Selling online through marketplaces like Amazon has become extremely popular in recent years. The massive reach and existing infrastructure make these marketplaces attractive to those small businesses and entrepreneurs looking to scale up as quickly as they can. Successfully selling on Amazon though requires understanding how the platform works and having the right strategies in place.
Choosing the Right Amazon Seller Account
Amazon offers two main types of seller accounts – Individual and Professional. Individual accounts are free to set up and ideal for small scale or hobby sellers who expect to sell less than 40 items per month. Professional accounts cost $39.99 per month but come with additional features like bulk uploading product info and access to promotions. Professional accounts are better suited for serious sellers who expect higher sales volumes. So consider projected sales and needs before choosing an account type.
If sales volume exceeds $10,000 per month, you should think about establishing a dedicated business entity and opting for Amazon’s Vendor Central accounts. Vendor accounts allow bulk inventory uploads, inclusion in promotions, and better brand representation. The good folk at Ecomsellertools.com tell us that seeking the advice of an Amazon seller consultant can help determine the right account path based on your business goals.
Optimizing Listings for Maximum Visibility
Product listings are the storefront for your items on Amazon. Optimizing titles, descriptions, images and back-end keywords is essential for visibility. Titles and the first 2-3 lines of description are most important, as this is the content customers see in search results. Include key product features, benefits and unique selling points here. Add additional details in the full description.
High quality images allow customers to clearly see the product. Include multiple angles and close ups of important features. Fill out all appropriate back-end fields for categories, product details etc. This helps Amazon match your items with relevant searches. Consider running sponsored product campaigns to gain even more visibility for new listings.
Pricing Strategies and Competition Analysis
Amazon’s buyer base expects competitive pricing and discounts. Thoroughly research how competitors price similar items on Amazon. Is there a common range? How does your pricing compare? Don’t rely solely on Amazon – also check competitor sites, review sales histories and consider costs. Is there room to offer better pricing? Can you compete if you’re priced higher?
Monitor best-seller lists to identify top competitors. Use tools to estimate their sales and revenue. Review their listings to analyze successful techniques. Identify opportunities to differentiate. Consider running aggressive promotions when first launching a product to gain initial traction.
Managing Inventory and Fulfillment
Inventory management is crucial, as running out of stock can sink listings. Utilize Amazon’s reports and data to forecast demand and optimize stock levels. Consider Fulfilled By Amazon (FBA) to leverage Amazon’s warehouse and logistics network. FBA listings can qualify for Prime and enable faster delivery. But FBA does have fees, so weigh pros and cons against self-fulfillment.
Monitoring Metrics and Improving Performance
Consistently analyze key metrics in Seller Central to identify opportunities for improvement. Track overall sales trends, growth by product, conversions, profitability and more. Review bestselling items – can their success be replicated? Identify lower performers and diagnose why. Is it the listing, price, competition? Use data to make informed decisions about product mix and reallocating resources.
Setting up alerts and notifications can help you stay on top of changes that require action. For example, being notified when projected inventory depletions near reordering points, or when listings receive negative feedback.
Conclusion
Succeeding on Amazon requires diligent optimization across multiple factors. While initially time intensive, establishing efficient processes and leveraging available tools and services can streamline marketplace selling and help build a profitable Amazon business.
