Conquering a new market is usually a time-consuming and expensive process, and there is no certainty about the outcome – not even based on an extensive market analysis. Selling on Amazon allows you to test and gain credibility in a new market.
This article will talk about how a company can benefit from Amazon as part of its internationalization strategy and what it takes to start selling.
It is technically easy to start selling on Amazon
- No need to set up a separate online store, as Amazon provides sellers with a shopping platform where it’s very simple to create product listings. Depending on the market, millions of people visit the platform every day. So Amazon already has a lot of traffic, unlike the company’s own online store, where you need to get more visitors through various marketing tools.
- Amazon provides payment services. Amazon will reduce its expenses from customer payments, and the remaining amount is automatically credited to the seller’s account twice a month. Customers rely on Amazon’s platform, so they dare to buy from an unknown brand without fear of losing money.
- Automated logistics. When a seller selects an FBA sales model, Amazon handles warehousing, deliveries to customers, and customer returns automatically, and the seller doesn’t have to spend time on them.
Amazon offers the best way to test your market
- It’s relatively easy and quick to start selling on Amazon. If a company’s goal is to start selling in a new market, such as the U.S., Amazon is a great way to gather information directly from end customers. At Amazon, customers have the opportunity to leave product reviews that are valuable for product development, for example.
Information from Amazon is available before selling begins
- You can utilize competitor data in a variety of ways. For example, You can calculate potential sales and margins without making any sales efforts on Amazon. Search volumes and keywords for similar products can also give you a good idea of what kind of products people are searching for and buying. Before starting the actual selling, it’s good to make a fact-based sales forecast for the product. That will make it easier to match logistics and warehousing items to demand.
Credibility through a new market
- Amazon reviews also affect other channels. Amazon reviews are helpful not only for the seller but also for potential customers. Customers read reviews before making a purchase decision. A product that has received good reviews has a significant advantage over lower-rated competitors. Amazon reviews affect a customer’s purchase decision on the Amazon platform and in the seller’s own online store and reseller stores. It is common for customers to search for information about brands on Amazon, even if they are buying outside Amazon.
- Credibility among resellers. We’ve come across cases where a reseller in the target market has required evidence of product quality and successful selling on Amazon. Reviews are read not only by consumers but also by potential partners. It’s also easier to start new negotiations when you can present data on the quality and sales of your products to the distribution network in your target market.
Sales Director! If your business aims to expand sales into a new market, Your Amazon Partners offers a proven way to analyze target market data on Amazon. In addition, you can outsource Amazon work and maintenance to us: you’ll have the widest range of ongoing services on the market to increase product sales in different target markets.
Book a free consultation with us. We’re happy to tell you how your business can leverage Amazon for its international growth and how we can help.
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044 263 7012