Read more about the Amazon marketplace – Is it worth the shot? 

Read more about the Amazon marketplace - Is it worth the shot? 
Marketplace - text illustration with social icons and tablet computer and mobile cellphones on cyan digital world map background

Last Updated on March 9, 2023 by

Amazon is undoubtedly one of the largest online marketplaces globally, as about 200 million unique customers join the platform each month. It is also an excellent platform for small and medium companies to be present because people buy 4,000 items every minute from these sellers. With the internet being more accessible than ever, merchants find it an attractive platform to list their products. It is also justified because setting up an online store is much more convenient than setting up a physical store in most aspects. However, everyone should first diligently Read more about all the terms and conditions. 

Here are some pros and cons of Amazon marketplaces for companies to consider before foraying in the market. 

The top advantages are listed below.

Increase in sales 

The earlier figures showed how many people use Amazon to purchase things they need. Further, the social distancing norms led to a crazy new boom in the eCommerce scene of the world. So, if a business lists its products on the platform, the sales figure is bound to increase. The % increase may vary depending on the demand of the products, quality, supply network, customer support, and more. 

Increasing business credibility 

These days, people can easily find all their favourite brands on Amazon. So, they prefer to shop from here rather than purchasing from the official websites because of ease of ordering, quick shipping, easy returns, exchange, etc. Hence, listing the products on Amazon makes the brand appear more reliable and trustworthy for new customers. It is a significant concern for small and medium businesses, making Amazon the ideal platform. 

Attracting new customers 

Amazon marketplace can be a great starting point for any company to build a loyal customer base. It is because most customers search for products and not for particular sellers. So, if they find a product that meets their requirements, fits their budget, and has good reviews, they will indeed purchase. Hence, one can garner a vast customer base for their brand.

Go global 

Amazon is a household name globally, making it easier for sellers to go global. They ship to over 100 countries, and the list is expanding. One gets the freedom to customize their store for each country. The Amazon marketplace is also a great way to gather the list of local listings to test the market first. 

Other advantages include low marketing costs, no need for shipping in bulk, warehousing facilities, and more.

On the flip side, here are some cons of the Amazon marketplace


With more customers on the platform, more sellers are also present. So, the competition is very fierce, making it crucial for everyone to have a long-term strategy. Of course, many other people will be selling the same thing. So, one would need a clear way they will establish their supremacy. 

Selling charges 

The benefits mentioned earlier are not free of cost. Since they provide a global platform to retailers, they also charge a selling fee for every SKU sold via Amazon. So, one should Read more about this and figure out the approximate monthly amount to ensure they can afford to list their items on the platform.

Amazon marketplace is a great place to start as a small business. However, sellers should consider all pros and cons before listing their products. 

Read More: What Are the Best Products to Sell on Amazon in 2022?