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The Pros And Cons Of Selling On Amazon

Published on: December 2 2022 by Tatiana James

The Pros And Cons Of Selling On Amazon

The above is a brief introduction to The Pros And Cons Of Selling On Amazon.

Let's move on to the first section of The Pros And Cons Of Selling On Amazon!

The Pros And Cons Of Selling On Amazon

hey everyone i'm tatiana and today i am
here to enlighten you about the pros
and the cons of selling on amazon
so without a doubt obviously it's a huge
opportunity to sell on amazon
but i'm not going to be biased in this
video i want you guys to know that there
are cons as well just like with any
other business there are pros and cons
and i kind of want to bring that to your
awareness but keep in mind that i'm
going to be speaking from my own
experience
so that's all i have to offer your
experience may be completely different
so just take it with a grain of salt
so first of all i'm going to start with
the pros and i'm going to lead into the
cons
i would say the biggest pro is just the
opportunity
it's a massive opportunity amazon is the
number one online retailer in the world
it has massive brand recognition
um there are hundreds of thousands
millions of people who are customers of
amazon who have amazon accounts
who have signed up for one click buy now
meaning they have their credit card
information
saved on amazon they can easily just
click a button
and they've ordered a product and the
product will arrive to them and
two days with their prime account you
know it's just they've built this
incredible
brand um that people are so attracted to
and so they're building this
huge customer base and the reason why
it's such an incredible opportunity for
us
is because a they give us access to this
customer base
they give us this opportunity to sell on
their platform amazon could
produce all the products themselves it
would be a lot of work for them but they
would be they could produce all those
products themselves
and not give access to third-party
sellers to sell on their platform
but that's not their business model they
allow people like you
myself anyone almost can register to
become a seller and sell products on
amazon
and in doing so you get access to that
customer base
so you get access to their customers so
they're putting all this marketing
dollars
all this effort into growing their brand
um and you get access to
some of that and so people always ask me
tatiana should i start selling on
shopify or should i start selling on
amazon
and my answer is always the same you
have to think about it if you are to
sell on your own website such as
say a shopify store you are 100
responsible for driving traffic
to your website where you can then
potentially convert
uh prospective customers into customers
okay but on
amazon just by just by listing your
product on amazon
there is the potential for a prospective
customer to browse through
amazon's search engine and come across
your listing and discover your listing
and buy your product without you having
to necessarily drive that person
uh off of amazon to your listing or you
know
spend money on ad spend in order for
them to click on your listing
so it's incredible just how customers
can discover your products
and because amazon is a search engine
that's another big thing
so just like how google is a search
engine you go to google
you type in a question or whatever it is
that you want to know and a bunch of
websites pop
up they auto populate and then they will
direct you to whatever it is that you're
searching for
amazon is the same thing except people
type something on amazon they're not
just like asking
questions they're typing and they're
searching for products that they want to
buy so people search for things on
amazon
they mean they may or may not be in the
market to buy something but when someone
is typing for something and searching
for something on amazon
they want to buy it they have their
credit cards out and they're ready to
buy it
so because amazon is a search engine
if you list your product and you do good
keyword research and you
um have your product and you know say
you're selling
a water bottle and someone types in a
water bottle well your listing could
show up
and so that person could discover your
product so a ton
of potential there and that kind of just
leads me into the next one
which is just the trust that amazon has
built with their customers you have to
keep in mind you know it wasn't that
long ago when people were very hesitant
and skeptikal
about making online purchases right
where people were like oh i only shop
uh retail i never shop online and never
put your credit card information online
you know i remember when i was growing
up like i wasn't even allowed to use my
own
my real name to to create an email
account or
to you know put information online like
don't use your own name be careful with
that
people were very cautious about that but
nowadays
we kind of forget how you know nowadays
everyone's online shopping everyone's
buying products online
and we kind of forget that there are
people who are still very hesitant to do
that
and so if you were to sell on your own
website you have to work on building
that trust on establishing that trust
for a customer to feel comfortable
enough to
place an order and check out and make a
payment online
but on amazon amazon's already done the
legwork for you they've gone ahead and
established that trust that's why they
have
millions of customers right and so
by being partnered with amazon by being
a third-party
seller you are now associated with
amazon and amazon
kind of passes on that trust to you so
when people are shopping products on
amazon
uh oftentimes you know customers people
who aren't in this niche who don't
understand about online selling
they think that they're buying the
products directly from amazon they don't
even realize that they're buying these
products from third-party sellers
and so they have this level of trust in
amazon that amazon's going to deliver
for them
and amazon's developed this trust not
just by saying that they're going to do
things but by following through
they've got an incredible policy for
their customers 30-day money-back
guarantee
they'll refund you if anything's wrong
they've got really great shipping
you know the policies in favor of the
customers not so much the sellers and
we're going to touch on that when i get
to the cons
um okay so the next uh pro would be just
the fact that you can
achieve passive income with your amazon
business
i mean that's just incredible if you
think about any other traditional
business you can achieve relatively
passive income now
passive income like can you leave your
business and never look at it again
no you still have to do some maintenance
work you still have to check in on it
once in a while
but for the most part it's passive
income because once you
sell a product and you've basically
automated that product you have
hired a team if you need to hire a team
but you have everything
in automation you don't necessarily need
to check back on the business so often
maybe you check on it once a week you
log into your account make sure
everything's good or you hire someone to
do that for you
and it can be very passive income
meaning that
when you're sleeping there are people
buying products when you're on holiday
there are people buying your products
when you are uh exercising there are
people buying your products you don't
need to be in front of your computer
hustling
in order to earn money you can earn
money
as you're going about your day enjoying
your activities
and that's really cool because yes
you're going to have to work and you're
going to have to put in that
upfront work finding your product
marketing doing all that stuff but once
you've got that on amazon
um you know then it's just about getting
sales
and just about people discovering your
product and buying your product and that
can be done fairly passively so
amazing opportunity to create a passive
income stream
and like i said it's not 100 passive i
mean like there are very few
100 passive ways to earn income
aside from investment income which can
be 100 passive for example
dividends that you earn on your stoks
but for the most part like
it's passive okay um the next one i
would say is just the scalability
so how you can scale your amazon
business how
quickly you can scale it how effectively
you can scale i'm not going to use the
word easy because it's not necessarily
easy but
relative to other businesses pretty
pretty simple
let's let's use the word simple there's
a difference between simple and easy
if you're going to try and get the easy
route you're not going to get very far
nothing worth doing is is easy you need
to earn your success
but it is quite a scalable business so
once you've got your kind of foundation
of your business in place
then from from there on to scale your
business um
to to increase your revenue it's quite
simple you know you just need
the key is just to go from one customer
a day to 10 customers a day to 100
customers a day
you know it's just about reaching more
people
and and you can do that fairly simple
with an online business
by doing learning how to do marketing
paid advertising you can even use
amazon's paid advertising amazon ppc
and so to scale the business is quite
simple i have a video where i share
how i went from like making fifty
thousand dollars a month on amazon to
uh to growing that income significantly
and
it's always the hardest in the beginning
it takes the longest in the beginning to
kind of establish that foundation but
once you've got the foundation
down then it becomes easier to grow
so the next one i will say is that
it's really the anonymity of selling on
amazon
so if you're the type of person who
likes to remain
anonymous prefers to be behind the
scenes
prefers to kind of be alone work alone
maybe you're a bit more introverted this
could be a great business for you
you know don't use me as an example
because if you follow how i built my
business
i decided to be the face of my brand
that was an option that was a choice
that i made
most people don't do that so don't think
that you have to do what i did in order
to become successful selling on amazon
most sellers are not the face of their
brands okay if you go and you
pick a product on amazon that you're
interested in buying and you click on
the seller and then you
do a google search and you see their
website you're going to see information
about the brand itself
but very rarely will you find
information about the
actual founders and like they're they're
they're not really
um you know the face of their brand you
know they
hire people they hire models or whatever
it may be
but the point is that you can do this
from
from your home behind your computer
you don't have to be the face of your
brand and so you can remain anonymous
and that might
be something that's very attractive for
some people who wants to be that behind
the scenes person
now the next thing i'll mention that's
very obvious is the fact that you can
work from home
um that is a huge benefit of having an
online business
selling on amazon is that you're not
restricted to working from
one location from going to your job
as long as you have a laptop or a
desktop computer you can work from your
home
and if you have a laptop you can work
from anywhere in the world you can
choose where you want to work
one day i'm working at coffee shops one
day i'm working in my home one day i'm
working
at the park you know i choose where i
want to work and that's such a blessing
especially in this day and age with
covid and what's going on and just this
pandemic and wanting to
stay healthy and keep yourself kind of
away from
other people to some extent it's nice to
be able to
stay at home and to be in your own
environment and so it is a huge benefit
for some people
um to to be able to do that i know a lot
of moms
love the idea of starting an online
business just so that they can spend
more time around their kids um yes
there are disadvantages that as well
when you're trying to work and you're at
home and your kids are there
but you can learn to manage that and for
many people that's a lot better than
having to go to a job
and then coming back home so that's a
huge advantage
the last thing i'll say before i get
into the cons is just
how you are building an asset
when you're building an amazon business
you are building a
very attractive asset to investors
and so especially if you're going to be
building a brand so when you decide to
start your amazon business you can go
about it a couple different ways you can
sell a bunch of random products and you
can make good money doing that
or you can decide to stik to one
category one niche and build a brand in
that niche
and make a lot of money doing that both
of them work you can choose what you
want to do
building a brand requires a bit more
effort bit more creativity on your part
but there are many advantages to that
because then you can build a brand
that becomes a great asset and one day
and this is something that's very common
with amazon businesses
you may decide to sell it you may decide
that you know what this business has
gotten me
you know i've kind of gotten what i
wanted out of it i've gained a
tremendous amount of experience but
i've moved on in my life and i'd like to
sell this business and maybe start
something else or
move on to a different chapter of my
life and a lot of people have that
option and it's a beautiful thing
so you can build an asset not only are
you earning a paycheck from your
business
but every day that you're putting in
effort and growing your business you're
also building an asset that you can
later sell
um for three times multiple of
you know your business earnings which is
incredible so
that's something really exciting because
then you really have something to look
forward to you know just the possibility
of selling your business and what that
money can provide for you maybe starting
something else maybe moving on in your
life
who knows but it's exciting okay we
don't want to make this video too long
so let's get into the cons of selling on
amazon
number one would be the cost so um
one of the pros that i didn't mention
was that kind of amazon
takes care of a lot of the work for you
you know you don't have to see your
products
you can send your products to amazon's
fulfillment centers called
fba they pick pack ship your products
for you they handle customer support
they really do a lot of the work for you
and so that way
that really helps you create this
business
automate this business and it just helps
you to kind of
not have to focus on that kind of work
and focus on other areas of your
business
but that does come at a price and so
that would be one of the cons is just
the price of that
it's going to be more expensive for you
to sell on amazon than it would be for
you to sell on your own website
the referral fee for amazon so because
you are selling on amazon amazon's
referring these customers to you there's
a referral fee
it can be quite high um and it's like
yes
it's gonna be more expensive than
selling your own website but
if you're just looking at the numbers
you're like oh obviously i should sell
my own website but
really that's not how it makes it
doesn't make sense like
logically when you look at it but look
at all the benefits that it's giving me
it's more expensive because this is what
it's offering me
and i'd say the biggest piece of that is
just the customer base you're getting
access to these customers who trust
amazon who know amazon
so yes it comes at a higher fee but i
think it's worth it but
that is noteworthy um the next thing is
it's just a bit annoying
to deal with amazon's seller support
i hate to say it hate to be that person
but amazon has a wonderful
customer support policy for their
customers
so you know if you're a customer on
amazon and you need to return something
like they're like oh yeah like don't
even send
back you know we'll just refund you like
they've got they're great customer
service
as a seller um it's not so much the fact
if you need to get a hold of amazon and
you need them to resolve something for
you it can be
a very tedious process and i know i've
gotten
very annoyed i've really practiked
um just becoming zen
and learning to be non-reactive while
i'm on the phone with customer support
or seller support and trying to get a
problem resolved
and it's actually been one of my
greatest spiritual teachers just being
an amazon seller because of the
frustrations that come along with
it i've really had to learn to kind of
looked inside to see what's going on why
am i getting upset about this why am i
reacting to this
and so anyways you guys will figure that
out i don't even have to tell you more
about it but
really every seller is going to
experience this that you're going to
have some sort of encounter with
amazon seller support and it's going to
make you want to rip the hairs out of
your head and quit selling on amazon
and then you go to bed and you're like
oh wait but you know what this is just
part of the business and i just have to
suck it up and deal with it okay so the
next con
is that although you have this ability
to
work from home um and kind of have that
flexibility
if you're someone who's super social it
can be very socially isolating
so if you're someone who is kind of the
life of the party a social butterfly
someone who craves social connection
maybe you're more extroverted
then having a business where you work
from home
and you are not around people every
single day
can be a little bit isolating and it can
take its toll on you
in the beginning everything's fine and
perfect because you're starting a
business
but after some time if your nature is to
be around people every single day and to
tok with people
and you don't get to experience that
with your business
then you're going to start to feel like
that need is not being met
and you can meet that need by actually
having hobbies and like going out and
socializing and doing other things with
the free time that having an amazon
business will provide for you
but if you find that you really crave
that in the work that you do
like communicating with your customers
one-on-one face-to-face
you're just not going to have that
social interaction that
is a high important for you so just
something to note i know myself
it has been a bit of an isolating
experience
i'm very introverted so i can spend
months with myself
in my own apartment and i'm cool with
that but it
after a while you start to realize that
you know i do miss um just
being around people and chatting with
people and just being more social
and miss building those types of
relationships and the opportunities to
build those relationships so
something else to note there now
something else i will mention
is that when you are selling on amazon
you do not own your customers you do not
own your amazon listing you are at the
mercy of amazon
you are not very protected your business
is not very protective because at any
point in time
if amazon decides to suspend your
listing
to deactivate your seller
membership uh to suspend your account
block your listing whatever it may be
they have the right to do so
and amazon's pretty good about that
they're usually not going to do that for
no reason you may have done something
unintentionally that triggered their tos
their terms of service
and you did something that amazon does
not allow
and that triggered your account to
getting deactivated or your listing
suspended
usually they don't just do it out of the
blue for no reason but
you do need to be careful because if you
aren't paying attention and you are
doing something a little bit shady that
could happen to you
and then you could wake up one day and
your whole business is just gone
you know you don't have the ability to
sell to those customers anymore because
amazon's not permitting you to do so
um so you kind of have to keep that in
mind that you will always kind of be at
the mercy of amazon and that's why
if you follow my channel if you
subscribe to my channel and watch all my
videos and i recommend that you do
because
if you're just watching one video you're
only getting one piece of the puzzle you
have to watch kind of all the videos to
really understand the full picture
i recommend starting to sell on amazon
if you're starting start on amazon it's
the best place to start don't just start
on your website on shopify
amazon provides such an opportunity but
once you've built your business up to a
certain point
in terms of your customer base your
revenue
then you want to start considering to
sell on your own website so that you
don't have all your eggs in one basket
if you have all your eggs in one basket
you drop that basket all your eggs crack
if you have your eggs dispersed over
different baskets
you know your own website maybe you're
also selling on etsy or whatever it may
be
then you know if something happens to
your amazon account that's okay you
still have income coming in from your
own website
from your shopify store so at some point
in time it's good to start
to sell on your own website but i
recommend starting on amazon
because on your own website you do have
that control you are in charge you are
in control of your website you're in
control over your marketing
you will own your customers own your
customers you know what i
mean you will uh be in charge of your
return policy you just have more control
over your business and your brand
and it provides more of a safety net
amazon does not offer that
now the last con that i will mention
before wrapping up
is the learning curve if you're going to
be selling on amazon
you're going to have to learn a lot most
people who start selling on amazon have
never had an online business before
and so if you're coming from working a
traditional job you're not super
computer savvy
then there is going to be a learning
curve there and it's going to require
a willingness on your part to put in the
work to learn
what i've learned from doing coaching
with people is that there are two types
of people there are the
people who um who say
i don't know how to do that so i can't
do that
and there are people that say i don't
know how to do that but i'll learn
i'll figure it out i'll find a way to
make that happen
and you really have to take the latter
approach because if you don't you're not
going to get very far with your business
honestly in life in general like if
you're not willing to learn you're not
going to grow
if you're not going to grow you're going
to remain where you are for the rest of
your
life and that's quite boring so um
you really have to be willing to learn
and what i mean by learning is that
there are so many different components
of an online business
you're gonna have to learn about email
marketing you're gonna have to learn
about graphics design you're gonna have
to learn about social media you're gonna
have to learn
about um listing optimization seo
blogging like so many different moving
pieces and you don't have to be an
expert in all of these fields
you will you should learn the basics of
all those things if you want to hire
people to do that stuff for you
you can but i do recommend that you
learn at least the basics
because if you understand the basics of
how your business works
that's important because then if you do
later decide to hire someone to kind of
automate this delegate this take it off
of your plate
then at least you know whether or not
that person's doing a good job
if you have no idea how it works then
you don't know if what they're doing is
is
if they're doing it the right way or the
wrong way but if you have a basic
understanding you have a bit of a
reference point you know
if they're on on the right track or not
so
there's a learning curve with an online
business and it can be a bit
stressful especially if you're someone
who's not really tik savvy
it doesn't really know how to use the
computer much you're just going to have
to learn more than others
does not mean it's not doable does not
make it impossible
just means that you're going to have to
exert a bit more effort and
be open to learning all right guys so
that's going to wrap up this video those
are the pros and cons of selling on
amazon
there are always a lot more i can't
mention everything in this video but i
would say those are the
the biggest ones um of course you know
the pros outweigh the cons
there are going to be cons in any kind
of business any job that you have and
there's
no perfect role but the opportunity that
owning your own business working from
home
uh having this flexibility
it's just it's incredible opportunity
and i was fortunate enough to make the
decision to start my online business a
number of years ago
and it's done incredible things for
myself my lifestyle what i've been able
to give
to others and it can for you too and it
may not be your path
not everyone is kind of suited for
entrepreneurship
you know i'm not meant to be a lawyer or
a doctor
i don't have the skills or the qualities
that
would be required to perform those roles
but i do know that entrepreneurship
suits me and so you kind of have to
decide on
on if it's the right fit for you or not
i can help you get started
if you guys are beginners and you're
looking for how you can get started with
selling on amazon
i do have a free four-part video
training series that's going to help you
get started
i strongly recommend that you get that
watch that take the time to watch it
because after watching it you're going
to feel more confidence moving forward
you're going to know how you can get
started what you can do what action
steps you
have to take next and you're also going
to get a very comprehensive
idea of what this business really is
what it looks like and what it will
entail of you
so you can get access to that by going
to tatianajames.com
fba or clicking the link in the
description box of this video below
hope that you guys enjoyed this if you
have questions feel free to comment down
below
i'm most active in answering comments
right at the end
as soon as i publish a video so if you
guys are
hitting the bell symbol and getting
notified when i release a video
and you're the first to comment you will
definitely be getting your response from
me
so thank you very much for watching guys
hope you enjoyed it and i'll see you in
the next video bye

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