Amazon offers a wide variety of advantages, especially for those who wish to reach a larger and more diverse clientele, one that spends a lot of money online.

Here are a few important reasons why you as a seller should jump on board the bandwagon:

Large Number of Potential Customers

The number of potential customers you can reach through is more than triple the number of potential eBay customers. Statistics estimates the number of customers at 300 million. In a recent Forbes article, the Trefis Team estimated the number of active eBay users at 120 million. If these estimates are correct, you will reach over three times as many potential customers if you sell on

As a seller, you now have 300 million reasons to get started on Amazon!

People Love to Shop With

People spend a lot of money on, and the amount of money they spend is increasing fast. Amazon’s revenue, which includes sales from Whole Foods, increased 43 percent year-over-year. Net income more than doubled to $1.6 billion, underscoring the company’s renewed focus on growing profit margins.

Its subscription services revenue, which includes Prime memberships, also grew 60 percent to $3.1 billion.

What do these figures mean for the average seller? For starters, you should recognize the incredible amount of business to be had on Amazon. The tricky part is capturing some of this business for yourself.


Amazon has a much better reputation than eBay. Many people will not shop on eBay because they regard it as cheap and dishonest. Those same people love Amazon and shop there regularly.

Every seller should keep this in mind if they are choosing between the two big e-commerce platforms.

Amazon Prime

Programs like Amazon Prime can increase your revenues and customer base. Prime does this by encouraging customers to spend more money by offering incentives, such as giving customers free two-day shipping on a wide variety of products with no minimum order.

A survey of 2,000 U.S. customers by RBC found that the average Amazon Prime customer spent $600 a year on the site. Compare this to the $320 that the average Amazon customer spends and you will see the instant advantage to using Prime in your Amazon e-commerce strategy.

No Listing Fee

You will not have to pay anything to list an item on Amazon. In fact, you will not be charged until you actually sell something. This means you can list more items and leave the listings up longer, which is great news for a seller!

Be aware, however, that will take a hefty cut out of the sales price, usually around 20 percent.

Less Work

You may be able to do less work when you sell on Unlike eBay, you won’t have to continually relist items, but you will have to handle the shipping and customer service chores unless you opt for FBA. The Fulfillment By Amazon program handles these tasks.

Higher Prices

You can usually charge higher prices on Amazon. is basically a retailer. A retailer makes money by selling items at a competitive price; this is in contrast to a wholesaler (which charges the lowest price possible).

For example, on eBay (a wholesale market) the lowest price for women’s Ariat shirts was $5, whereas the average price for an Ariat shirt on was around $40. Part of the reason for this is that the items for sale on Amazon are usually new, while the items on eBay are often used.

Trust Factor

Amazon is one of the most trusted brands in the world. People like Amazon and many of its customers in the United States are willing to pay $119 a year to participate in the Amazon Prime service.

So what’s the takeaway point here? If you sell your products through Amazon, your business will be associated with a brand that customers know and, more importantly, trust.

A Chance for the Third Parties

It is impossible for the average person to get a product onto the shelves at a big retailer such as Walmart without spending a lot of money (or having some serious connections). Yet anybody can list a product at and put their wares before 237 million customers worldwide.

Testing Purposes

Selling through is one of the best ways to test the market for a new product. data can show you whether there is a demand for a product, what that demand is, and, more importantly, what you can charge for the product.

Amazon is on the Cutting Edge of Online Retail

Make no mistake about it, Amazon is the cutting edge of online retail. So selling on Amazon is the best way to stay on top of the latest developments in online retail.

As you can see, there are a lot of good reasons to start selling on If you’re interested in reaching a much larger customer base and increasing your sales volume, can be an incredible resource.

Source: SaleHoo

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