• Michaela Auger

Why Should You Be Selling On Amazon?

Updated: Mar 1, 2021

From small to large businesses, the question of whether to sell on Amazon is a pressing matter. Amazon is the first channel consumers turn to when conducting a product search online ahead of Google, boasting more than 197 million monthly visitors. For any business, regardless of size, those are some impressive statistics.




During the most recent Amazon Prime day event, third party sellers surpassed $3.5 billion in sales - a nearly 60% year-on-year increase and growing even more than Amazon’s retail business.

If you are struggling with whether to sell on Amazon or if you already sell on Amazon and are wondering if you should stay on the platform, then consider these three factors to help inform your decision.


1. Consumers are more likely to buy products from Amazon over other e-commerce sites

A study from Feedvisor of 2,000 consumers illustrates just how reliant many consumers are on Amazon through all stages of their shopping journey. An astonishing 89% of consumers are more likely to buy products from Amazon than any other e-commerce sites.


Amazon was primarily used as the place you’d go to find some products less expensively than in stores. But today, Amazon is so much more. Amazon is a convenient place to shop (they already have my shipping address, payment methods, and a familiar search interface), it’s a captivating place to shop (the Prime program has a remarkable psychological lock-in-effect), and despite a tumultuous history of being under the media spotlight, it is still a trusted place to shop.


2. Prime Members Are Incredibly Loyal

Feedvisor’s survey found that of all consumers who belong to Amazon Prime, nearly half (48%) buy products once a week or more, and nearly three-quarters (74%) shop online at least every few weeks.


A brands' Prime eligibility encourages purchase decisions for the majority of consumers, 67% of consumers quoted Prime eligibility as an important factor when they are selecting a product on Amazon, indicating that a majority of shoppers filter specifically for Prime items when shopping on the platform.

The takeaway for brands: Prime eligibility is key. For marketplace sellers, ensure your products are Fulfilled By Amazon (FBA) or explore the Seller Fulfilled Prime program.


3. Amazon Is Present At All Stages Of The Purchase Journey

Amazon is the place that consumers go for initial product research, to reading reviews, checking prices and competitor products, to a final purchase.


Two-thirds of respondents (66%) usually start their search for new products on Amazon, compared with one-fifth (20%) who start on a search engine such as Google. And when consumers are ready to buy a specific product, 74% go directly to Amazon. Rather than trying to change this behaviour, brands are better placed to recognize how their Amazon presence (or lack thereof) may be impacting sales through other channels.


The takeaway for brands: be present where customers want to buy or are actively looking for your product. Your pricing, reviews and page content needs to be accurate and attractive in order to meet the needs of shoppers moving through the shopping journey from research, to consideration, to purchasing.


What Happens Next?

Selling on Amazon may seem daunting and complex at first, but the initial work is well worth the end result. As ecommerce and shopping habits have evolved in the wake of COVID-19, Amazon will continue to innovate and adapt, making their marketplace the most resilient platform to sell on.


From initial set-up to consistent optimisation, selling on Amazon takes time and expertise which some companies do not have. Brands of all sizes find investing in a full-service Amazon agency saves them time and resources, whilst having a direct impact on their sales growth.

If you are looking to grow your business on Amazon, reach out to us at hello@toucanecommerce.com and let’s chat about what we can do to help your sales take flight.


#MichaelaBlogs #SellingOnAmazon #AmazonPrime #WhySellOnAmazon #Ecommerce

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