Selling on Amazon
Have you ever thought about starting your own business selling on Amazon? The biggest benefit of selling on Amazon is access to millions of engaged consumers. Amazon provides a ready-made base of loyal customers. They expect good value for money, plenty of selection, excellent customer service, and fast delivery.
The more you understand how Amazon works, the easier it will be to run your business and start increasing your sales. Product sourcing, listing, pricing, shipping, and customer support are the key elements of selling on Amazon that you must master.
In this blog, we explore the basics to help you get started.
How do I get started?
Start by going to Amazon Seller Central and creating an account in your home marketplace. The first thing you need to decide is whether you want to use an Individual Seller Account or a Professional Seller Account. There are some category criteria that need to be met here, so take some time to research the options.
If you want to be a serious seller, it is usually recommended that you use a Professional account. Generally, if you expect to sell more than 40 products per month, you’re better off with a Professional account. It costs £25/$39.99 per month and gives you everything you need to get your Amazon store up and running.
Selling on Amazon: Key Factors to Consider
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You need to find a niche where there is a demand for your product. There are no hard and fast rules, but it helps to have an idea of what you want to sell. Think creatively. Choosing a popular category, such as T-shirts, books, and cameras, may make it difficult to compete and achieve realistic profits.
Perform keyword research on the market and search engines to better understand the demand for your product and the price you can achieve. For example, there is nothing wrong with selling plumbing supplies or electrical accessories. Within the rules, whatever you choose must be profitable after deducting all selling costs. Thoroughly researching a niche takes time and effort, and there is no silver bullet. As an online seller, you can learn by doing, so don’t be afraid to give it a try.
List
You cannot start selling on Amazon or receive any orders until you list your products. To add inventory to your Amazon store, you need to provide important product details, a unique description, and product images. Please note that Amazon’s broad listing requirements are documented in Seller Central.
There are a ton of products on Amazon, so it’s crucial to optimize your listings to get them found. Amazon attracts buyers by matching them with the right products quickly and accurately. Optimizing your product listings means giving them relevant keywords and search terms to find them and help customers compare product features and uses.
Transport and Logistics
During the listing process, you must specify the shipping options for each product, the countries you want to ship to, and how much it will cost the buyer in addition to the cost of the item. There are a variety of options for getting your mail delivered to you, including postal services and couriers.
One that's worth a look is Fulfillment by Amazon (FBA). When you place an order, Amazon will handle the packaging and shipping. This saves you time and hassle because you don't need to deal with returns and shipments directly. A major benefit of this approach is that Amazon handles all customer support. This can help you avoid negative feedback and shipping errors being attributed to you (the seller).
Amazon has a vast logistics network that can provide fast delivery. Amazon charges fees for collecting, storing, packaging, and delivering your items. Depending on your business model and the type of products you sell, it can still be cost-effective. Some sellers prefer to retain control over their inventory management, shipping, and customer support rather than outsourcing it to Amazon.
Customer Support
Whether it's about product and pricing, shipping or packaging, first contact is your opportunity to align your business with the needs of your customers. By organizing your business to respond quickly, you can take control and help buyers make decisions. You encourage buyers to take action by anticipating problems that might keep them from buying. Amazon must meet a 24-hour customer response guideline at a minimum.
Negative feedback is something that anyone selling on Amazon should avoid. When mistakes happen (and they sometimes do), you will be assessed on how you correct them. Resolution time is a key metric for successful problem resolution. The faster you identify problems, the more time you’ll have to fix them and influence the buyer’s perception of you. When you acknowledge your customers’ concerns and show that you’re actively helping, you make the resolution process transparent.
Customer support is a continuous improvement process. When you receive an incoming Amazon message, it is important to:
Matching queries with buyer orders
Respond quickly to convert more sales
Know exactly when your order will be shipped
Identify negative feedback and respond early
Prioritize important messages
Competitive prices
The Amazon market is highly competitive and prices are constantly fluctuating. Depending on your product category, there may be multiple sellers competing to win the customer's attention and make a sale. The best way to increase sales is to win the Amazon Buy Box, which accounts for 90% of sales.
The goal is to win the Buy Box and make more sales without sacrificing profits. This means developing a competitive pricing strategy.
To change your prices to be more competitive, you have two options. You can update your prices manually or use an automated repricing tool. Manual repricing involves constantly monitoring your competitors’ prices. The main benefit of using an Amazon repricer is to increase sales by winning the Amazon Buy Box by reacting quickly to competitor price changes.
Using advanced Amazon repricing tools, you can set rules to compete in a granular manner based on a range of competitive scenarios. These include fulfillment methods, inventory levels, locations, customer metrics, and feedback scores. Pricing rules allow you to set your prices above certain competitors and still make sales.
