The founder of a commercial enterprise is a good opportunity with the Amazon Marketplace to realize this project successfully, due to the fact that the use of the market place hardly fixed costs arise.
Amazon charges only EUR 39,00 / month for the professional “Power” seller tariff, all other commissions are variable and are based exclusively on the sales on the platform. The founder does not need complex IT equipment, nor does he need to buy / program and advertise his own online shop.
All you need is a PC with Internet access, which also offers side-by-side founders the opportunity to push ahead with the Amazon Marketplace. Amazon provides a shipping processing system with the Seller Central platform. Only a simple invoicing billing system is required, ideally with an interface to financial accounting. Such systems can be purchased for a few hundred euros.
Thus, the Amazon Marketplace offers compared to its own online shop or even a stationary trade, an attractive sales platform without having to make large investments or be bound in the longer term to horrendous fixed costs. This allows the potential start-up entrepreneur the chance to test the market with a specially developed product or business idea.
High customer acceptance by Amazon
Another opportunity offers the existence founder the high acceptance of Amazon with the customers. Their conservatively calculated sales forecast worldwide amounted to approximately 35 billion EUR, which means approximately 3,85 billion EUR turnover for Amazon Germany. This equates to 2011 sales growth of approximately 35 percent for approximately 37,3 million listed items in the Amazon range.
These impressive numbers alone underpin Amazon's high level of acceptance in Germany and worldwide. Amazon is a point of contact for millions of Germans when it comes to the procurement of consumer goods or “problem solving” of all kinds.
Because the company is strictly committed to the fact that the retailers comply with the Amazon guidelines to provide the customer with the first-class service, they enjoy almost as much confidence as Amazon Direct Delivery. Another advantage for the founder of the company is the fact that Amazon, in addition to the classic e-commerce sales channel, is also the leader in M-Commerce sales and provides free apps for mobile devices, which are equally accepted by customers.
Range: About 105 million active customers in Europe
Another opportunity the founder of the Amazon market is experiencing is the enormous reach of customers. In Germany alone, Amazon had 2010 millions of active customers in the year 24,7 and is therefore the undisputed number 1 of the online shops in Germany, according to the online shopping survey of ENIGMA GfK from the year 2011.
Assuming annual 10 percent customer growth, Amazon reached approximately 2012 million active customers in Germany in 30. Extrapolated to the whole of Europe currently about 105 million active customers of Amazon are expected to be managed. An entrepreneur who uses the Marketplace as a sales channel and owns a European sales account thus directly faces some 105 million potential customers.
Operate local - Distribute global
Amazon has consolidated its European marketplaces. It is thus possible for the entrepreneur to create and manage product offers for all marketplaces in Germany, France, the UK, Italy and Spain from his local location. Amazon supplies these markets to customers all over Europe.
In countries that do not have their own market place, higher shipping costs may be incurred for the customer, but Amazon and / or the volume dealers also deliver abroad. This gives the trader the opportunity to offer his product portfolio to a broad customer base across Europe. However, this can also exclude the supply of individual countries or concentrate exclusively on the home market.
Customer-friendly service infrastructure
The entrepreneur benefits from a customer-friendly service infrastructure offered by Amazon. The transaction processes are easy for the customer. This is the 1-Click® order method. In addition, there are numerous self-service functionalities, which enable the customer, for example, to make returns completely independent without having to rely on a service employee from Amazon.
Furthermore, Amazon is extremely accommodating in claims and returns matters, offering customers extended returns over 4 weeks without giving any reason. For the customer, this results in a purchase without risk. This customer-friendly service infrastructure, which goes far beyond what is required by law, is one of the main reasons for Amazon's success in Germany and around the world.
Paragraph: An upward spiral
If the entrepreneur takes into account the success factors mentioned for starting an e-commerce business, the chances are excellent that sales will become an upward spiral. Initially, the founder’s Amazon seller account did not yet have any ratings. If there are new listings, they will be shown quite far behind in the marketplace ranking if there are competing products. The start-up's sales will increase noticeably after his seller account has received some positive customer reviews and thus the trust of potential customers has been established.
As soon as the Article has some positive product reviews, chances are good that sales will continue to increase. Due to positive customer reviews and product reviews, as well as a higher sales, the article automatically increases in the Amazon search engine ranking. This further accelerates sales, so that one can speak of an upward spiral.
Get out of the downward spiral
In order not to fall out of it, it is essential that the existential online retailer has both the procurement disposition under control to remain viable, as well as consistently delivering good quality products on time to continue to receive good customer reviews and product reviews. If, for example, there is an interruption of availability, then the article drops immediately in the search engine ranking.
For example, it may take months before the original ranking placement is restored. The upward spiral of the shoulder may be negatively affected by such influences. This can be avoided by the entrepreneur, taking into account the described success factors in the daily work and the customer statistics constantly monitored.
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