How Small and Medium-Sized Businesses Can Thrive on Amazon
Amazon wants to play nice with small and medium-sized businesses. The technology giant has launched a new section on its site, Storefronts, designed to promote small and medium-sized businesses in the United States. The Storefronts portal directs Amazon site visitors to 20,000 small and medium-sized U.S. businesses, including women-owned businesses and family-focused businesses.
About 300,000 U.S. small businesses operate on Amazon, according to TechCrunch. Storefronts should help them in a number of ways such as:
- Providing one simple portal for shoppers who want to support smaller businesses, thus making it easier to find them.
- Categorizing smaller businesses by different areas of interest to enrich the discovery process. In addition to family-focused and women-owned businesses, Amazon curates other categories such as Halloween and Back to School.
The move should be a win/win for Amazon and small and medium-sized businesses:
- Amazon strengthens its position against competitors such as eBay that have attracted smaller businesses.
- Smaller businesses enjoy more visibility and support.
Smaller businesses can win in Amazon’s world by:
- Treating Amazon as one important element of your commerce ecosystem. Amazon should complement your presence on sites such as eBay, Etsy, and Facebook, in addition to your own website and brick-and-mortar storefront.
- Capitalizing on Amazon’s advertising tools. As we have noted on our blog, Amazon offers tools that make it easier to rely on Amazon as an advertiser. For instance, Amazon’s Marketing Services and Advertising Platform products offer options ranging from Sponsored Products (a keyword-based campaign promoting a single product) to Amazon Managed Service (Amazon manages display ads on an advertiser’s behalf). These products make it possible to capitalize on Amazon’s increasing popularity as a search platform.
Amazon is rolling out an advertising program to support the launch of Storefronts, including a testimonial from Michigan-based Little Flower Soap Co. According to Little Flower co-founder Holly Rutt, “Since we started selling on Amazon in October 2016, our sales have nearly doubled. Due to our success, we have been able to hire new team members from our community, including full and part time jobs.”
For more insight into how to succeed on Amazon, contact True Interactive. We’re here to help.