E-commerce website Amazon has grown in popularity over the years, and Hampton Roads small businesses are increasingly turning to the platform to promote their products.
In 2022 alone, independent sellers in Virginia sold more than 41 million products on Amazon, said Ian Allen-Anderson, a regional spokesperson for Amazon.
And Amazon can be a lifeline for business revenue. The average annual sales revenue of the 11,000 independent Virginia sellers on Amazon was more than $145,000, Allen-Anderson said.
“People are more likely to spend on Amazon versus your website,” said Tahjere Lewis, owner of Aunt Carol’s Sauce in Newport News.
Lewis charges $13.99 for one bottle of Aunt Carol’s Sauce on Amazon. Despite his website offering two bottles for $16.99, he said many customers still choose to go through Amazon because of the ecosystem the e-commerce giant has created.
“You know if you’re a Prime user, you’re going to spend your time on Amazon because you want to escape that shipping charge,” Lewis said. “And that’s the biggest thing about e-commerce: No one wants to pay for shipping.”
For $14.99 a month or $139 for a full year, Amazon users can sign up for a Prime membership to receive benefits, including free shipping on certain items. In January, Business Insider reported Amazon having 168 million Prime members in the United States at the end of 2022.
While e-commerce platforms like Amazon can increase revenue for businesses, small businesses still need to put in the work to reach customers and develop brand loyalty, said Jolie Spiers, the executive director of Hampton Roads Small Business Development Center. A good e-commerce strategy involves digital marketing like social media, email and online advertising.
“It makes the business stickier so that customers are more likely to continue to engage over time,” she said.
Kylie Ross Sibert, vice president of marketing and communications for the Retail Alliance, said while e-commerce platforms can help find new audiences for a business’s product, using them also requires giving up some control. The Retail Alliance advocates for small businesses and has taught business owners about third-party marketplaces.
“Those third-party sellers don’t have necessarily your interests in mind in terms of branding and pushing the individuality that you provide to customers,” she said.
Barber Marrico Simpson owns 4Mas Grooming Inc., a hair and beard care company in Suffolk. Simpson started his company in 2018 and began using Amazon shortly after, with products also sold at Walmart.com and his own website.
Simpson said around two-thirds of his sales come from Amazon.
“People will trust Amazon more than our website, and they offer so many benefits,” he said.
Catesby Jones founded Peace Frogs, a clothing and accessory company in Gloucester, in 1985. He started using Amazon around five years ago and said it was “fantastic,” but acknowledged issues with the e-commerce platform.
For one, Jones and Lewis both said Amazon takes a sizeable percentage out of each product sold. Jones also noted experiencing fulfillment issues in the past, and having to pay fees for advertising. Although it isn’t required, he said it’s needed to increase sales on the site.
“That’s where it can get really expensive, because you can be spending almost as much as you’re making on online advertising through Amazon. So it’s like you’re paying Amazon to promote your product on Amazon,” Jones said.
One of the biggest and most persistent issues Jones has found with Amazon is trying to ward off scammers who steal his product design.
To ensure customers are receiving the best product and receive support if there’s a problem, Jones recommends they purchase directly from the business’s website rather than going through Amazon.
In terms of customer service, Jones doesn’t think he’s ever spoken to a person at Amazon. Communication is usually through email or messaging of some sort, and that can be frustrating if there’s an issue, he said.
“It’s a very impersonal experience,” Jones said.
Gabby Jimenez, gabrielle.jimenez@virginiamedia.com
