All you need to know about Amazon: their history, new technologies, pros and cons.
Amazon was created by Jeff Bezos in 1994, when the internet had not yet become popular. Jeff decided to create a new business model based on online book sales and distribution. Amazon currently sells a variety of products, including toys, electronics, apparel and accessories.
Amazon is currently among the most valuable companies in the world. In the first half of this year, the company run by Jeff Bezos earned $ 123.1 billion (data announced by Amazon in July), growth around 49% more than the same period of 2018. The results came from a great performance in North America. These numbers show that the platform has been growing and attracting more and more attention of consumers and sellers.
According to the company, its main value is to know the needs of its consumers. Amazon also preaches for innovation and speed, which have contributed to the formation of a customer-focused organizational culture. In addition, the online retail giant offers services such as Amazon Web Services (cloud storage services), Amazon Prime (streaming) and Alexa (virtual assistant). In November 2017, Amazon added AR technology to its app, utilizing Apple’s ARKit to enable customers virtually preview how items would look like in anywhere they want to place before buying.
The benefits of selling on Amazon includes more sales, international expansion, no stock and for some companies low marketing costs.Sellers can sell their products on Amazon without many problems, but selling in certain categories requires Amazon approval, and in some cases an upgrade of the sales plan. Depending on the product, the fees to be charged may vary. Compared to other platforms, Amazon rates can be considered flexible.
Besides the fees charged are not abusive, the fact that products can be viewed by thousands of potential consumers is increasingly attracting small business sellers. But beyond all this, there are still disadvantages (compared to companies having their own website) that are not easy to notice, such as:
1. The fact that Amazon also has its own products for sale makes the sales focus be on their products rather than sellers. It means that they can restrict the presence of sellers and certain brands, dictate items that may or may not be sold, and so on;
2. No customization of your sales web-page. It is more difficult to expose the company’s identity when it has to follow Amazon standards;
3. Fees, despite the fact that it may seem low at the online platform, with their own website sellers can invest less money, even with the implementation of AR. And the fact that they don’t have to share part of their profits with Amazon is also a huge benefit.
For those aiming to sell on this online platform the focus should be on optimizing Amazon’s sales center by finding the best products for sale and the best way to sell them. Optimization of selling methods (SEO) is one of the biggest virtues that the platform user should have, but it is also crucial that the salesperson sets his margins and goals, chooses the right products according to consumer’s wishes, use Push promos to raise your position in the categories, and also covers the costs of your sales revenue before the profit.
Amazon is a highly used platform in today’s society, and it could be a good option when you are a start-up, but from my point of view, if you want big results you must do it yourself too. No big company should be dependent on Amazon, because If this online platform ever ends, anyone who is dependent on it will have a very high risk of loss. my advice to companies and salespeople from all areas is to create a personal website, and invest in it (Eg.: adopt new technologies as AR or VR).
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