Selling on Amazon: opportunities for entrepreneurs

There are numerous chances and opportunities that the Amazon Marketplace dem entrepreneur offers.

Low investment

The founder of a commercial enterprise is a good opportunity with the Amazon Marketplace to realize this project successfully, due to the fact that the use of the market place hardly fixed costs arise.

Amazon only charges EUR 39,00/month for the professional "Power" seller tariff, all other commissions are variable and depend exclusively on the sales on the platform. Thus, the founder requires neither an elaborate IT-Equipment, nor must own one Online-Shop can be bought / programmed and advertised.

All that is required is a PC with Internet access, which also offers part-time founders the opportunity to slowly feel their way forward with the Amazon Marketplace. Amazon is hiring with the Seller Central platform System ready for shipping. Only a simple invoicing system for invoicing is required, ideally with an interface to financial accounting. Such systems can be purchased for a few hundred euros.

Thus, the Amazon Marketplace offers compared to its own online shop or even a stationary trade, an attractive sales platform without having to make large investments or be bound in the longer term to horrendous fixed costs. This allows the potential start-up entrepreneur the chance to test the market with a specially developed product or business idea.

High customer acceptance by Amazon

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The start-up company is offered another opportunity by the high level of acceptance of Amazon among consumers customers. Their conservatively calculated sales forecast was around EUR 35 billion worldwide, which is around EUR 3,85 billion for Amazon Germany Turnover means. This corresponds to sales growth in 2011 of around 35 percent with around 37,3 million items listed in the Amazon range.

These impressive numbers alone support Amazon's high level of acceptance in Germany and worldwide. Amazon is a point of contact for millions of Germans when it comes to the procurement of consumer goods or “problem solving” of all kinds.

Since the Companys strictly ensures that Marketplace dealers comply with the Amazon guidelines in order to offer customers the first-class service they are used to, they enjoy almost as much Trust, like the Amazon direct delivery. Another advantage for the entrepreneur is the fact that Amazon, in addition to the classic e-commerce sales channel, is also a leader in m-commerce sales and provides free apps for mobile devices, which are just as well accepted by customers.

Range: About 105 million active customers in Europe

Another opportunity the founder of the Amazon market is experiencing is the enormous reach of customers. In Germany alone, Amazon had 2010 millions of active customers in the year 24,7 and is therefore the undisputed number 1 of the online shops in Germany, according to the online shopping survey of ENIGMA GfK from the year 2011.

Assuming annual 10 percent customer growth, Amazon reached approximately 2012 million active customers in Germany in 30. Extrapolated to the whole of Europe currently about 105 million active customers of Amazon are expected to be managed. An entrepreneur who uses the Marketplace as a sales channel and owns a European sales account thus directly faces some 105 million potential customers.

Operate local - Distribute global

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Amazon has merged its European marketplaces. Thus, it is possible for the entrepreneur to find product offers for all marketplaces in Germany, France, Great Britain, Italy and Spain from his local location draw up and to manage. Amazon delivers to customers throughout Europe from these country marketplaces.

In countries that do not have their own market place, higher shipping costs may be incurred for the customer, but Amazon and / or the volume dealers also deliver abroad. This gives the trader the opportunity to offer his product portfolio to a broad customer base across Europe. However, this can also exclude the supply of individual countries or concentrate exclusively on the home market.

Customer-friendly service infrastructure

The entrepreneur benefits from a customer-friendly service infrastructure, such as that offered by Amazon. The transaction processes are kept simple for the customer. The 1-Click® ordering method is available to them. In addition, numerous self-service functionalities are available, with the help of which the Customer E.g. can carry out returns completely independently, without having to rely on an Amazon service employee.

Furthermore, Amazon is extremely accommodating when it comes to complaints and returns and offers customers an extended right of return of more than 4 weeks without giving reasons. For the customer, this results in a purchase without Risks. This customer-friendly service infrastructure, which goes well beyond what is required by law, is one of the main reasons for the Success from Amazon in Germany and worldwide.

Paragraph: An upward spiral

If the founder of a business takes into account the above-mentioned success factors of an e-commerce business start-up, then the chances are excellent that sales will spiral upwards. Initially, the founder's Amazon seller account had no ratings. As far as new listings are concerned, these are displayed quite far down in the ranking of the marketplace if there are competing products. The sales of the entrepreneur will increase noticeably after his seller account some positive Has received customer reviews and thus the trust of potential customers is established.

As soon as the Article has some positive product reviews, chances are good that sales will continue to increase. Due to positive customer reviews and product reviews, as well as a higher sales, the article automatically increases in the Amazon search engine ranking. This further accelerates sales, so that one can speak of an upward spiral.

Get out of the downward spiral

In order not to fall out of it, it is essential that the existential online retailer has both the procurement disposition under control to remain viable, as well as consistently delivering good quality products on time to continue to receive good customer reviews and product reviews. If, for example, there is an interruption of availability, then the article drops immediately in the search engine ranking.

For example, it may take months before the original ranking placement is restored. The upward spiral of the shoulder may be negatively affected by such influences. This can be avoided by the entrepreneur, taking into account the described success factors in the daily work and the customer statistics constantly monitored.

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