Why Invest in Amazon Marketplace Store?

If you’re looking to start an online store, you may have heard about the Amazon marketplace and how millions of sellers all across the globe are leveraging this platform to launch successful online ventures.

Over the years, we have seen many businesses growing steadily on Amazon, with no signs of slowing down. Increasing consumer demand and a proven business model make many Amazon stores highly desirable among investors.

However, the big question is: should YOU invest in the Amazon marketplace? Is it a profitable idea? Read on to find out.

Top 4 Benefits of Starting Your Amazon Marketplace Store

Should you start an Amazon business? Here are a few reasons to help you decide.

1. Potential Growth

Amazon has over 9.7 million sellers globally, of which 1.9 million are actively selling on the marketplace. In 2020, Amazon’s third-party seller services amassed over $80.5 billion in sales. Moreover, sales for independent businesses selling on Amazon were 50% more than those in the previous year.

Source: edesk

Every year, over a million new sellers join Amazon. In the first quarter of 2021 alone, over 283,000 sellers signed up to sell on the marketplace. On average, there are 2,975 new Amazon sellers per day.

Between April 2020 and January 2021, worldwide independent third-party sellers in Amazon’s stores increased their sales by over 55%. In addition, during the same period, the number of US small businesses that exceeded $1 million in sales grew by more than 30% year-over-year. All these statistics indicate the popularity of this marketplace among sellers as well as its exceeding market share.

2. Wide Exposure & Lower Costs

Do you know that 300 million consumers shop in Amazon stores worldwide? According to Statista, Amazon’s shopping app attracts a mobile audience of 98 million every single month. In 2021, Amazon Shopping was the most downloaded shopping app on the US Apple App Store, with over 25 million downloads. 

With mobile shopping becoming increasingly popular among customers, having an online store on Amazon will help you garner massive eyeballs and generate more sales. As per Amazon’s website, all sellers have the opportunity to reach millions of consumers in over 180 countries as Amazon selling partners.

As Amazon already has millions of people logging in daily, you do not need to invest money in attracting consumers to your online store. You don’t even need a separate business website, as everything can be done through Amazon. This will help you keep your costs to an absolute minimum. Furthermore, every category on Amazon has interested shoppers, and the platform strives to push them toward FBA (Fulfillment by Amazon) products and other sellers on the marketplace. This way, Amazon handles a bit of marketing, which means even more, cost savings for you!

3. Well-Developed Infrastructure

Amazon not only provides you with a user-friendly storefront but also equips you with several tools and features to easily run your online store. It provides the finest fulfillment infrastructure on the market, making it hassle-free to organize logistics such as relabelling, returning, and shipping your products to your consumers. Plus, several resources and agencies like AWM help Amazon businesses succeed.

Choose to start an Amazon FBA business. You won’t have to worry about packing the orders, tracking shipments, or dealing with disappointed buyers about how their packages arrived. Instead, Amazon is responsible for each aspect of the delivery process, including customer service queries.

4. Prestige of Being an Amazon Seller

Amazon is in fifth position on the 2020 American Customer Satisfaction Index. According to the 2021 Piper Sandler’s Generation Z Survey, it is the #1 Top Shopping Website and #5 Top Beauty Destination among teens. Morning Consult ranked Amazon as the second Most Trusted Brand in America in 2020.

Source: Oberlo

Imagine having a store in such a reputable marketplace consistently ranked and appreciated by customers at different avenues. Being an Amazon FBA seller increases your status and credibility in customers’ eyes, showing that Amazon itself backs all your products and services.

Start Your Amazon Marketplace Store with AWM

Today, we witness an increase in interest in Amazon businesses among potential buyers and a growing number of sellers who are curious about exploring exit opportunities. Prosperous sellers see an opportunity to branch out, while buyers realize the numerous strengths such ventures can offer from an investment perspective.

If you want to launch your store on the Amazon marketplace (or even acquire an existing Amazon business), partnering with AWM could be the right move. Our Amazon FBA and FBM services help you manage and grow your business while you sit back, relax, and collect profits. We’ll do all the heavy lifting – from setting up your Amazon Seller Account to finalizing logistics and inventory management to starting your selling journey. Together we can explore endless possibilities.

Get in touch to learn more.