By Ronald Dod
Amazon has been having huge success over the past years, and it doesn’t seem like it’s going to stop anytime soon. According to an analysis by Slice Intelligence, 43% of all online retail sales in the U.S. went through Amazon in 2016. This is a huge increase from the 25% of eCommerce sales Amazon was reported to have captured back in 2012. With such an astounding increase in market share, what does the future hold for Amazon sellers? Can we expect this success to continue indefinitely?
It certainly looks like it is not slowing down. The giant is up to date with the latest trends, such as voice assistant technology, thanks to Alexa. It has also made major moves to expand its market share beyond its current offering by recently acquiring Whole Foods and shaking up the grocery industry.
However, there are other giants like Walmart that are not willing to give up, catching up with Amazon’s offers, such as their famous 2-day free shipping. Walmart even goes as far as to offer it without a subscription requirement! Also, Amazon’s one-click buying patent expired this year, which gives more room for competitors to strengthen their offerings. Let’s discover what else we can expect from selling on Amazon and how to prepare for any changes.
FBA: An Option or a Must for Retailers?
As many online retailers may have picked up, FBA is becoming a must to be competitive on Amazon. First, it allows sellers to offer their products with 2-day free shipping to Amazon Prime members. This is key, considering that Prime memberships are multiplying every year. So much so that, according to a survey by Cowen & Co., 53% of all Amazon purchases came from Prime members in 2016. The reason? Everyone loves fast and free shipping.
Additionally, using fulfillment by Amazon or FBA helps retailers win the desired Buy Box. Since Amazon handles the fulfillment, it gives the marketplace higher control over customer service and, thus, more certainty that the customer will be satisfied—therefore, giving preference to those sellers using FBA.
Also, keep in mind that the increase in orders through voice assistants like Alexa will make the Buy Box even more important and competitive. Amazon will only suggest retailers with the top spots! In addition to this, Alexa has its own kind of deals called Alexa Deals, which are already showing a preference toward Prime sellers. Considering all of these factors, I believe most retailers will be forced to become FBA sellers.
Forget About Non-GS1 Codes
All Amazon sellers need a UPC or ASIN code to sell on Amazon. The GS1 is the official seller of such barcodes. However, many sellers prefer to buy barcodes from resellers, instead of buying them through the GS1 site, because the codes are considerably less expensive. The GS1 charges a fee to create a company prefix, which ranges from $250 to upward of $10,000, plus renewal fees. The cost can get really expensive as the number of products increases.
The issue is that codes Go to the full article.
Source:: Business 2 Community