We have observed a clear trend in recent years, as more and more of our Ukrainian customers have used Amazon to sell everything from toys, auto parts, to clothing. And there’s good reason: Amazon, the leading online marketplace in America, is a safe and sure bet that reduces a lot of the costs and risks in exporting and selling to American customers, and will hugely boost your international presence.
Amazon’s site is intuitive and easy to use for any size business. At a glance, you can see your sales, feedback, and get big-picture and custom granular statistics on your sales performance such as conversion rates, visits, and keyword searches that your customers have used to find your products. It also obviates the need for creating your own e-commerce website to sell your products – and your Amazon presence will immediately be boosted by Amazon’s own credibility and reputation with buyers.
Amazon’s convenience for sellers is only matched by its convenience for shoppers, outranking other services by far and offering a trusted and seamless shopping experience. Which leads us to one of the top reasons you should be selling on Amazon:
Just how many Americans shop on Amazon?
Consider that 80% of the US population – or roughly 260 million Americans – shops online. With Amazon’s near 50% market share of total online U.S. sales, we’re speaking of quite a few potential buyers for your products. In 2019, 172 million people bought something on Amazon.
In 2020 65% of the entire US population, or over 214 million US customers, visited Amazon at least once per month to shop! And this number will only continue to grow, with the value Amazon continues to offer to shoppers, including it’s Prime Membership program, a paid subscription which offers perks such as free 2-day (and even same-day) shipping, video and music streaming, and many other benefits. Of Amazon’s total 300 million users, 147 million are US-based Prime subscribers.
If you’re a Ukrainian company with a new brand to the US market – don’t worry. A recent survey found that 82% of Amazon shoppers listed price, rather than brand or any other factor, as the most important factor influencing their decision to buy a product on Amazon. This is good news if you’re bringing a brand new product or brand to the US market. And, once you have tested your product and had a successful launch on Amazon, there are opportunities to take your brand to different e-commerce platforms – and far beyond!
Generally bringing a new product to the market involves building credibility from zero. It takes a long time to earn a reputation and gain loyal customers, and you’d generally need to start with getting your product on shelves or building a website, and investing a lot in marketing and increasing site visits and feedback to build a brand reputation.
With Amazon, you have the Amazon brand behind you from the beginning, without needing to have spent years gaining credibility. Americans, in fact, trust Amazon more than they do the police or their own government (source: https://www.marketwatch.com/story/people-trust-amazon-and-google-more-than-the-police-or-the-government-2020-01-14). When you’re on Amazon, your product already carries the clout of being on the top trusted e-retail site. Not only that, but with free and fast shipping available to many Amazon users, these aren’t customers who are just browsing and may change their mind based on shipping costs – these are buyers who are ready to go with a click and won’t be undecisive as buyers on other platforms!
Amazon’s fulfillment and seller services are a great all-in-one solution to run a complete retail operation in the US from Ukraine, or to even to just test the waters. Amazon handles everything from sorting, storage, picking, sending out orders and receiving returns (at quite competitive prices compared to what you would be charged for delivery, warehousing, picking, and order fulfillment through separate third-party providers!). They even package and label products.
Another huge advantage you get when selling and shipping through Amazon is the company’s formidable logistics infrastructure, plus its Prime system, which allows shoppers who are Prime subscribers (as we mentioned early, almost 1 in 3 Americans have Prime Membership subscriptions!) to order next-day or even same-day shipping. With its network of warehouse facilities and shipping services, it would be hard to beat that kind of service by managing your own logistics chain!
Amazon’s seller central allows you to easily keep track of inventory and sales. Amazon will automatically notify you when stocks of certain items are running low and need to be refilled, and provides a plethora of stock management options. One of the hugely valuable features available in Amazon’s Seller Central includes the business reports feature, which lets you monitor your overall sales, product performance, traffic, and conversion rates. You can custom configure these reports to get just the insight you need.
With Amazon’s online tools, you can start and manage promotions, marketing and advertising campaigns yourself without having to be a marketing guru or hiring a marketing professional.
Running a pay-per click marketing campaign is a breeze with Amazon’s campaign tools. Amazon will automatically suggest the best settings for your product based on its extensive market data, or all you to fully customize everything from bid amounts, daily budgets, and keywords that fit your products. You can start with Amazon’s ready-to-go preset campaigns and then adjust them manually after you have a better understanding of your marketing machine’s detailed workings.
Not only is it easy to configure a marketing campaign, but Amazon provides some of the most robust tools available to allow you to analyze performance at a glance. You can select which metrics matter the most to you, gaining insight on budget spend, ROI (Amazon terms this ACOS, which basically means how much you have to spend on advertising to earn 1 USD in revenue on sales), and even most effective (and least effective!) keywords for your products.
At Amerigo, part of our service offerings include creating and launching Amazon stores for Ukrainian customers, and providing everything you’ll need to start selling: listings, pictures, English descriptions and product information, licensing and certificate help for products, custom English email templates, and customized marketing support to help you get going.