Selling on Amazon.com can be a great idea or a really big misstep, depending on your brand. Watch to find out if selling on Amazon is right for you!
Should your brand be sold on Amazon? Hi, I’m Syama Meagher, CEO of Scaling Retail, and I want to share with you a couple thoughts on why or maybe why not your brand should be sold on Amazon.com. I was recently interviewed by Internet Retailer, talking about why there weren’t more fashion brands that were striving to get on the platform of Amazon. Even though Amazon has actually launched a handmade section, and as we all know a few years ago they brought on the help of former creative director, Julie Gilhart, from Barney’s to be able to help them revamp their fashion section. But what is going on with Amazon and do you need to be a part of this?
Just the other day, LVMH announced that they were not going to be participating in any type of Amazon.com program, and why is that? Designers every day have been turning down opportunities to be sold on there. Now a lot of it you might say is probably due to the fact that there’s a brand misconception. You know, Amazon hasn’t done a very good job of really cultivating that higher end luxury market, and the reason why is they’re really known as a commodities-driven platform. So for some brands, being on a platform like Amazon could be very useful. It gives you access to millions and millions of customers, it allows you to leverage the power of their backend fulfillment system, and to be honest, we all know through the review process, through the tagging of suggested products, a product can go viral and make so much money off of Amazon these days, but they aren’t necessarily the brands that you’d think. So when you think about fashion brands, and you think about the necessity for the consumer to be romanticized by a website, the necessity of the consumer to see the right pictures, to feel the right product copy, the necessity of having the right aesthetics with how the font is laid out, the consumer conversation is so driven by an emotional process, that in order to sell a $500, $1,200, $2,000 product, that you want to have a high perceived value, it’s very important to be choosy about who is going to be selling those products.
So if you do decide to give Amazon a chance, I say go for it, but follow these few steps. Number one, make sure that you are very clear about your product images and your photography. Keep in mind that the images tell the story. Also keep in mind that Amazon is basically like another search engine. You’ve got to be very clear and conscientious about how you choose to write about all of your product copy. Now you might be wondering, “How on Earth do all of these people get so many reviews?” Well, a lot of people who start to sell on Amazon actually seed the market with free product in order to get those reviews. Now there are a lot of resources online that I can go through and tell you how to maximize getting free reviews, how to do that in a very ethical way, and also how to make sure that you get lots of great positive recurring reviews that don’t just happen all at once. But right now what I’m here to share with you, is if you are going to sell on Amazon, keep in mind that a lot of other retailers might not be so happy about that.
Amazon’s always looking to undermine the competition through margins, undermine the competition through sales, and ultimately when you think about the other brands you’ll be sitting next to, are they really going to be brands that you feel comfortable selling your product with? Some of you, the answer will be no, and some of you, it will be yes, and that is totally okay. But keep in mind, guys, as you continue to grow your business, if your plans are to be sold on the Shop Bops on the Net-A-Porters, you know, on some of these better boutiques, you may not want to have Amazon be on your distribution list. If your goal is to grow big, to get lots of volume, to get a lot of people to buy your product, and it’s not very trend-driven, let’s say it’s more of a leggings or a basic business where it’s very commodities-driven, then Amazon could be an amazing platform. So it’s tough to say, should you be on it, should you not be on it? I can’t give you the exact answer you’re looking for, but I can tell you, think about your long-term business goals, think about the vision down the road. Where do you want your brand to be in 5, 10 years? What does the ideal assortment look like? Is Amazon really the best channel for you based on that? That is the real question.
All right guys, thank you so much for watching. Please feel free to leave a comment below come and find me on Instagram, Facebook, Twitter. And always, you can send me an email at firstname.lastname@example.org. Thanks so much. Bye!