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As Amazon continues to dominate the e-Commerce space, brands need to begin selling on Amazon to maintain relevance, grow their market share and get back into the green.

With one-click shopping, 90% of consumers still check Amazon even if they find a product they want on a retailers site.
Amazon’s dominance has led smaller brands to rethink the role of their own sites. Some have forgone e-commerce on their sites entirely, giving up control of the customer in exchange for having sales and fulfilment operations managed by Amazon.

Here’s a look at how several online brands have been surviving on Amazon and what you need for a brand to have a foundation of strength on Amazon:

Growth Opportunity & Maintaining Relevance

Advances such as mobile e-Commerce, subscription-based pricing models and next day shipping have made it easier than ever to make purchases and receive goods nearly instantaneously. Many consumers now view brick-and-mortar stores as a hassle. Why fight traffic and crowds to make a purchase when shopping is as simple as swiping on a smartphone? In fact, it’s predicted that shopping malls will close their doors in the coming years due to changes in consumer behaviour and losing the convenience battle with e-Commerce websites. Who is the main benefactor of this pronounced shift in consumer behaviour? You guessed it — Amazon… and those that sell on Amazon.

Amazon’s current market value is bigger than nearly all brick-and-mortar brands combined. Additionally, the site has seen a 1,934% increase in market value over the past ten years. With 300 million active users and more than 100,000 sellers that generate upwards of $100,000 in revenue apiece, the e-Commerce titan is still growing.

Some brands believe that selling on their own website will give them better results. However, the numbers tell a different story. Established brands can excel on Amazon and rejuvenate their sales with a refined product listing strategy.

Competitive Advantage

Retailers should embrace selling their products on Amazon instead of trying to compete with it. Every day, the barrier to entry increases just a little bit more, meaning that as more brands establish themselves on Amazon, it becomes tougher to succeed as a company that’s new to the platform.
There are two different types of successful sellers driving high returns on Amazon. The first group is made up of savvy third-party sellers that are privy to competitive pricing, reviews, product descriptions and search engine optimization best practices for Amazon’s ever-changing algorithms.

The second successful seller group consists of brands that are early adopters of the site and are succeeding due to their already established success and reputation on Amazon. If larger brands recognise the opportunity, they can utilize their brand power in combination with a well-executed strategy, geared specifically for Amazon, and drastically improve their competitive advantage over other sellers and brands.

Accessing Risk with Predictable Revenue Software

While it’s imperative that brands begin accepting Amazon as an untapped opportunity, there is still plenty of strategies that go into making the leap to the e-Commerce marketplace.

One of the reasons brands tend to avoid listing their products on Amazon is the lack of knowledge about both Amazon’s nuances and the logistics and fees associated with listing and shipping products. Luxury brands specifically worry about Amazon’s reputation as a low budget retailer and the prevalence of counterfeit products on the site. While this may have been more prevalent in its infancy, they’ve now established their reputation as a trusted retail outlet that caters to many different types of consumers — not just bargain hunters.

That being said, there is definitely a learning curve for both familiar and unfamiliar brands to properly navigate the challenges and opportunities the marketplace presents to generate optimal profits. Luckily, software and service companies can help bridge the knowledge gap for many retailers looking to make a splash on the site. By partnering with knowledgeable digital agencies, brands can break through the clutter to identify and predict profitable markets, assess product category trends and optimise features such as pricing and product reviews to increase page rank and views.

With Amazon recently topping $1 billion in profit for the second quarter in a row, it’s clear the e-commerce giant will continue to reign supreme as we look to the year ahead.

At Rt7Digital, we understand that Amazon is the infrastructure of retail and a huge online growth opportunity for established and rising brands alike. If you require any assistance with getting started on Amazon, please feel free to contact us on 087 151 4637 or alternatively email us at