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Tag: Amazon FBA

  • How To Start Amazon FBA Business in 2023? | Fulfilment By Amazon

    With a market cap of over $1 trillion, Amazon ranks first among the leading large-cap e-commerce companies worldwide. It has over 2.45 billion monthly visits to its app and website combined. It dominates the US e-commerce, i.e. 49.1% of the market. In the US, customers buy roughly 7,400 products per minute from Amazon sellers. It is the largest e-commerce company in India as well, which is one of the world’s fastest-growing economies with over 1.4 billion people. Data shows over 620 million of them use the internet, and 74% of those users shop online. India has a $70 billion market segment, and Amazon is playing a big part in it.

    Between 2020 and 2022, the fulfilled-by-Amazon (FBA) model caught on, with 68% of merchants relying on Amazon’s logistics to fulfil their orders. Amazon has over 200 million paid Prime members globally and hundreds of millions worldwide active customer accounts. You can scale up your business globally on this platform. This is the best platform for customer acquisition. With FBA (Fulfillment by Amazon), sellers send their products to Amazon’s fulfilment centres, and Amazon picks, packs, ships, and provides customer service for those products.

    In other words, you must provide your products and Amazon does the heavy lifting for you against some fees. (know that Amazon FBA is not a free service, you have to pay for it. So it is safe to say that a little investment will be required on your part). There are many ways through which you can provide your products to Amazon:

    1. Private label
    2. Retail arbitrage
    3. Wholesale FBA

    We will talk about them later in this article!

    Select The Product To Sell
    Source The Product From Manufacturer
    Finalize The Product via Alternatives
    Send The Product To Amazon
    Provide Better Service Than The Competitors
    Break-down of Procedures – A Beginner’s Guide
    Is Amazon FBA profitable in 2023?

    How To Start Amazon FBA Business

    Over the years, Amazon FBA has attracted many people to its model. This way the competitors kept pouring in and competition kept levelling up each day. So it is the right time to ask questions like how to start an Amazon FBA business in 2023 to stay there for longer and to be able to call it a consistent source of income. The following is the know-how of this very question:

    Select The Product To Sell

    It is the most important step. You should pay due care in choosing the product that is going to give you returns. It is quite obvious that if there are too many people selling the same product, the profit share of each individual becomes negligible. So you need to select the product which has a decent demand and less supply.

    Websites like JungleScout help you know which product can give you maximum returns. It gives you an idea (an estimate) about the current product status in terms of demand, supply, and competition based on prior data. If you don’t want to spend your money then you can use Amazon’s Best Seller rankings (BSR) tab but you have to do your bit to make the calculated guess when you’re selecting the product.

    • Know your niche: Before selecting a product you should have an idea in which niche you want your product to fall so that it covers long-term gains and not only short-term profits.
    • Selecting correct BSR: After selecting your niche, you should select a particular BSR range according to the product selected. Please note the product doesn’t necessarily have to be from the top 3 of BSR. It just has to be sellable which means a product with comparatively less competition and high demand.
    Finding BSR Rank for a Product on Amazon
    Finding BSR Rank for a Product on Amazon
    • Narrowing down the product: You can then narrow it down from a list of products to the product that meets the basic criteria.

    Source The Product From Manufacturer

    After deciding what your product will be, you need to source the product from the manufacturer. This is not an easy process because you have to make sure the product you’re sourcing is of decent quality and reasonable price to match your cost estimates. Consider yourself a customer here and then start negotiating the price with the supplier if you do not feel that the supplier’s quoted price suits you.

    Things to note:

    • You should ask for sample products first to keep from losses.
    • Try to take everything on paper so that you have an edge if you feel the supplier has compromised with the product (in case you are sourcing the product from different countries or from a place where you cannot be physically present).

    Finalize The Product via Alternatives

    Do you remember I talked about providing the final product to amazon via three alternatives? We will now see what those alternatives mean:

    The private label: It is somewhat like collaboration. You are sourcing products from a particular brand and adding your label to it (on its packaging/product itself). And then you’re selling it under your brand. It requires your investment and is comparatively a sustainable source of business. You essentially create your listing on Amazon including pictures of the product, the title of the product etc.

    Retail arbitrage: It is buying stuff at cheaper rates from thrift stores or retail stores and then comparing the cost and profit margin of the product via amazon itself. For the same, you have to provide amazon specified barcodes on the product before sending it to Amazon. However, it is not a sustainable business model as there is no guarantee that you will find the products regularly to make the sale on Amazon.

    Dropshipping: It is a business model for people who do not have a product or money with themselves. All you do is act as a mediator between supplier and buyer by listing the supplier’s product on your account. After receiving the order (from the customer) at your listed price, you place the order with the actual supplier and ship it directly to the customer. This way dropshipping help you save yourself with a decent profit margin.

    Wholesale FBA: It is primarily sourcing the product from a wholesaler, listing it on amazon and selling it. Wholesale FBA is like day-to-day retail shops that we come across in our cities, the point of distinction is here we are doing it online.

    Send The Product To Amazon

    After deciding your way of sourcing the product and doing the needful you are now ready to send it to the Amazon warehouse and get on with the sales part. You can choose any mode of transportation according to your feasibility and time preferences.

    Provide Better Service Than The Competitors

    The real competition: In a sentence, this is the point of competition. Many sellers are selling the same product as you. What you do to stand out of the crowd so your traffic turns into sales is the most crucial part of this entire process. The question of starting Amazon FBA today arises from the many sellers that are now there on this platform. You have to know this is not a get-rich-quick recipe. It is just another business model. The only difference is Amazon is doing the heavy lifting for you. So you need to truly start by taking this as a business entity. You have to do all the work that a businessperson is supposed to do, including branding, advertising and marketing.

    Ads can do their bit but to be the best in your niche you have to provide the best service possible by including things like

    • Actively solving customer’s grievances
    • Reading consumers’ reviews to get their experiences with the product
    • Always aiming for improving the services
    • Asking for genuine customer reviews
    • Going for influencer marketing to attract traffic
    • Initially providing good discount offers

    Of course, after a point of time, Amazon will promote your products on your behalf but for that, you have to be able to come into the eyes of amazon. After all, it is a search engine doing things with algorithms!

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    Break-down of Procedures – A Beginner’s Guide

    Sell worldwide with Amazon
    Sell worldwide with Amazon

    Step 1. Visit Amazon’s official website
    Step2. Click on Sell
    Step3. Create an account
    Step4. List your product
    Step5. Ship your product to Amazon
    Step6. Grow your business

    ❖ Create an amazon seller’s account: To sell on amazon, go to the seller on the Amazon section and create your seller central account. Link your Bank Account and provide your identity, business/company details, and other information.

    Amazon Seller Account | Sign in
    Amazon Seller Account | Sign in

    ❖ List your products: There are two ways through which you can list your products on Amazon which depend on the product you’re selling.

    • Selling the already available product on Amazon: In this case, you need not list your product as such. All you need to do is select and list the product along with the number of units you want to sell.
    • Selling under your brand: When you want to be a unique seller on Amazon with your brand you will be required to list your product which mainly includes the title of the product, size of the product, its images, description of the product etc.

    ❖ Selecting the way of fulfilment: Here you have an option as to how you want to deliver the order. You have three options: FBA, Easy ship, and self-ship. Here we will see FBA. In this case, Amazon will take your products and store them. After receiving the order it will pack and deliver it to your customers.

    Some important things to note:

    • Pay due care when you pack your products, you don’t want to mess up when labelling the product with barcodes.
    • Paste the barcodes with sticking sheets instead of using cello tapes. If lost, they will be treated as unfulfilled orders in Amazon’s fulfilment centres (FC) under which you will be at a loss.
    • Carefully schedule the pick up for shipping the products to FC. Pay good care while filling in the product’s details including the number of units and its dimensions.

    You can also use the option of easy shipping. The only difference is here you have to store the products and Amazon will deliver the products to the customers.

    Amazon Fulfilment Centre
    Amazon Fulfilment Centre

    ❖ Shipping the order to AFC: Now you’re ready to ship your products to AFC. You can use Amazon transportation service (ATS), third-party service, or courier service, or you can go yourself (in case your products are small and do not require a transportation service).

    • If ATS is available in your area, you can go for this. For this, you can simply schedule the time in your seller’s account.
    • Amazon also provides third-party services which you can avail of from your account to send your products.
    • If you find your courier service better, you can go for this option too.

    Please note that if you’re using any service except ATS you will be required to make a carrier appointment request via the carrier appointment request portal.

    ❖ Expand your reach/Wait for sales: After sending your inventory to FC, your big task is done. Now you have to wait for customers to place orders. During this time, you can focus on marketing your product off-amazon. You can expand your reach by telling the uniqueness of your product through influencer marketing, Youtube marketing, digital marketing etc.

    Is Amazon FBA profitable in 2023?

    Benefits of Amazon FBA
    Benefits of Amazon FBA

    In 2022, three-quarters of sellers are in profit. The competition is indeed really high and it is increasing every day. But we have to consider the fact that FBA is a business model. And every business takes a certain period to be termed as ‘stable’. So the risk factor lives irrespective of FBA. FBA is comparatively easier as you can choose from many business models within FBA and with less investment.

    For FBA sellers, amazon provides a prime badge which is an assurance of fast delivery, and good customer experience. This option is only for FBA sellers which again gives your product a better chance to get a buy box.

    Of course, there will be times when amazon will frustrate you with its algorithms even when you have done all the bits-and-bats of gaining the buy box from buyers. Nonetheless, there is no denying that FBA has changed the game for many when people have been consistent in their work. And it can do the same for you too!

    FAQs

    What is Fulfillment by Amazon (FBA)?

    Fulfilment by Amazon, (FBA) is a service offered by Amazon. Through FBA you store your products in Amazon’s warehouse, and Amazon packs and delivers the orders to customers.

    Is Amazon FBA available in India?

    Yes. Amazon has more than 60 fulfilment centres in 15 states.

    Is Amazon FBA profitable in 2023?

    Amazon’s FBA business is quite profitable if done with consistent efforts.

    How much does FBA cost?

    The FBA cost depends upon the below factors:

    • Category of the product
    • Product Price
    • Size and weight of the order

  • How to Start Amazon FBA Business in 2022? (Beginners Guide)

    They say, there are hundreds of ways to make money on the internet. Rightly so, there are. From freelancing to starting up your own e-commerce business on the internet — there’s so much you can accomplish via the web. If you aren’t living in a cave, you must have heard about Amazon’s Fulfilled by Amazon (FBA) business model, something that has quickly turned into a rage among online sellers.

    Step 1: Pick That First Product That You Think Will Be a Winner
    Step 2: Sourcing The New Product
    Step 3: Market Your Product Extensively

    Amazon FBA Business — what it is all about?

    So, let’s assume you’re an online seller. Now, think of a setup where you get to choose the products you want to sell, along with the supplier who can meet the requirements, source, package and ship the same. All of this happens in one of Amazon’s fulfilment centres, where Amazon takes care of shipping from where things are taken care of.

    Amazon FBA Homepage
    Amazon FBA Homepage

    No folks, it ain’t exactly the Amazon Affiliate thing. This is slightly different!

    There are a few important things that one needs to grasp before starting the much enticing Amazon’s FBA business. However, the journey can be highly rewarding and fruitful if you get the basics right. It does come with its own share of pros and cons but that doesn’t take anything away from the fact that FBA provides a huge platform for sellers to make it big on the internet. Take a look at the pricing of the Amazon FBA.

    Now that you’ve finalized the FBA business — knowing how to start FBA is important because it is where the money lie, let’s get that straight!

    Before you ask yourself the much-coveted question — ‘ How can I launch an FBA business and make it successful? ‘, we have the answer! Let’s get a quick hold of the important steps to start one. Here they are:

    Step 1: Pick That First Product That You Think Will Be a Winner

    Well, It is time when you tone down your excitement and start researching for that one starter product — one winner that can be a potential game-changer for you. It must be noted that the first step is perhaps the hardest, as well as the most time-consuming part of the whole process as it demands a whole lot of research and study to get to that one product.

    Nah! We don’t want you to take unnecessary pressure and be intimidated by the ask, but getting the right first product is integral for the growth that you’ve always imagined for yourself and your business.

    The right product can simplify the journey ahead while picking the wrong one can make things tougher in the long run. If there’s little to negligible demand for your product, if the niche is super-competitive and the cost price is on the higher side — then it may have a negative impact on your profitability.

    However, you can avoid all of it by devoting time to product research, rigorous brainstorming and zeroing down upon the right suppliers (more on that in the next step).

    Note: Getting the right product isn’t just enough, as it marks the beginning of a continuous trial and error mechanism that will polish you and your business for what works and what doesn’t.

    So, even if you get that potential winner — always remember there’ll always be better products or better suppliers for the same. But, at the end of the day, you need to remember that everything starts from something and this is your chance!

    Pick a Market That Excites You, and Finalize Upon a Niche

    Think Big, Start Small.

    Start with what excites you, problems or products that you’re passionate about and then let your brain produce a brainchild — something that will lead to that one ‘winning product’.

    It is important not to confine yourself while brainstorming. Think broadly and think differently — write your ideas down. You can always narrow them down later, so do not hesitate.

    It is good to finalize upon a niche, rather than targetting broader categories as the competition is relatively less, and there’s more scope for growth and profitability in the long run. A product line based on ‘Electronics’ can be too broad to create the right kind of positioning but a niche like ‘smart wearables’ can help you position your business better.

    Do a Lot of Market Research — Do it. A lot of it

    Okay, so you’ve picked something that excites you! Great, now it is time you start indulging in some preliminary research for your product or niche. Start asking yourself questions, and keep looking for answers. This is when you can change yourself to find products that are potential problem-solvers for real-world problems related to your niche.

    Let’s assume that you’ve decided upon this electronic neck massager. Your search can start from something as simple as googling about it. You can also search major marketplaces to check the list prices for this particular product.

    Does your product belong to that $8 to $40 bracket? If so, it is a positive sign for your business since products that fall into that bracket make up for great ‘impulsive’ purchases. This shall help you to stock up accordingly.

    You can upscale your research game by using tools that make the job easy for you to finalize that one potential winner. For example, you can use tools like Ahrefs for keyword research, analysing traffic on a particular keyword and coming up with the right kind of products based on traffic and footfalls on a given keyword. This can be instrumental in finalizing that perfect product title.

    Next, you can check Best Seller Ratings (BSRs) on Amazon to understand what sells well on Amazon. Don’t let this metric determine your decisions. Rather, consider it as a validation for your niche. However, if there are too many items dominating a category, it may imply that there’s too much competition in that given category and it may be harder for your first product to breakthrough.

    Using advanced tools like Jungle Scout and Helium10 can simplify this step and ensure effective market research that helps you upscale.

    Avoid Competition — It Is Good but Not for Starters

    Think of it this way. You wouldn’t want a crazy amount of competition rooting behind your first product because — it is your first product! No points for guessing, you would want a pretty smooth and seamless journey to establish yourself in the FBA business, and sadly — a competitive niche or category won’t be aiding you.

    If there are big brands established for a particular product or niche, it is generally a red signal to get into that category as at times — categories are known by the brands leading them which also means that you’ve to accomplish or offer something miraculous with your product or marketing to breakthrough. Although, we would always want you to think big and make it big, breaking into categories with ‘brand whales’ can be tough, to say the least!

    Selling via a private label can go a long way in starting and succeeding in an FBA business as it doesn’t just give you more freedom while running your business but also gives you a better shot at marketing your product to the top of the listings. All of us love brands and their marketing endeavours for a reason. Right?

    Step 2: Sourcing The New Product

    So, now that you’ve addressed the elephant in the room, and figured out what your product would be — another challenge awaits. The key is to figure out the source of your product — the suppliers.

    Find a Reliable Supplier

    Suppliers with a good reputation, great production facilities and on-time delivery commitments are crucial for the growth of your FBA business. As it all depends upon the cost, it is generally a good idea to get products from countries that are known for affordable production pricing like China and India.

    If your supplier manufactures another range of products as well, then it may be a wise idea to be in their good books backed by good behaviour and on-time payments as they can be crucial for the growth of your FBA business.

    Cracking the ‘Shipping’ dilemma

    Sourcing and shipping are largely interrelated as sourcing would be influenced by the shipping terms i.e. by train, by air or by cargo. For domestic shipments, air and trains are generally preferred whereas international terms include water shipment and cargo, as international sellers operate in some of the most competitively priced markets, and hence shipment via water becomes a no-brainer.

    Step 3: Market Your Product Extensively

    Picked a product, and found a supplier too? Damn! Things look great but then you realise that the crucial part would be to market it the right way so that the right kind of audience reaches out to get connected with your brand.

    A listing on Amazon does guarantee some eyeballs here and there, but the real deal lies in the fact that the positioning can mostly make or break the product for you. The right marketing mix can help your product grow leaps and bounds on Amazon and that is what we want. Isn’t it?

    Get a Winning Product Description That Rakes in Traction

    We are sure you’ve figured out the mechanism and your product too looks absolutely incredible. That is for sure! However, as sellers we want our customers to understand our mission, vision, culture and what we tend to market through our products and the product description goes a long long way in establishing all of that and even more.

    The copywriting, SEO, pictures and detailed product page are crucial for the success of an FBA business. Remember, Great product descriptions succeed at establishing a connection with their masses in ways that conversions start following automatically.

    Running Ads and getting PPC campaigns to help in establishing the connection between you and your audience. Right from product reviews to the ads, every aspect of the brand’s decision-making revolves around those who’ve used it — the customers in the first place.

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    Conclusion

    Once you get hold of all of the above, there’s nothing that would stop you from making it big, and that is the beauty of this era.

    FAQs

    Is it still worth starting Amazon FBA?

    If you are just started selling on Amazon and only sell your products on Amazon, Amazon FBA is worth the money. However, It can be quite expensive for sellers who have low-profit margins.

    How much does the average Amazon seller make?

    An average Amazon seller makes $1000 to $5000 a month.

    How much does it cost to start an Amazon business?

    You need to have at least $5000 to $10,000 to start selling on Amazon.

  • How does Amazon Manage its Supply Chain and Logistics?

    Amazon is now the world’s largest e-commerce company in the world. Many small and medium-scale businesses benefit a lot from Amazon. If you are a curious person and are entrepreneurial in nature, you might wonder very often how Amazon supply chain works. The logistics of Amazon are fairly complex and quite vast. Over the years Amazon has improved its supply chain operations and many other things. Today Amazon’s supply chain is one of the most sophisticated ones.

    Warehousing Strategy
    Sophisticated Delivery Network
    Use of Robots
    Third-party procurement and Self-manufacturing
    Cost-Effective Supply chain
    High-level Automation
    Outsourcing Inventory Management and Insourcing Logistics
    Push-Pull Strategy for Supply Chain Success
    FAQ

    So, Lets look at the Complete process of Supply chain management of Amazon

    The supply chain of Amazon is one of the most sophisticated complex supply chains in the world. It is because of its supply chain, it has achieved such great heights. So, let’s look at the basics of how Amazon manages its logistics? and some of the advanced optimization Amazon does in order to work more efficiently.

    Warehousing Strategy

    Amazon Warehouse
    Amazon Warehouse

    Amazon is one of the influential e-commerce companies because of its advanced warehousing strategy. It has a strategy by which it can locate the desired product properly. All the products are placed strategically so that they can be found easily. The products are segregated infrequently demanded and rarely demanded. Warehouses are optimized really well so that goods can be procured faster.

    They do demand forecasting and keep the products of high demand ready to be deployed. Apart from that they also follow certain quality control rules depending on the product so that the customer gets the best quality product.

    Sohpisticated Delivery Network

    Amazon Drone Delivery
    Amazon Drone Delivery

    The delivery system of Amazon is very sophisticated in nature. The supply chain is very well planned which will help the company to deliver the product properly. For members who have a Prime subscription, their products need to be delivered to them within 2 hours or next day depending on the location. Amazon has put in place a number of techniques that can arrange and pack your product and send it to your home.

    Amazon has deployed a number of drones, robots, and other logistics technologies to help the goods reach your house faster. There are also many other delivery robots through which they are delivering the goods to their customer.

    Use of Robots

    Amazon Kiva Robots
    Amazon Kiva Robots

    Amazon employs technology in its Warehousing to improve its efficiency. It uses a number of robots in its warehouse which helps in arranging the goods, moving them from one place to another.

    Amazon had acquired an automation company called Kiva Systems. It was renamed Amazon robotics after acquisition. These robots decreased human intervention and improved the delivery speed.

    Amazon also implemented drones so that they can deliver their goods where logistics companies could not reach. Amazon has also deployed many small delivery robots which deliver goods to other people. These technologies enhance the delivery speed and make the whole process very easy.

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    Third-party procurement and Self-manufacturing

    Amazon Manufactured Products
    Amazon Manufactured Products

    Amazon is not just a retail e-commerce website now where it sells products from 3rd party. It is a company that ultimately focuses on customer satisfaction. In due course of time, Amazon has looked into possible ways of decreasing the cost of products.

    With time, Amazon started manufacturing its own products like Earphones, iPhone chargers and many other things. These goods were much cheaper than the 3rd party manufacturers.

    The product quality is also much better as the quality control is done by Amazon themselves. This leads to a lot of simplifications and decreases a lot of complications on the part of Amazon.

    Cost-Effective Supply chain

    Amazon has kept the cost of its supply chain very low. Due to its huge economies of scale, it was able to keep its cost very low. The per-unit supply is very cost effective. Amazon has several warehouses of its own and it has automated to a great extent. This is why they have a lot less operation cost than other companies.

    High-level Automation

    Amazon Delivery Robot
    Amazon Delivery Robot

    From its warehouses to delivery, Amazon has deployed a lot of robots to automate it. There are robots that would move and arrange the goods in the warehouse and also packaging the goods. For the delivery, Amazon has deployed drones, delivery robots, to deliver the product to the customer’s house. This decreases human involvement and thus decreases the cost of operation.

    Outsourcing Inventory Management and Insourcing Logistics

    Amazon outsources its inventory management to third parties wherever they see it’s feasible. Outsourcing helps them reduce costs and reduce the unnecessary expansion of the supply chain.

    The third party stores the goods in their local storage and it is not stored in an Amazon warehouse. These third-party warehouses are generally located at special places and are supplied with those goods which are in high demand in that area.

    Push-Pull Strategy for Supply Chain Success

    Amazon implements a push-pull strategy in its warehouse management. The warehouses owned by Amazon are located in more strategic locations. While the Warehouses belonging to the third party are located at other places. So in the case of Amazon’s warehouse, it implements a push strategy and in the case of a third-party warehouse, it implements a pull strategy.

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    Conclusion

    Amazon has designed a supply chain in which it can optimize any part of it. It has introduced high-level automation using robots to decrease human employment. This helps them decrease the cost. From warehouse to delivery it has deployed several robots to arrange pack and deliver the product to the customer’s house. The supply chain and logistics of Amazon is one unique entity in the whole world.

    FAQ

    Does Amazon have the best supply chain?

    Yes, Amazons supply chain is counted as one of the most efficient supply chains in the world.

    What is the revenue of Amazon?

    The revenue of Amazon of 2020 was 21.33 billion U.S. dollars.

    What are the tasks that Amazon Outsources?

    Product Listing and Optimization., Product Photography Services, Managing Sponsored Ads/ PPC, and Customer Support Services are some of the tasks that are outsourced by Amazon.

  • Is Amazon Killing Small Businesses? [Case Study]

    The pandemic has transformed the world into a digital one. There has been observed drastic change with the people in the field of shopping. And with such an advancement, people are entirely relying on the internet for any purchasing.

    From household products to festive clothing, everything is available on the Internet and people are purchasing these as well. A wide fraction of people prefer online shopping apps for any purchase.

    Among these, Amazon is one of the most established shopping applications across the world. In fact, Amazon is counted among the triumphant companies that hold the position to beat the consumer and retail industry!

    With the popularity of Amazon, many small businesses consider it quite dominant in the retail industry. People are acknowledging how Amazon’s immense success is causing great loss to small businesses. Whether these are accurate and true, can’t be asserted right away! But a question arises, Is Amazon killing small retail businesses?

    Well, looking back at some previous analytics, this accusation on Amazon isn’t something new. As of 2019, Steven Mnuchin, the United States Treasury Secretary also mentioned that Amazon, being a harm to the retail industry. To discuss this matter briefly, we have presented this case study- Is Amazon killing small businesses? Let’s begin!

    Amazon and Small Businesses
    Consumers’ perspective during the Stay at Home orders
    Amazon’s perspective on being responsible for the downfall of Small businesses
    Modifications by Amazon for Success of Businesses
    FAQ

    Amazon and Small Businesses

    Amazon, being the world’s one of the biggest online shopping companies, managed its way to success even in the dreadful pandemic of 2020. It made a huge profit towards the sales. At the beginning of 2020, Amazon made a profit of $5.2 billion beating its previous record of $2.6 billion in 2019.

    The most significant thing about Amazon’s success is that the company modifies its policies and practices based on the resources and customers’ requirements. The company adjusted its services during the pandemic, that’s why it made such a remarkable profit.

    With the immense success and fame of the company, the accusations on Amazon for killing the small businesses increased more vibrantly. The small businesses entirely blame Amazon for destroying the consumer and retail industry. Many examples and proves came out claiming Amazon for killing the small businesses but, many of these couldn’t be proven accurate.

    Amazon Annual Net Revenue (in billion U.S. Dollars)
    Amazon Annual Net Revenue (in billion U.S. Dollars)

    Consumers’ perspective during the Stay at Home orders

    With the dreadful condition of Covid-19, people have become more cautious with their lifestyle, especially in the shopping part. People across the globe changed their offline shopping techniques into digital ones. And on that note, Amazon experienced massive progress and development. Because of this, Amazon made such a great profit even during the global crisis.

    Amazon spent over $4 billion on further Covid-19 costs. And with this, the company took over various services adaptation. Amazon functions with great strategies and process improvements.

    But even after this, Amazon is considered the destroyer of small businesses. It is highly criticized by the critics in a bewildering manner. But the company believes in helping and driving more audience to the small businesses but not in being a destroyer for them. However, the company remains on the top, regardless of its various accusations.

    No matter how many proofs come out, any company itself cannot be blamed responsible for the downfall of small businesses.

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    Amazon’s perspective on being responsible for the downfall of Small businesses

    On asking about the accusations made on Amazon, Jeff Bezos, the founder and executive chairman of Amazon mentioned in an interview that the company itself holds a very strong and beneficial relationship with its sellers, who are small and medium-sized businesses. Amazon believes in helping the sellers to gain profit and success as it would bring more choices that could actually lower the prices of their products.

    In fact, Amazon works with around 1.5 million small to medium sellers, just in the United States. As the more such sellers would join Amazon, the more benefits the customers will get such as free delivery, shipping, and low prices.

    Although Amazon is affecting the small businesses, it means no harm or demise for them and brought a performance standpoint in the marketing field. Amazon has brought a great advantage in the retail industry as reaching customers has become very easy and profitable.

    With the digitization in every sector, people are becoming more connected with E-commerce platforms. That’s why small and medium-sized businesses are also enrolling in the digital platform as an advanced marketing tool.

    There’s huge competition in the market among established brands and small businesses. And those who would adapt to the changes that come to them will be known as being the biggest.

    Modifications by Amazon for Success of Businesses

    Amazon has taken the retail industry to an advanced level. And with its popularity and services, it has brought absolute convenience for the sellers to reach out to more customers and suppliers. Many concluded this as contraction to the claim made on Amazon.

    It is entirely undeniable that Amazon has basically lifted up the performance level in the retail industry. Due to this only, dozens of independent brands and small businesses are holding the potential to compete with large corporations and established brands.

    As the consumers on the global level are increasing rapidly and so as the digital marketing platforms. People are preferring online shopping more promptly. On that note, small and medium-sized businesses must acknowledge this advancement and work accordingly. This would help them to embrace the changes that come on the way, instead of complaining.

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    Conclusion

    Amazon has worked tremendously to gain the customer’s support and its success. In order to do so, it has widely increased the competition in the retail industry which has not been well received by the small and medium-sized businesses.

    Various claims have been made on Amazon, accusing it of killing the small business. But as it has raised the competition, it has also brought several opportunities for sellers (including small and medium-sized businesses) to reach the customers more frequently and with good services in hand.

    The whole world is digitizing and as people are becoming more reliant on digital sources for any purchase, it’s a great opportunity for small businesses to modify their services and take up the stand with the E-commerce platforms. This would bring immense advantage for the small businesses. Just that, Amazon has accepted the changes that came for it and adapted it as well. That’s why it has grown to be the biggest online shopping company.

    FAQ

    Is Amazon killing small business?

    Amazon is helping small business and retailers. As because of Amazon independent brands and small businesses can compete with large corporations and established brands.

    What impact does Amazon have on small businesses?

    The more sales businesses do the more money Amazon generates. Amazon has also invested more than $30 billion in logistics, tools, services, and employees to help small businesses.

    Do small businesses sell on Amazon?

    Yes, many small businesses are selling their products on Amazon.