Amazon introduces a new platform for third-party sellers who want to make money out of their old stuff.
Launched recently in Bangalore, India for its dry run, the Amazon Sell as Individual service allows sellers to list their used items, while it takes care of the packaging, pick-up and delivery process at a minimal cost.
Before Amazon came up with this, eBay was the only place for second-hand items which we knew of.
If the testing of Sell as Individual turns out a success, then Amazon shall expand it to its other marketplaces so that more businesses may benefit.
Amazon Taps into India’s Growing Used Goods Market
Of all the possible countries to launch Sell as Individual, Amazon chose India because of its fast-growing used goods market.
According to a report by the India Brand Equity Foundation, there is a high demand for used books.
Their study also reveals that about 31% of households stock all kinds of products in hopes of using them at a later date, while 18% of them hoard items of sentimental value.
As to why they prefer to buy used goods instead of their brand new counterparts, 69% of Indian consumers attribute their decision to affordability.
Marketplaces for Used Items, Not a Threat to Amazon
Even though eBay and Indian marketplaces such as OLX and Quikr have already established their reputation in the used goods market, Amazon is less likely to be the struggling newbie for good reasons.
For one, it has an effective logistics management in place and, second, it promises on time delivery for a small fee.
Amazon’s Sell as Individual will charge 10 rupees—which is equivalent to 12p in GBP and 15c in USD—for processing orders under 1,000 rupees (£12 in GBP and $15 in USD).
If the total amount of orders is between 1,000 rupees and 5,000 rupees (£60 in GBP and $73 in USD), this would correspond to a processing fee of 50 rupees (60p GBP and 73c in USD).
Now for orders that exceed 5,000 rupees, Amazon will charge 100 rupees (£1.21 or $1.47) .
Sell as Individual is similar to FBA in terms of benefits, except that the former doesn’t require sellers to maintain a monthly fee.
Also, you don’t need to pay a listing fee when you list an item for sale on Sell as Individual regardless of the item’s price.
Should Amazon decide to expand this new selling platform, how useful is it going to be to your business?
Let us know your thoughts in the comments box below.
As always, to your continued success,
Dave and Matt