Many consumers have this perception in their minds about Amazon being the world’s largest online bookstore. This is somewhat true to a certain extent, however, contrary to popular belief, Amazon isn’t just all about books anymore. They have since expanded their range of products to include virtually everything from electronics and toys to household appliances. The site itself is divided into 3 sub-categories. You get the main Amazon marketplace site along with the Z-shops and online auctions section. The main marketplace section is very similar to ebay’s Half.com. The only difference is that Amazon’s site is more detail oriented compared to ebay’s Half, which lacks in-depth product information.
The marketplace section allows individual sellers to offer their goods for sale alongside Amazon’s. In return, Amazon takes a commission off their final sales, ranging from 6 to 15% depending on category. There is assortment of new and used items available to purchase from these individual sellers. Amazon itself only sells new items, however buyers looking to save some money may opt for something that’s refurbished or used. Each purchase is covered in Amazon safe buying guarantee where Amazon will refund the original purchase price if an item is misinterpreted.
Shipping credits that a seller will receive on Amazon is pretty much fixed for each item that sells. It can range from $2.26 for small books to over $20 for large items like stereo receivers or DVD players. The seller is obligated to ship the item even though Amazon’s shipping credit may not always cover actual mailing costs.
Sellers are able to transfer funds from sales to their bank accounts immediately upon completion of a transaction. Funds that are left untransfered are automatically deposited into the seller’s bank account every 2 weeks. Once a transfer is initiated, the money may take anywhere between 3 to 5 business days to show up in your bank account. As a seller, I prefer Amazon over Half.com simply because the latter does not allow sellers to withdraw funds from sales right away. In Half.com’s case, sellers would have to wait 2 weeks for their money to be deposited. This can be a big problem for retailers with large sales volumes as their money would be virtually ’frozen’ for 2 weeks in Half.com’s account pending transfer. Additionally, it will take another 5 business days for the money to actually show up in their bank accounts.
Sellers can also post their items for sale on Amazon’s Z-shops and auctions section. To post an item for sale with Z-shops, sellers are charged a small monthly fee similar to ebay shops. The online auction section is a cheaper alternative to ebay. It costs about 10 cents to post an item but due to limited traffic, there is a chance the item will not sell. Based on experience, I would recommend the main marketplace section if you have an item you’d like to get rid of. Also, due to hygiene resons, certain used items like cookware and appliances are generally not allowed for sale on Amazon. The best money makers are mainly electronics, books and video games. The toys section is generally monopolized by Toys R Us, so it’s best to leave them alone.
The busiest times are normally towards the year end due to the upcoming holiday season. Alongside ebay, Amazon is a great site for sellers to generate additional income. I would highly recommend the site to anyone, buyer or seller.