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    • Best Cryptos
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      • Best Crypto Winter Tokens
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      • Best ERC20 Tokens
      • Best Future Cryptocurrency
      • Best Move to Earn Crypto
      • Best Utility Tokens
      • Best Video Game Crypto
      • Coins to Buy on the Dip
      • Fastest Growing Crypto
      • Hottest Cryptos Right Now
      • Most Promising Cryptos
      • Next Crypto to Explode
    • Invest in Crypto
      • How to Invest in Bitcoin
      • How to Invest in DeFi
      • Long Term Investments
      • Low Market Cap Cryptos
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    • Crypto Games
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    • Crypto Wallets
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      • Crypto Bank Accounts
      • How to Spend Bitcoin
      • How to Spend Ethereum
    • Bitcoin Casinos
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      • Ethereum Casinos
      • Earn Free Crypto
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        • Earn Free Bitcoin
        • Make Money With Crypto
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        • Aqru Review
        • Best Staking Coins
        • Crypto Interest Accounts
        • Crypto Lending Platforms
        • Crypto Loan Sites
        • Crypto Savings Accounts
        • Crypto Staking
        • Earn Interest on Bitcoin
        • Earn interest on Ethereum
        • Earn Interest on Stables
        • What is APY in Crypto?
        • Yield Farming Platforms
        • Yield Farming vs Staking
      • DeFi Crypto Guides
        • Best DeFi Apps
        • Best DeFi Interest Rates
        • Best DEX Coins
        • DAO Crypto Projects
        • DeFi Lending Platforms
        • DeFi Staking Platforms
        • DeFi Swap Exchange
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        • Buy Bitcoin AU
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      • Bitcoin Mining Sites
        • Best Coins to Mine
        • Ethereum Mining
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        • Financial PR Agencies
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        • Web3 Marketing
  • Cryptocurrency
    • Buy Crypto
      • Buy Bitcoin
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    • Bitcoin Price Prediction
      • ALICE Price Prediction
      • ApeCoin Price Prediction
      • Axie Infinity Prediction
      • Battle Infinity Prediction
      • Cardano Price Prediction
      • Chia Coin Price Prediction
      • DeFi Coin Price Prediction
      • Dogecoin Price Prediction
      • Dogelon Mars Prediction
      • Ethereum Price Prediction
      • Floki Inu Price Prediction
      • Hoge Coin Price Prediction
      • Kishu Inu Price Prediction
      • LBLOCK Price Prediction
      • LUNA Price Prediction
      • Pi Coin Price Prediction
      • Polygon Price Prediction
      • SafeMoon Price Prediction
      • Samoyed Coin Prediction
      • Shiba Inu Price Prediction
      • Stepn GMT Price Prediction
      • SXP Coin Price Prediction
      • VeChain Price Prediction
      • XRP Price Prediction
    • Best Altcoins
      • Buy Battle Infinity
      • Buy Bitcoin Cash
      • Buy Binance Coin
      • Buy Celo
      • Buy Cardano
      • Buy Cartesi
      • Buy Chiliz
      • Buy Cronos
      • Buy Dash
      • Buy EOS
      • Buy ENS
      • Buy Ethereum
      • Buy Ethereum Classic
      • Buy FTX Token
      • Buy HBAR
      • Buy IOST
      • Buy IOTA
      • Buy Litecoin
      • Buy Livepeer
      • Buy Loopring
      • Buy Lucky Block
      • Buy LUNA 2.0
      • Buy LUNC
      • Buy Neo
      • Buy Pitbull Coin
      • Buy Polkadot
      • Buy RadioCaca
      • Buy Solana
      • Buy Spark
      • Buy VeChain
      • Buy XRP
      • Buy ZCash
    • Best Crypto Exchanges
      • Best Altcoin Exchange
      • Best Metaverse Platforms
      • Best Crypto Apps
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      • Best P2P Exchange
      • Binance Referral Bonus
      • Binance vs Coinbase
      • Binance Review
      • Best Binance Alternatives
      • Best Coinbase Alternatives
      • Bitstamp Review
      • Bitstamp Sign Up Bonus
      • Coinbase Review
      • Coinbase Sign Up Bonus
      • Crypto.com Review
      • Crypto.com Sign Up Bonus
      • Crypto.com Visa Card
      • Crypto Credit Cards
      • Crypto Tax Software
      • Margin Trading Exchanges
      • Social Trading Platforms
    • Best Meme Coins
      • Best Dog Cryptos
      • Buy Baby Doge
      • Buy Dogecoin
      • Buy Floki Inu
      • Buy Kiba Inu
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      • Buy Tamadoge
    • Best DeFi Coins
      • Buy 1inch
      • Buy Aave
      • Buy Algorand
      • Buy Ankr
      • Buy Avalanche
      • Buy Balancer
      • Buy Bancor
      • Buy Chainlink
      • Buy Compound
      • Buy Cosmos
      • Buy Curve
      • Buy DeFi Coin
      • Buy DYDX
      • Buy Fantom
      • Buy Kyber Network
      • Buy Maker
      • Buy Polygon
      • Buy Ren
      • Buy Serum
      • Buy Storj
      • Buy Sushiswap
      • Buy Tezos
      • Buy Uniswap
    • Best Web 3.0 Coins
      • Buy Basic Attention Token
      • Buy Biconomy
      • Buy Filecoin
      • Buy Theta
  • NFTs
    • How To Buy NFTs
      • Best NFT Apps
      • Best NFT Games
      • Best NFT Giveaways
      • Best NFT Lawyers
      • Best NFT Lottery Sites
      • Best NFT Presales
      • Best NFT Staking Projects
      • Best NFT Wallets
      • Best Utility NFT Projects
      • Buy NFTs on Binance
      • How to Flip NFTs
      • Make Money With NFTs
    • Best Metaverse Coins
      • Buy ApeCoin
      • Buy Axie Infinity
      • Buy Decentraland
      • Buy DeFi Kingdoms
      • Buy Enjin
      • Buy Gala
      • Buy GMT
      • Buy Immutable X
      • Buy The Sandbox
    • NFT News
      • Celebrity Backed NFTs
      • Celebrity NFT Owners
      • Cheapest NFT Projects
      • Coolest NFT Projects
      • Most Expensive NFTs
      • New NFT Projects
      • NFT Calendar
      • NFT Horse Racing Projects
      • NFT Trading Card Games
      • Sport NFT Drops
    • Invest in the Metaverse
      • Best Metaverse Apps
      • Best Metaverse Games
      • How to Invest in NFTs
      • Metaverse Projects
      • Metaverse Real Estate
      • Real Estate Investment Club Review
      • Identity 20XY Review
      • NFT Land Projects
    • Best NFTs To Buy
      • Azuki NFTs
      • CryptoPunks NFTs
      • Lucky Block NFTs
      • PolygonPunks NFTs
      • Prime Ape Planet NFTs
      • VeeFriends NFTs
      • World of Women NFTs
    • NFT Marketplaces
      • Binance
      • Crypto.com
      • DraftKings
      • Looksrare
      • Magic Eden
      • NFT Launchpad
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      • OpenSea
      • Rarible
  • Stocks
    • Types of Stocks
      • Best Biotech Stocks
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      • Buy Adobe Stock
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      • Buy DWAC Stock
      • Buy eBay Stock
      • Buy Etsy Stock
      • Buy Ford Stock
      • Buy Gamestop Stock
      • Buy Hertz Stock
      • Buy Lockheed Martin Stock
      • Buy Matterport Stock
      • Buy Monday.com Stock
      • Buy Meta Stock
      • Buy Medifast Stock
      • Buy Netflix Stock
      • Buy Nike Stock
      • Buy Nikola Stock
      • Buy NRG Stock
      • Buy Rivian Stock
      • Buy Roblox Stock
      • Buy Pfizer Stock
      • Buy SAVA Stock
      • Buy Spotify Stock
      • Buy Tesla Stock
      • Buy Samsung Stock
      • Buy Upstart Stock
      • Buy XELA Stock
      • Buy Zoom Stock
    • Buy Stocks
      • Buy Shares UK
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      • Buy 5G Stocks
      • Buy Cannabis Stocks
      • Buy Coinbase Stocks
      • Buy Dividend Stocks
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      • Buy Oil Stocks
      • Buy Stocks on eToro
      • Buy Stocks via Credit Card
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      • Invest in Stocks
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  • Trading
    • Best Trading Platforms
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      • Capital.com Review
      • Copy Trading Platforms
      • Demo Accounts for Stocks
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      • How to Day Trade Stocks
      • How to Trade Commodities
      • How to Trade Crypto
      • How to Trade ETFs
      • How to Trade Gold
      • How to Trade NFTs
      • How to Trade Oil
      • Islamic Brokers
      • Low Margin Rate Brokers
      • Paper Trading Platforms
      • XTB Review
    • Best Forex Brokers
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      • Best Forex Brokers IN
      • Best Forex Brokers UAE
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      • Best Stock Brokers ZA
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      • Best Forex Signals
      • Best MT4 Brokers
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      • Best Scalping Brokers
      • High Leverage Brokers
      • Low Spread Forex Brokers
    • Trading Robots
      • Algorithmic Trading
      • Bitcode AI Review
      • BitiCodes Review
      • Bitindex Prime Review
      • BitIQ Review
      • BitTrader Review
      • Crypto Bank Review
      • Crypto Boom Review
      • Crypto Engine Review
      • Immediate Edge Review
      • Meta Profit Review
      • Metaverse Profit Review
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      • Oil Profit Review
      • Prime Advantage Review
      • Quantum AI Review
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      • Teslacoin Review
      • Today Profit Review
      • 7Tesler Review
    • Bitcoin Robots
      • Automated Trading
      • BitAlpha AI Review
      • Bitcoin 360 Ai Review
      • Bitcoin Blueprint Review
      • Bitcoin Circuit Review
      • Bitcoin Code Review
      • Bitcoin Digital Review
      • Bitcoin Freedom Review
      • Bitcoin Motion Review
      • Bitcoin Prime Review
      • Bitcoin Profit Review
      • Bitcoin Revolution Review
      • Bitcoin Rocket Review
      • Bitcoin Smarter Review
      • Bitcoin Up Review
      • BitcoinX Review
      • Bitprime Gold Review
      • BitProfit Review
      • Bit Index AI Review
      • British Bitcoin Profit
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Business 2 Community
  • Investing
      • Best Cryptos
      • Best Beginner Cryptos
      • Best Crypto Under $1
      • Best Crypto Winter Tokens
      • Best Emerging Cryptos
      • Best ERC20 Tokens
      • Best Future Cryptocurrency
      • Best Move to Earn Crypto
      • Best Utility Tokens
      • Best Video Game Crypto
      • Coins to Buy on the Dip
      • Fastest Growing Crypto
      • Hottest Cryptos Right Now
      • Most Promising Cryptos
      • Next Crypto to Explode
      • Invest in Crypto
      • How to Invest in Bitcoin
      • How to Invest in DeFi
      • Long Term Investments
      • Low Market Cap Cryptos
      • Most Undervalued Cryptos
      • Penny Cryptocurrencies
      • New Cryptos
      • Best Crypto ICOs
      • Best Crypto IDOs
      • Best Crypto IEOs
      • Best Crypto STOs
      • Best Crypto Crowdsales
      • Best Crypto Presales
      • Best Crypto Private Sales
      • Buying Coins Pre Launch
      • Crypto Games
      • Best Blockchain Games
      • Best GameFi Cryptos
      • Best Gaming Crypto Coins
      • Best Play to Earn Games
      • Crypto News
      • Best Crypto Reddit
      • Best Crypto Alerts Sites
      • Best Crypto Signals
      • Crypto Tiktok Trends
      • Crypto Youtube Channels
      • Twitter Crypto Trends
      • Crypto Wallets
      • Best Cardano Wallets
      • Best DeFi Wallets
      • Best Ethereum Wallets
      • Best XRP Wallets
      • Crypto Bank Accounts
      • How to Spend Bitcoin
      • How to Spend Ethereum
      • Bitcoin Casinos
      • Best Bitcoin Gambling Sites
      • Best Crypto Lotteries
      • Bitcoin Blackjack Sites
      • Bitcoin Roulette Sites
      • Bitcoin Slots Sites
      • Ethereum Casinos
      • Earn Free Crypto
      • Best Crypto Airdrops
      • Best Crypto Faucets
      • Best Crypto Giveaways
      • Earn Free Bitcoin
      • Make Money With Crypto
      • Earn Interest on Crypto
      • Aqru Review
      • Best Staking Coins
      • Crypto Interest Accounts
      • Crypto Lending Platforms
      • Crypto Loan Sites
      • Crypto Savings Accounts
      • Crypto Staking
      • Earn Interest on Bitcoin
      • Earn interest on Ethereum
      • Earn Interest on Stables
      • What is APY in Crypto?
      • Yield Farming Platforms
      • Yield Farming vs Staking
      • DeFi Crypto Guides
      • Best DeFi Apps
      • Best DeFi Interest Rates
      • Best DEX Coins
      • DAO Crypto Projects
      • DeFi Lending Platforms
      • DeFi Staking Platforms
      • DeFi Swap Exchange
      • DeFi Yield Farming
      • Worldwide Crypto Guides
      • Best Africa Crypto Projects
      • Best Asia Crypto Projects
      • Best China Crypto Projects
      • Best Dubai Crypto Projects
      • Buy Bitcoin AU
      • Buy Bitcoin CA
      • Buy Bitcoin DE
      • Buy Bitcoin SG
      • Buy Bitcoin UAE
      • Buy Bitcoin UK
      • Buy Bitcoin ZA
      • Crypto Exchanges AU
      • Crypto Exchanges CA
      • Crypto Exchanges DE
      • Crypto Exchanges SG
      • Crypto Exchanges UAE
      • Crypto Exchanges UK
      • Crypto Exchanges ZA
      • Bitcoin Mining Sites
      • Best Coins to Mine
      • Ethereum Mining
      • Litecoin Mining
      • Monero Mining
      • Crypto Marketing
      • Financial PR Agencies
      • ICO Marketing
      • Web3 Marketing
  • Cryptocurrency
      • Buy Crypto
      • Buy Bitcoin
      • Buy BTC with Apple Pay
      • Buy BTC with Credit Card
      • Buy BTC with Bank Wire
      • Buy BTC with eToro
      • Buy BTC with Paypal
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      • Bitcoin Price Prediction
      • ALICE Price Prediction
      • ApeCoin Price Prediction
      • Axie Infinity Prediction
      • Battle Infinity Prediction
      • Cardano Price Prediction
      • Chia Coin Price Prediction
      • DeFi Coin Price Prediction
      • Dogecoin Price Prediction
      • Dogelon Mars Prediction
      • Ethereum Price Prediction
      • Floki Inu Price Prediction
      • Hoge Coin Price Prediction
      • Kishu Inu Price Prediction
      • LBLOCK Price Prediction
      • LUNA Price Prediction
      • Pi Coin Price Prediction
      • Polygon Price Prediction
      • SafeMoon Price Prediction
      • Samoyed Coin Prediction
      • Shiba Inu Price Prediction
      • Stepn GMT Price Prediction
      • SXP Coin Price Prediction
      • VeChain Price Prediction
      • XRP Price Prediction
      • Best Altcoins
      • Buy Battle Infinity
      • Buy Bitcoin Cash
      • Buy Binance Coin
      • Buy Celo
      • Buy Cardano
      • Buy Cartesi
      • Buy Chiliz
      • Buy Cronos
      • Buy Dash
      • Buy EOS
      • Buy ENS
      • Buy Ethereum
      • Buy Ethereum Classic
      • Buy FTX Token
      • Buy HBAR
      • Buy IOST
      • Buy IOTA
      • Buy Litecoin
      • Buy Livepeer
      • Buy Loopring
      • Buy Lucky Block
      • Buy LUNA 2.0
      • Buy LUNC
      • Buy Neo
      • Buy Pitbull Coin
      • Buy Polkadot
      • Buy RadioCaca
      • Buy Solana
      • Buy Spark
      • Buy VeChain
      • Buy XRP
      • Buy ZCash
      • Best Crypto Exchanges
      • Best Altcoin Exchange
      • Best Metaverse Platforms
      • Best Crypto Apps
      • Best DeFi Exchange
      • Best P2P Exchange
      • Binance Referral Bonus
      • Binance vs Coinbase
      • Binance Review
      • Best Binance Alternatives
      • Best Coinbase Alternatives
      • Bitstamp Review
      • Bitstamp Sign Up Bonus
      • Coinbase Review
      • Coinbase Sign Up Bonus
      • Crypto.com Review
      • Crypto.com Sign Up Bonus
      • Crypto.com Visa Card
      • Crypto Credit Cards
      • Crypto Tax Software
      • Margin Trading Exchanges
      • Social Trading Platforms
      • Best Meme Coins
      • Best Dog Cryptos
      • Buy Baby Doge
      • Buy Dogecoin
      • Buy Floki Inu
      • Buy Kiba Inu
      • Buy Shiba Inu
      • Buy Tamadoge
      • Best DeFi Coins
      • Buy 1inch
      • Buy Aave
      • Buy Algorand
      • Buy Ankr
      • Buy Avalanche
      • Buy Balancer
      • Buy Bancor
      • Buy Chainlink
      • Buy Compound
      • Buy Cosmos
      • Buy Curve
      • Buy DeFi Coin
      • Buy DYDX
      • Buy Fantom
      • Buy Kyber Network
      • Buy Maker
      • Buy Polygon
      • Buy Ren
      • Buy Serum
      • Buy Storj
      • Buy Sushiswap
      • Buy Tezos
      • Buy Uniswap
      • Best Web 3.0 Coins
      • Buy Basic Attention Token
      • Buy Biconomy
      • Buy Filecoin
      • Buy Theta
  • NFTs
      • How To Buy NFTs
      • Best NFT Apps
      • Best NFT Games
      • Best NFT Giveaways
      • Best NFT Lawyers
      • Best NFT Lottery Sites
      • Best NFT Presales
      • Best NFT Staking Projects
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      • Buy NFTs on Binance
      • How to Flip NFTs
      • Make Money With NFTs
      • Best Metaverse Coins
      • Buy ApeCoin
      • Buy Axie Infinity
      • Buy Decentraland
      • Buy DeFi Kingdoms
      • Buy Enjin
      • Buy Gala
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      • Buy Immutable X
      • Buy The Sandbox
      • NFT News
      • Celebrity Backed NFTs
      • Celebrity NFT Owners
      • Cheapest NFT Projects
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      • Most Expensive NFTs
      • New NFT Projects
      • NFT Calendar
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      • NFT Trading Card Games
      • Sport NFT Drops
      • Invest in the Metaverse
      • Best Metaverse Apps
      • Best Metaverse Games
      • How to Invest in NFTs
      • Metaverse Projects
      • Metaverse Real Estate
      • Real Estate Investment Club Review
      • Identity 20XY Review
      • NFT Land Projects
      • Best NFTs To Buy
      • Azuki NFTs
      • CryptoPunks NFTs
      • Lucky Block NFTs
      • PolygonPunks NFTs
      • Prime Ape Planet NFTs
      • VeeFriends NFTs
      • World of Women NFTs
      • NFT Marketplaces
      • Binance
      • Crypto.com
      • DraftKings
      • Looksrare
      • Magic Eden
      • NFT Launchpad
      • NFT Music Platforms
      • OpenSea
      • Rarible
  • Stocks
      • Types of Stocks
      • Best Biotech Stocks
      • Best Bitcoin ETFs
      • Best Blockchain Stocks
      • Best Cannabis Stocks
      • Best Cheap Stocks
      • Best DeFi Stocks
      • Best Dividend Stocks
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      • Best Upcoming IPOs
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      • Buy Shares UK
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      • Buy Nio Stock
      • Buy Oil Stocks
      • Buy Stocks on eToro
      • Buy Stocks via Credit Card
      • Buy Stocks with PayPal
      • Invest in Stocks
      • Invest in NFT Stocks
    • Trading
        • Best Trading Platforms
        • Best Investment Apps
        • Capital.com Review
        • Copy Trading Platforms
        • Demo Accounts for Stocks
        • Day Trading Platforms UK
        • eToro Review
        • eToro Review UK
        • eToro Review ZA
        • How to Day Trade Stocks
        • How to Trade Commodities
        • How to Trade Crypto
        • How to Trade ETFs
        • How to Trade Gold
        • How to Trade NFTs
        • How to Trade Oil
        • Islamic Brokers
        • Low Margin Rate Brokers
        • Paper Trading Platforms
        • XTB Review
        • Best Forex Brokers
        • Best Forex Brokers AU
        • Best Forex Brokers CA
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    Digital & Social⟩Ecommerce

    Building a Business Using the Amazon Platform

    author imageAngela Hausman, PhD Last updated: 29 September 2020
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    building a business

    Building a business is challenging, especially in a global economy where competition is fierce and grows stronger every day. Finding new and innovative ways in which to build a business is critical if you want to stand out from your competitors and to make a substantial profit. Many people build a website for their business in the traditional sense however others highly recommend using Amazon to build a sales platform and in this blog post, I discuss the advantages of disadvantages of using the Amazon platform to start your business.

    Building a business on Amazon

    Access to customers

    Building your own website takes money and a certain level of expertise. Sure, CMS (content management systems like WordPress), themes, and plugins (especially ones like Elementor that provide drag and drop functionality) make building a business online easier since they eliminate coding, building a website is daunting if you’ve never done something like that before. To ease the burden, I wrote an ebook that walks you through the website building process with easy-to-follow instructions and plenty of screenshots showing you just what to do.

    And, that’s the easy part. Beyond building a website, you need traffic from folks likely to purchase your products, and that’s really challenging in a world where nearly 550,000 new websites are created every DAY. Even though about 85% of the 332 million domains in existence today are inactive, that still leaves significant competition in nearly every market niche [from the same source].

    Using Amazon’s platform provides access to the widest shopping marketing in the world. For instance, Amazon leads with over 150 million users accessing the app in 2019 with 89% of customers saying Amazon is their first choice for online shopping. Thus, Amazon has a massive customer reach and individuals often use the website every day to buy a wide range of products. This is extremely beneficial as your own website may take years to build up a credible clientele. However, building a business on Amazon lets you instantly reap the rewards of the millions of people that visit Amazon every day. Amazon’s reach provides a vehicle to sell your products from day one.

    Amazon advertising

    This also leads to my next point, Amazon’s advertising spending hit 11 billion, making it the single largest advertiser in the world. So, instead of spending money building a business with advertising and other online tactics, Amazon offers a solid conduit for new customers. Therefore, Amazon’s ad spending is another benefit to using the platform; there’s no need for you to spend extensive time and money promoting and advertising your own platform. This means you can spend money on other areas, such as employing a 24-hour call answering service for your customers and focus on product development.

    Cost-effectiveness

    In addition to this, using Amazon is extremely cost-effective, which is very important, especially in this day and age of razor-thin margins. In the current economic climate, price competitiveness means you must control costs. If you build a website yourself, chances are it will cost money for hosting, domain registration, a payment processing service, and other technical aspects of running an e-commerce business. These are ongoing costs that repeat every year. In addition, you’ll spend money every year on advertising and SEO (search engine optimization to help prospective buyers find your website online). You’ll also have one-time expenses for website design, themes, and normal start-up costs.

    However, with Amazon, you don’t pay anything to get started. Instead, Amazon charges a percentage of each sale to cover everything from advertising and sales platform to delivery to customers.

    Customers trust Amazon

    As mentioned earlier, 89% of customers go to Amazon first for online shopping. That’s because they trust Amazon because the platform features a secure checkout. Hence, there is a very small risk that anything will go wrong, and thus you reap the rewards of added security and safety. This is very important as hacking and fraud are unfortunately quite a common occurrence. Amazon customers know their personal data is protected and their items ship quickly with almost no concern over receiving purchased goods, even if stolen from your doorstep. Further, Amazon’s return policies generously offer to refund items that don’t meet the customer’s expectations.

    This trust transfers to businesses using the Amazon platform. Thus, selling through Amazon gives you business instant credibility and security.

    Using the Amazon platform is easy

    Setting up a “store” on Amazon couldn’t be easier and Amazon offers tools to get you started. There’s even training and support available to help new businesses get started on the Amazon platform.

    The process of uploading your products and selling is really simple and easy, which is important because time-consuming tasks take so much effort and energy to sell one small item, and it often makes prospective businesses question if it is even worth it to sell through other platforms.

    All you need to begin selling on Amazon is to upload your inventory onto the Amazon website. Amazon sends orders to you for fulfillment and transfers payment on a regular schedule and it is as simple as that. To make things even easier, you can even send your inventory to Amazon and they store it and ship product once someone makes a purchase. This is great because it means you do not have to worry about shipping something and the trouble is taken off of your hands.

    Building a business on your own website requires much more effort to set up products, manage the purchase process, and fulfill orders.

    Negatives of selling on Amazon

    Profits

    Sure, Amazon offers many advantages for those using its platform, but those advantages come at a cost. First, Amazon charges a percentage of each sale (usually between 8 and 15%) plus $.99 per item (for the individual account. Selling plans for businesses start at $39.99/ month). Thus, unlike building a business on your own website, where you keep 100% of the profits, your return on Amazon sales is lower.

    Profits further decline if you choose Amazon as your warehouse and shipping partner, where you incur charges for storage and shipping costs.

    Competition

    Current data suggest a minimum of 2.5 million sellers utilize the Amazon platform. That’s a lot of competition. And, even though SMEs (small and mid-sized enterprises) sell an estimated 4000 products per minute, that’s very little per business. Especially when you consider some sellers on Amazon dominate their product niche, virtually squeezing out newcomers, that’s especially true in the electronics niche.

    Conclusion

    Building a business on Amazon offers some great opportunities to get your business started, although those opportunities come at a cost. Ultimately, you’ll probably want to move your business onto your own website. The best option might be selling from both platforms to allow a positive cash flow from Amazon while building your online reputation and value chain on your own website. Once you get to a point where possible, transition away from Amazon altogether.

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      This article originally appeared on Hausman Marketing Letter and has been republished with permission.
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    author image

    Author: Angela Hausman, PhD

    Follow @MarketingLetter

    I manage Hausman and Associates, a full-service marketing firm operating at the intersection of marketing and digital media. We provide a host of digital marketing solutions including content marketing, email marketing, SEO/ SEM, social media marketing, lead generation as well as marketing strategy, branding,, market research, and a variety of

    … View full profile ›


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