Like many, we too heard the news that Amazon is getting 50% of its revenue from every third-party sale on its platform. The seller’s bill looks like this:
- 15% referral fee
- 20-35% in fulfillment by Amazon and
- Up to 15% for advertising and promotion on Amazon
The Full Monty average is between 19-25% on third-party sales. I may be a little dated, but I thought the long-term goal of a marketplace was to redirect customers back to your website or establishment. Nineteen percent referral fees adds up over time.
As a seasoned entrepreneur I certainly enjoy and admire Amazon’s business matrix. But are Amazon’s sellers (suppliers) really taking advantage of the opportunity to grow their own marketplace? Also consider, how quick it is for a competitor to compete on price and duplicate your product. It’s even more important to direct present and future customer to your website where you can create a unique experience while building brand loyalty.
Here are some ways on how to redirect customer from Amazon to your website.
- Place ads for your website in Amazon Sales: Placing links to your website inside of Amazon orders is a great way to migrate customers from Amazon to your website. How many of your current customers are aware of your website and your other offerings? The best way to do this is to create a coupon offering discounts on similar products.
- Feature loyalty benefits on your website: Amazon Prime is a David and Goliath scenario when trying to redirect customers to your website. You must have a compelling reason for them to visit your website with great customer service. The products can be exclusive or sales products with free shipping promotions.
- Follow up and listen: Every business engagement is an opportunity to sale or resale. Customers like attentiveness; especially in when they are over saturated with social media infomercials. Consumers are craving sellers who can expand on their dreams or articulate their shopping needs. Believe it or not, soft skills make big money.
Now who is this advice for?
Many sellers are doing quite well in the Amazon eco system. But, if you are building a brand, value customer service relationships, and don’t mind being a couple of percent points higher than competitors, this is for you. Guess what, like Amazon, it all starts with a great business name.