Hello fellow Steemians!
In the last post, we talked about Amazon's 3 main platforms.
Choosing which platform to start with can be a headache, so lets take a look at the Advantage and Disadvantage comparisons between the 3 platforms.
Disbursements can be made within days as opposed to weeks, which frees up cash-flow for the business.
Sellers have complete control over what they charge for products which allows them to maximize your profits.
Sellers can take advantage of Amazon’s fulfillment services and logistics by using Fulfilment By Amazon (FBA).
READ: WHAT IS FULFILLMENT BY AMAZON - FBA?
WATCH BELOW
Sellers have complete control over inventory
Sellers have some but NOT ALL access to customer data
Sellers can carry out customer support services.
Access to Amazon Pantry, Amazon Marketing Service and Amazon Display Advertising.
Orders qualify for Prime Shipping.
Sellers have better marketing opportunities as Amazon allows Sellers to create A+ content (This is an enhanced content page) that showcases the more information on the product with ability to add interactive product tours, videos etc
Sellers can pay for access to the Amazon Vine product review network.
Greater visibility which increases interest in products including business customers.
Customizable Landing Pages
There is NO CHARGE Storage & Handling
Once an item sells, Sellers will start to receive bulk orders.
Sellers can offer Direct Fulfillment (DROP SHIPPING).
If products don't sell, this could affect FBA sellers investment.
Competition & price wars can affect Sellers margins
Higher overheads , stock maintenance, shipping & customer support.
Early reserves the right to discount early payments.
Vendors have No Access to customer data
Random disbursements
More frequent Chargebacks
Amazon may revise listings which can affect sales.
Once approved, Listing changes can take up to 48 hours before it goes live on Amazon.
Amazon usually add a 50-60% mark-up which may not be great for wholesalers
Sign up, may require sellers to send free samples
Amazon buys large volume but pays less than other retailers
Negotiating with Amazon is highly unsuccessful
Sellers have no control over sales and/or customer experience.
Depending on what you'd want to accomplish as a merchant or vender will determine the kind of relationship you should build with Amazon. You can also run hybrid system with 2 separate accounts.
If you're a wholesaler or producer , Vendor Central could help deal with your logistics.
If you're more client oriented, and on the off chance that you have sufficient energy and assets to put into it, you're most likely happier as a Seller.
Everything comes down to the what makes your business unique, your administrative experience, social aptitudes and the assets you have available to you.
