A viewer recently asked, “I have a successful Shopify store, but I worry that adding my products to Amazon could dilute my market value. What are the pros and cons if I sell my product line on Amazon?” This is a common question for e-commerce business owners. To help you decide, let’s break it down: 5 reasons you should and 5 reasons you might want to think twice before jumping onto Amazon. 💡
📈 Why Selling on Amazon Could Be a Smart Move
- Reach a Massive Audience 🌎
Amazon attracts millions of active customers every day. It’s like setting up shop in the world’s busiest mall.
- Boost Brand Visibility 👀
Even if people don’t buy from Amazon, seeing your brand there builds recognition and trust—which can send more shoppers to your Shopify store.
- Diversify Sales Channels 💼
Relying solely on Shopify can be risky. Adding Amazon as a backup ensures consistent sales, even if one channel has hiccups.
- SEO and Marketing Boosts 🔍
Amazon listings often rank high on Google. A presence there increases the chance that customers find your products when searching online.
- Simplify Operations with FBA 📦
Fulfilled by Amazon (FBA) takes care of storage, shipping, and customer service. Plus, products in FBA qualify for Prime, which buyers love.
❌ Why Selling on Amazon Might Not Be for You
- Loss of Brand Control 🤔
On Amazon, customers see your products as part of their marketplace, not your brand. This can dilute your unique identity.
- High Fees 💸
Referral fees, FBA costs, and storage charges can eat into profits. To stay competitive, you may need to lower prices, which reduces margins further.
- Over-Reliance on Amazon 🛠️
Amazon can be a double-edged sword. If you depend too much on it and something goes wrong (policy changes, account suspension), your entire revenue stream is at risk.
- Limited Customer Data 📊
Unlike Shopify, Amazon doesn’t share much customer information. That means no email lists or direct marketing opportunities to build loyalty.
- Price Wars and Profit Erosion 🏷️
Amazon’s marketplace can feel like a gladiator ring, where sellers fight to offer the lowest price. This can hurt profits and devalue your products. 🤔
Should You Sell on Amazon?
The answer depends on your goals. If you want to reach a bigger audience and can handle Amazon’s fees, it’s worth testing. But if your focus is on brand loyalty and maximizing profitability, you may want to tread carefully. Conclusion ✍️
Selling on Amazon has its perks and pitfalls. A hybrid approach—selling some products on Amazon while keeping others exclusive to Shopify—can help you explore the platform without compromising your brand.
FAQs About Selling on Amazon 🛒
- How do I start selling on Amazon?
- Begin by setting up a seller account and choosing between FBA (Fulfilled by Amazon) or FBM (Fulfilled by Merchant).
- Can Shopify integrate with Amazon?
- Yes, apps like Shopify’s Amazon sales channel make it seamless to manage both platforms.
- What are Amazon’s fees?
- Expect referral fees (usually 15%), FBA charges, and storage fees. These vary by product category.
- What products perform well on Amazon?
- Items with broad appeal, competitive pricing, and clear differentiation tend to sell best.
- How can I maintain brand loyalty while selling on Amazon?
- Use package inserts to direct customers to your Shopify store for exclusive offers.
- What’s the biggest risk of selling on Amazon?
- Over-reliance. Changes in Amazon’s policies or suspension of your account can disrupt your business.
- Should I use Amazon FBA?
- FBA simplifies logistics but comes at a cost. Make sure your margins can handle the fees.
Need Help with Amazon Ads? If you’re looking to maximize your Amazon ad returns, sometimes you need an expert who’s been there, done that. I’m Andy Splichal, author of Make Each Click Count and host of the Make Each Click Count podcast. Amazon’s PPC landscape can be overwhelming, but with the right guidance, you can make every dollar count, I’m here to help. Let’s make those clicks count!
ABOUT THE AUTHOR
Andy Splichal is the founder and managing partner of True Online Presence, author of the Make Each Click Count book series, host of the Make Each Click Count podcast, founder of Make Each Click Count University and certified online marketing strategist with twenty plus years of experience helping companies increase their online presence and profitable revenues.
He was named to Best of Los Angeles Awards’ Most Fascinating 100 List in both 2020 and 2021. To find more information on Andy Splichal, visit trueonlinepresence.com or read The Full Story on his website or his blog, blog.trueonlinepresence.com.