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Selling on Amazon in 2021 - is it still profitable?

February 9, 2021
Julia Rezner
7 minutes

Behind every new business idea, there’s always hope for financial gain. It’s no surprise, money gives us freedom after all. That’s why before deciding to open your Amazon business you will ask yourself- is selling on Amazon FBA still worth it in 2021? Should I get into this business?


Amazon FBA in 2021

The short answer is- yes, it’s still profitable to start Amazon FBA in 2021. Despite many negative opinions talking about the over saturated market, it’s still a good idea to try your own Amazon business. In this article, you’ll learn why is it a good idea to do so, as well as few tips to ensure it’s a success. As you will find out, this year is very promising for new FBA sellers. Let’s get started!


Why Amazon FBA?

When choosing to sell your products online, you are facing a variety of different platforms that allows you to list your products. However, none of them is even close to Amazon in terms of their market share. Let’s look at Amazon Prime- it’s a program that has more than 150 million active users, ready to buy anytime. They’re not just some speculative, undecisive customers-they’ve signed up for the program that allows them to buy faster and without worrying about paying for shipping. That’s why Amazon is few steps ahead of their main competition. For you, as a future FBA seller, this means access to all those people ready to buy your product. Another cool fact about Amazon- it has been projected that in 2021 Amazon's market share will account for 50 percent of the entire e-commerce retail market's gross merchandise volume (GMV). Plus, as far as one can predict the future, this trend is only likely to rise.


Online shopping in 2021

Last year brought a lot of changes to the world we used to know. One of the major changes was seen in the way the customers buy. The on-going trend in the rise of online purchases was accelerated by last year's events. The year 2021 is expected to support this trend. It is predicted that this year, customers will spend a whopping amount of 4927 billion $ in online shopping-721 more than in 2020. Moreover, 70% of consumers shopped on Amazon in Q3,compared to 35% on and 26% on Nearly half of consumers say they would be fine if they never shopped in a physical store again– says the Q4 2020 Consumer Trends Report. This is a very clear call to action for any doubting future retailers!


Amazon FBA- first steps

Whereas all those numbers sound at very least promising, it’s important to understand few things before you open your own business. To succeed, you should focus on profound research. Finding your niche is a must. Simply selling what’s currently popular will most likely make you disappear among all the other sellers doing so. This will harm your potential profits. However, if you decide on something less popular, but promising, you’ll gain an even greater advantage; competition will be lower. This will give you chance to start smaller and test the waters, before buying a larger stock.


Importance of branding

Whatever product you chose to sell, the most important thing is to make it your brand. In 2021, simply re-selling the same, brand-less stuff won’t get you anywhere. If you dream big, you will need to make it clear who you are and what you sell with your brand. From clothes to electronic devices-putting your name on a product gives it a different touch. Customers grow accustomed to certain brands if they meet their needs. If you want to ensure that they will come back to you for more, you can’t skip this step. Besides customer loyalty, having your brand gives you a sure position in the market-now you own the right for your specific product, it can’t be copied and resold by other Amazon sellers. No time to waste- invest in good branding!


How to be a successful FBA seller in 2021?

Finding your niche and branding your products is only half of success. Equally, if not more important, is your mindset as a seller. Choosing Amazon's business requires you to have many psychological traits. From persistence to a clear vision, you will find that having your Amazon business upgrade both your wallet and personality. One of the most shared feelings among Amazon retailers is stress- taking care of product quality, shipment, ensuring you won’t run out of stock, the constant search for better products, marketing, cashflow… This business can be equally rewarding as challenging. That’s why it’s important how you deal with stress. Not letting your nerves dictate your actions is a must. Keep your head cool and your vision clear. Don’t panic, as there’s always some solution available. With those values, you might gain an advantage over your competitors.

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