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Let us continue to the third trait of proven successful products on Amazon:

#3: Distribution

As all know, Amazon is a company that strives to offer the best shopping experience to its customers by providing the best prices in the market. It has one of the most powerful pricing mechanisms in the world.

Although Amazon is not a price setter, it is a very strong, smart and quick price follower. Many times per day, it scans its own marketplace for other sellers offering the same product, and also other e-commerce sites so that it can adapt its price to the cheapest offer.

Thus, if you sell to Amazon as a vendor, or Amazon decides to sell the same products as you in the marketplace, this price pressure will come straight back to you. Vendors will be asked for extra rebates, and sellers will lose the Buy Box.

However, things will be different if you are selling products with limited distribution. Products with limited distribution aren’t easily available from a large number of online retailers, and thus if you can bring a product to Amazon that isn’t available anywhere else online, there will be much less pressure to reduce your prices. When your products’ selling price is controlled, your profit margins will naturally be protected.

On the contrary, if you sell products with uncontrolled distribution, this will show immediately in the pricing on Amazon. You will find yourself lowering your products’ selling prices in order to get more sales and remain competitive in the gigantic Amazon markets.

Interested? Stay tuned and see you in our next post!

Check out the other Traits that Define the Best Products to Sell on Amazon:

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