Despite fears that Amazon’s enormous eCommerce presence would squash local small businesses, many savvy SMEs are taking an “If you can’t beat ‘em, join ‘em” approach, and using the online marketplace to their advantage.

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Here are just five reasons selling on Amazon is beneficial for fast-growing SMEs.

Amazon equals big wins for the little guy

Contrary to popular belief, more than half of Amazon’s sales are made by third-party sellers who list their own products. Amazon reached US$43.7 billion in global sales in 2017 and is projected to keep growing in the next ten years.


Gain access to an enormous potential customer pool

It’s a no-brainer that putting your business in front of millions of people increases your potential customer base exponentially. And of course, building a loyal customer base and audience for your own store requires time, money, and effort – things many small business owners don’t have much of. Selling on Amazon allows you to tap into a veritable treasure trove of potential customers, not only locally, but all over the globe.

The whole process is taken care of, from selling to fulfillment

One of the biggest challenges SMEs grapple with (especially when growth starts to happen at a rapid pace) is managing the entire order cycle effectively. FBA, also known as Fulfillment by Amazon, offers a straightforward and cost-effective method of managing shipping and fulfillment of orders once items are sold through Amazon’s marketplace. Items sold are stored, packed, processed, and shipped through Amazon for delivery and customer service is managed by Amazon as well – cutting down on unnecessary leg work for you.


Wholesalers can take advantage of favorable terms

If you’re a small business selling B2B, you’re probably all too familiar with the trials and tribulations of securing favorable sales terms. Big retailers typically aren’t shy about using their muscle to demand unfavorable terms from their suppliers – including 90-day payment terms, unclear trial periods, and slotting fees, just to name a few. Although Amazon does charge seller fees, the majority of revenue from every sale goes back to you, and revenue from products sold land in your account within just seven days.

Customer loyalty, trust, and average order values are increased

A study by Forrester reveals that selling on online marketplaces is likely to boost customer loyalty, increase average order values, and build trust. What’s more, almost 9 out of 10 customers search for a product on Amazon even if they find it directly on a retailer’s site – so it pays to surface your products at every possible touchpoint. If done right, Amazon can work in tandem with your Shopify business or other online store to help bring in a reliable stream of sales and build a steady customer base. 

TradeGecko can be easily integrated with your Amazon store to streamline operations, sync inventory, create sales orders and more.

TradeGecko is an elegant and powerful platform for back-end operations

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