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markus-fostMarkus Fost is the winner of the Vendor Award and works in business development as well as a consultant to the board at metabo. Markus Fost, BA cand. MBA, born in 1984, studied business administration at the HfWU Nürtingen-Geislingen. In his professional activity for well-known industrial companies and consulting companies, he was able to gain extensive experience in the e-commerce sector. Markus worked for Graupner GmbH & Co. KG for a total of nine years, most recently in 2009 - 2010 as Commercial Director / CFO. In 2009 he was given the Vendor Award Climber of the Year by Amazon.de as part of his work at Graupner GmbH and Co. KG. Markus Fost is currently working at the power tool manufacturer metabo in business development and as a consultant for the CEO and CFO. More information at www.all-ecommerce.de All texts by Markus Fost.

Selling on Amazon: Business Models on Amazon Marketplace

Before that Business Model of the Amazon Marketplace can be examined in more detail, it is advisable to take a closer look at the form of presentation of the product offers in order to be able to clearly differentiate the Marketplace offers from Amazon direct deliveries.
Amazon

How are the products listed on Amazon?

At Amazon the volume offers are integrated within the standard article presentation that Amazon also uses for their direct deliveries. The customer therefore navigates to the desired product or uses the search function.

As a result, he goes to the product details page, where the customer decides whether to buy a private carrier from a merchant, Amazon direct delivery, or, if available.

Default seller account at Amazon

In order to be able to act as a business founder on the Amazon Marketplace, it is first necessary to sign up for the sales platform. The registration mask offers the possibility to choose between two salesman accounts.

The standard seller account is recommended for providers who only have individual (few) Items want to offer. This can be upgraded to the larger professional seller account at any time.

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Difference from professional seller account

A monthly basic fee of EUR 39,001 will then be charged to the seller, but the sales charge per item will then be reduced by EUR 0,99.

In addition, there are numerous functions for analyzing the sales statistics or for new items that have not been available at Amazon.

Services from Amazon at a glance

The different services that Amazon offers next to or as a supplement to the Marketplace, I have listed here in the overview again:

  1. If the potential merchant chooses his own distribution, ie he uses Amazon as a sales channel, but takes over the picking and shipping on his own, the payment processing via Amazon Payments is automatically applied.
  2. In addition, the merchant has the ability to use Amazon's fulfillment services, which means that the merchant has the option at any time to charge Amazon for warehousing and shipping. This extra can be paid to Amazon with a monthly storage fee, as well as a variable remuneration for picking and shipping.
  3. For operators of their own online shop Amazon offers the possibility to use their fulfillment services, also self-sufficient, without the Amazon as an additional sales channel.
  4. The possibility of integrating e-payment services into their own online shop for some operators is likely to be much more interesting. For example, Amazon takes the entire collection. All Amazon services mentioned can be limited to the German target market, but it is possible to extend it to the entire European market.

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3 responses to “Selling on Amazon: Business models on Amazon Marketplace”

  1. Olvia Hunt says:

    My solution to this is not to buy on Amazon any more. They're trying to put all other business out of business. Support SMALL business or you'll have nothing left but Amazon!

    • Simone Janson says:

      That's a really good idea, thanks for that prospective.

  2. Teresia says:

    Great blog, I like to read.

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