Ace Business Training

Marketing & SEO Industry Tips

By - Mike

Your Amazon Sales are hurting Your Website Sales?

Amazon is great to get some sales fast. They’re a highly authoritative brand and get a ridiculous amount of traffic. So why wouldn’t you list your brand products there?

WELL, let me tell you:

  • They are not an easy company to work with. Expect products to be pulled because they’ve decided to change your product page then moan at you months later for not following their guidelines
  • Expect to lose a FORTUNE in commission, when you could be selling less but making nice margins through your own website.
  • Run into distribution headaches

Thats not even the end of it, one thing many amazon sellers don’t realise is….. You’re slowing down the growth of your own website.

How Can Great Sales on Amazon Be a Problem?

Too much success on amazon can be a bad thing. If you have rapid growth on Amazon, I can assure you at a certain level your other distribution channels will see the affect. The success you have on Amazon an easily cannibalise the sales from your ecomerce site.

Customers can shop at Amazon with ease and feel comfortable while doing so. Amazon has so much consumer trust built up with customers that you’ll find it really hard to compete with. If the customer prefers to buy from Amazon because it’s so easy and they feel safe with Amazon, why would they ever buy from your site?

Why would they give up on Amazon Prime next day delivery or the simplicity of paying on a website where they have all their payment details stored.

From start to finish, their is NO friction in the buying process. Did you know 50% of american households will have a prime membership in 2019 alone.

How to Reduce the negative affects of selling on Amazon

I met a guy who’s sole job was to manage this for international brands. Its partially what prompted me writing this article.

Here are two ways that you can reduce the impact of Amazon on your own brand:

 

  • Price Control: Losing existing customers is your worst nightmare. The last thing you want is to lose existing customers and have them moving to buying your product on Amazon. Ensure your websites pricing matches Amazons.
  • Distribution Control: Control how much of your product Amazon is selling. The last thing you want to fall victim to is price erosion.

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