Amazon for small-to-medium businesses

Is Amazon good for small businesses? A recent article in the Huffington Post discussed why Amazon may not be suited for small retailers but Zoe Ripley, Marketing Director, EMEA at ChannelAdvisor, explains why this channel is proving an important one for smaller sellers.

It seems that there is no stopping marketplace giant Amazon. The online retailer and marketplace recently reported that third-party unit growth was up 40% year-over-year, which is more than two times the overall e-commerce growth rate (15%) reported by comScore. It’s clear that the opportunity is there for third-party retailers.

Here are just four of the many reasons why Amazon is good for small businesses:

Ensures visibility

Retailers should seek to sell their products where their target audience are shopping, and with a user-base of millions it is clear that this audience is on Amazon! Amazon enables shoppers to quickly find product listings and compare prices of these listings quickly and efficiently using a simple search bar tool.

Amazon’s large audience enables a small business to get a level exposure that is usually only afforded to large businesses and this subsequently increases the chance of making a sale.

Provides a recognisable brand name

Amazon is a trusted brand and retailers can look to “piggyback” on the channel’s brand awareness and marketing efforts. Amazon has the added benefit of being a trusted site so customers feel more secure purchasing goods through the marketplace; confidence they may be lacking when purchasing directly on an individual website.

Recently Amazon announced Checkout by Amazon, which allows retailers to extend this trusted checkout system to their own website.

This service for e-commerce retailers enables millions of Amazon customers to shop securely on a small businesses’ website without having to re-enter delivery and payment information previously entered through Amazon, allowing customers to complete purchases quickly without leaving the website.

Offers useful programmes

Amazon offers a variety of programmes that can benefit small businesses such as Fulfilment by Amazon (FBA). This tool allows retailers to store stock in Amazon’s Fulfilment Centres. Amazon takes care of packing and delivering the purchased goods on behalf of the retailer.

Amazon also provides customer service on any post-sale queries. This allows retailers to sell on other Amazon marketplaces across Europe, enabling a small business to expand their reach and trade internationally without the challenges of doing so independently. Additionally, retailers are eligible for FBA benefits including Super Saver Delivery, Amazon Prime and Competitive Price Sorting.

Guides retailers to success

Amazon has a set of rules in place for retailers to ensure its winning formula and customer-focused reputation isn’t compromised. The first guideline is centred on customer experience. If retailers are found to not be delivering the level of service Amazon expects, the account will be penalised or terminated.

Offering an outstanding customer experience is beneficial to both the retailer and Amazon as it encourages repeat customers. Amazon also requires retailers to be transparent with any costs a customer may face including any extra fees or excessive delivery rates after the checkout process; if an account is found to be in breach of Amazon’s guidelines, they may terminate the seller’s account.

Finally, retailers should not tamper with customer reviews and any attempt to manipulate these will result in a loss of selling privileges. By adhering to the rules, small retailers can join the ranks of highly qualified retailers that leverage Amazon as a promotional and revenue-generating channel.

Small businesses can take advantage of Amazon’s huge audience and trusted branding to reach shoppers that they may not have necessarily been able reach to alone. Small businesses are also able to benefit from a range of services designed to enable sales, speed fulfilment and deliver an outstanding customer experience.

And the lessons learned along the way provide proven methodologies and tactics that all retailers can leverage to enhance their own webstores. These factors are all positive reasons why Amazon is a good place for small businesses to sell and how it can open online doors to fulfil a seller’s potential.

For more visit channeladvisor.co.uk