Any E-Commerce Seller Should Have Their Products On Amazon. Here’s Why.
We are experts at selling on the Amazon Marketplace. We handle the administration and marketing for many brands. However, even we were shocked to read an article this morning about Amazon’s customer loyalty.
According to the most recent study by Feedvisor, Amazon’s total grip on the retail market is tightening. Customers are so loyal that they are less inclined to make purchases from a competitors website AT ALL!
- 95% of US Amazon customers had made a purchase from the marketplace in the last year as of summer 2016, according to the report.
- As Amazon adds perks to its Prime membership program, this could encourage more existing Amazon shoppers to join. This may intensify their loyalty even further.
- Just 33% of Amazon shoppers had made a purchase on eBay within the past year, and only 3% on Jet.com.
- Amazon Prime members are fiercely loyal to the company, accounting for nearly 60% of its total GMV in 2015, according to Deutsche Bank, cited by Business Insider.
With the loyalty of both Prime and non-Prime members, Amazon could create an entire e-commerce ecosystem. Customers may have less need to look at other e-commerce sellers. That is a powerful position.
According to a recent Business Insider article, “Amazon has recently rolled out its Seller Fulfilled Prime program. This allows third-party merchants to make inventory eligible for Prime two-day shipping without using FBA. Vetted sellers could then ship items on their own via another carrier (i.e. FedEx, USPS). This program will greatly increase the number of Prime-eligible items for sale, as well as overall Prime sales. Especially as Amazon reports that 50% of all sold units come from third-party merchants. As the marketplace widens its addressable consumer audience via merchant adoption, we expect to see more customers sign up for Prime and join the user base, helping the e-commerce giant to increasingly eat away at competitors’ market share.”
The seller marketplace can be a great channel for adding additional and profitable sales to your existing efforts. There are certain nuances to understanding how to rank high and get visibility on the site. You need Hound Dog Digital to help you be successful. With our extensive knowledge and expertise, we can move your company along much faster.