Recently my firm has been getting a lot of inquiries from retailers questioning whether they should be selling on Amazon. They are concerned about letting Amazon take over their brand image and wonder whether the results will be worth the perceived risk. My answer is simple – if Apple can sell on Amazon, so can you.
If you are not selling your products on Amazon, you are missing out on a huge opportunity. What do I mean by huge? How about an active US shopper base of 90 million consumers – of which 40 million are high-spending Prime Members. And over 180 million user visits per month.
I get it. Amazon is the large e-retailer who is seemingly driving down prices and making it challenging for you to maintain your brand identity. But Amazon is delighting customers by staying to their ethos that Bezos outlined in his first letter to shareholders in 1997 – they have stayed focused on delivering the best prices, the best selection and offering the convenience that consumers crave.
Here’s the thing – nearly 50% of all buyers skip Google and retailer sites and head straight to Amazon for product searches. And this number is likely only going to increase. Your competitors have recognized this opportunity and are selling on Amazon. And you have waved your white flag and are handing over one of the biggest retail battlefields in the US.
That’s not all. Recommendations are the number one influencer of product choice. Consumers want the validation that they are about to buy a good product. A popular North Face fleece jacket has 1,034 reviews for an average of 4 stars on Amazon. A shoe from a non-dominant running shoe brand has 1,434 reviews and also has an average of 4.5 stars. I’d feel pretty good about buying both of these products based on the reviews. Meanwhile, your product has no reviews on Amazon – the primary place where consumers go to find product reviews.
If you aren’t convinced yet and are willing to let the competition rule the largest e-commerce site in the US – let me give you one more stat. In late 2015, 51% of shoppers said they planned to do their holiday shopping at Amazon. In other words, half of all American shoppers are not going to be finding your products when they go shopping. If you are, like most brands, trying to grow your business and increase revenue, get off the sidelines and get on Amazon.
This blog was originally published on Lenati.com
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