Why Do Brands Choose To Sell On Amazon?

By establishing an official Amazon presence, drive incremental revenue while gaining more control over how their products are represented, when brand registry and catalogue controls are properly set up.

With Amazon conversion rates often reported in the 8–15% range in many categories (compared to 3% on DTC sites), avoiding the platform does not protect your brand equity — it can create a vacuum. Instead of competing with the sales you make DTC, Amazon often captures demand that might otherwise be lost.

Will Amazon Cannibalise Your Sales?

A common fear amongst Amazon sellers is the risk of “cannibalising” direct sales…but this is also a common misconception. The phrase ‘cannibalisation of sales’ refers to the loss of sales from one channel (like your own website) or product because a similar version is being offered on Amazon.

However, Amazon frequently captures incremental demand, particularly for high-intent searches. That would have otherwise turned to a competitor or an unauthorised reseller if your brand wasn’t present on the platform. Some channel shifts can occur, but many brands find total sales increase when Amazon is actively managed.

If a brand doesn’t sell on Amazon, customers often do not switch to buying from the brand’s own website. Instead, they are met with two scenarios:

1. Competitor Poaching: A competitor offers an alternative product in your place.
2. Reseller Risk: A third-party reseller lists your product with incorrect content or non-compliant pricing.

By establishing an official presence, brands protect their margins and safeguard their credibility through consistent catalogue control.

What Can Selling on Amazon Help With?

• Market Capture: Having an official presence prevents competitors reduces the risk of competitors capturing brand searches
• Superior Conversion: Amazon’s conversion rates are significantly higher (8-15%) than the industry average (3%), meaning high-intent shoppers are often more likely to convert there.
• The Halo Effect: Increased visibility on Amazon often leads to growth across your other sales channels, rather than a decrease.
• Trust and Scale: Brands can tap into established Prime member trust and expectations for fast delivery, which many DTC sites find difficult to match consistently

When managed properly, Amazon can become a meaningful growth channel rather than just a defensive one. As an example, large global brands such as Apple maintain an official Amazon presence as part of their channel strategy.

Maximising Commercial Performance

By utilising our experience with category leading brands, Market Rocket ensures Amazon presence is an asset, not a distraction. Our approach focuses on Operational Stability and Brand Storytelling work in tandem to fuel the Amazon Flywheel. This allows you to capture existing market demand and catalogue accuracy so brands can grow on the platform without losing control of how they appear to customers.

If you have any queries about selling on Amazon or anywhere else, Market Rocket can offer you a free consultation. You can email us at amazon@marketrocket.co.uk  or call 02037459090.