What follows is the complete audio interview as well as the transcription, edited for clarity and length.
Ori Greenberg: Not many brands find it so simple to sell directly online. They will need to prepare their own marketing department and specialize in ecommerce. They have to place their logistics for B2C. A good deal of manufacturers find it very tempting to go directly on the internet and they believe the margins will be dramatically increased, but the costs of doing business online are still important.
PEC: Are you aware of cases where manufacturers tried to go direct-to-consumer and then changed their mind?
Greenberg: I have seen several instances. I used to get an ecommerce agency and a few manufacturers thought they may want to perform B2C, but finally they remained a B2B company, then started selling to people who focus on doing online marketing.
As a freelancer, if you can find a way to add value to the area, either by establishing your own creative advertising activities or by providing a better customer experience, or even in the event that you’ve got a geographic advantage and your shipping time is far better than others, there’s room for your small business.
If you’re a large brand owner, and you’ve got the manpower and the money to set up a marketing department, there is more likelihood of you actually succeeding and making the adjustments necessary to perform B2C business. For small and medium producers, it costs a lot. So, I’d say that the larger ones find it quite possible and it is very feasible to sell online directly, and also the smaller and medium manufacturers will fine it even more challenging.
PEC: How can resellers on Amazon add value?
Greenberg: They could add value, when it comes to providing the ideal experience, the ideal item, the perfect approach with care, and sending it on time or using FBA. Provided that you’re making sure the item is in the best state and supply the best customer experience, that is your way of adding value. And you will need to be competitive in price.
PEC: How resellers can add value in their own sites?
Greenberg: They could do everything that comes to mind, from adding hints to the best uses of this product which you purchased that you might did not think of. And additionally, old-school marketing actions, like incorporating a booklet to your package and providing an incentive to return to the site and make another purchase.
Additionally, many sellers neglect taking care of the client base, and there is a lot you can do there. Repeat customers are a terrific asset.
PEC: Say that a merchant is considering selling on Amazon’s market for the first time. What is your advice?
Greenberg: I know that it sounds very tempting to begin selling on Amazon, but the best thing to do would be to explore the opportunities, spend some time seeing what the choices are. By way of instance, if you are a U.S. vendor, the first issue is to research the U.S. market and see whether your merchandise is being offered on Amazon or on eBay, and in case you are able to add value, and where are you going to be in that competition.
It is really important to comprehend, before you begin selling, what your margins and sales volume will probably be in the market. There are a couple other questions to ask, but plan a plan ahead of just beginning to sell.
PEC: How can a vendor research a market?
Greenberg: There are two important things to always remember: the market price versus the price you could sell the item at. Once the price is logical and there is enough margin to set a company up around it, ensure you understand what the demand level is and have your stock planned so.
The next thing is to analyze your costs. By selling on Amazon, the fees vary by class. You will find categories wherein your fees are going to be around 10 percent and there are groups where the charges will be approximately 15 percent. You will need to know these things ahead of time, by each and every product.
PEC: How can Algopix, your company, help with this?
Greenberg: We automate the procedure I’ve just explained. There are two primary use cases that Algopix can assist you with and it is all around product market evaluation. If you’re already selling online and you would like to explore different opportunities or other advertising channels, you’ll have the ability to upload a list of your existing inventory and we’re going to examine the demand level and the price in a variety of channels around the world. We will also do the analysis and supply the whole breakdown of sales-related costs, such as tax, shipping, and advertising costs.
We can also help you examine what it will cost to prepare a campaign for each item on Google Shopping, to determine the potential of selling in this station.