Amazon, the giant marketplace by over two decades, is one of the steadily growing market space in the online industry. Growing to be an omnipotent online business place, it has attracted millions of customers around the world. Like customers, many traditional sellers are also flooding amazon recently. Amazons power to engulf any sector in the market is driving more sellers to the market. In this article, we will discuss the benefits and hardships the third party sellers have to meet in the amazon market space. Moreover, we have also added some measures that can give them a kick start for the year 2020.

Top 5 reasons to sell on amazon

Amazon as a giant online marketplace offers a seller to sell their product to crores of customers around the world. Furthermore, it also guarantees a faster growth to your online store by remaining the best way to transform your business life. 

So here are 5 reasons merchants are selling on amazon.

  • Low start-up cost.
  • No need to build your own website.
  • Best customer experience.
  • Hundreds of potential customers.
  • Fast money maker and many more.

Challenges of an amazon seller

As per the new reports, amazon competitions are becoming more ferocious year by year. So many of the third-party sellers are now facing a lot of hardships to surface the marketplace. And many of them are at the verge of withdrawing from the online marketplace. Some great hurdles to cross as a third party seller are.

  • Cashflow

cashflowAmazon makes its payment only in a cycle of two weeks. Many sellers are in trouble as it takes too long for paying for the services and products they provide.

  • Excessive competition

The competition is getting tougher each year as many sellers are moving to the online industry. It is also becoming tough to maintain the market velocity as it’s not stable and each second new rules and regulations come and go. But getting help from automated tools and certain agencies who are talented to do the processing functionals can help sellers to stay afloat in the market.

  • Product reviews and customer feedback

Amazon is a customer-centric platform. So it values the reviews and feedback of the customers. Even the reviews can take your products to rank at the top and in the bottom line. It is the duty of the sellers to make sure their customers post positive reviews and feedback on their products. 

  • Customer returns

Amazon return policyCustomer returns also bring down your sales to the bottom. So the sellers have to take great care of the returns carefully to boost their sales and profit. Most of the returns are because of the customers receiving low-quality products or sellers posting odd descriptions on the product description. So always post genuine product images and descriptions to lesser down the customer returns. 

  • Price wars and many more

Price wars are also high in amazon compared to other marketplaces. To gain top ranking in amazon, provide your products with more competitive prices. For these tasks, you can rely on automated tools available in the market. 

What to expect in amazon in 2020?

In this ever-evolving online marketplace, to remain competitive during the hardships is more important.  In addition, ensure that the strategies and priorities of the online store can adapt any changes that come its way. Some of the best ways to cope up with the changing market scenario are as follows.

  • Establishing a private label line and alternative distribution agreements

Establishing a private label line and alternative distribution agreements can differentiate your supply chain. In addition, being an allowed reseller of branded products can lesser down the risk of minimum advertised price. If any seller cannot get all this done, then they have to at least work for achieving the economies of scale. 

  • Economies of scale

automation in businessEconomies of scale is a cost advantage way you gain when the production hits a threshold of efficiency which allows the sellers to minimize the overall costs. 

  • Putting competitive prices

Putting competitive prices to your products is a well-known tactic to implement to win the top ranking. In addition, you can even lesser down the shipping charges too, which is an addon benefit to the customers to choose your products. 

  • Sourcing SKU’s

By sourcing SKU’s from different suppliers, you can maximise efficiency by sending orders to amazon fulfilment centre closest to the supplier. Moreover, it will cut down many of your costs. 

  • Automate your operational costs

If you can automate your operational tasks, it is better to cut down the cost of additional manual work. So you can use this money for putting competitive prices for the products and increase your sales.  


From the above discussion, you can figure out the competitive nature of amazon. But some successful sellers add to their amazon successful story that there is no shortcut for success. More than half per cent of the third-party sellers believe that selling on amazon takes time, and it is not a get rich quick strategy. Most of the sellers teach us to look for new opportunities and always get ready to welcome the changes in the Amazon marketplace by adding profitable products to your listing. As a third party seller always adapts to the ever-evolving changes in the giant marketplace to stay afloat and ensure a sound future inclusive of long-term growth.