What You Need to Know Before Getting an Amazon Business Account
We look at the Amazon business account benefits and drawbacks to help you decide if Amazon is the right selling place for you.
Are you looking to enter the world of eCommerce? Are you searching for a platform where you can kick-start your online business? Then Amazon Business is one of the options you may want to look into.
Amazon Business is a platform that gives business owners access to Amazon’s extensive network of suppliers.
Statistics reveal that over 150 million mobile users access the Amazon app in a single month. Moreover, 89% of consumers trust the Amazon brand. These stellar numbers are the keys to maximizing the Amazon Business account benefits.
However, there are also downsides to having an Amazon Business account. So how can you tell creating an Amazon Business account will suit you best?
Continue reading below as we discuss the pros and cons that come with an Amazon Business account.
Amazon Business is a platform that gives business owners access to Amazon’s extensive network of suppliers.
Statistics reveal that over 150 million mobile users access the Amazon app in a single month. Moreover, 89% of consumers trust the Amazon brand. These stellar numbers are the keys to maximizing the Amazon Business account benefits.
However, there are also downsides to having an Amazon Business account. So how can you tell creating an Amazon Business account will suit you best?
Continue reading below as we discuss the pros and cons that come with an Amazon Business account.
More Customers at Hand
Of the many different Amazon Business account benefits you can enjoy, this is one of the most appealing. Amazon gives you access to a large number of customers.
With millions of potential clients, it is no surprise that Amazon has over 8.6 million total sellers worldwide. Moreover, the sales come in quickly compared to other eCommerce platforms. If you start optimizing your listings, you can expect to chalk up sales even from Day 1.
With millions of potential clients, it is no surprise that Amazon has over 8.6 million total sellers worldwide. Moreover, the sales come in quickly compared to other eCommerce platforms. If you start optimizing your listings, you can expect to chalk up sales even from Day 1.
Solid B2B Features
Another huge benefit of an Amazon Business account is its solid B2B features. Amazon allows you to order from any of the site’s suppliers in bulk and discounted prices. And once you get the ball rolling, you can build momentum and start snow-balling your sales.
Interestingly, Amazon doesn’t scrimp when it comes to their research and development. They spend over $13 billion every year to improve user experience to a more compelling one.
Moreover, they come up with features that specifically cater to business sellers. These cover business pricing, bulk discounts, and tax-exempting purchases, to name a few.
Interestingly, Amazon doesn’t scrimp when it comes to their research and development. They spend over $13 billion every year to improve user experience to a more compelling one.
Moreover, they come up with features that specifically cater to business sellers. These cover business pricing, bulk discounts, and tax-exempting purchases, to name a few.
Easy Shopping for Customers
The site offers an easy shopping experience for your customers. Thanks to its user-friendly interface, customers will have a breeze going through the items and carting the items they want.
Instead of buying different items from various online stores, Amazon likely offers everything your customers need. This means they can shop conveniently while saving more time.
And when customers shop with ease, expect them to come back for more.
Instead of buying different items from various online stores, Amazon likely offers everything your customers need. This means they can shop conveniently while saving more time.
And when customers shop with ease, expect them to come back for more.
Selling Tools Abound
Aside from a user-friendly interface, Amazon also comes with tons of selling tools. Helium 10 is one of the most useful things you need to master. It features different tools like keyword research and competitor research.
It also comes with a product rank tracking, as well as product niche finders. And if you create an Amazon Business Prime account, you will unlock some exclusive tools.
You may even consider joining Prime Day. Click on the link to find out how.
Guided Buying is a great example. This tool helps you tag products and suppliers according to your customers’ preferences.
Another is the Spend Visibility tool. This helps you visualize your spending for purposes of tracking and analysis.
It also comes with a product rank tracking, as well as product niche finders. And if you create an Amazon Business Prime account, you will unlock some exclusive tools.
You may even consider joining Prime Day. Click on the link to find out how.
Guided Buying is a great example. This tool helps you tag products and suppliers according to your customers’ preferences.
Another is the Spend Visibility tool. This helps you visualize your spending for purposes of tracking and analysis.
Simplicity in Fulfillments
When it comes to the fulfillment of your customers’ orders, Amazon simplifies things. You have the option to let Amazon take over the fulfillment of the orders.
All you need is to ship your products to Amazon’s warehouse. Thereafter, they will store your items until customers order them. Whenever customers buy your items, Amazon will handle the packing and shipping.
Additionally, Amazon can handle product returns, as well as refunds.
All you need is to ship your products to Amazon’s warehouse. Thereafter, they will store your items until customers order them. Whenever customers buy your items, Amazon will handle the packing and shipping.
Additionally, Amazon can handle product returns, as well as refunds.
The Conundrum on Margins: The First Con
Shifting over to the cons of Amazon Business, the first downside is the risk of giving up margin. Though this is case-to-case depending on the category of your products, you may end up paying between 6% and 15% in fees.
Furthermore, these fees do not include the Fulfillment by Amazon charges.
Furthermore, these fees do not include the Fulfillment by Amazon charges.
Limited Communication
Though you may have access to more customers with Amazon Business, you may find that Amazon is not as generous when it comes to letting you communicate with your clients. For example, there are rules you need to follow concerning what you can include in the packages that you ship.
This limitation may work against your branding initiatives. Your brand may not get the maximum exposure it can get from your customers.
This limitation may work against your branding initiatives. Your brand may not get the maximum exposure it can get from your customers.
Unpredictable Platform
Though the Amazon platform is user-friendly, it can also be unpredictable. Like Google, Amazon also uses algorithms in running its platform. The problem with their algorithms is that Amazon can change them anytime and in any way they want.
This means you may have a breeze selling your products today but struggle to sell the same items the following week.
Furthermore, Amazon can be strict in policing their marketplace. It is common to hear Amazon suspending seller accounts. They also do not hesitate to terminate them if Amazon sees fit.
This means you may have a breeze selling your products today but struggle to sell the same items the following week.
Furthermore, Amazon can be strict in policing their marketplace. It is common to hear Amazon suspending seller accounts. They also do not hesitate to terminate them if Amazon sees fit.
Stiff Competition
If you are a newbie with no experience in selling, then the fierce competition in Amazon may be too much to handle. With Amazon’s popularity, sellers from different countries continue to flock the platform.
Moreover, there is the entry of Chinese manufacturers. Unfortunately, some of them will copy your products and sell them off at cheaper prices. As a result, your market share becomes smaller.
And with so many sellers on board, it is hard for some business owners to stand out. Thus, you need to continue reinventing your brand.
You need to bring something new to the table often.
Moreover, there is the entry of Chinese manufacturers. Unfortunately, some of them will copy your products and sell them off at cheaper prices. As a result, your market share becomes smaller.
And with so many sellers on board, it is hard for some business owners to stand out. Thus, you need to continue reinventing your brand.
You need to bring something new to the table often.
Clients May Cheat and Ruin Your Business
Last but not least, your clients may cheat on your business. This is possible because of Amazon’s pro-customer environment. Some customers complain about the products even if their complaints are invalid.
Hence, they get away by getting your products for free.
Hence, they get away by getting your products for free.
The Verdict
Should you create an Amazon Business account? The answer is still “yes.” However, you need to be mindful of the cons we discussed.
You also need to plan and prepare accordingly to manage those challenges.
You also need to plan and prepare accordingly to manage those challenges.
Reap These Amazon Business Account Benefits Now
Learning about the Amazon Business account benefits and disadvantages will help you make better decisions. It will guide you in choosing the right products. It will assist you in maximizing your bottom line.
But understanding the pros and cons of Amazon is only the tip of the iceberg. Check out our other blog posts to learn more about managing an eCommerce business.
But understanding the pros and cons of Amazon is only the tip of the iceberg. Check out our other blog posts to learn more about managing an eCommerce business.