According to Statista, Amazon serves over 310 million active users. The company generated $514 billion in revenue last year. Some of that was from the sale of Amazon products, but a large sum of that billion dollar number was generated by ecommerce merchants selling items in the Amazon marketplace.
Taking advantage of the Amazon marketplace can benefit your business. But managing that type of ecommerce operation can be challenging, particularly for those new to selling on Amazon. If you’re looking to get in on the Amazon marketplace or improve your performance, read on. Here, we’ll provide some tips and strategies to help your business succeed.
Why sell your products on Amazon?
One school of thought for running an ecommerce business says you should build your own website and market products to a target group of consumers. This is a great way to build a dedicated customer base that keeps coming back to your brand specifically. However, it can be hard to reach new customers who aren’t aware of your business this way.
This is where a marketplace site like Amazon comes into play. With the Amazon marketplace, much of the target marketing is done for you. You surrender some of your profits in exchange, but the increased sales volume may likely compensate for that tradeoff.
How to improve sales on Amazon and other online marketplaces
The “secrets” of marketing products online aren’t all that secret. Seasoned marketers have documented several activities that have been effective for selling on Amazon. Check out the list below we’ve compiled from their experiences.
1. Optimize your product listings
The description of your item on Amazon tells the search bots where and when they should display the product listing. Optimizing the description is making sure you’re using the right words to reach consumers who are likely to buy your product. You can do this by using a keyword tool that tracks search volume. There are several free keyword tools available online.
2. Use sponsored placements strategically
Focusing on keywords to generate pageviews is called search engine optimization (SEO). Sponsored placements are different. You pay for the product to be displayed under certain conditions rather than waiting for keywords to trigger a product display. This is known as search engine marketing (SEM). It’s important to understand the difference and deploy both to reach the most eyes.
3. Keep inventory in stock
One of the biggest mistakes you can make in ecommerce sales is not purchasing enough inventory of the products you’re selling. Always keep inventory in stock, particularly before historically busy seasons like back-to-school and holiday shopping. You can avoid this dilemma by doing regular inventories and tracking sales performance over time to spot trends, which can be done with Amazon’s marketplace tools.
4. Prioritize fast fulfillment and shipping
Customers will go elsewhere if you can’t deliver their orders in a reliable and timely manner. You can optimize this part of your operation by researching drop shipping or third-party fulfillment companies that can help you scale. You can build trust by modifying the language on your website to avoid setting unrealistic expectations on shipping and delivery.
5. Offer special discounts
Increasing the number of shoppers who see your product listings is the first step to successfully selling on Amazon. However, once a customer finds your business, you need to convert them. Offering special discounts during specific shopping seasons or to first-time visitors is one way to close the sale. Everyone likes to get a good deal, especially when you make a customer feel special for receiving a discount.
6. Experiment with pricing
The Consumer Price Index (CPI) from the United States Bureau of Labor Statistics shows that prices have been steadily rising since we emerged from the 2020 pandemic. Does that mean your ecommerce business needs to raise prices? Be careful with this. Do some research into pricing strategies and experiment with pricing before making wholesale changes.
7. Respond to customer reviews
Online reviews from customers are valuable tools that are often underutilized. Read them when they come in. Respond to reviews so your customers know you care. In your packages, include a note that encourages shoppers to leave online reviews so you can look for patterns and frequently asked questions—just be sure not to offer any special rewards for good reviews, as this may go against Amazon’s terms of service. Overall, remember that your customers’ opinions matter. Be grateful when they’re willing to share them.
8. Expand your reach
Amazon is a global platform. They’re on five continents and do business in over 50 countries. That means you can sell your products anywhere Amazon goes, provided you can legally and safely deliver them to the buyer. If you’re concerned about that, check into Amazon dropshipping. They can do most of the shipping and delivery work for you.
Business checking that sets your ecommerce company up for success.
