Amazon is one of the most popular global e-commerce network today having maximum number of sellers and buyers. Knowing how the company works can help the newly joining sellers adjust quickly in the selling process.

Forbes contributor Kate Harrison has shared five things that you should know before joining Amazon as a seller.

Harrison says, “sing Amazon as a commerce platform is not as straightforward as one might think, according to James Thomson. Thomson is a Partner at Buy Box Experts and co-author of The Amazon Marketplace Dilemma. He believes that a company looking to win on Amazon must understand 5 specific concepts if they want to succeed:

1. Amazon is not your partner – start behaving accordingly.

“Too many brands appear to believe that when Amazon Retail reaches out to buy product, somehow a partnership is being formed between your brand and Amazon. It is critical to realize that in fact, Amazon’s incentives rarely align with the incentives of your brand.”

Amazon is committed to building a marketplace with the largest selection at the lowest prices. “While a brand may be attracted to the customer base of that marketplace, most brands need to protect their pricing. Hence, the Amazon channel can be a source of frustration once the brand’s products start selling on Amazon or through third-party sellers, well below MAP prices,” Thomson explains”.

5 Things Amazon Isn’t Telling You About Selling On Their Site

Forbes

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