“We’ve had three big ideas at Amazon that we've stuck with for 18 years, and they’re the reason we’re successful: Put the customer first. Invent. And be patient.” Jeff Bezos- CEO of Amazon
As Bezos’ quote suggests, Amazon has done pretty well for itself over the last few years. The marketplace has 237m active customer accounts and is growing at 22% y/y, double the rate of ecommerce. It’s the biggest English speaking online market in the world with 5 million visitors, making it bigger than eBay. While Amazon and eBay marketplaces are similar, they operate in different ways. So how do you make the most of this opportunity to diversify your business? How do you win the buy box (which 82% of sales go through) and gain more revenue? The Amazon opportunity is huge.
Click to download Currencies Direct's '20 years of Amazon'*
Volo knows that having a committed presence on Amazon makes your business more resilient. This is because you are diversifying the number of ecommerce marketplaces where you list your products. You're also effectively spreading your risk. For example, if you are a merchant who relies predominantly on eBay, one unfortunate incident could lead to suspension from that marketplace and potential disaster. If you are a merchant with your revenues divided fairly evenly between eBay, Amazon and your website(s), then losing one of these revenue streams is survivable.
Amazon doesn’t have to be difficult to use, and the Amazon opportunity is wide. It is an easy and effective way to reach millions of potential buyers. Product data is split into two parts: product and listing information and to add your product you simply need a barcode, quantity and price. Amazon also offers Fulfilment by Amazon (FBA, where sellers also reported an 85% jump in sales). This allows sellers access to logistics resources and free delivery options for your products. They can also get trusted and acclaimed customer service in local languages, creating a seamless shopping experience.
Our Amazon Best Practice Business Class was a chance for us to demonstrate to the Volo community our expertise on this topic. Here are just a few good things attendees had to say:
“Lots of information, it could easily have been a full day” “I was able to get time with the Account Managers who are experts on the subject”