Are you a Prime Business?

Small businesses are making a splash with Amazon’s Prime Day – should your small business sell on the popular website? 

As Amazon’s third anniversary of its popular ‘Prime Day’ comes to a close, it made us think – can a small business join in on the success of the self-declared holiday? Amazon has more than 54 million Prime subscribers – not to mention those customers who do not pay a membership fee. It seems simple enough for any ‘ma and pa shop’ to start selling on the popular website. Even on the best of days, a brick and mortar location couldn’t bring in that kind of traffic. Do the pros outweigh the cons of joining Amazon as a seller?

The Pros

Smaller companies have been growing in popularity on Amazon, especially on Prime Day. According to, one small business saw a 1,371% increase in sales. ‘Simply Gum’ is a natural chewing gum company based in New York City. While the company promoted their ‘lightning deal’ on their Instagram account prior to the big day, the founder credits Amazon for increase their brand awareness and exposure – not to mention those big time sales. The number of items from entrepreneurs and small businesses has continued to grow since Prime Day began three years ago. In 2016, customers purchased over 20 million items from small businesses’ lightning deals.

The Cons

The growing presence of small business on Amazon sounds enticing. This is a great opportunity to expand your brand, but it needs to be worth your while. To sell on Amazon, the most lucrative option for businesses is to have a business account – which costs $39.99 per month. Then, to participate in Prime Day, retailers need to discount their items by at least 20 percent and use Amazon fulfillment to ship orders. Additionally, they will be charged a sales fee that is on average 15 percent. 

If you can’t quite make a profit with the seller fees, perhaps next year you can jump on the big box retailers bandwagon and offer specials during Prime Day week. Amazon has made more in sales on Prime Day than the best ‘Black Friday’ in recent years. This has caused a chain reaction as other big time retailers across the board attempt compete with the website’s low prices. Stores like Macy’s, Target, Toys RUS and Best Buy all have doorbuster type promotions going on this week to take advantage of the extra web traffic. Consider doing your own Prime Day promotions with free shipping or 20-30% off your popular items. Looking for more ideas or to expand to Amazon? Contact us at GS Creative – we specialize in creating unique marketing solutions for your small business.