On 4th and 5th April 2019 Bologna hosted the third edition of the Adworld Experience and among the various in-depth themes the e-commerce giant Amazon has captured our interest.
First of all there is a myth to debunk: Amazon is not a democracy and having an account in the portal does not automatically entail the right to sell. There are rules to follow and performance to optimize daily.
Amazon's core business is the creation of the customer absolute best experience: for this reason all the logic of the marketplace is calibrated to reward deserving sellers and to exclude those who do not respect the defined rules.
Selling too little, having no margin, not having the goods actually available, not responding promptly to customers, not delivering goods on time, asking for positive reviews, cheating with product EAN codes and not following the procedures generally defined by Amazon are just some of the actions that negatively mark the fate of a seller on the marketplace.
Metrics require time, resources and know-how that must be allocated to the activity on Amazon. The general trend of sales, the presence and quantity of positive and negative feedback, the percentage of reimbursement from customers, the competitiveness of the price, the optimization of the product sheet and finally the overall general evaluation of the seller performance.
Amazon is both a great opportunity and a threat for companies that are approaching to sell in the marketplace. First of all, before activating, the seller must carry out a preliminary assessment of the costs to be incurred so as not to be unprepared. He must be aware of all the services he can use, such as the logistics managed by Amazon himself (FBA), and he must be ready to invest in a communication strategy actively.
The pro of the marketplace are as different as the possibility of acquiring online visibility and offer products internationally. The con are constituted by the possibility of channel and price conflicts, as well as the need to control management costs and to invest constantly in the sponsorship, promotion and optimization of the product sheets in a strategic way.