Amazon is perhaps the largest and most influential eCommerce aggregator in the world. A while ago, we posted an article about Amazon’s tremendous reach (ref: What’s the big deal about $1 out of every $2 spent online in the US going to Amazon? ).
As an entrepreneur, there are several ways you can leverage Amazon’s powerful platform. In this article, we will evaluate the popular programs, including Amazon’s Seller Program, offline logistics program and Amazon logistics.
Opportunity 1: Amazon’s Seller Program
Amazon has a well developed network of vendors, called the seller-program. If you are a vendor with product/s to sell, you can register on Amazon’s Seller central (link). After you are approved by Amazon, you can begin selling products that will be listed on Amazon’s websites. A few details on how this works:
1. Reach Hundreds of Millions of Customers – Access a massive audience of confident customers—in the U.S. alone, Amazon has over 95 million monthly unique visitors.
2 Let Us Do the Heavy Lifting – Scale swiftly and reach even more customers with Fulfillment by Amazon, our world-class fulfillment service. We pick, pack, and ship your products and take care of customer service and returns—all so you can focus on growing your business.
3. Put Your Products in the Spotlight – Get the word out—boost your product visibility and help maximize sales with Advertise on Amazon.
Opportunity 2: Participate in Amazon’s offline outreach in some geographies
Amazon, which is on its way to become India’s top online marketplace, has launched a project in India (code-named Udaan) to go offline across the country. The company has tied up with small traders in Maharashtra and Tamil Nadu to launch Amazon-branded stores that aims to help people with limited internet connection to shop from the online Amazon store. Amazon has also signed a deal with the Rajasthan government that may help it open 36,000 such stores in the state.
Amazon has partnered with several local integrators for the program.
- Vakrangee, which provide financial and other services in rural India, said it has entered into a strategic tie-up with Amazon India to provide marketing, promotional and other services through it ‘Vakrangee Kendras’. Vakrangee has been building an ecosystem of small outlets to fill the last-mile gap for retail firms in rural areas. The company has over 35,000 business correspondent bank branches through which it also offers insurance, e-commerce and e-governance services.
- e-Mitra, an e-governance initiative of the Rajasthan government, specializing in providing last-mile solutions for government services
- LinQ is an official offline partner of Amazon. (link) : A LinQ store is an online super bazaar with an aggregation of various e-commerce services like retail, travel, health care, insurance, pharmacy, money-transfer, matrimony and others under a single platform. As a single point digital platform, we have a string of highly regarded global organizations driving the LINQ ecosystem forward. LinQ stores are providing business opportunities for enterprising individuals who want to start a business of their own in their local town.
Opportunity 3: Deliver With Amazon
Amazon is expanding its network of delivery providers and they are looking to hear entrepreneurs. Refer to Amazon Logistics
- How it works – You choose the cities where you’d like to deliver. All deliveries within a specific service area and delivery services vary by location. If you’re awarded Amazon business, they will set up a plan with you to define the work your company will do.
- Become an Amazon Delivery Provider – You may choose the cities where you’d like to deliver and submit information for a business background check. They will review your information and get back to you if they have delivery needs in your area.
Opportunity 4: Amazon’s Associate Central
Amazon has one of the oldest, well established online affiliate program that hundreds of thousands of other ecommerce ventures, blogs and websites use to generate additional revenue. Amazon Associates is an affiliate marketing program (link) that allows website owners and bloggers to create links, and earn referral fees when customers click through and buy products from Amazon.
Many bloggers have carved out an engaging audience for their blogs, and have figured ways to generate a lot of revenue with Amazon Affiliate Sites.
Opportunity 5: Amazon Marketing Launchpad
Amazon Launchpad (link) is a unique marketing program that showcases innovative products from startups like yours to millions of Amazon customers.
Amazon aims to provide the resources, their world-class retail expertise, and global infrastructure to sell and deliver your product. According to them, “Our team is vested in your success, so you can continue to innovate, grow your business, and earn customer trust globally.”
Other Opportunities for Startups: Venture investment and M&A
As a large tech company, Amazon continually acquires technologies and technology firms and also invests in promising startups. Amazon also makes venture investments through its corporate development arm.
- Amazon – Investments | CrunchBase – List of recent investments made by Amazon.
- The company’s founder and CEO Jeff Bezos has also got his own venture capital fund, called Bezos Expeditions that is much more active and public.
- Mr. Bezos also recently took to Twitter seeking crowdsourced ideas for innovative philanthropy (link).
Tip: As an entrepreneur or startup founder, you will have to focus on your core idea and bring it to market, perhaps beyond an MVP before you are noticed by corporate venture funds like Bezon Expeditions or other Amazon ventures
Link to Amazon’s Programs for Entrepreneurs listed in this article:
- Amazon’s Seller central
- Offline engagement with Amazon’s Partners
- Vakrangee, through ‘Vakrangee Kendras’.
- e-Mitra, an e-governance initiative of the Rajasthan government
- LinQ is an official offline partner of Amazon
- Amazon Associates is an affiliate marketing program
- Logistics – Deliver With Amazom
- Marketing – Amazon Launchpad
Amazon has a tremendous ecosystem that entrepreneurs and startups are leveraging. However, it should be noted, that some of these opportunities are region specific. Make sure you review current details on Amazon’s official websites before engaging with other third Parties.
Bottomline: As always, when it comes to business and finance, Caveat Emptor; buyer (and seller) beware !
You may also be interested in other articles on Amazon | All Rights Reserved | Article complied by our editor, Mohan K |
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