Time and again, Amazon has proven to be a boom for third parties. All 2 millions plus of them. Most recently, it has been rumored to be working on a way for sellers to sell used digital goods.
Why are so many third party sellers attracted to Amazon? The answer is obvious. As Amazon introduces more innovations into the business of eCommerce, not only do they benefit, their third party sellers do too. In fact, Amazon has launched a plethora of innovations since their website first went live.
Innovations in Electronic Retail
The most recent example is that the eMerchant has patented a way for used digital products like eBooks, videos, and music to be resold on the Internet. Moreover, the company makes all of their sites available to resellers. That includes Amazon.com, Amazon UK, the German site, Japanese, French, Canadian, Chinese , Italian, Spanish and Brazilian too.
In addition, Amazon has developed a number of concepts that are meant to connect buyers to third party sellers. For example, there is the wishlist that assists customers in finding new products, many of which are being sold by third party sellers.
In 2006 the company introduced Amazon Web Services, which allows eretailers to share the ecommerce infrastructure that Amazon has created to sell their goods. Amazon has also made it easier for third party sellers to ship their products to consumers. Fulfillment by Amazon (FBA) is a program in which Amazon will ship sellers’ products to customers and Amazon Prime assists sellers in shipping products for free to customers around the world.
The company has also constructed fulfillment centers all over the world which assist sellers in reaching out to customers in markets they could never reach on their own.
Of course there is Amazon Marketplace too, which allows sellers to offer products without having their own stand alone website. This platform helps sellers reach out to more than 188 million Amazon customers around the world.
Amazon Product Ads assists sellers in promoting their products to consumers who visit the Amazon website to find specific products they want to buy. Sellers who take advantage of this program can promote a specific product through an ad on the detail page which results from a product search. In other words, if a consumer searches for a pair of shoes, a product ad exhibiting shoes offered by sellers will appear on the search results page. If the customer clicks on the ad, they are automatically diverted to the third party seller’s website where they make the purchase.
Finally, when an Amazon customer buys a product on a third party site they do so through their Amazon account.
It should be no surprise that Amazon offers such innovations as these and continues to develop new ones. They want to attract more customers to their websites. Third party sellers who piggyback on Amazon also have the opportunity to attract those same customers.