Starting a business on Amazon, Alibaba and other marketplaces (eBay, Etsy, etc.)
Currently, the situation in the markets is forcing offline trading to move to the Internet. For offline businesses, the fastest transition option is to place products on marketplaces. By choosing this method, you do not have to set up online payment acceptance or deal with delivery arrangements. The site will do all this for you.
If you’ve been thinking about getting into e-commerce but haven’t made up your mind, some proof that an e-commerce merchant has a good chance of succeeding can help. Online sales are projected to account for 17% of all retail sales by 2022. Now it is about 13%. The results of a recent study show that by 2040, 95% of all retail sales will take place online. Companies that join this trend early will have more opportunities to increase sales.
Approximate step-by-step instructions for starting an online business selling physical goods on the marketplace (using the example of purchasing from Alibaba for subsequent sale on Amazon)
Product and niche selection
Search for the required factory in China through alibaba.com
Analysis of the proposed factory options and selection of the best of them
Drawing up a clear commercial proposal for the selected factory
Negotiating with Chinese suppliers
Placement of an order for the manufacture of a sample (Sample)
Registration of a payment solution for the withdrawal of received funds from sales
Registering an account on the Amazon platform
Purchasing special barcodes
Identity and packaging development
Setting up Amazon Shipment
Sending goods from China to the Amazon warehouse in America
Goods accounting (listing)
Organization of product photography
Setting up an Amazon PPC advertising account
Getting feedback from buyers
ВWithdrawal of received profit
Let’s use the example of Amazon to highlight the main reasons why you and your business should sell on marketplaces.
Extensive client base
Amazon is one of the largest online retailers with over 244 million active users. Carolyn Lowe, director of e-commerce for UpSpringBaby.com, says, “It’s the perfect place for companies like UpSpring to save a lot of money on marketing and sales.”
Brand trust
E-commerce companies and affiliates quite often choose Amazon because of the brand itself. Consumers tend to trust more those companies that are heard or those companies that they know personally.
Ease of use
The Amazon marketplace is quite easy to use for both sellers and consumers. The page of each listed product has a fairly simple navigation and a one-click purchase option. The premium program and other great features make Amazon safe and convenient for everyone.
Decent infrastructure and support system
Amazon provides a decent infrastructure to support sales. Absolutely everything, from inventory tracking to tax accounting and payment card processing, is provided by the Amazon portal. You don’t have to invent anything yourself.
Amazon’s FBA shipping service allows merchants to ship goods/products directly to Amazon warehouses, where Amazon employees process sales and returns, make deliveries, and serve customers in general. All this helps to simplify international sales.
Recommendation generation system
An additional advantage of the Amazon marketplace is the built-in algorithm for generating recommendations. Thanks to this feature, any user who comes for a particular product on Amazon can see your product as a recommendation. With the help of Amazon affiliates, you can share links to your product through blog posts, Facebook, Twitter, and more.
Variety of advertising mechanisms
Different types of media on product pages help users make purchasing decisions. Merchants can upload photos, videos, product descriptions, and expert reviews and opinions to present and promote their products. Do not neglect the use of the functions of the circular view and color design.
Communication
Among other things, the Amazon marketplace helps to keep sellers and their customers connected. For example, the marketplace sends emails, thereby notifying existing and potential users about current updates and promotional offers. This not only increases the level of general awareness, but also increases the chances that your products will be noticed by the right target audience.
Ability to accept international payments
Amazon offers sellers an easy way to receive payments from international buyers.
Finance Business Service is ready to offer you to fully launch your online business, register a company in the most suitable jurisdiction, and provide a payment solution that allows merchants from all over the world to receive payments as easily as if they were selling in their own country. If you are an e-commerce business looking for a way to receive payments from Amazon, Etsy or other marketplaces, we can help you accept payments from these international platforms.
