Amazon holds the top in ecommerce, accumulating more than half of the industry's net sales. It plays a massive role in manifesting the concept of a digital marketplace, which helps ecommerce thrive.
The ecommerce store recorded a net worth of $847 billion at the start of 2023. Financial forecasters predict that Amazon will make a global net revenue of $1.1 trillion by the end of 2023.
With such whopping figures, Amazon is expected to break records with its continuously growing retail sales and net revenue.
While these stats and figures point towards monopoly in the ecommerce industry, it is important to know the reasons for this dominance.
Head below to learn why Amazon will secure its place as an ecommerce giant and how you can become a part of this soon-to-be trillion-dollar industry.
Reasons Why Amazon Dominates eCommerce:
Offers and Discounts for Everyone: The Attraction of Amazon Prime
One of the primary reasons for Amazon's market share growth is the lucrative offers and discounts provided to customers through its Amazon Prime subscription service.
This membership entitles subscribers to a vast array of benefits like free shipping, access to exclusive deals, and streaming of a variety of entertainment content.
Amazon has been strategic in its approach to reach out to every segment of the market, including seniors. The Amazon Prime for seniors (called Prime Access) is an initiative to provide this demographic with many benefits.
Seniors receive a significant discount on their annual membership, offering them a financial advantage while enjoying the diverse range of services provided by Amazon.
Opportunities to Sell by Buying Amazon Return Pallets
Amazon's return policy has also paved the way for novel business opportunities.
Entrepreneurs can buy Amazon return pallets, which contain a mix of items that customers have returned. These pallets can be purchased at a fraction of the original retail cost, allowing businesses to resell the items at a profit.
With the possibility to buy Amazon return pallets, anyone can step into the world of retail and start their own business on Amazon.
This creates an innovative income opportunity and opens the doors for more sellers to join the Amazon platform, further enhancing its market share in eCommerce.
Top in Logistics
Amazon offers a top-class logistics experience to its users, paving a clear way for the ecommerce industry.
Unlike other ecommerce stores, Amazon offers efficient delivery services within less than two days. It also offers same-day delivery to Amazon Prime subscribers with no minimum order value.
Amazon has also boosted its delivery game, thanks to the latest one-hour delivery window that allows contact-free grocery delivery in certain areas of the US.
Amazon is top management because its own logistics department is called Amazon Logistics.
It benefits Amazon by securely delivering packages on weekends, holidays, and after working hours.
Amazon Logistics also prioritizes customer satisfaction, unlike conventional carriers dropping the orders at neighbors’ places to avoid reordering and hassle from the customers’ side.
Opportunities to Sell on Audible
In the current digital era, Audible, an Amazon company, has revolutionized the world of books by bringing in the convenience of audiobooks.
For authors and publishers, it opens up a new revenue stream, providing an answer to the question, "how to make money on Audible?"
Authors can reach a wider audience and reap financial benefits by publishing audiobooks on Audible.
This business model contributes to Amazon's market share growth and empowers writers and publishers by creating an alternative way to monetize their content.
Overall Popularity and Growth Potential
Another reason for the success rate of Amazon is its overall popularity, which attracts people to buy and sell on this platform.
It offers equal growth opportunities to well-known brands as well as unbranded stores. The main reason why people consider Amazon for purchasing is that it features all options available worldwide, offering variety and quality.
Competitive pricing is another advantage of Amazon, as no other ecommerce platform offers so much competition within the same niche.
You benefit from credibility and reputation as a seller, which motivates conversions and individual sales. At the same time, buyers benefit from product comparison, bulk shopping, and better selection.
Amazon is a global leader in customer experience and has set its foundation for the ecommerce industry.
It offers an excellent shopping experience to members and non-members by managing an efficient ordering system.
The Amazon app and website feature a user-friendly interface and are extremely responsive. From the dashboard to notifications and even searchability, it offers a smooth digital shopping or surfing experience.
Moreover, Amazon allows flexible returns on products with prepaid or printed return labels.
The selling point of this ecommerce platform is that it provides extensive product education in the form of descriptions.
It guides you from A to Z about the product and displays honest reviews and ratings that help you select the right product.
How to Create an Amazon Storefront?
Creating an Amazon storefront can be tough; taking inspiration from high-profile Amazon storefront examples can also be helpful but only to an extent.
The following method can lead you to a top-level Amazon storefront.
Create a professional seller account
The first step for creating an Amazon storefront is to create a professional seller account.
Go to Amazon Seller Central and sign up with valid details like your name, contact, business type, and registration state. You also have to add the FTI number and ID number, along with an ID photo and bank statement, for identity verification.
Register with Amazon
Once you’re signed up, the next step is to apply for the Amazon Brand Registry program by creating the store.
For brand registration, you have to provide information related to your brand, like its name and serial number registered with the USPTO. The ABR also requires manufacturer and product details.
Design the homepage
Then move on to creating an attractive homepage using a template from the Ad Console.
Visit the Stores tab in the dashboard and go to Manage Stores to select a template from the four themes. Your goal should be to deliver a website-like design for your store.
Just like an ecommerce website, your Amazon storefront should also have additional pages categorizing products and deals.
Always put your best-selling category at the top of the menu to highlight it among the others. Also, make sure to navigate the pages using a simple hierarchy for user convenience.
Next, you have to upload products and content titles on all pages as the cherry on top of the cake.
This step involves adding high-quality images, keyword-enrich titles, and product videos on their respective pages. You can also create product grids featuring best-sellers before adding inventory to the store.
Review and publish
Lastly, check for grammatical errors and other issues with the design by clicking the preview option. Once checked, submit the design to Amazon for confirmation.
Tips for Creating and Maintaining an Amazon Storefront
Take design or layout inspiration from an Amazon competitor or an ecommerce website.
Reflect your brand’s vision and mission on the store, not the product.
Update your storefront on new releases, tent pole events, and changes in season.
Customize your products’ pages with Amazon A+ content like infographics and tables that engage readers.
Promote your branded store by customizing its URL by highlighting your brand's name.
Customize your store’s space creatively but overdo it because most users prefer minimalism.
Extend your online store to multiple product pages to showcase more products and catalogs.
Amazon is the best ecommerce marketplace globally, and it owes its success to its exceptional logistics, customer service, and popularity.
It is undoubtedly the most dominant retail store in the world, with the potential to increase its growth and worth in the coming years.
Now is the time to invest in an ecommerce storefront rather than an independent brand with a low chance of surviving and requiring extra effort.