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The advantages of Amazon are
Think about the costs of running a retail business. You need a storefront in a great location, you need to pay employees, you might need a warehouse and tons of other costs that just keep cutting into your bottom line.
But with an Amazon business, especially if you’re focused on FBA selling, you can offload many of these to Amazon, often at fraction of the cost. If you’re an FBA seller, your warehouse needs shrink greatly, as most of your product can be stored in one of Amazon’s fulfillment centers. Instead of paying employees to work with customers and manage a store, you can pay Amazon to pick and ship the orders as they come in.
Easy Inventory Growth
When you have a retail bookstore, you’re pretty limited in what you can stock. Sure, you can add some movies and CDs to your inventory, but would it make sense to start selling gourmet grocery items? How many sporting goods stores also stock children’s toys?
On Amazon, you can add whatever you want to your inventory (with limited exceptions in what are called“gated” product categories) and can easily experiment with new products. Customers won’t notice (and if they do, they won’t care) if your inventory is spread among several unrelated categories. They just want great products at great prices.
What happens when your small toy store on main street starts growing? Eventually, you may have to uproot all or some of your business to a new, larger location. Or you’ll need to open more stores in other locations. And then your overhead grows along with your business.
When selling on Amazon, scaling is easy. Even if you are fulfilling most of your orders yourself, the cost of adding more warehouse space is much cheaper than adding additional retail storefronts.
And if you need to scale your business down a bit, due to lower inventory levels or other factors, Amazon makes that easy, too. Customers won’t notice empty shelves in your shop. And you won’t be paying for space that you’re not using.
This goes along with the idea of scalability. In addition to Amazon.com, Amazon has marketplaces all over the globe:
- UK – Amazon.co.uk
- Japan – Amazon.co.jp
- Germany – Amazon.de
- France – Amazon.fr
- Italy – Amazon.it
- Spain – Amazon.es
- Canada – Amazon.ca
If you sell products that appeal to a global audience, Amazon makes it easy for you to get them in front of the right customers. And the basics of selling on Amazon are the same. Once you understand selling on Amazon.com, it’s easy to apply that knowledge to selling on Amazon.co.uk. And from there, it’s a simple step to start selling in the rest of Europe or even in Japan. Amazon provides one global selling (and buying) platform.
There’s no way a brick & mortar business can scale and grow globally the same way as an Amazon business.
If you’re interested in learning how you can go global, read more here, or email us.
When you have a brick and mortar retail store, changing prices for individual items in your inventory, or your entire inventory isn’t easy. You can’t run up and down your aisles changing prices every hour as visitors enter or leave your store. Sure, you have sales and offer discounts, but that just isn’t as flexible as selling on Amazon.
With your Amazon inventory, and the right tools, like an intelligent repricing system, your prices can be changed in an instant. You can increase prices as items become more popular or as you face reduced competition. You can reduce prices if a new inventory item doesn’t sell as well as you hoped or if 10 other merchants start stocking the same items.