If you’re an e-commerce entrepreneur, no platform can give you as much reach as Amazon. The online retail giant is spread across the globe and has millions of loyal customers. Selling on Amazon is straightforward. However, creating a sustainable business is much harder. If you’re new to online selling thru Amazon, you need to learn the ZIK Analytics Fees Guide for Amazon Sellers for more guidance on improving your business.
The best way to learn how to create a successful e-commerce venture is by analyzing the best in the business. That’s why, in this article, we take a look at some of the strategies used by veterans while creating their Amazon business.
How to identify potential products
Every Amazon business is built around the products being sold. Not everything works well on Amazon for small and medium businesses. For instance, if you are selling expensive goods like mobile phones, it will be next to impossible to compete with large brands and retailers.
That’s why most third-party Amazon sellers look for the following traits:
- A high-profit margin: Look at the average product price on Amazon. Discover cost price by using SellerApp’s product sourcing tool and analyzing suppliers. Use this information and along with various FBA and selling fees to find your profit margin!
- Low competition: It is always easier to make money when fewer competitors are fighting over customers.
- Small and lightweight: This minimizes storage and shipping costs. It is also easier to handle and ship these products.
- Low barrier to entry: There could be many barriers to entry including local laws, Amazon restrictions, or high product cost just to name a few. It is always better to keep it simple and sell products that aren’t restricted in any way.
- Consistent demand across the year: Seasonal products do not ensure guaranteed cash-flow throughout the year. For instance, a Halloween costume will only see demand in Q4. There’s nothing wrong with selling seasonal products if you have the capital to sustain them. However, consistent demand ensures consistent cash flow and a healthier bottom line.
The only way to identify products that meet these criteria is through careful product research. You need to make decisions based on data and not on instincts. This is a vast topic and you can learn more about product research by reading this comprehensive guide.
Finalize your fulfillment strategy
There are two options. Either you can fulfill the orders yourself (FBM) or you can leave the heavy lifting to Amazon. Most sellers prefer to use fulfillment by Amazon (FBA) because it allows them to scale without having to worry about operational and logistical efficiency. However, the choice is not so cut and dry.
If you are fulfilling the orders yourself, you have to handle storage, shipping, returns, and customer service. If you are planning to scale your business and hit 7-figures, you will need a reliable logistics partner for shipping, infrastructure for storage, and a professional team to handle returns and customer support.
If you choose to use FBA, you won’t have to worry about these issues. FBA products are also eligible for Prime delivery, which usually leads to a massive bump in sales. However, the service isn’t free. Other than selling fees associated with every sale, you will also need to pay storage fees for each product you have at an Amazon warehouse. Storage fees are based on the type of product, volume, and size. So, if you are selling a heavy product or one with low turnover, you will end up bleeding money.
Your decision should be based on the attributes influencing your product and its demand. You can switch fulfillment methods anytime.
Find the best suppliers
Many sellers look for the cheapest suppliers without considering important factors like product quality, lead time, and reliability.
Do not make that mistake. Before you ink a deal with a supplier, ask for prototypes or samples. This will help you estimate the shipping time and gauge product quality.
You should also have extensive conversations with your prospective business partners. Remember, you are trying to establish a long-term business relationship. So expectations need to be clearly explained.
To find the best suppliers from around the world, you can use the Amazon product sourcing tool. With a single keyword, you can find the most reliable manufacturers on Alibaba.com!
Chalk up a marketing plan
Many sellers find it difficult to optimize their PPC campaigns. In today’s competitive marketplace, a well-designed PPC strategy is vital. It helps you stand out from the crowd and can skyrocket you to page one of the search results. Amazon PPC can no longer be ignored.
That’s why you need to create a marketing plan that includes Amazon PPC. There are plenty of other online marketing channels such as:
- Social media marketing
- Influencer marketing
- Referral marketing
- Email marketing
These are a few options you should consider.
Keep in mind that you are paying for every click you get using Amazon PPC. That is why you need to ensure that all your campaigns are super optimized. To get the data you need to optimize your campaigns, you can use SellerApp’s ML-powered advertising suite. Don’t have the time to manage your campaigns? Then leave it to the experts. SellerApp’s PPC management service combines the best of industry experience and modern technology to deliver the best results!
Conclusion
These are some of the steps you need to take to succeed on Amazon. This is not an exhaustive list. The process is long and there are top-level strategies you can employ at every stage of the funnel. The best way to stay updated is to follow content creators and experts who eat, sleep, and breathe Amazon. To learn the latest strategies make sure you subscribe to SellerApp’s Youtube channel!
Author’s Bio:
Arishekar N has over five years of web development experience and is the senior digital marketing strategies at SellerApp, Specialist in SEO, SEM, and best conversion rate optimization strategies that deliver industry-leading ROI. Arishekar has helped companies through more effective search engine marketing and SEO strategies. He is most passionate about working with e-commerce companies.
