The COVID 19 pandemic has shocked the entire world, changed the international supply chain, and has affected all types of businesses. The world is facing an extraordinary crisis and the experts predict that all the business scenarios will be completely changed after the end of this pandemic. Unfortunately, the week players will disappear, and the strong businesses will be affected.
The only business sector that is growing is the online business. Retailers and physical brands that are facing several short term challenges in terms of the supply chain, manpower, cash flow, consumer demand, and marketing. The successful navigation on these issues will not guarantee a bright future. This is because once we get through this pandemic, and overcome it, we will emerge in a much different world. According to the current analysis, to ensure a future in which we will not only survive but also grow is by selling your products on Amazon. It will not only help the retail business to earn but will also provide the opportunity to get their business to the next level.
Drop in the Retail and Physical Shop Businesses
The last few months are incomprehensible to retailers all around the world. Due to the change in our lifestyle, the retail and physical shops are facing challenges and have been closed. They are learning to adopt new techniques that can help them survive in these times of social isolation. The COVID 19 and the orders of government leaders has made it difficult for the retail sellers to earn their living. Retail sellers are struggling hard to keep their businesses alive by focusing on takeaways and online options.
As retailers change their strategies due to the crisis of COVID 19 pandemic, they are evolving to meet the changing requirements of their customers and they are realizing the importance of selling their products on Amazon.
Boost in E-Commerce
Even before the pandemic, the businesses were shifting to e-commerce. In the last two decades, many product categories have already been digitized such as books and electronics. While others have just started to be sold online because of this pandemic. As the people are stuck at home due to the precautionary measures of social distancing, everyone needs all their necessities to be delivered at their doorstep. This factor has accelerated the sales in e-commerce and the online searches on Amazon have been increased. According to a report by Nielsen, only 4% of supermarket sales in the United States went online in 2019. But this percentage has grown many folds in 2020.
Current pandemic crises is accelerating e-commerce because consumers should practice disconnecting socially, e-commerce orders for groceries, food, clothing, medicines, and other items have become a means of survival for the families stuck at home. According to a report by the mobile app tracking company Apptopia, the average daily download of InstaCart, Walmart, Amazon, and other online apps has increased.
Overview of Amazon Marketplace
Amazon marketplace is an ocean of businesses. It is more than a place to sell products online. As an Amazon seller, you become a part of the Amazon experience that draws a large number of loyal customers from all around the world. In this difficult time when most of the retail stores and businesses are going backward, only Amazon can help them.
How does Amazon Marketplace work?
The products and items purchased from retail businesses or third-party sellers on Amazon are delivered to the customer by the merchant (FBM) or by Amazon (FBA) itself. FBM goods are kept in stock by the outsourced suppliers and they are responsible for all the shipping and customer services. The FBA assets are stored in Amazon call centers and Amazon manages shipping and customer support services. About 51% of Amazon’s annual sales come from third-party sellers.
Basics of Selling on Amazon
If you know the basics of selling on Amazon, it will be easier for a retailer to start an Amazon business and increase its sales. Some key factors can help you to take advantage of selling on Amazon to expand your businesses in the current pandemic. These basic factors include:
- Sourcing
- Listing Products
- Shipping Options
- Competitive Prices
- Customer Support Service
Sourcing
Product sourcing is the process of finding suppliers/manufacturers for buying products at wholesale/factory rate to sell to retail customers. Generally Amazon sellers use Alibaba or similar B2B marketplace to source their products however the process varies as per the business requirements. A well thought out sourcing strategy is a must for long term business viability.
Listing Products
You will not receive any orders until you list your products on Amazon. To add your products to Amazon stores, you need to provide important details, info, and pictures of your products.
Shipping Options
While listing the products you should specify the shipping and logistics option of your products. Where and how you will deliver and how much it will cost. The shipping can be done by using fulfillment by a third-party merchant or by Amazon.
Competitive Prices
As there is a huge competition on Amazon, competitive prices can help you increase your sales. The best way to increase sales is to get an Amazon Buy Box because more than 90% of the sales are made there.
Customer Support Service
A customer support service is the most essential part of selling on Amazon. You should have a 24/7 active customer support that can answer queries and can help buyers to make decisions.
Conclusion
The COVID 19 pandemic has forced retail and physical stores to close. These factors are indicating a great unpredictable decline in trade. Operators are rarely doing well in this type of intervention. No business is investing in any other business because everything is unpredictable. Retail businesses can take advantage of selling on Amazon in this pandemic because almost 80% of the customers are purchasing goods from online stores. This is the best opportunity for retail businesses to protect their businesses from drowning and to increase their profits.
Selling on Amazon is competitive and needs fair hard work to launch a successful business. In order to help entrepreneurs and businesses to quickly launch their business on Amazon, Seller Adventures offers Amazon Business Launch & Account Management Services that allows quick business launch through assistance in Market Research, Sourcing, Product Listing Optimization & Amazon Advertising Management.
