Amazon and the economy
Dr Imran Batada
Amazon is one of the best online marketplaces that you can use to buy and sell products. It opens the door for millions of online sellers to help them grow economically and promote their products in the international market. As a seller on Amazon, you have a large customer base to sell your products quickly.
Amazon recently announced that it will now allow Pakistani sellers to sell their products on Amazon. This big change makes it a good time for any Pakistani seller to develop their brand to maximize their reach and international exposure.
It has been reported that almost 70 percent of the textile products come from Pakistan by other sellers from different regions. So the fact that Pakistan is supplying one of the best textiles in the world will help local businesses get a boost right from now on. This will benefit not only the sale of textiles, but also other commodities. However, in the garment industry, Pakistan may face problems breaking into the biggest fashion brands as it competes with Bangladesh, India, China and Thailand. Pakistan is still a minor player and will need to improve considerably to secure a better position.
Some of the best products that can be sold on Amazon include textiles, electronics, toys and games, books, video games, clothing, shoes, jewelry, fitness items, cameras. , home equipment, kitchen utensils, hand tools and more. If you are planning to start being a Pakistani seller on Amazon, you had better choose from one of these niches. With the variety of sellers on Amazon, you just need to have unique products to make you stand out from the crowd.
Before choosing a specific niche, you need to know what kind of products you can easily get hold of and what you have enough knowledge about. This is because you need to have great products to prevent your seller account from being closed due to incorrect products / reviews. If you start a reputable store, it will help you grow your customer base and generate more income.
Some of the most demanded business models that you can choose from are wholesale, resale, dropshipping, and handmade. Choose a method of realization. It could be either an Amazon fulfillment, where as a seller you ship to Amazon’s warehouse and they sell the product directly to the customer. Or it could be a fulfillment by the merchant where you store your products and send them directly to your customers.
To be successful as a Pakistan Amazon seller, you must first study your competitors in your specific niche. Get to know what they are doing to be the top of the sales list. Look at the top sellers as well as the top selling products. Do market research before settling for a certain product, because if there is low demand you will go to a loss when no one is ready to buy it, so it will stay in the warehouse for a long time. You can use a combined product list to invite more buyers. To get started, start with a few products and then over time you can scale up and add more products as you grow. You can start with a unique brand that will help you stand out from other sellers. To rank better, use great product images, optimized titles, and descriptions. This will help your product to be easily seen.
In addition to that, you can use Amazon Marketing Services (AMS) which helps you create advertisements for your products so that users can see your products under the products related to that item. This brings great visibility. However, you should always be vigilant when selling items on Amazon. If you provide the wrong information, your account can easily be blocked. The Pakistani government hired Amazon last year on the issue, and it ultimately succeeded. This great initiative will lead to favorable results for young people as well as for small and medium businesses for sale on the Amazon platform. This will add Pakistani sellers to the international market.
Pakistani sellers who sell on Amazon will have a positive impact on the economy. Indeed, unlike before, where Pakistani sellers used to sell through third parties, they will now be able to sell directly. This will help stimulate the economy and create more job opportunities. Therefore, entrepreneurs will have a larger customer base. With such a change, the capacity of young people must be strengthened so that they can effectively use Amazon and other e-commerce platforms, in order to maximize their income stream. This includes checking out the various tutorials that will help you use the Amazon seller account.
Increased empowerment will make more people use Amazon to sell, which in turn will create more opportunities. Suppose 100,000 Pakistani residents start making money from selling Amazon. Each person earning a minimum of $ 500 per month, after one year, this will have a big impact on the economy. This will lead to a lot of durability and efficiency. Statistics show that India ranks 5th among the countries with the most successful Amazon sellers. A 2019 report showed that there were over 209,000 active Amazon sellers in India, and their number increased in 2020. In addition, over 70,000 Indian exporters sold millions of “Made in India” products on Amazon websites. India’s largest marketplace on Amazon has over 320 million monthly visits. Amazon was approved in India in 2012 and the Indian government allows foreign companies to sell on their platform. However, selling on Amazon India is only limited to its residents, so brands need to find a local distributor to sell in the market.
Bangladesh is another region that thrives well on Amazon. In 2019, Amazon made a bold move to source goods from Bangladesh for its global buyers. The proposal was for Bangladesh to keep its goods in Amazon warehouses in the United States. This was intended to help small exporters. Small traders can now easily access global markets through the Amazon online platform.
Thailand is well known for producing high quality electronics, silk and more. In 2016, Amazon launched the Amazon web service in Thailand and a global sales team in Thailand in 2019, to rally more manufacturers and retailers in Thailand. This has led the Thai government to introduce e-commerce initiatives such as the ETDA B2c marketplace, which helps drive growth in the region.
The fact that Pakistan is allowed to sell on Amazon will have a big impact on the economy and help the growth of the country. Even with the big move, however, Pakistani vendors have to prove themselves to ensure that they continue to be a part of the Amazon community. To keep up with people from other regions, they will need to provide quality articles for the benefit of all.
The government should launch capacity building programs for young people so that they can learn how to use Amazon in the best possible way. There are different youth development programs going on, and with this big change, now is a good time to add Amazon Selling Tips and Tricks as a regular course. Universities should add entrepreneurship and online selling on Amazon to their curriculum. These initiatives will undoubtedly serve as a springboard for the success of our young people and the economic development of our country.
The author is director of the Center for Information and Communication Technologies at the IBA.
E-mail: [email protected] Twitter: @imranbatada