Is it worth investing in e-commerce, how long will the Amazon business be relevant, and how promising is this area in 2023? Let’s figure it out together.
How long will business on Amazon be relevant
We propose to specify this question and break it down into 2 components:
1. How long will the platform itself be relevant for doing business?
2. How long can your project last if you decide to start on Amazon?
The answer to the first point can hardly be precise, as no one can predict the future. However, there are a number of factors that indicate that the marketplace will live on for many years to come.
Firstly, Amazon is one of the most successful online retailers in the world and its capitalisation is constantly growing.
|In 2021, Amazon was ranked 1st among the largest companies in the Forbes 2000 list in the category of “Trade”. In 2022, it was ranked 6th in the overall ranking, behind only banking, financial and oil giants.|
Secondly, the platform boasts a large number of active users (which is constantly growing) and an incredible level of their loyalty and trust. According to Statista, more than 2.5 billion people from all over the world use Amazon. And Prime’s paid subscription has more than 200 million members, which is more than the population of Germany, the UK and Spain combined.
Thirdly, it is a constant development and focus on modern technologies. Amazon is not limited to “buy/sell” services. It is also a service for listening to music, storing files, downloading books, etc.
Summing up all of the above, we get the canonical formula for success: a strong brand + technological development + a billion-strong target audience. It is hard to even imagine the scale of factors that could lead to the decline or complete collapse of such a strong corporation.
Now, let’s move on to the second question: how long can your business stay relevant on this platform?
It all depends on the input data: whether you are building a long-term project or want to use some kind of “grey scheme” to quickly multiply your investment.
In general, of course, any product has its own life cycle. But this can be easily solved by expanding the product line. If you rely on a high-quality product from the very beginning, work on improving service and scale up, you will have a business for many years.
|Tip. Choose a product that does not have seasonality. And every 1.5 years, improve its qualities, properties, and manufacturability.|
Is it worth starting a business in 2023 on Amazon
Many people fear that the rapid growth and popularisation of the e-commerce niche has created such competition that newcomers will no longer be able to “grab a piece of the pie”. In fact, this is a deep misconception.
Of course, competition has significantly affected the work of large marketplaces. At the very least, the financial threshold for entry has increased (you will need much more initial investment to promote your project than those who started 5 years ago). The cost of advertising is also growing steadily.
On the other hand, this is exactly what motivates us to act now. After all, the longer you wait, the more determined colleagues enter the market and take your place.
As a result, is Amazon business still relevant? Absolutely! Is it worth starting it in 2023? Yes, definitely.
If you are still in doubt or have any unanswered questions, we would like to remind you of the opportunity to get a free consultation from our specialists. To do so, please contact us in any convenient way (email addresses and phone numbers are listed in the Contacts section).