The question of whether to sell on third-party e-commerce platforms like Amazon is common among direct-to-consumer or D2C companies.
While as a D2C brand you should prioritise selling products directly from your website, it’s always wise to keep a certain selection of your product catalogue on Amazon.
Considering the huge sales that Amazon drives for up-and-coming brands, you should consider selling on Amazon. According to the Indian arm of the e-commerce behemoth, more than 15,000 sellers have become millionaires by selling on Amazon.
Depending on who you talk to, people will give different opinions on whether you should sell on Amazon or not.
Here are the pros and cons of selling on Amazon:
Selling on Amazon
|High repeat sales||No information on customers|
|No need to worry about delivery||High competition|
|High conversion rate||Pay commission on each sale|
|Returns are easily processed||High marketing cost|
|Access to customer review||No insights into customer profile|
Benefits of selling on Amazon
Right from product discovery, and pricing comparison, to timely and economical delivery, Amazon promises convenience to its users. Everyone loves a one-stop shop where they can buy anything and everything. This is what drives online shoppers to the Amazon website and app.
If you have just started a D2C brand, you should consider selling your products on Amazon and leverage its popularity to sell your products. Here are five benefits of selling on Amazon:
- Easy to get started: Getting your products listed on Amazon is not that difficult. The onboarding process is quite simple and doesn’t take long to start selling on Amazon.
- High rate of conversion: Since you are just starting your D2C brand, it will take some time before your website takes off. Initially, you might see high unique website visits, but that wouldn’t necessarily translate into sales.
In comparison, users trust Amazon in terms of the quality of products, sticking to delivery timelines, and arranging for returns if needed. The rate of conversion of your product will be much higher than your brand website.
- No hassle of delivery and return: In today’s age of online shopping, consumers expect you to deliver products irrespective of the city or town they live in. Arranging delivery in all the pin codes of the country is a huge task. Amazon is well known for its reach across the country, which makes one thing less to worry about if you sell on Amazon.
- Direct customer feedback: Amazon’s review feature is a very good way to find out what your customers are saying about your products. Since Amazon has a feature where it verifies reviews and makes sure they are written by actual buyers, you can be sure that the reviews are not fake.
- Reach global markets: With Amazon, you can start selling to customers from around the world. You just need to enrol for the Amazon Global Selling program, which helps sellers from India export their products to over 200 countries. This would otherwise not be possible for D2C companies that have just started their business.
How to register on Amazon as a seller
To start selling on Amazon, you first need to ensure you have completed the following steps:
- GST number
- PAN card
- Active bank account
- Email address
- Active mobile number
Here is a step-by-step guide on how to register with Amazon as a seller:
- Just like any other action, one has to take on Amazon, you will need to sign up or log in as a seller on Amazon. Just click on this link to log in. You can login with your customer account credentials as well.
- If you want to create a separate seller account, simply choose “Create a new account” on Amazon.in.
- Once your account is created, provide your company name as mentioned in your GST documents.
- Verify your phone number via an OTP.
- The next step is to punch in the details, such as store name and office address.
- On the next page, enter your GST and PAN number to show your business is compliant with the tax department.
- Now on Amazon’s seller dashboard, click on “Products to Sell” and then click on “Start Listing”
- To list your products, choose “I’m adding a product not sold on Amazon” on the next page. After you are done putting the price of the product, MRP, condition of the product, and the shipping option, click on “Save and Finish.”
- Similarly, add all your products on Amazon. Once every product is listed, go to your dashboard, and upload your digital signature.
- Now click on “Launch your business.”
Voila, your business is now live on Amazon and ready to take orders.
Remember that while listing your products, it’s important to upload images of your products in such a way that users can clearly understand and see how it works. If possible, upload a demo or instructional video to show how the product works or how to assemble it.
How to sell on Amazon and your own website
Selling on Amazon can do wonders for your brand. But that doesn’t mean you should not focus on driving customers to your website. In the beginning, when you are trying to get your footing, it’s important that you balance sales and branding simultaneously.
Selling on own website
|High brand awareness||Requires a dedicated e-commerce expert|
|Personalise packaging||Arrange logistics|
|Better margin on every sale||High cart abandonment|
|Understand customers’ preference better||Difficult to build brand trust|
|Have customer database||Difficult to regularly update and maintain website|
Selling on Amazon will help you with revenue, but selling on your website will help you with brand positioning and having a more personal connection with customers.
Here are a few tips on how you can grow your website along with selling on Amazon.
- Selective products on Amazon: As a rule of thumb, you should not sell all your products on Amazon. Use Amazon’s popularity to increase sales of those products that do not see a good response on your website. You can also list products that are not one of the main offerings of your brand. In addition, you can also list those products on Amazon that will go bad if not delivered on time, or those that require special packaging.
- Talk to customers: Use all the marketing channels to communicate with your customers about the benefits of shopping from your website. Use social media channels, and include a note with every delivery that talks about the benefits of shopping from your website. If you have a strong community with your newsletter, it’s an ideal place to inform your customers why they will enjoy shopping from your website.
- Flagship products only on your website: Consider selling your flagship products on your website exclusively. Since you want your customers to know you for these products, it’s important that you drive sales for those products from your website.
- Special discount: To attract more customers to your website, you can offer them special offers and discounts. You can list the same products on Amazon and your website, but offer discounts for buying on the latter.
While you should sell on Amazon, always prioritise selling products on your website as it will give you more margin as well as help you connect better with your customers.
So, both the activities – selling on your website and selling on Amazon – should happen parallelly. In addition to Amazon, you can also look at listing your products on other third-party websites such as Flipkart, etc.