Back to Resources

In 2013, Amazon’s online retail sales amounted to $67.9 billion. That was more than the next nine largest e-retailers combined. Ten years later, in 2023, Amazon and its third-party sellers achieved sales totaling $700 billion. 

Amazon has not only grown their sales 10X – establishing itself in the process as a global ecommerce leader – Amazon’s gross merchandise volume (GMV) saw an increase of over 100% during the last four years.

To those keeping a close eye on entrepreneurship and ecommerce, it’s no surprise that the majority of this expansion came directly from Amazon’s explosive third-party marketplace.

This has provided sellers with an unparalleled opportunity to reach a massive audience and grow their businesses. With millions of active customers, a trusted brand reputation, and a wide range of tools and services designed to support sellers, Amazon has become the go-to platform for businesses looking to expand their online presence and increase sales.

Whether you’re a small business owner, an entrepreneur, or a well-established brand, selling on Amazon can offer numerous benefits that can help you take your business to the next level. If you’re considering selling products online or looking for ways to grow your existing ecommerce business, Amazon should be at the top of your list. 

But, beyond the simple fact that “everyone” looks to Amazon when they want to simplify the purchasing process, exactly why should online sellers focus their attention on Amazon? 

In this post, we’ll explore the top ten reasons why selling on Amazon can be a game-changer for your business, and provide insights into how you can leverage these advantages to achieve your goals and unlock your full potential as an online seller.

1. Amazon’s Massive Customer Base

One of the most compelling reasons to sell on Amazon is access to its vast customer base. With over 310 million customers worldwide, Amazon provides sellers with an unrivaled potential market. 

By listing your products on Amazon, you can tap into this massive audience and significantly increase your sales potential. Amazon’s popularity and reputation as a trusted ecommerce platform make it easier for sellers to attract customers who are already primed to make purchases.

2. Brand Trust

July 5, 2024 will mark 30 years that Amazon has been selling online. Over those three decades,  Amazon has built a strong reputation for reliability and customer service, which can be invaluable for sellers. When customers see your products listed on Amazon, they are more likely to trust your brand and feel confident in making a purchase. 

This trust factor can help you gain credibility, attract more buyers, and establish a loyal customer base. By leveraging Amazon’s brand trust, you can focus on providing high-quality products and excellent customer service, knowing that the platform’s reputation will work in your favor.

3. Fulfillment by Amazon (FBA)

One of the most significant advantages of selling on Amazon is their in-house, Fulfillment by Amazon (FBA) service. With FBA, sellers can store their products in Amazon’s warehouses, and the company will handle the packaging, shipping, and customer service on their behalf. 

This service makes logistics more convenient for sellers, allowing them to focus on other aspects of their business. FBA also makes your products eligible for Prime shipping, which can be a massive draw for customers.

As impressive as Amazon’s FBA might seem to an outsider, for entrepreneurs already selling on their marketplace, it’s often singled out as the reason why online sellers chose Amazon first.

4. Amazon Prime Shipping

Prime shipping is like an online-selling cheat code. 

Over the last five years, ultra fast shipping has become a requisite part of a shopper’s ecommerce checklist. Amazon Prime is a subscription service that offers customers free and fast shipping, among other benefits. 

By selling through FBA, your products become eligible for Prime shipping, which can significantly increase your sales. Prime members – all 200 million of them – are more likely to purchase products that qualify for Prime shipping, as they value the convenience and speed of delivery. By offering Prime shipping, you can attract a loyal customer base and boost your sales potential.

Now, Amazon also offers Buy with Prime, allowing small businesses to sell merchandise on their own website, while at the same time taking advantage of one of the principal benefits of Amazon’s fantastic fulfillment service. 

5. Increased Visibility

When you list your products on Amazon, they become more visible to potential customers. Amazon’s search engine and recommendation algorithms are designed to help customers find the products they’re looking for quickly and easily. 

Now, the recent advancements to artificial intelligence are making that even more relevant. By optimizing your product listings with relevant keywords and providing detailed descriptions and high-quality images, you can increase your chances of being discovered by potential buyers. 

Additionally, Amazon features such as “Frequently Bought Together” and “Customers Also Bought” sections can help drive even more traffic to your products.

6. Easy Setup

As an entrepreneur, the last thing that you want to try to accomplish is navigating a complicated selling platform. Between product research, sourcing, and shipping logistics, you’ve got your hands full. 

Getting started as a seller on Amazon is pretty simple. The platform provides a user-friendly interface and step-by-step guides to help you set up your seller account and create product listings. 

Amazon also offers various tools and resources to help you manage your listings, orders, and payments, making it easier to streamline your operations. Whether you’re a new or experienced seller, Amazon’s setup process is designed to be straightforward and efficient.

7. Reduced Marketing Costs

Selling on Amazon can help reduce your marketing expenses, as the platform’s built-in customer base and search engine can drive traffic to your products. 

While it’s still essential to optimize your product listings and invest in some marketing efforts, namely Amazon’s powerful pay-per–click (PPC) advertising, you can leverage Amazon’s existing audience and tools to minimize your overall marketing costs. 

This can be especially beneficial for small businesses or those of you just starting, as it allows you to allocate more resources towards product development and customer service.

8. Competitive Pricing

Price is consistently mentioned as one of the main reasons that shoppers head to Amazon first. At the same time, getting pricing right has traditionally been a major challenge for entrepreneurs. 

Amazon provides sellers with pricing tools and analytics to help them stay competitive in the marketplace. These tools allow you to monitor your competitors’ prices, track your sales performance, and make data-driven decisions to optimize your pricing strategy. 

By leveraging these insights, you can ensure that your prices remain competitive while still maintaining profitability. Additionally, Amazon’s dynamic pricing feature can automatically adjust your prices based on market conditions and competitor activity, saving you time and effort.

9. Amazon’s Global Reach

Amazon operates marketplaces in multiple countries, providing you with an opportunity to expand your reach and sell products internationally. For example, with just one account you can reach customers across 28 different countries shopping in Amazon’s European stores.

By listing your products on Amazon’s global marketplaces, you can access new customer bases and increase your sales potential without the need to set up separate websites or logistics operations for each country. 

Amazon’s international fulfillment services can help you navigate the complexities of cross-border selling, making it easier to grow your business globally.

10. Diversify Your Sales

Multi-channel selling has increasingly become one of the most talked about – and impactful – components of online selling success. 

Selling on Amazon can help you diversify your sales channels and reduce your reliance on a single platform or your own website. By having multiple sales channels, you can mitigate the risk of potential downturns in any one platform and ensure a more stable revenue stream. 

Additionally, selling on Amazon can provide valuable insights into customer preferences and market trends, which you can apply to your other sales channels and product development strategies.

Amazon Is #1 for a Reason

Selling on Amazon offers numerous benefits for entrepreneurs looking to expand their reach, increase sales, and streamline their operations. From access to a massive customer base and brand trust to convenient fulfillment options and global expansion opportunities, Amazon provides sellers with the tools and resources you need to succeed in the competitive world of ecommerce. 

By leveraging these advantages and continuously optimizing your presence on the platform, you can unlock the full potential of your business and achieve long-term growth and success.

And, if you’d like to stand on the shoulders of giants, and take advantage of a shortcut that has fueled the success of many of the top Amazon sellers, reach out to the ecommerce experts at Canopy Management. 

How Canopy Management Can Help

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Advertising Experts with smart tools and tech, you get industry-leading results like this:

• 84% Average Year-Over-Year Profit Growth for Our Partners
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation