If you're a marketplace or ecommerce seller, you've likely thought about selling on Amazon. However, while the site is undoubtedly the biggest platform for sellers, there is a distinct difference between regular Amazon and Amazon Prime. To qualify, you have to use Amazon's fulfillment system, which can cost more. However, this option has some distinct advantages, particularly if you want to increase sales on Amazon. Higher Ranking - There are roughly 142 million Prime members in the U.S. When you sell on Prime, your products rank higher in searches. Just as with search engines, if you're near the top, users will pick your brand over the competition. Learn more about Amazon SEO services and ranking factors. Better Odds for the Buy Box - 82% of all sales made on Amazon come from the Buy Box. If you're not familiar with the Amazon FBA Buy Box system, it works by assigning sellers to purchases. Customers don't want to sift through different sellers to figure out which one is the best.
Instead, Amazon chooses for them. Once a customer adds the product to their cart, the seller in the "buy box" gets the sale. As a Prime affiliate, you have better odds of getting into the box. Better Customer Satisfaction - An excellent Amazon sales strategy is to make shopping as convenient as possible for buyers. Prime members already get plenty of perks, including free shipping and shorter delivery windows, giving you a distinct advantage. Overall, selling on Amazon Prime is beneficial and can position your brand snackdeals.shop better within the platform. Just ask BetterVent. With Prime shipping, the BetterVent® product has seen a 30% year-over-year increase in Amazon sales. Although the easiest way to qualify for Prime status is to utilize Amazon's fulfillment centers, it's not the only option. There are three ways to get the Prime badge, and each one has pros and cons. If you're not at that point yet, you might want to check out this blog post about how to sell on Amazon for beginners. Content has be en generat ed wi th t he help of GSA Content Ge nerato r DEMO!
The primary decision you have to make is whether you'll be a first-party (1P) or third-party (3P) seller. As a first-party vendor, you sell your products directly to Amazon, which then sells to consumers. Third-party vendors, however, sell directly to customers through Amazon's platform. You can find out more about 3P vs. 1P selling here, including the distinct benefits and disadvantages of each. Fulfillment by Amazon (FBA): With FBA, you send your products to Amazon, which stores them in one of their warehouses. When a customer buys the item, Amazon handles all shipping logistics. Selling FBA via Amazon Seller Central allows you to earn money on each sale. You have to pay closer attention to inventory levels, send-in dates, and high-volume shopping days, and this process can eat into your profit margin. That said, FBA is an ideal and trustworthy route for many brands that don't have sufficient fulfillment resources of their own-and with Amazon's Buy with Prime program, you can also bring the benefits of Prime shipping to your brand's ecommerce store.
Amazon Vendor Central: If you'd prefer to be a first-party seller, you can let Amazon handle all the details. Rather than selling to customers directly, you ship wholesale to Amazon. While this option is easier overall, it does limit how much you can make per unit. Not only can Amazon lower your minimum advertised price (MAP) (find more on that here), but there are no guarantees on how much it will buy each time. Seller Fulfilled Prime (SFP): If you already sell/ship products to customers directly, you can join Amazon Seller Central. Rather than having Amazon store and ship your items, you handle everything in-house. However, to qualify for Prime, you need to match Amazon's quality standards, meaning that you can't charge for shipping, and your orders have to be fast and accurate. This option is called Seller Fulfilled Prime (SFP), but it's not required to be part of Seller Central.