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Jump right in: Is Selling on Amazon Worth It? Discover Pros and Cons

It’s undeniable that Amazon is the dominant player in the e-commerce industry, with a massive customer base of over 200 million, including 150 million Prime members. Ignoring this influential marketplace would be a mistake. Selling on Amazon comes with the advantage of instantly establishing trust and credibility for your brand, which is invaluable for any growing online business.

Because they cater to small, medium, and larger sellers Amazon can help boost your sales. They reported in 2023 that they sold 8,600 items per minute. However, this is not a free service and requires that you continue to market your brand, so you need to know when a good time is to look at this marketplace.

This article we will delve into the advantages and disadvantages of deciding whether to sell on Amazon as an e-commerce seller.

The Pros and Cons of Selling on Amazon

When considering selling on Amazon, eCommerce sellers need to weigh the benefits and challenges to make an informed decision. The following table highlights the top five pros and cons of using Amazon as a sales platform. From the expansive customer base and convenient logistics provided by Fulfillment by Amazon (FBA) to the high competition and various fees involved, these factors are crucial in determining whether Amazon is the right fit for your eCommerce business.

Access to a large customer base: Amazon has millions of active buyers, providing significant exposure for your products​.High competition: With millions of sellers on the platform, standing out can be challenging​​.
Fulfillment by Amazon (FBA): Amazon handles storage, packaging, shipping, and customer service, simplifying logistics​​.Fees: FBA and referral fees can take a substantial portion of your profits, often totaling 30-40% of the product price​​.
Prime eligibility: Using FBA makes your products eligible for Amazon Prime, attracting more customers due to faster shipping options​.Limited control: Amazon’s strict policies and algorithms determine product visibility and ranking, limiting seller control over the customer experience​.
Brand protection: Programs like Amazon Brand Registry help protect your brand from counterfeiters and unauthorized sellers​​.High return rates: Amazon's lenient return policies can lead to a higher rate of returns, impacting profitability​​.
Multichannel selling: FBA allows you to sell on multiple platforms like Shopify, Magento, and BigCommerce, not just Amazon​.Storage fees: Monthly and long-term storage fees can add up, especially if inventory management is not optimized​​.

If you’re interested in learning more about these pros and cons, keep reading the rest of the blog! We’ll dive into each point, offering tips and insights to help you make the right decision as an ecommerce seller.

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Pros of Selling on Amazon

Broader Customer Reach:

With over 9.7 million sellers on Amazon that consist of small to medium-sized businesses selling on Amazon will broaden your customer reach. There are some steps, however, that you will need to take to optimize that reach.

When someone decides to look on Amazon they are looking for a specific item that meets their needs. When a customer types their keywords into the magnifier, Amazon uses a combination of search engine optimization and an algorithm to pull up 10 items per page that meet the user’s criteria, allowing you to reach your product’s target audience.

Map of international fulfillment from USA

Amazon’s A10 algorithm consists of a suite of factors, sales, reviews, images, keywords frontend and back, product listing, titles, pricing, PPC (pay per click), impressions, and description, for gaining visibility of the items a customer is searching for.  Ensuring you have these items dialed in will help bring you to the top of the list within the page for your product type.

  1. Sales History/Velocity
  2. Reviews
  3. Product Images
  4. Keywords
  5. Product Listing
  6. Titles
  7. Pricing
  8. PPC (pay per click)
  9. Description
  10. Impressions

Amazon recently started testing a new AI-powered assistant called Rufus, which uses ML (machine learning) capabilities to recommend items it feels would be in the customer’s genre. If you have an Alexa system you may have already experienced this. For instance, you’re talking with friends or family about a product that you are thinking about purchasing, and you open the Amazon app, and these items show up as recommended for you.

Digital Marketing:

Digital Marketing is key in any business but kind of essential within an e-commerce business since your product most likely is not on store shelves. Making sure you have allocated funds toward the digital marketing section of your business will only provide you with return revenue if it’s handled correctly. This means that you must be able to touch all points.

  • Visual appealing website
  • Make sure your consistent across all channels
  • SEO (Search Engine Optimization)
  • PPC (Pay Per Click)
  • Social Media

Amazon is what you would call a one stop shop marketplace. Not only can you communicate with your suppliers through Sellar Connect but you can also purchase advertising allowing you to boost your brand awareness which equals more sales, who wouldn’t want that?


With over 175 locations all over the world it is easy to be able to optimize your shipping and customer reach. By utilizing Amazon’s shipping rates, you can also save money with each shipment.

Amazon charges a shipping fee to the buyer each time an item is purchased and shipped. They offer fast and reliable shipping through well-known carriers that guarantee delivery. One of the biggest perks is being eligible for Prime shipping, this offers a sense of security to the end customers.

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Cons of Selling on Amazon


Due to the size of the marketplace, you will be competing with a lot of other sellers within your product niche, including Amazon. This means that you must stand out amongst the competition to win the sales, being priced right, good reviews, and great shipping times.

When you’re selling on Amazon you will want to have your item show up at the top of the search list. This means that you will be paying more for marketing and worrying about Amazon’s Basic lines, Amazon takes top selling products and create duplicate products.

Dissatisfied customer with damaged package

Customer Experience:

Anyone who engages in the world of online selling understands the crucial role that the end customer experience plays in determining the success or failure of their brand. When it comes to selling products on a platform like Amazon, it is important to recognize that the level of control you have over the customer experience is somewhat limited. Amazon dictates the process of how orders are processed, how they are shipped, and even sets restrictions on pricing. Additionally, Amazon takes charge of handling any customer service inquiries or returns, which can impact the overall satisfaction of your customers.

Furthermore, as a seller on Amazon, you are unable to customize the packaging of your products, potentially limiting opportunities to enhance brand awareness and create a unique shopping experience for your customers.

Amazon Fees:

All marketplaces have fees, but you really need to know what your margins are and how listing on a marketplace will impact them.  With Amazon you are reaching a broader audience but that does come with a price tag that you must account for so that you can continue to be profitable.

Amazon has two separate plans.  The Professional plan you pay $39.99 a month, this is perfect for sellers that are selling more than 40 units in a month. Otherwise, you can opt for their individual plan and pay $0.99 per unit sold. This past January (2024) Amazon altered the selling fees that they apply, for example apparel that is priced below $15.00 decreased by 17-15% and items between $15-$20 decreased by 17%.  They also have inbound placement and FBA Fees.

They are trying to be more competitive within the apparel industry, like TEMU and Shein. To adjust for this, they raised the storage fees on inactive inventory in their warehouses.

Amazon Policies:

Being one of the world’s largest online marketplaces, with billions of sellers from around the world, requires strict policies to ensure they are handling seamless experiences around the world. These policies encompass product listings, seller policy, product review, shipping, and advertising.

amazon prime delivery vehicle

 Product listings:

This policy ensures that the products being represented on their platform meet their guidelines and have descriptions and images that meet their standards as well.

Seller policy:

Amazon has strict seller policies that outline their standards for using the marketplace. They want to ensure that they are promoting authentic products and covers performance metrics and registration costs. Not following these guidelines can mean that you could be at risk of having your account revoked.


Amazon requires that items are shipped within a certain time frame, this does not include the delivery time. If you are not using their FBA services but instead using FBM you will need to make sure that you or the 3PL that you are using can meet those requirements.


When utilizing Amazon’s advertising you must follow their guidelines around content, targeting, and placement. They also have strict guidelines around customer data and how it cannot be stored.

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In conclusion, selling on Amazon has its pros and cons. The marketplace offers a wide audience that any online seller would want to capture. They offer a one-stop shop for both sellers and customers, with reliable payment options and shipping services.

However, the fees associated with selling on Amazon, the intense competition within the platform, and the limited control over customer relationships can pose significant challenges when attempting to establish and grow your brand. Failing to carefully consider and assess these factors before diving into selling on Amazon can potentially lead to detrimental consequences that may ultimately hinder the success and sustainability of your business in the long run. It’s crucial to thoroughly evaluate these drawbacks and their potential impact on your brand-building efforts to make informed decisions and mitigate any potential risks.