How Attractive is POD Business on Amazon?
As many of you may already know, Amazon is the world’s leading e-commerce website, connecting sellers with millions of buyers every day. This makes it a fertile business ground with countless opportunities for massive sales. Want to learn how exciting running a POD (Print on Demand) business on Amazon can be? Let’s explore this topic with Hacecommerce!
1. What are Amazon and POD?
1.1. Understanding Amazon
Amazon is a multinational technology company based in the United States, primarily focused on cloud computing, digital streaming, artificial intelligence, and e-commerce. It is considered one of the Big Four tech companies alongside Google, Apple, and Facebook.
Amazon is a massive online shopping center with various products, including cosmetics, clothing, household items, shoes, computers, CDs, toys, and more. Virtually anything can be purchased on Amazon.
For many entrepreneurs, Amazon is a goldmine for growing their business. With adequate time, effort, and capital investment, a well-managed POD store on Amazon can bring in steady revenue without the additional costs of renting space, maintaining inventory, or hiring staff.
1.2. Understanding Print on Demand (POD)
Print on Demand (POD) refers to printing products per customer requests. As a seller, you create designs and list products online. Once an order is placed, a fulfillment service handles the production and shipping of the product to the customer.
POD is a simple, low-risk business model. You don’t need to keep products in stock, and it requires only minimal starting capital. Moreover, it offers substantial profits, especially when starting your POD business on Amazon.
2. Ways to Make Money on Amazon
2.1. Merch by Amazon
Merch by Amazon, often abbreviated as Merch, allows sellers to upload their designs, choose the desired shirt colors, and set the price. Amazon takes care of production, packaging, and delivery to the customer.
Merch does not charge registration or monthly maintenance fees. Sellers earn royalties for each product sold based on their designs.
2.2. Amazon Affiliate
This is Amazon’s official online marketing program, Amazon Associate. With this program, sellers can promote and market products listed on Amazon, earning commissions ranging from 4% to 15% for each successful sale.
The primary principle of Amazon’s commission structure is that the more products you sell, the higher your commission rate will be.
2.3. FBA – Fulfillment by Amazon
In this model, sellers use Amazon’s fulfillment service. Sellers list their products and ship them to Amazon’s warehouses. Amazon then handles packaging, delivery, and customer support. However, sellers must pay various fees, including storage, shipping, and return fees.
2.4. FBM – Fulfillment by Merchant
FBM allows sellers to manage the fulfillment process independently or outsource it to a third party (not Amazon).
There are two types of FBM:
- Traditional FBM: Sellers store products in their warehouse and handle the fulfillment process.
- Dropshipping: Sellers don’t keep products in stock. Instead, they use third-party fulfillment services to manage production and shipping.
In the case of POD, third-party fulfillment providers produce and ship the items only after an order is placed.
3. How Attractive is POD Business on Amazon?
Amazon is the world’s largest e-commerce platform, with 2.1 billion monthly visits. According to Statista (2020), 47% of online shoppers start their search on Amazon before looking anywhere else. This makes running a POD business on Amazon extremely appealing.
Benefits of Running a POD Business on Amazon:
- Access to a Massive Customer Base: Amazon is one of the largest marketplaces globally, with over 244 million registered users. According to Feedvisor (2019), 89% of shoppers are likelier to purchase products from Amazon than any other e-commerce platform.
- Optimized Shopping Experience: Amazon has successfully created an effortless and secure online shopping experience for customers. Many Amazon customers in the U.S. are willing to pay $99 annually to join Amazon Prime. The number of Amazon Prime members has exceeded 100 million and continues to grow.
- Enhanced Credibility and Brand Quality: Customers generally perceive products sold on Amazon as high-quality due to the platform’s stringent product vetting process. Listing your products on Amazon enhances your POD business’s reputation and brand credibility.
- Opportunities for Expansion and Growth: Amazon operates 18 websites across major markets, including North America, Europe, Japan, and India. It has a presence in over 185 countries and territories. Statistically, 1 in 3 Americans frequently shops on Amazon.
4. Conclusion
This article has provided insights into the appeal of running a POD business on Amazon. Hacecommerce hopes this information proves helpful as you explore the lucrative opportunities in this field.
If you need assistance setting-up payment accounts for your products, consider contacting Hacecommerce for professional advice and support.
