NGL provides logistics solutions to make global trade easy and efficient. With a number of our active clients within E-Commerce, we share information about Amazon’s steady development and the opportunities for product sellers.
Amazon’s relentless growth creates opportunities for product sellers
Whether you are an already established retail brand or a newly started private-label online seller, taking advantage of Amazon’s marketplace makes selling directly to consumers not only easy but gives you a huge opportunity to brand exposure and build awareness among consumers.
Statistics show that online sales across the world amounted to $3.3 trillion in 2019. Experts predict that this figure will grow to $4.5 trillion in 2020. The top five countries leading the online retail charge are:
1. China – $656.3 billion
2. U.S. – $ 500.47 billion
3. U.K. – $83.83 billion
4. Japan – $78.64 billion
5. Germany – $68.01 billion
Note that Amazon has nearly 50% of the total online sales in the US. (This also corresponds to approx. 5% of all online and offline retail combined.)
DOWNLOAD The Amazon opportunity
But isn’t Amazon saturated? Is there still an opportunity to sell on Amazon?
The simple answer to this question is YES, there still is! Of course, some categories or products have tons of competition that you should avoid if you are just getting started. Such prominent groups might be cell phone cases, mobile phone accessories, small electronics, etc. What those products usually have in common is that they have a low entry barrier. If you want to find out whether a product category has a lot of competition, go onto www.amazon.com and type in the keyword in the search field. Look in the upper left corner to see how many results show up.
How many sales can one expect from selling on Amazon?
Recent reports show that there are about 2.5 million registered sellers that have at least one product listed for sale on Amazon and that about 3,000 sellers are joining in every day. But not everyone is making significant sales or any sales at all. As shown in the graph below, over 23,000 sellers make annual sales of $1 million +. So, if you haven’t already started your e-commerce journey or are waiting to see whether Amazon is the right marketplace for you or not, it is time to consider doing so in 2020 seriously.
Using Amazon FBA vs FBM
All 3rd party sellers can choose between fulfilling their order through FBM (Fulfilled By Merchant) or FBA (Fulfilled By Amazon). The first meaning that you store your inventory (or 3rd party warehouse) and once a customer places their order, you are responsible for the delivery including customer service, return handling, refund etc.
The FBA program, on the other hand, means you send your inventory into the Amazon appointed warehouse, and Amazon will take care of everything from delivery to the customer, return handling, refunds, customer service, etc. All products that are offered on the marketplace with FBA are also prime eligible which for many customers is very attractive.
All prime members (there are 100m + of them!) get FREE shipping on orders $35 plus an array of other services and benefits from Amazon. As a seller, this means you can ship your goods directly from your manufacturer anywhere in the world into the Amazon warehouse. Ask Norman Global Logistics the best way of transport for your shipment (Air, Sea, Air/Sea, Express) and have them prepare the goods according to Amazon’s requirements at the source. To read more about this, visit FBA Requirements.
If you have any question regarding shipment bookings, please contact our experienced staff at email@example.com. We are ready to assist anytime. Thank you!
About the Author
Peter Luxenburg is a serial entrepreneur and eCommerce consultant based in Hong Kong. In 2013, he got into selling on Amazon and soon created an online private label brand of quality bar accessories. In 2014 he founded FROST, a consulting firm that helps clients plan, launch and cultivate businesses online in general and on Amazon in particular.
To know more about FROST and what services we offer, visit www.frostlimited.com. To know more about the author, visit https://www.linkedin.com/in/peterluxenburg/