As e-commerce is getting hotter，Amazon market’s utilization is extremely high. But for small and medium-sized enterprises, is Amazon a reliable partner? Let us analyze advantages and disadvantages.
Advantage one: It is easy to get started on Amazon.
Compared with self-built stations or other platforms, except for some categories that require additional approval, it is very easy for enterprises to sell products on Amazon, and enterprises can contact with very large consumer groups through Amazon, and use the tools and infrastructure provided. Because of the low Amazon threshold, some bad sellers fish in troubled waters and copy hot products for sale. These bad sellers list products under legal products to get exposure. However, the quality is not high, which often leads to poor evaluation and adverse effects on legal products. Although Amazon is protecting the brand through the brand filing project, it is not enough to protect the legitimate rights and interests of brand owners from harm. Peter, the co-founder of watch mouth, believes that Amazon should give the brand owners the right to choose whether to approve other sellers to sell their brand products on Amazon.
Advantage two: it is suitable for companies with unique products and high-profit rate.
Amazon is a good partner for companies with exclusive products. Amazon platform is very easy to operate, small businesses can plan their own business direction, and Amazon FBA enables us to concentrate on building products and serving customers instead of shouldering the burden of logistics. Special attention should be paid to enterprises that have unique products but have not set foot in e-commerce channels or have no intention of doing so, and attention should be paid to controlling the sales channels of their products. Jonathan Weber of marathon studios, a consulting firm, pointed out that if the brand did not restrict the distributor's sales channels at first, and the distributor found Amazon's sales potential earlier than the enterprise, the brand products would be put on Amazon for sale, and the brand would find that it could no longer control the distributor's sales on the e-commerce platforms such as Amazon when it wanted to set foot in the latter stage. In addition, enterprises or brands that want to operate Amazon business should make sure they have sufficient profit margins. After all, the commission that Amazon charges sellers are not low. If your products are not profitable, then all the money you may earn will be given to Amazon.
Defect one: Amazon owns customer relations. Although Amazon helps small and medium-sized enterprises contact with more customers, small and medium-sized enterprises cannot own these customer relations directly. Once an enterprise leaves Amazon, it will lose these customers.
Defect two: Amazon is too greedy. Amazon's greed has made its platform have twelve years of sales experience, with annual sales exceeding 3 million dollars. Small and medium-sized enterprises need to be responsible for customer service matters. A review is a key for enterprises to open sales in Amazon. Because review will affect your seller rating. Amazon is not the best choice for you if you are not ready to deal with customers. For enterprises operating Amazon business, you must answer customer's questions in time, and you must always satisfy customers, even if the returned customers return the old products to you.