game of numbers. The more people you have coming in the door, the higher the likelihood you will be able to convert them into a sale.

For example: the entire population of Canada is the same size as California….

Therefore you should focus on selling only to AMAZON.COM!!!!!!!!

**** The rule doesn’t apply if you are selling something with geographical significance like a Snow Brush or winter gloves ****

Once you figure out Amazon.com you can quickly expand and test other markets like Europe & the UK.


Will Amazon Help Your Website Rank Higher? Amazon SEO Tricks.


Amazon is one of the highest-ranking domains (websites) on the Internet today. What this means is, if you have any text or verbiage that you use on your website and then use on Amazon as part of your product listings, your website will reap a small rewards for it. This will tell Google that your brand or product is more legitimate and thus they should consider your website to rank higher.


Now this doesn’t mean you will get more sales on your website. However, when someone finds your product on amazon, it just means that your website will index well and Google will pay more attention to your content and keywords.


Retail Hybrid Selling?


By our estimates the future of retail will be a hybrid between completely eCommerce and relative in store “Shopping”. This means there will be a happy balance between traditional in store shopping and online shopping. Instead of having product sit on shelves everywhere, retailers will opt to smaller locations and have Just-In-Time retail models. Having products arrive in store or to your house just in time for you test or try them on.


FYI – This is amazons business model


The only difference is, Amazon doesn’t have retail locations.. YET!


You will order your product online and have the option to pick it up in a store or get it delivered to your home. With apparel you will get the opportunity to order online and try it on in store before taking to home.


Extreme Algorithm tracking will make this process extremely easy and convenient. We will be scratching our heads thinking why didn’t we do this earlier? Plus, these new models will save big business millions of dollars.


Why Being on Amazon Matters?


Historically, the goal of any business is to secure large B2B (Business to Business) deals in order to get their products in front of the masses. The issue is, modern business means you have to have great products with INCREDIBLE margins for it to make sense for large retailers to carry your product. Similarly you are committed to large contracts that force you to over leverage your business. In many situations, large retailers who can’t sell your product force you to take it back at your expense. (This is what causes thousands of businesses to file for bankruptcy)


The beauty of Amazon is… You set your obligations and expectations. Also you get the benefit of being exposed to millions of buyers daily. It’s like having your product parked right in the entrance of Wal-Mart or Costco. You can decide how much product you want to ship, how often, how much you want to spend on marketing, and and and and… you benefit from world class CHEAP fulfilment.

I can promise you this…. you won’t find a better company to work with.


So Why Does This All Matter?

The statistics are stunning, the future of all retail will be online and there is nothing anyone can do about this. The goal is to prepare now and understand how soon this transition will take place.


Have a question about our articles or your business? Join our online community and we would be happy to answer them. OR Please Email us at info@myecommercestartup.com for a free 1 on 1 consultation.


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