• Holly Sloan

The five biggest factors to consider before selling on Amazon

By whichever measurement you use, Amazon’s growth since its birth in 1994 has been phenomenal.



As such, new Sellers continue to flock to the site looking for opportunities to grow their online businesses. There remains huge scope for being successful on Amazon, but it certainly isn’t fool proof or guaranteed.


Thompson and Holt’s senior case handler Holly Sloan, who has extensive Amazon experience, picks out the five biggest factors to consider before starting to sell on Amazon.


1 There’s a lot of competition


Thompson and Holt senior case handler Holly Sloan: “There is an estimated 1.5million active sellers on Amazon, with that figure growing daily, so competition on the site is fierce. Some markets are more crowded than others, and it’s certainly worth doing your research on the products you intend to sell before making the move. You have to be ready for price wars and being able to stand out from your competition if you want to be successful. If you’re building a brand, file for trademarks on your brand name and notify the Amazon Brand Registry to protect it.”


2 There are lots of fees


Thompson and Holt senior case handler Holly Sloan: “Amazon isn’t just hosting businesses all over the world for fun - they have to make their own money too, and as such you will be charged for using the site. For every income opportunity there is for you, Amazon will be taking a slice as well. The main one here is Fulfilment by Amazon (FBA), which gets your product to more customers and allows you to store your items in bulk at Amazon fulfilment centres, where they also handle your shipping. But all of that comes at a cost, and working that out before you enrol into the scheme is crucial. FBA can be the key to significant opportunities, but it comes at a cost and cuts down your margins. Do your research so that you know exactly what Amazon will charge to get your products to your customers before you sign up, allowing you to recalculate your profit margins rather than being surprised by them down the road.”


3 Nothing is guaranteed


Thompson and Holt senior case handler Holly Sloan: “Anybody can sign up to Amazon and list a product for people to buy, but that doesn’t mean the sales are going to flood in overnight. Like any form of businesses, you have to be diligent with all areas of your preparation and research - fees, competition, advertising and logistics all need to be carefully considered. Amazon offers plenty of opportunities for marketing and advertising but they need to be right for you. Sales will come with effort and shrewd decisions - don't expect them to fall into your lap magically by creating an Amazon account.”


4 Amazon is a worldwide platform


Thompson and Holt senior case handler Holly Sloan: “This is a definite positive. By signing up to Amazon you are tapping into potential customers all over the world - no matter where you are, Amazon can get your product to customers. This opens up opportunities that simply aren’t available elsewhere, and it could be very beneficial to your business. It’s worth researching potential international markets to see if you can take advantage with what you are selling.”


5 Amazon DOES hold huge opportunities


Thompson and Holt senior case handler Holly Sloan: “There is a reason businesses are flooding to Amazon - it offers opportunities that simply aren’t available elsewhere. The global pandemic has, if anything, solidified its reputation as the world’s leading online platform, and its resources are unmatched. There are things to consider as above - namely competition, margins and costs. But if you do your research diligently and calculate what your profit margins will be, Amazon can certainly be a viable outlet.”

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