Why now, in the middle of the COVID pandemic is the perfect time to start selling on Amazon
It’s been an incredibly difficult year for many businesses, but opportunities remain, and no more so than on Amazon.
The global Covid-19 pandemic has seen more and more people changing their shopping habits from stores to screens, and it is there where Amazon dominates. In a survey of US consumers carried out by Jungle Scout, 52 percent said that if they were only able to buy from one store, it would be Amazon.
Then take into account the company’s staggering growth during a time when so many businesses have been struggling to stay afloat. At the start of lockdown earlier this year, Amazon’s market capitalisation was estimated at $900 billion. Come September, that has rocketed to $1.75 trillion, its highest peak to date.
But these startling figures are by far from the only reasons for starting to sell on Amazon, as Thompson and Holt managing partner Craig Gedey outlines.
He explained: “The events of 2020 have changed everyone’s habits in every day life, and few more so than in consumerism. Going to the shops has become increasingly difficult - and at times impossible during periods of lockdown - and people around the world have increasingly turned to online markets.
“There, the ever expanding variety of products and ease of buying and delivering has seen markets surge. The quick trip down to the local shop has been replaced in many cases by a few scrolls and clicks on people’s phones.
“Some will rightly point out that these trends could be reversed at some point, but people are forming habits now that could extend well beyond the end of the pandemic, and a host of shops have decided to close their physical stores and focus instead on selling online.
“It is there where Amazon remains the king, and one that is growing ever stronger. Even before the Covid crisis there were countless benefits to starting to sell on Amazon Marketplace, and those are growing by the month at present.
“As such, at a time of great uncertainty for businesses in other sectors, now could be the perfect time to start an Amazon business in an attempt to gain a slice of an ever-increasing pie.
“At this point, research is absolutely critical. Which markets are growing on Amazon? Are there any that are shrinking at present?
“A survey conducted by McKinsey’s in the US found that people are spending more on groceries and household supplies overall, and less on apparel and electronics. In line with that, we have seen Amazon push their sales of groceries, baby care, personal care and pet supplies in recent months. “In short, consumers are looking to the platform for the essentials that they would ordinarily have bought at the local shop. So while overall many consumers might be exercising restraints in their purchasing trends, there are items that they still need - and are looking for on Amazon.
“If you’re thinking about launching on Amazon Marketplace then do as much research as possible into the kind of product you’re looking to sell, the demand for it at present and possible growth areas.
“There will be a learning period where you will probably make some mistakes, but a solid business plan with realistic goals supported by extensive research will leave you well placed to exploit what remains a marketplace of undoubted opportunity.”
What to do if you encounter your first Amazon suspension?
If you have found yourself suspended while selling on Amazon, contact Thompson and Holt for a free LiveChat to get your Seller business back online as quickly as possible.
Thompson and Holt are also offering a free months trial of their Monitor and Protect service to help sellers prevent a suspension of ASINs or an their account during the COVID pandemic, more information on how to protect your Amazon seller account from a suspension can be found here.