Is it Too Late to Start Selling on Amazon?

Do you have a product you want to show the world? Are you wondering whether its too late to be selling on Amazon? If so, we’ve weighed up everything you need to know. The good and the bad so you can make a decision on whether or not its suitable for your product.

1. Bigger the Pie, the Bigger the Slice

In the e-commerce world, Amazon is a big name with global recognition. With over 300 million active customers, Amazon sells over 350 million products. In addition to this, 100 Million People Have Amazon Prime Memberships In The US. That’s more than twice the size of California’s population. Put differently, two-thirds of American homes have Prime memberships and these members spend an average of $1400 on Amazon each year!

Yes, that means its an incredibly competitive market. In saying this, a saturated market is a very active one. There has never been more customers searching for products on Amazon than right now. In 2017, people searched for products on Amazon more than they did on Google. And these numbers are only growing. It’s almost certain that Amazon will overtake Google in product search drastically in the next few years.

Amazon’s growth isn’t stagnating, therefore as the population of sellers grow, so do the customers and the range of products sold. Years ago, Amazon was a book store. Today, you can literally find anything and everything. Clothes, electronics, pet accessories, home and living products and many others.

2. Reach New Markets

Amazon has made it so easy for sellers to sell on their platform, they have Amazon FBA (Fulfilled by Amazon). This means that all you need to do is send your products to Amazon, and they’ll do all the shipments and orders for you. Amazon knows how to make it as easy as possible for sellers to display their products in front of millions of prospect customers. They also know how to take care of their customers with free shipping, featured products and discounts for their members. This makes Amazon an incredibly lucrative platform to sell on. There is just nothing like it.

3. Not Necessary to Start a Company

If you’re new in this game entirely, know that it doesn’t actually have to take that much to start out. Many countries, depending on the laws, will allow you start selling as a sole proprietor. This means you can start selling without incorporating a company and can start an Amazon FBA business for as little as $500. And if you do see that Amazon FBA is something you want to continue with, only then you can start your own company.

4. Fees & Costs

Of course, this comes at a price. Amazon has become an incredibly saturated market due to its success and because of this, it’s also never been so expensive to sell your products on Amazon. I don’t mean this in terms of listing fees, but advertising. In order for your products to show on the first page, you need to spend the dollars. This cuts into your margins little by little.

As a general rule, we advise our customers to have at least a 60% profit margin in order for it to be worth their time selling their products on Amazon. Once you take away the listing fees, advertising, shipping costs or FBA, you are actually left with very little.

5. Ownership of Customers

Selling on Amazon means no matter how many orders on Amazon you sell, Amazon won’t disclose your customer’s details. It doesn’t matter if you have the most loyal customer base on Amazon, that customer base will always stay on Amazon. You can’t retarget them through email marketing, because you don’t know their email address. While there are a few tricks around this and ways you might be able to grab this information, it is prohibited on Amazon to solicit ‘their’ customers buying your products. This is the reason why many Amazon sellers won’t venture outside of selling on Amazon.

6. Branding

If you’re holding onto the branding of your products, then you may need to let go of this (slightly). On Amazon, your products are put on the same stage as everybody else. You have to follow the same format, the same description length and image sizes as everybody else. Your product title and descriptions then turn into words that enhance keywords and help you rank higher rather than ‘look good’ or as how you would have it if it were your own online store.

7. Competition

As we mentioned earlier, a saturated market is an active market. This means you are competing with millions of people, who often have a similar product to you. The presence of numerous players means the businesses are struggling for the attention of extremely hungry buyers. This often results in sellers under further pressure to spend more on Marketing. Though this may be the case, there are still several ways you can rank your products higher organically.


As a summary, we highly encourage you to consider selling your products on Amazon. While it is a saturated market, it is a highly active one and we don’t believe this is an opportunity any seller can pass up on. We specialise in helping our customers diversify their products and selling them omni-channel. This means selling on global marketplaces such as Amazon and eBay, as well as selling on their own online stores.

Speak to us today, let’s talk about your products and discuss how we can grow your business! Email us at