A ten-point checklist before you start trading on Amazon

Anouck van Rietschoten, Head of Operations (Marketplaces) at Incubeta, offers a ten-point checklist to help brands prepare for the world's most complex marketplace.

1. Assess your readiness:

Before venturing onto the Amazon platform, brands must conduct a thorough assessment of their readiness, including audience demand and profitability. Amazon has made profitability calculators available to help brands better understand trading feasibility.

2. Allocate resources:

Brands must allocate resources to support their Amazon strategy, including teams to manage logistics, marketing, and administrative support. Business leaders must not underestimate the resource-intensive nature of supporting an Amazon play.

3. Ensure fulfillment:

Stock availability and timely delivery are crucial for success on Amazon. Delays due to poor stock management will result in lost customers and poor reviews.

4. Plan strategically:

A well-executed marketplace strategy can quickly expand a company's product catalogue around the world. However, aggressive expansion can be risky. A solid master plan, followed by a regionally-specific rollout, will lower expansion risk and allow companies to test and refine their delivery region by region.

5. Start small:

Listing a huge number of products on Amazon will add to operational expenses. Brands must start small and build up once they are proficient at managing their brand on the platform.

6. Manage expectations:

In a new market, brands can expect to break even between six to 12 months, and profitability can be achieved between three to six months in a more mature market. Brands without an established audience will take longer and require a solid marketing strategy to drive awareness and sales.

7. Gain experience:

Amazon is the toughest global marketplace to crack due to its complexity. Brands and resellers should gain experience on less complex platforms before venturing onto Amazon. South African brands can consider testing their wings on Takealot as a precursor to an Amazon launch.

8. Pay attention to branding:

Poor product images and negative reviews due to poor fulfillment can cause long-term damage to a brand's reputation. Brands must invest time and effort to ensure great quality from the start.

9. Protect your brand:

Brands can be hijacked, and resellers can sell your products as their own on Amazon. Brands must register their brand to retain control of it and protect themselves from hijackers.

10. Be aware of regional differences:

Regulations and compliance issues differ across regions. Brands must be aware of the nuances of regional trading requirements and packaging regulations to avoid potential issues.

Amazon can provide a profitable new sales channel for brands looking to enter new markets or expand their existing ones. As South Africa prepares for the launch of Amazon's global marketplace, brands must have a solid marketplace strategy in place. Working with a marketplace partner with extensive experience in assisting brands across the globe can further de-risk a brand's move onto Amazon.