The Benefits and Disadvantages Of Selling On Amazon, Groupon and Wish-Small Business Owners

General Business

If you are a small business owner, you may be wondering if listing a product or service on Groupon, Wish or Amazon can benefit your bottom line. These sites are a great way to reach large amounts of customers. It’s an easy way to drum up new some sales.

These platforms are largely geared toward serving local markets.

Businesses can use these large online marketplaces to promote their products or services. These e-commerce marketplaces, offer the potential for large amounts of sales. This is due to the platform constantly driving down the cost of products offered to the platform’s users. So, there are many things to consider before offering your products or service on them.

Let’s first take a look at some of the benefits of selling your products on these online marketplaces.

  • It Attracts A Lot Of Customers

When using a large marketplace like Amazon to sell your products, you have the potential to reach a lot of customers, by appealing to those who are looking for inexpensive deals and a chance to save money. Most that shop on Amazon is looking for rock bottom prices. This platform offers the most benefit for small businesses in which the promotion on the platform does not or will not, cannibalize sales to existing customers.

  • It Advertises Your Business

A Groupon promotion can be a way to announce the existence of your business to clients who are unfamiliar with your products. You get to entice potential customers to try your products or service. The idea is that they are going to like it so much that they will come back and buy from again (hopefully at full price).

  • No Need To Pack And Ship Your Own Goods

Amazon makes it easy for sellers who don’t want to worry about packing and shipping their products. So, as a small business owner selling on Amazon and using Fulfillment by Amazon can bring peace of mind, as you don’t have to worry about packing and shipping of your products. Of course, the service costs extra, but if you can estimate the demand and work your margins right, you might be able to make some pretty good profit without having to do much at all.

  • Unsolicited Referrals

Amazon’s algorithm lets customers see a list of recommended products when on the site, and your product could catch the attention of a customer when they are not even looking for you. However, make sure you do your homework on how people see your products, most are seen due to sponsored products, or Prime products.

  • No Website Building Needed

Designing, building, testing, and maintaining a website of your own can easily cost you thousands of dollars every year. As a small business owner and Amazon seller, you don’t worry about site maintenance.  Amazon allows you to start making money without taking those risk first.

However, It is important to know that you do have a cost for being on the platform

Sellers have access to a huge number of mobile shoppers. As a small business owner, selling on Wish can be a fantastic way to expand your business.

Disadvantages of Selling on Amazon, Groupon and Wish

Shipping dates provide Wish with another disadvantage. If products do not have the Wish Express Business Icon in the shipping options, products can take up to 2-3 weeks to arrive on the customer’s doorstep.

In addition to that, platforms like Wish push hard to drive the cost of the products down. Some consider selling on Wish as a marketing cost and give up hope to actually make a profit

Wish offers a free returns and refund system that allows customers to give them a call, return their product, see their money back in their bank account.

The biggest disadvantage of selling on Amazon is that you never get a chance to build your brand. Buyers never remember who the seller is. In addition to that, customers are only interested in the reviews of other customers on your product and the cost of your product.

The biggest disadvantage of selling on Groupon is that deals don’t generate repeat customers. Groupon has a low conversion rate for repeat customers. Another disadvantage is that deals are not profitable. Groupon keeps 50% of the revenues from each coupon deal. The hope is that most customers that purchase a service don’t redeem the service.

New Options to Reach Customers

Now these platforms are great for getting attention to your product or service but there is only one platform that makes it profitable for you to be on. Introducing the AmpedPro platform.

It connects local small businesses like never before. Learn more at

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