Selling on Amazon – Opportunities and Obstacles

If you want increased exposure for your products, selling on Amazon may be the solution that you need for your brand.

Do you want to expand your online presence beyond your store and start selling your products on Amazon? Amazon accounts for 44 percent of all online sales in the United States. If you have a brand of any size selling products online, Amazon is a channel where you must have a comprehensive strategy.

An Amazon marketplace strategy is a bonus for retailers. There are a variety of things that need to be considered when debating whether your business should or should not take that initial step into the world of Amazon. This includes the category of products that you sell and the intensity of competitors within your space. Restrictions and fees based on your marketplace, and so on.

Of course, there will be opportunities and obstacles that apply overall. In this post, we will examine some of those opportunities and obstacles, so that you can make a well-informed decision.

Opportunities for Selling on Amazon

High Traffic Channel

The scale of Amazon’s presence online is massive. This is the main factor that draws sellers into the marketplace.

Amazon brings in close to 184 million visitors a month! That is a ton of visibility. And that visibility converts into a higher sales volume for your business.

It has been reported by Amazon sellers that once they join the Amazon marketplace they receive an increase in sales by 50%.

Procure New Customers

Initially, there aren’t too many people visiting Amazon looking for your store. However, they could possibly be searching for and stumble upon your products.

Products that they were most likely not aware of, or that they could have purchased from competitors.

Discovering new customers through the Amazon marketplace opens the opportunity to win repeat business. How do you win repeat business?

That’s easy, by providing outstanding service and fulfillment. When selling products in a space that depends on frequent, repeat purchases, such as hobby supplies.

Believe it or not, Shopping Via Marketplaces is “in”

The convenience of a diverse marketplace grabs the attention of customers that prefer that kind of shopping experience and an online marketplace provides a single-stream checkout and fulfillment support that creates a flawless experience for buyers.

Obstacles For Selling on Amazon

While there are some very beneficial factors to selling on the Amazon marketplace, there will, of course, be some obstacles that need to be considered.

Amazon Marketplace Fees

Selling on the Amazon marketplace gives you the potential to increase your sales, however by becoming a participant you will be exposed to marketplace fees.

Marketplace fees are deducted as a percentage of each sale and can vary from site to site and or category to category.

There is a chance that the numbers might just not ad up in a category that has lower margins and is highly commoditized.

Before selling your products on Amazon, be sure to have a good sense of your margins and a firm understanding of the marketplace fee structure.  

Not sure how to go about this, at Channel Key we help define your Amazon Channel Strategy based on your brand positioning and what you are trying to accomplish in the marketplace.

Limited control

The Amazon framework comes with many advantages; however, it is imperative to keep in mind that it can go both ways. Essentially, the main purpose of a marketplace is for the focus to be on the products, not the sellers.

The degree to which you can brand your presence, communicate with customers, and dictate what items you can and cannot sell, may be restricted.

The world of e-commerce has completely transformed the way people buy and sell—and Amazon is most people’s go-to place for buying products online

The problem is, there is a lot of competition on Amazon. If you’re a business or brand that currently has an Amazon presence or that wants to start an Amazon storefront, you’re probably anxious to find the best strategy for getting your product in front of customers.

By performing a detailed Amazon Marketplace Analysis, Channel Key can provide insights and a strategy to help your business boost sales, conversion rates, and highlight opportunities for future sales and growth. We’ll give you what you need to increase your revenue year-over-year.

Why Do You Need an Analysis?

Channel Key provides your Amazon storefront and brand with easy-to-follow, industry-specific resources to help further develop your storefront, brand, and products on Amazon, turbo-charging your sales and revenue.

Channel Key also provides valuable insights and technical knowledge on your business’ current performance as well as how to jumpstart sales for new products, giving you what you need to improve your ROI.


Selling on the Amazon marketplace really depends on the products your selling and the scale of your business. The marketplace allows merchants the opportunity to gain exposure and increase sales from a large volume of traffic. Although there are some obstacles to keep in mind, it’s nothing that your business can’t overcome with the right strategic plan in place. At Channel Key, we help define your Amazon Channel Strategy and positioning and what you are trying to accomplish in the marketplace.

Once defined, our team of experts will execute your strategy using our proprietary technology, expertise, and experience.

Hopefully, this post was insightful. If you’re not sure about what you should do to expand your business on the Amazon marketplace, leave a comment below, ask your questions. We’ll be there, we’ll respond, and we will help you through the process. And again if you liked the post, comment, like, share, tell other people about it.

Need more immediate advice or assistance with Amazon strategies? Talk to our Channel Key team. Thank you for reading.

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