Is there too much competition to be an Amazon Seller?
To watch the video click above…Keep reading for the transcript.
Hi everybody, welcome to today’s podcast. This is going to be more of a rant than a podcast, but I want to talk a little bit today about competition. Before we get started, thanks again wherever you listening, whether it be on iTunes, or either watching on YouTube, or even on my blog and website.
Competition, I got an email the other day. It said, “I think there’s too much competition. I think too many people are coming to the market, and I’m hesitant to get started. What do you think?”
Well, okay I understand and accept that many people think that. It’s almost funny that people want to come into a market, and they feel that they own it. Nobody ever has the right to ever come in, and try and sell a competitive product.
I don’t know how many emails I see, or posts in Facebook groups where, “Somebody else is coming into my market.” Well okay, that’s fine, and the first thing in all this is you’ve got to get over the shock of that happening, because really what that means more than anything is that you have picked a good and profitable market.
I think you’ve got to know going in or going forward you have to expect that.
Are there too many sellers on Amazon right now, and is it too late to get started? I don’t think so at all. I think right now you hear, “Well, so and so many sellers coming to Amazon,” and who knows what the number is, but let’s just say for every … Let’s just say, yesterday we had 1000 new sellers. I doubt that. Maybe of the last month…
Okay, fine. What happens if, in that same time, you had 100,000 new buyers? You probably never thought of it in those terms, or in that context. Yes, there are sellers coming into the market, but there’s also more and more buyers coming to the market.
Competition causes Innovation
I look at somebody like my wife. I’ve been online for years and been always one of those people on the bleeding edge, but my wife, bless her heart, is not. She was going to go do run errands, and buy all these things. I looked at her and said, “Go sit at the desk. Take three minutes. Order it, and be done with it.”
A light bulb went over her head that she didn’t have to go out and drive through town to this store and that store, and buy things. Again, it was just foreign to her to just do that online, because it was some of the usual things that she needed, but it still was available online.
I think there’s more and more people like that, who are coming into this every single day. As far as I’m concerned, I think Amazon is still in its infancy, as far as Amazon sellers. Are there some very mature markets? Absolutely. Are their some you shouldn’t enter? Absolutely.
That still leaves the vast majority of markets which are open to competition. Now, again, competition, as hard as it is, and we wish we never had to deal with anything, but competition actually makes you a better seller. It makes you more profitable because it forces you to innovate, to manage your company better, to do things, to make better decisions, so you move your business forward. It also motivates you, if you have any competitive drive whatsoever.
Think of all the businesses that are out there. For every McDonalds there’s a Burger King. For every Apple there’s the
Windows and all your things for Microsoft. There’s Ford, there’s Chevy. Name me one product, one brand, one industry that doesn’t have some type of competition.
Whatever product or brand that you’re thinking about, you should learn to expect there’s going to be competition. I think, too, the people who are ultimately are going to thrive in this business are the people who think of this in terms of building a brand versus just launching an Amazon product.
Again, there are, no doubt, more quantity of people coming in, but I think as you raise the bar as an Amazon seller, that includes getting better at your management, getting better at your packaging, getting better at your design, and creating a professional-level product that would sell on Amazon, or sell anywhere else.
The days of throwing junk up there, those which you should never have done anyway, but those days are gone, you’ve got to run this like a legitimate business, and that means you’ve got to get the economies of scale that come from having multiple items. You’re going to get multiple sales from having multiple items. When you have a brand, I think all kinds of good things come along.
As I started building my first brand over this period of time, I’ve had several people approach me and want to buy very, very large quantities of orders, and that’s just because you’re out there, and you’ve got multiple items, and you look like a real company.
Act like a real business
You have a professional looking website, where you can sell products through your website. You’re a real business. You’re a real brand. I think for people who approach the Amazon business that way, whereas Amazon is only one of your ultimate markets where you sell, to where ultimately it’s your website, or ultimately it’s maybe through trade shows or a wholesale company, or whatever it happens to be, then those are the people who are going to be left standing.
Whereas the people who come into this and they’re thinking only of product, they don’t put any effort into it, they don’t manage it like a company, they don’t run it like a company, they don’t do any marketing, they don’t do any promotion, those are the people who competition will affect.
There’s no better time than now to get started
Ultimately in this, I’m a big believer, bring it on. Let’s line up. Let’s go. I’m convinced 99 of 100 times, I’m going to win, because I’m more competitive, I’m more driven than most people. I think there are a lot of people out there who are like that.
I have to say, I don’t always win, however, I usually do, because I am more persistent, and I will see a project through. You got to understand, most people won’t. For every person who’s come into Amazon, some of them will simply give up too easily.
That’s not just, on Amazon, and everywhere else, again, that’s human nature. If you ask yourself, “Really, is there too much competition? I’m afraid of that.” I think you’re wise to be aware of it, but I think that only means there’s money to be made in the market, and if you ultimately can come in and out market, and out manage other people, you’re going to be left standing when the dust settles.
Amazon is still in it’s infancy with billions left in growth
If you’re considering coming into the Amazon business right now, there’s no better time to come in. I actually took a statistics course when I was in college, and I had to just scramble to barely make a C, because I’m not very good at math, but the only thing I do remember out of that class is the bell curve.
I’m sure there’s a name for it, probably why I got a C. It starts out to where, when a new industry emerges, people at the very, very bottom of that bell curve, and then the industry starts to take on growth and momentum, and people start up the bell curve. When they get to the very, very top of the bell curve, the market has peaked. It’s saturated, it’s matured, and then you’re going to have the inevitable shakeout, and then only the strongest sellers are going to remain at the bottom of the bell curve.
I personally believe, right now, that we’re at the very, very beginning stages of that bell curve on the way up. Obviously the newness is not there, however, we’re still at the very, very base of the upside of the bell curve.
All of my C academics aside, I do think there’s still a lot of room left. Again, there’s a tremendous amount of room left for people who run this like a real business, and all the people who approach it half-heartedly, you’re going to be able to beat them.
If you’re deciding whether you want to get in the Amazon business or not, please don’t let the factor of competition intimidate you. If you’re not willing to put forth your best effort, you probably shouldn’t enter, and that’s probably true not only here, but everywhere.
For those who are willing to run this as a business, there’s a lot of room left at the inn. With that said, appreciate you listening here, and I hope that gives you a little bit of insight on whether you should start or even build and grow your Amazon business. I thank you for being here. Look forward to seeing you next time.
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Mark Scott Adams is a serial entrepreneur who has started, built and sold six businesses. He has sold millions of dollars of physical products on and offline over the last two decades. He is currently a speaker, author and successful Amazon Seller. To take his free amazon sellers training click here. To Get his free product checklist list click here