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For many years eBay was the only online selling platform, and since its inception in, millions of sellers around the world have bought and sold items with ease and confidence. Amazon entered the selling scene in the earlys, and originally people could only use the platform to sell books, CDs, and DVDs.
Over the years, Amazon has greatly expanded, selling millions of different products and opening numerous fulfillment centers (inventory warehouses) around the world. As efficient and attractive as Amazon seems, it still has its problems. Here is a snapshot of the challenges, along with a few opportunities of selling products on Amazon:
Challenges
· Has some barriers to entry
· Payouts are limited to every two weeks (in most cases)
· The highly competitive selling environment
· Difficult to get an abundance of positive feedback
· Risk of inventory being deemed unsellable or restricted at any point in time
· Complicated procedures and increasing fees
· May require the use of several third-party software tools to be competitive with other sellers
Opportunities
· Can create unique (private or white-label) products and instantly get them exposed to millions of potential buyers
· Amazon-specific paid advertising (Sponsored products) available within the Amazon platform
· Dedicated account executive for large sellers
· Explicit rules can make many situations easier for sellers to navigate and provide some seller protection
· Available tutorials and coaching from Amazon staff
· Amazon offers loans based only on sales volume (no credit score check)
· Improved offerings from Amazon include free re-pricing tools, inventory monitoring, and management, more targeted advertising among others
Amazon is a terrific alternative for shoe stores because of its services and returns and refund policies, but it also has a lot some loopholes.
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