If you are searching for new avenues to grow the sales for your small business, you should consider selling on Amazon.
According to the new research from Internet Data Corporation (IDC), small business owners are 2.5 times more likely to have registered 25% or more growth in the past year than those not selling in Amazon stores. What’s more, small businesses selling on Amazon are over two-times likely to witness hiring growth.
Small business owners are always looking for ways to increase revenue for their businesses. And selling online is an effective strategy to do so.
Selling on social media, creating an eCommerce website, and selling in an Amazon store or other marketplace are some popular ways you can adopt to grow sales online.
The findings of IDC’s research indicate that Amazon stores can be a winning digital sales channel for small businesses to grow their revenues.
Small Business Success in the Multichannel Age
Small businesses need to discover new sales channels to grow their businesses. This is the reason why they are also focusing on digital sales channels in addition to physical channels.
In fact, the majority of small businesses and medium-sized businesses (SMBs) have now started to offer their products/services online.
Needless to say, Amazon is one of the most popular digital sales channels for almost half of the SMBs.
37.5% of SMBs have been selling in Amazon Stores for 1- 3 years.
SMBs that are selling in Amazon stores are growing faster, thanks to the tools Amazon offers businesses to grow.
34% of SMBs that sell on Amazon have seen 25% to 50% of growth. However, only 15% of businesses that don’t sell in Amazon stores have been able to touch that growth mark.
What’s more, 12% of businesses that sell on Amazon have seen the growth of more than 50%. But only 3% of SMBs have been able to grow more than 50% without Amazon.
With the help of Amazon, small businesses not only have been able to grow their revenues but also successfully hire more people.
SMBs selling on Amazon are more than double as likely to have 25% to 50% hiring growth compared to SMBs that don’t sell on Amazon.
Shari Lava, Research Director, Small and Medium Business at IDC, said, “Every small business surveyed is already selling to customers through online channels or planning to do so by the end of 2021, which is a huge step forward for SMBs as it empowers them to sell to customers across the country and around the world. It’s clear that selling through online channels—either through their own website or a third party website—is boosting SMB growth and driving job creation across the country.”
Considering the growth Amazon stores can bring in, more and more small businesses will join the eCommerce giant in the coming months to sell their products online.
How to Boost Revenue for Your Amazon Store
When you sell your products on Amazon, you must follow the best practices to improve the visibility of your products.
You cannot just put up product listings and expect good results. You will actually need to make efforts to stand out from the crowd.
Here are some tips that you can follow to grow your revenue:
- Write accurate titles and descriptions of your products
- Include 2-3 high-quality image for each product
- Choose the right categories and sub-categories for your products
- Solicit reviews
Also, you should understand that people buy more during the holiday season. So, you should make an aggressive strategy to leverage the holiday season to boost sales.
About the Research
The research was conducted by International Data Corporation, and Amazon commissioned this research.
IDC surveyed small and medium business owners, executives, and managers across multiple industries that are currently selling or planning to sell online. 350 SMBs participated in the survey.
Click here for more details about the research.
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This means that the platform is really profitable. It would not have grown so much if it is not an effective ecommerce platform.
Yes, selling on Amazon is a good way to reach a large base of customers. Thanks for the comment, Aira!
This is fact that big fishes will eat up small fishes and that’s what happening. For me I feel like it’s alarming because this will create a monopoly which is not good for consumers.
Yes, a monopoly is never good. However, the best ones always survive. Thanks for the comment!