Is It Worth Selling On Amazon In The UK?

The UK market offers a fantastic selling opportunity on Amazon for entrepreneurs and small business people. Amazon offers a high-traffic platform for sellers, with millions of active customers regularly visiting it. That said, there are reasons why even starting your store in this competitive sector requires you to think thoughtfully about things like fees, fulfilment, and marketing strategies. 

In this article, you will learn the pros and cons of selling on Amazon and some compelling recommendations from industry veterans at Mercatus. Familiarising yourself with the ground reality is imperative to being effective on Amazon UK, whether you are an experienced merchant or an amateur.

Is selling on Amazon a good idea?

Amazon can be a profitable marketplace for many businesses. With its huge customer base and trusted name, Amazon opens the doors for sellers and connects them with millions of potential buyers. Fulfilment services, such as Fulfilment by Amazon (FBA), allow sellers to simplify shipping and customer service so that they can concentrate on growing their business.

Moreover, Amazon has advanced marketing resources and analytics to assist sellers in maximising their listings and enhancing sales performance. Success, however, comes with knowing your competition and preparing for things like fees and inventory. It is definitely a value proposition for most though.

Why you should start selling on Amazon UK

Vast customer reach

Millions of people regularly use Amazon UK, allowing sellers to reach many potential customers. This broad reach makes sales and exposure likely and makes it easier for new sellers to enter the market and get in front of a large audience.

Trusted platform

Amazon is a globally renowned platform that inspires confidence in consumers. Buying on a reputable platform helps enhance your credibility as a seller and tempt the buyer to buy. That aspect of trust can immensely lower the entry barriers, allowing fresh sellers to get up and moving.

Fulfilment by Amazon (FBA)

FBA takes care of storage, packaging, and shipping so sellers can focus on sales. With this service, Amazon handles customer service and returns so you can concentrate on the business itself. Moreover, FBA products are eligible for Amazon Prime, which boosts their visibility and makes them attractive to customers looking for fast shipping options.

Advanced marketing tools

Sellers on Amazon have access to a range of marketing tools that can help them improve their chances of being seen and making successful sales. With options like Sponsored Ads and promotions, you aim all targeted audiences and traffic to your listings. These tools help you make your market strategy better, and you also get improved conversions.

Analytics and insights

Amazon provides in-depth analytics to assist sellers in monitoring their performance. Understanding sales, customer behaviour, and inventory levels allows you to adjust your game plan strategically. This data-driven approach will enable you to spot trends, optimise listings, and enhance overall performance.

Things you need to consider before selling on Amazon

• Understand the various fees associated with selling on Amazon, including subscription, referral, and FBA costs. Ensure you factor these into your pricing strategy to maintain profitability.
• Conduct thorough market research to identify profitable niches and understand demand. Assess competition to determine if your product can stand out.
• Decide between Fulfilment by Amazon (FBA) and self-fulfilment. Each has pros and cons regarding logistics, costs, and customer service responsibilities.
• Learn how to create effective product listings with compelling titles, descriptions, and high-quality images to attract buyers.
• Familiarise yourself with Amazon’s policies and relevant regulations to ensure your products comply with legal standards and platform rules.

5 expert tips for selling on Amazon

Get your listing right the first time

Optimising a product listing to perfection is a do-or-die on Amazon. Use your best photos with your product in multiple angles, high quality, and professionalism. Keep the product description simple and include the important features and benefits near keywords to optimise the search visibility. 

Of course, you should also mention bullet points for easy reading and quick reference. Before publishing your listing, double-check for any mistakes. A good listing will attract customers, reduce returns and bad reviews, and increase sales and customer satisfaction.

Consider Amazon’s Brand Registry

There are benefits to joining Amazon’s Brand Registry if you are a seller with a registered trademark. It provides increased protection for your brand, which helps prevent unauthorised sellers from listing counterfeit products for your brand. It also unlocks additional marketing tools, such as A+ Content, which allows you to create visually attractive product descriptions that can help boost conversion rates. 

Furthermore, the Brand Registry gives you more control over your product listings and the ability to report violations directly to Amazon. By using these resources, you can strengthen your brand presence on the platform and build customer loyalty.

Build customer reviews

Positive reviews on Amazon are essential to help customers build confidence and credibility before making a purchase as they impact consumer buying decisions. Send follow-up emails after a purchase to prompt happy customers to leave feedback, as well as to thank them for their business. You can also offer incentives — discounts on future purchases – to encourage your customers to share their stories. 

Respond quickly to reviews—whether good or bad—to communicate that you appreciate customers and are working to supply them with the best possible experience. Having a strong review profile will improve your product search result rank, increase sales conversion rates, and ultimately create more sales.

Leverage Amazon advertising

Investing in Amazon advertising options, like Sponsored Products and Sponsored Brands, can be a huge visibility driver. Sponsored Products allow you to promote specific listings to drive in-demand traffic to your product detail pages, while Sponsored Brands put your brand (or some combination of your products) in a single ad. Then, do some keyword research to determine which search terms are most related to your products, and that will ensure you get the most effective advertising campaign. 

Keep track of your campaign performance metrics, like click-through rate and conversions, and optimise your strategy in real-time. Good ad campaigns do wonders, especially in high-competition seasons or for new product launches.

Stay informed about Amazon policies

Frequently evaluating Amazon’s policies and guidelines is not a poor strategy for continuing to be a compliant vendor. Learn what you can or cannot do regarding listing products, pricing, and dealing with customers to avoid common pitfalls that can get your account suspended or a product delisted. 

Amazon often updates its policies, and knowing such headlines lets you adapt quickly and continue with your profits. Joining seller forums or signing up for Amazon newsletters would also help you keep up to date with what is happening from the seller’s perspective. 

Summary

Selling on Amazon UK offers many opportunities for businesses, from accessing a vast customer base to leveraging powerful marketing tools. However, success requires careful planning and execution, including optimising your product listings, understanding fees, and building customer trust through reviews. You can navigate the marketplace effectively by implementing expert tips and staying informed about Amazon’s policies. 

Whether you’re just starting or looking to enhance your existing strategy, partnering with experts can make a difference. Contact Mercatus for guidance and support in maximising your Amazon selling potential and achieving your business goals.