Is Amazon saturated with products?

Advantages and disadvantages of selling on Amazon

When making the decision to enter or not enter into Amazon as a seller it is important to keep in mind its pro and cons:

Advantages: access to a greater data base

One of the main advantages is that through Amazon your products will be available for an ample data base of potential clients. Users that enter the marketplace with a clear intention to purchase and whose acquisition you have barely had to invest resources in.  In summary, following its positioning, products are being shown to users that advance the sales funnel, increasing the possibilities of conversion. To these benefits you should add that:  

• If it doesn’t respond to your needs, you do not need to create an e-commerce to start selling. 
• Users trust in Amazon and in its backup in product purchase 
• Amazon facilitates the internationalization of the brand. 
• The marketplace guarantees a satisfactory shopping experience to consumers.

Disadvantages: elevated sales quotas 

Registration on Amazon implies paying a fixed monthly tariff in function of the selected seller’s bill and the payment of sales quotas for every transaction.  These quotas depend on the price of the product, its size, and the category it’s found in. As a whole, it can be a high cost to assume for the brand. Together with the economic disadvantages, the following points can suppose an obstacle for the activity of the brand: 

• Amazon constitutes a competitor in and of itself, as the giant sells its own products. 
• It should work continuously in the positioning of different items.
• The norms of Amazon oblige sellers to comply with a product quality standard and shipments and responding rapidly to user inquires. 

The final decision will depend on the objectives of the e-commerce and its profit margins. At the same time, you should keep in mind that fixing prices on Amazon will condition the volume of sales. The users of the marketplace will be used to its price policy changes and usually are attentive to discounts and offers.  In this scenario, the dynamic prices or dynamic pricing can be a good tool to adapt your prices to the constant changes in supply and demand. Help yourself with automized tools so that these changes can be fast and optimal.