Let's separate fact from fiction with five more common statements about selling on Amazon.
1. Amazon has robots working in its warehouses
True. As of 2021, Amazon has more than 150,000 robots working in its warehouses, which is about 5% of the company's total number of employees engaged in logistics. Robots automate processes such as placing goods on shelves, reducing task completion time and minimizing human error.
2. You can't sell on Amazon without your own warehouse
False. Operating a personal warehouse involves significant costs for both new and established sellers. Many large companies are shifting away from maintaining their own fulfillment operations in favor of using prep centers instead.
3. Amazon requires a unique product that is not available anywhere else
False. If this were true, dropshipping and online arbitrage would no longer exist. The marketplace is designed to facilitate sales of in-demand goods. Extremely unique products face discovery challenges and expensive promotion requirements.
4. Not all goods can be sold on Amazon
True. Prohibited categories include dangerous goods, copyright-infringing items, narcotic drugs, weapons, live animals, prescription medical products, and certain food items.
5. It's hard to compete on Amazon with the big brands
False. While large brands have bigger advertising budgets, small brands and new products can still succeed by offering unique value, maintaining quality, and keeping prices competitive.
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