Hello friend! As a successful Amazon seller for over 10 years, I‘m often asked if selling on Amazon is beneficial for established brands.
In my experience, Amazon offers immense opportunities for growth through their tools, audience, and programs tailored to brands. There are challenges, but the platform enables you to scale your business in ways no other site can.
In this comprehensive guide, I‘ll share the top 6 reasons Amazon is a game-changer for brands ready to boost their ecommerce presence. Let‘s dive in!
1. Unrivaled Access to Customers
Without question, Amazon grants you access to the largest online audience of buyers. As of 2021, Amazon has:
- Over 200 million Prime subscribers worldwide
- 300 million total active customer accounts
- Captured 41.4% of all US ecommerce sales
To put Amazon‘s dominance in context, they have more customers than the next 9 competitors combined!
Amazon‘s growth also continues to accelerate. From 2020-2021:
- Active Amazon customers increased by 50 million
- Net sales grew by 22% to $469 billion
- Third-party seller sales grew even faster at 29%
As you can see, Amazon provides unparalleled access to high-intent buyers ready to purchase. For brands, this is an opportunity to get your products in front of millions of new customers you won‘t reach anywhere else.
And remember – Amazon customers tend to be younger millennials and Gen Z compared to other sites. So if you want to target these demographics, selling on Amazon is a must.
2. Advanced Brand Tools to Promote & Protect
Amazon offers an exclusive suite of tools for registered brand owners to promote their products and protect their brand integrity:
The Amazon Brand Registry allows you to register trademarks, logos and intellectual property. This unlocks powerful brand management features like:
- Automated brand protection against infringing/inaccurate listings
- Customizable brand storefront
- Access to brand performance analytics
Brand Registry helps establish legitimacy and gives customers confidence in purchasing authentic goods. In my experience, it‘s one of the most valuable resources for brands on Amazon.
Amazon‘s Transparency program allows you to apply unique serial codes to products. Customers can scan these codes to authenticate items and weed out fakes.
Counterfeits are a $1.3 trillion global problem. The Transparency program lets you prove your products are genuine, increasing trust and conversion rates.
With Amazon Stores, you can create a customized brand destination featuring your logo, images, colors and messaging. This provides a true brand experience for your customers.
A+ Content enables you to add enhanced visuals and content directly on product pages like:
- Additional images/videos/charts
- Detailed product information
- Brand storytelling and messaging
- Comparisons between products
Studies show A+ Content improves conversion rates by up to 300%. It‘s a powerful tool to showcase your brand and products.
3. Direct Access to Amazon‘s Prime Members
One of the most lucrative elements of selling on Amazon is access to Prime members. The program has grown massively since launching in 2005:
- 2005: Amazon Prime launches in US with 2 million members
- 2015: 54 million US subscribers
- 2021: Over 200 million members worldwide
Let‘s look at a few key Prime member statistics:
- 64% of Amazon‘s ~300 million customers are Prime members
- Prime members spend an average of $1,400 per year on Amazon, nearly double non-members
- Prime members convert at higher rates compared to non-members
- Most Prime members factor free 2-day shipping heavily into purchasing decisions
The number of Prime members will likely exceed 300 million worldwide by 2025. These loyal, high-spending customers represent an incredible opportunity for brands selling on Amazon.
By selling FBA, your products qualify for Prime shipping. Or you can use Seller Fulfilled Prime to tap into Prime demand while still fulfilling orders yourself.
Either way, Prime unlocks millions of potential new customers.
4. Highly Targeted Paid Advertising
Amazon‘s advertising platform allows brands to target their ideal buyers with laser precision.
You can tailor ads based on:
- Search keywords
- Purchase history
- Product interests
This level of customization is possible because Amazon has more customer data than anyone. Advertising options include:
- Target shoppers searching for specific terms or products
- Get your listings displayed prominently in results
- Build awareness by showcasing your brand and products prominently in search results
- Reach buyers with display ads on Amazon sites and apps
- Useful for cross-promoting products or deals
The platform does take effort to optimize, but provides an unparalleled ability to connect with your ideal customers. For many brands, Amazon ads become their highest ROI marketing channel.
5. Logistics Support with Fulfillment by Amazon
For sellers of physical products, order fulfillment and shipping can be extremely overwhelming.
The beauty of Fulfillment by Amazon (FBA) is it handles these complex logistics for you:
- Amazon picks, packs and ships your orders from their fulfillment centers
- They handle all customer service and delivery queries
- FBA accepts and processes any returns and refunds
- Your inventory is stored in Amazon‘s warehouses
This also means:
- FBA listings are Prime eligible for free 2-day shipping
- FBA listings have a higher chance of winning the Buy Box
According to Jungle Scout, FBA listings drive 2.5x more sales than merchant-fulfilled listings.
FBA provides immense logistical support so you can focus on accelerating sales and branding.
6. Wealth of Actionable Data and Insights
Understanding your customers and fine-tuning your Amazon presence requires data.
Fortunately, Amazon provides powerful analytics across multiple areas including:
- Product performance – Monitor sales, impressions, conversions, reviews
- Search analytics – See how customers find your products organically
- Demographics – Learn more about your customer age, gender, location
- Advertising analytics – Track campaign performance and optimize
- Brand analytics – Gain insight into brand search volume, conversions, repeat purchases
With the right analytics software, you can connect your Amazon data to other platforms like Shopify or Walmart to get a single unified view.
These rich insights empower brands to make smart optimization decisions and strengthen their market positioning over time.
Given Amazon‘s immense audience, brand tools, logistics network and wealth of data, it offers significant opportunities for established brands ready to expand their ecommerce presence.
My recommendation is for brands on the fence to begin experimenting with a limited product selection and leverage Amazon‘s analytics to optimize your approach.
Use Fulfillment by Amazon and PPC ads to unlock new Prime buyers, then reinvest the profits into expanding your brand presence and perfecting your strategy.
Hope this guide gives you clarity on why Amazon should be a part of your brand‘s growth vision. Wishing you tremendous success!