5 Reasons for You to Start Selling on Amazon — Like Peloton Did!

Amazon has come a long way from its humble book-selling origins. Today, it’s one of the largest retail companies in the world. As of 2022, Amazon ranked high among the top five retail companies in the United States, coming in as a close second to retail giant Walmart.

It’s no secret that Amazon is making waves in the retail space — and some of the biggest brands, like Peloton, have taken notice.

Why Sell On Amazon?

What does this mean for your business? The answer is simple:

Big and small brands are shifting their sales from their own platforms to Amazon, reaping the benefits conferred by the platform. Here are five reasons you ought to follow suit.

1. Leverage the Law of Averages: Amazon’s Chart-topping Traffic Stats

Walmart may sit atop the retail charts, but Amazon is scoring ahead of the Bentonville-based retail giant in terms of market cap and popularity. As of 2021, Amazon has averaged more than 98 million users monthly. Experts have attributed the e-marketplace platform’s popularity to brand recognition and its app.

Many of the biggest brands in the country have been quick to notice Amazon’s popularity. In fact, the retail sphere received its hottest talking point to date when Peloton announced its arrival on Amazon.

In August of 2022, Peloton CCO Kevin Cornils announced that the company’s products are available on Amazon. Cornils explains that the company’s reasons for joining the platform were due to their desire to “meet customers where they are.”

2. The Amazon Seal of Approval

Social proofing is a surefire way to generate customer trust. However, when it comes to online selling, sellers need a good word from the platforms they’re selling in.

Amazon has been in the retail game for decades for one reason — trust. Simply put, Amazon is one of the most trusted e-marketplaces in the world today. According to data from Feedvisor, nearly 90% of all Amazon consumers expressed trust in the company over others in the online retail space.

Many consumers are aware that brands have to jump through several hoops to sell on the platform. As a result, there’s less friction and hesitation for customers to purchase products.

In short, brands can take advantage of the trust Amazon has created in its users.

3. Amazon as a Social Platform

As mentioned earlier, social proofing is a powerful way to create brand awareness and reduce customer hesitation. When it comes to promotion and sales, social media is the ideal medium for presenting products in the best light — and in the hands of actual consumers. Amazon allows brands to take advantage of social media’s power through its social platform, Spark.

Spark has undergone several changes since its launch. In 2017, Amazon discontinued its shopping integration in the social platform. According to Techcrunch, the said integration tarnished the social media experience, making it come off “too transactional.

”Spark users can still use the platform, but can no longer shop through it. While this may sound like bad news for brands, Spark still provides much-needed product exposure via social media, saving Amazon-affiliated brands from unwanted promotional costs.

4. Amazon as a Media Platform

Amazon has taken a page out of the social media marketing playbook by allocating some of its online real estates to media. With Amazon, sellers are free to add media to their product pages.

The addition of media allows customers to look at products in greater detail, further promoting sales and engagement. With more than 148 million Prime users checking out media, sellers expose themselves to a wider customer base. Such media integrations, along with social media capabilities, make Amazon a full-funnel solution for sellers both new and old.

5. Excellent ROI From Amazon Advertising

Advertising costs on Amazon aren’t only affordable; they also yield great returns in revenue. Based on data from Businesswire, 50% of brands on the platform experienced 700% returns on their ad investments. About 39% saw 3x returns on their investment in Amazon advertisements to boot.

Granted, these returns may not be guaranteed. Nevertheless, any seller on Amazon can benefit from broader reach and engagement. This means that it will only be a matter of time before Amazon users begin adding these sellers’ products to their carts.

Ditch Selling via DTC; Start Selling on Amazon

From greater customer trust to high ROIs on your ad investments, the benefits of Amazon selling are hard to ignore. With brands left and right selling on Amazon, you will be missing out by not following suit.

Need a hand managing your Amazon selling strategy? Schedule a call with ScaledOn’s Amazon Expert Ben Polichronopoulos and see how we can help you.

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