The
to sell on amazon

Use global scale - easy and automated

“Amazon is not just a selling platform, it’s a science. Especially when launching a product. Launching a product takes more than a pretty box and a fancy shell. It takes experience, knowledge and the ability to utilize all the tools at hand to achieve maximum success. Every day we study the platform finding new ways to work with and circumvent the current existing rules to create a powerful selling experience for our clients.” – Alan Horowitz, Master of Ecom

Where do customers search for products?

Others (for example comparison websites)

16%

Google

35%

Amazon

49%

In addition, almost 40% of the Amazon catalog is ranked on page 1 in Google. (Source: Sistrix, a leading SEO analytics company)

Where are the best conversion rates?

Online Shop

5%

Amazon

70%

Amazon is transforming from a platform towards becoming a global market

0
Marketplaces
0
Fulfillment Centers
0
Countries
0
Product Categories

01

it's all about size - and scale

Of 170+ Billion USD Revenue of Amazon in 2017, over 100 Billion USD go through so-called “sellers”. Third parties that (re-)sell their products over Amazon. In 2018, Amazon’s revenue has grown to over 232 Billion USD in 2018 revenue with a share of over 2/3rd for 3rd party sellers alone. 

So far over 1 Million (!) new sellers joined the Amazon marketplace. This equals to 2,739 new sellers every day. On the other side, only 100’000 sellers ever reached 1 Million USD revenue, because it’s not so easy. 

02

Traditional retail companies are going bankrupt because they missed the digital transformation

  • Ecommerce is growing but is only 11.9% of retail
  • Ecommerce is growing 23% year-over-year
  • Ecommerce automation is an accessible reality
  • Small retailers may see up to 30%  higher mobile conversion rates compared to large retailers.
  • International eCommerce remains largely untapped
  • On average, millennials now make 54% of purchases online (versus 49% of non-millennials)

     

03

How do I know this is right for me?

However, selling on Amazon is becoming super competitive and highly complex to manage, for both, the re(seller) and the brand behind…

...reselling someone else’s products is much more difficult than enabling a brand to sell on Amazon directly. Our agency will support you and simplify all complexity to make it easy, initially and on-going. 

04

How and when can I begin?

  • Amazon marketplace first launched on Amazon.com in November 2000 and has since grown to be the largest e-commerce market in the world with 232 Billion USD revenue in 2018.
  • Amazon’s large recent investment in B2B eCommerce is a loud call to manufacturers & brands to take advantage of this fast-growing channel or get left behind by those that do.
  • A brand can’t afford the resources to actively manage tens of thousands of listings as well as many resellers at once. 
  • Amazon FBA (Fulfillment by Amazon) enables global scale in logistics. FBA usage among top sellers has been rising as a result. In two years it increased 68% in 2018.
Opportunity 1

vs

Opportunity 2

What is the difference?

Amazon offers two different types of how a seller and/or manufacturer can go to market over its platform. Both have its pros and cons – and can even be used in combination, if usedful for certain brand or manufacturer. Here a few general guidelines on what to expect with these go to market models: 

Seller Central
Vendor Central
Target Audience
Smaller manufacturers, resellers and private labels
Medium and large manufacturers
Potential
Higher margins
Higher volumes
Restrictions
None, anyone can access
Restricted, by invite of Amazon only
Payout
Every 14 days (automated)
Per Amazon payment terms, with invoice and optional automated through EDI
Required Cashflow
Medium
High
Product Selection
Through seller
Through Amazon
Pricing
By seller
By Amazon
Price stability
Given / Stable
By Amazon / dynamic
Logistics
Seller or Amazon (FBA)
Amazon (or manufacturer via dropship)
Stock capital commitment
Seller
Depending on contract with Amazon and/or manufacturer
Shipping to end customer
Seller or Amazon
Amazon (or manufacturer via dropship)
Returns management
Seller or Amazon (FBA)
Amazon (or manufacturer via dropship)
Customer service
Seller (limited) or Amazon
Amazon
Product content
Some restrictions, partially limited
Enhanced branded content and A+ branded content
Amazon advertising
Some restrictions, mostly pay per click
Complete/everything
Reporting
Comprehensive
Limited (or fee based)
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