Table of Contents
- 1 Study the Amazon’s Landscape
- 2 Consider Fulfillment by Amazon (FBA) Fees
- 3 Think of Your SEO on Amazon
- 4 Check out the Product Listings
- 5 Price Your Products Competitively
- 6 Select The Proper Pricing Strategy
- 7 Mind The Packaging
- 8 Decide On Your Best Performing Products
- 9 Maintain Top-Notch Customer Service
- 10 Track Your Success and Possible Changes in Your Amazon’s Seller Central Account
- 11 Avoid out-of-stocks
- 12 Be Ready for Hard Work and Effort
- 13 To Sum up: How to Succeed on Amazon
In this article, we provide efficient tips on how to succeed on Amazon and scale your business by increasing sales.
Study the Amazon’s Landscape
Learning the rules of the Amazon platform isn’t a choice. It’s a must. Find out more about guidelines, Amazon Prime member benefits, and fulfillment by Amazon FBA recommendations. At the same time, you need to examine the competitive landscape. You don’t want to work with products on Amazon with too many similar options or find out that your price isn’t competitive too late. Thus, abide by the platform’s recommendations and rules, operate professionally, and keep smart about entering the market.
Consider Fulfillment by Amazon (FBA) Fees
The choice of product should depend on how much you pay to sell them on Amazon. So let’s delve deeper into the most popular sales model – FBA.
The main fees paid for the FBA:
- FBA fee;
- referral fee.
These fees are paid for each unit of goods. FBA fulfillment fee is calculated depending on the product category, size, and weight. The Amazon certificate states that the platform charges this fee for collecting and packaging your orders, delivery, processing, and return.
The larger the product’s weight and volume are, the more FBA fee you will have to pay for the items.
FBA storage fee refers to the commission for storing goods in an Amazon warehouse. It is calculated depending on how many cubic feet your product occupies in the warehouse (not one unit, but all the products).
Many sellers choose small items to pay a minimum fee and cheaper delivery to Amazon (from China, for example).
The referral fee is calculated as a percentage of the price of the goods on the listing, paid for each unit of goods sold, depending on the category. In the category “kitchen,” for example, the referral fee is 15%, whereas in the category of electronics, only 8%.
Think of Your SEO on Amazon
Consider the Amazon platform as a typical search engine to end up with a much better idea of selling online with a more strategic approach. Get acquainted with all the peculiarities of the search engine algorithm, and you will find yourself in a great position to keep your keywords, search results, and all the copywriting spick and span.
Check out the Product Listings
Once you find out what the algorithm of the search engines on Amazon offers, spare some time to learn more about your competitors, look for your products and mark how your rank coincides with the competition when it comes to price and the description of the product listing.
Price Your Products Competitively
When you are the most expensive on the market, you are unlikely to achieve many orders. But, on the other hand, when your prices are too low, you can’t make a great profit. The key is simple: try to get the sweet spot between these two options. For example, your price can be 1% lower than your competitors. But there are more aspects than just the price in choosing the winner of Buy Box.
Select The Proper Pricing Strategy
When you are selling inexpensive or luxury products, you need to set the appropriate pricing. Generally, try to keep prices not higher than 10% compared to other Fulfilled by Merchant Amazon sellers. At the same time, try not to be more than a few pennies cheaper than the least expensive competitor. Common seller strategies also include raising the price when your competitors run out.
Mind The Packaging
Do you want to send the products to Amazon only to have the items damaged on the way from the party seller or to fulfillment centers? Probably, no. Then, make sure there’s enough packaging in your shipment. Thus, even if they are dropped, your goods will be okay. Great things are simple, and it doesn’t take much time to check the package, especially when your suppliers can deal with most of it.
Decide On Your Best Performing Products
The most profitable goods are your real cash cows. So, you need to treat such goods just as well as they have been working for you. First, study your Amazon selling account and reports to spot your profitable goods by examining the profit margins, sell-through ratio, and trends in price. After that, order more to continue increasing your ROI. Finally, don’t forget to maintain a decent stock of your bestsellers.
Maintain Top-Notch Customer Service
As soon as you do the difficult part and gain sales, you mustn’t screw the pooch. Ensure all information about the order is proper, package your goods appropriately, and deliver to the provided address. Don’t forget to politely request a customer’s feedback and respond to the queries on time. For your convenience, use a great tool, SageMailer, developed to make your communication with clients and handling customer reviews even in social media as smooth and simple as possible.
Track Your Success and Possible Changes in Your Amazon’s Seller Central Account
Seller Central (the one you use to access your Amazon seller account) provides great tools and different reports. You want to make sure you are making money and don’t want to run out of products to sell. Check your account to keep track of all the operations. Also, the report can display the Amazon Buy Box rate and display if your competitors are creeping in on your goods. Download the reports, keep an eye on the processes, and make forecasts and alterations in your selling strategy
For a good reason, running out of stocks almost always becomes the “worst nightmare” issue for sellers. They lead to lost sales and reduce customer satisfaction and loyalty levels.
That is why merchants should calculate as accurately as possible how many goods to order from the manufacturer and how much they will sell before a new delivery. If you order too much and don’t sell until the next batch arrives, you will have to pay for extra storage at Amazon. Besides, there is a chance that the platform will not accept the next batch because the total quantity of goods will exceed your storage limit at the company.
Amazon allocates a certain number of places for each seller for the goods in the warehouse, based on the historical data of this account: how many sales there were earlier; and periodically reviews this limit. And the limit depends not only on the number of units of goods but also on their volume. So, for example, whereas you can get 100 units of space for small teddy bears, the platform is likely to allocate only ten units for two-meter teddy bears.
Be Ready for Hard Work and Effort
Once you start selling on Amazon and get your first orders, it doesn’t mean that the game is over, and now you can sit back in the chair. There is much more hard work ahead. Now when you have felt a bit of the taste of victory, it’s high time you pressed on even more.
To Sum up: How to Succeed on Amazon
Amazon is an excellent place for merchants, but you need good proper preparation to start a prosperous business here. Not all in-demand goods in offline stores can be successfully sold on the platform. Some specifics include commission and fees, policies on prohibited goods, “restricted categories.” In addition, large sellers have long occupied some niches, and it will be tough to compete in them.
It is also essential to consider the risks that many people face after launch. For example, you have to mind the need to adjust the number of sales according to the production cycle and the time for new batch delivery, constant innovations of Amazon, competition with other sellers, and product listing guidelines.
So, how to be successful in selling on Amazon? We hope that you will create another Amazon Success Story by leveraging our twelve Amazon seller ways. In this article, we have provided you with some sound advice and food for thought on how to sell on Amazon successfully. It will help grow your business on Amazon and boost profits and sales. One final trick is to ensure you are ready for sales spikes during the holiday season — you don’t want to end up without your top-selling goods at the busiest period of the year!