How to Sell to Amazon's 300 Million Customers

How to Sell to Amazon's 300 Million Customers

 

The statistics don't lie—Amazon reigns supreme in the e-commerce world. By the end of 2021, it is estimated that the online mega-giant will account for more than 40 percent of total e-commerce sales in the United States.

 

Amazon changed our expectations about online shopping. It provided shoppers with fast delivery, personalized recommendations, and competitive pricing. We can browse and buy without leaving our homes and get what we want, from a trusted company, in one click. So, why would buyers look anywhere else?

 

Because of its accessibility, Amazon can be used as an e-commerce growth strategy regardless of your situation. And whether your e-commerce business is just starting out or growing, an online store with an all-in-one platform like Wix eCommerce allows easy integration with Amazon (and other marketplaces). This option gives sellers the best of both worlds: an online store for home products and a huge global marketplace to grow sales

The statistics don't lie—Amazon reigns supreme in the e-commerce world. By the end of 2021, it is estimated that the online mega-giant will account for more than 40 percent of total e-commerce sales in the United States.

Amazon changed our expectations about online shopping. It provided shoppers with fast delivery, personalized recommendations, and competitive prices can browse and buy without leaving their homes and get what they want, from a trusted company, in one click. So, why would buyers look anywhere else?

Because of its reach, Amazon can be used as an e-commerce growth strategy regardless of your situation. And whether your eCommerce business is just starting out or growing, an online store with an all-in-one platform like Wix eCommerce allows easy integration with Amazon (and other marketplaces). This option gives sellers the best of both worlds: an online store for home products and a huge global marketplace to grow sales.

How do you sell products on Amazon?

·         Do market research

 

·         Create your Amazon seller account

 

·         Source products to sell

 

·         Create an optimized listing

 

·         Manage your inventory or use FBA.

 

·         Track your customer reviews.

 

·         Create your Amazon marketing strategy

 

Ready to get started?

Do Amazon Market Research

Before choosing a product to sell, do market research to find your niche. You'll want to make sure it's something you're personally passionate about—but also has market momentum.

Here are some things to look for when determining what to sell:

Market saturation

Try to find a gap in the market. Look for products or listings that have few—or even no—competitors.

Price

Inexpensive products will make it easier to buy initial stock, while high-end items can give you a better markup. Ideally, you want a profit margin of around 10-30%. You'll need to stay competitive though, as 9 out of 10 consumers use Amazon to check the price of a product they've found elsewhere.

Consistency

Even if a seasonal item is selling fast now, you may be stuck with it later. Start with some evergreen items that are needed year-round.

You can also find products to sell by researching what people are searching for. Tools like Google Adwords, SellerApp, SEMrush, and Keyword Tool Pro can help you determine the keywords people are searching for.

It is important to note that there are restrictions on selling certain products and categories on Amazon

You may need to get approval before selling in a certain category, such as jewelry, music, electronic devices, watches, or collectibles. Visit Seller Central to see a full list of gated categories and how to apply for approval. The application process is different for each category, but you may be asked to show the source of your goods, and proof of your qualifications (for example if you claim to be a fine art dealer), And your performance can be checked regularly.

Amazon Seller Tools

In a crowded marketplace, they can help differentiate your store from the competition.

Here are some popular seller tools to start your Amazon business:

Jungle Scout.

Helium 10. Similarly, Helium 10 is an all-in-one platform that offers a comprehensive range of software tools to manage your Amazon business.

Cellar app. This e-commerce analytics software app offers a suite of tools to analyze and improve your Amazon store's marketing, sales, and operations.

All selling tools come with pricing plans—some even offer free trials—so, once you're ready to invest in growing your business, it's time to shop around and commit. It's worth trying something before you commit.

02. Create your Amazon seller account

The first thing you'll need to sell something on Amazon is an Amazon seller account.

Create your account by adding your name and email address. You will then need to update your business location, type, and name.

Make sure you have your tax information, bank account number, credit card details, and government-issued ID with you.

Next, you'll need to select a reseller plan

Individual Seller Plan

An "individual seller" is charged $0.99 per item sold. This option is only beneficial if you plan to sell less than 40 items per month.

 

Professional Reseller Plan

For more sellers, sign up to become a "Professional Seller." You will be charged a monthly fee of $39.99 by Amazon, regardless of how many products you sell.

While it's tempting to pay per sale with the Individual plan, the Professional plan offers the seller many additional benefits, including advertising and sales tools, advanced inventory management features, and customizable shipping options. Individual sellers must use Amazon's default shipping rates for all products, as determined by the product category and shipping service selected by the customer.

On top of the seller's planning fee, Amazon charges all sellers an "additional selling fee," so you'll need to factor these into your financials. Here's a quick overview of the additional fees:

Category Referral Fee. Sellers pay Amazon a percentage of the total price — including item price, shipping costs, and gift wrapping charges — or a minimum amount, whichever is greater.

Completion Fee. This fee is based on the cost of shipping your orders per unit and depends on whether you ship the products yourself or use FBA.

 There are also fees for optional programs designed to help promote your business, such as advertising, FBA, and premium account services.

To weigh what's best for your business, we recommend that you thoroughly familiarize yourself with Amazon's fees and charges. Once you select your plan and fill in your information, you'll be on your way. Thankfully, your choice is not set in stone. You can easily change your reseller plan at any time.

03. Source products to sell on Amazon

Once you've done your research and decided on a product to sell, you'll need to find a supplier or manufacturer.

Use manufacturer directories such as Maker's Row, ThomasNet, and Kompass to reach out to different manufacturers

Shop around until you find the manufacturer or supplier who is willing to give you the best price for the amount of inventory you want to buy.

 Make sure you don't spend too much on inventory at this stage. While you work on the technical elements of selling online it may take some time for you to sell it all, and you don't want those initial costs to be wiped out.

Do your research on these manufacturers before committing—especially if they're overseas. (For example, overseas vendors can negatively impact your brand image if products are delayed.) Collect recommendations, and background information, and request samples.

04. Create an optimized Amazon listing

An Amazon listing is a product page for each item you sell on Amazon. This is where customers can find and buy your products.

When listing a product on Amazon, you can either sell them under an existing listing or create your own. It depends on whether the product you sell is unique or you are selling a product that is already selling on Amazon.

If you choose to sell your product under an existing listing, double-check that the product is exactly what is listed. You don't want customers to order from you and receive the wrong product

When listing on Amazon for a brand new product, you'll need the UPC code. You will add this when you are starting with your list.

Amazon SEO

Go through the key keywords you discovered during your market research. Then be sure to use them to optimize your listings so customers can easily find your products and understand what you're selling.

Here are some important things to keep in mind when creating your listing and optimizing it for SEO:

Product Title

This is how buyers will find your product, so think carefully about what you put here.

Keep your text under 200 characters so Amazon won't truncate it.

Be sure to include the most important aspects of your product and keywords. Consider what your customers will be looking for when shopping for your product, such as size, color, brand, and compatibility.

Add relevant search terms that will improve the discovery of each product.

Aim for high-volume keywords that bring the right buyers to your list, but don't overdo it with searchable terms.

Word carefully so your listings look professional.

Product images

Product photography is extremely important to consumers and can make or break your sales.

Amazon product images must be 1,000 pixels wide and 500 pixels high.

You're allowed up to 9 photos, so photograph your product in many different settings and from different angles, to capture what it looks like up close as well as IRLConsider hiring a professional product photographer and retoucher to give your image a professional touch because your product can compete with the catalogs of industry titans equipped with entire creative departments. Turn to quick-service product photography agencies like Square Shot for quick work.

Photograph your items against a plain white or solid color background. Don't let background distractions distract from the product

Use soft lighting to make it easier to see the product in all its detail.

For more tips, check out our guide to product photography.

Key features and description

Use bullet points on your product description page to give customers a quick overview of the product.

This means size, color, material, care instructions, installation, etc.

Use product descriptions to help buyers appreciate how the product will change their lives. What price does it bring? What sets it apart? How can it improve on existing high-demand competitive products?

Include alternative names, synonyms, and spelling variations.

Once you publish your Amazon listings, your product is officially ready for sale

Buy box

The buy box or featured offer is a key piece of e-commerce real estate that Amazon sellers love. Located on the right side of the product detail page, this handy box has been proven to increase sales.  If you want to have a chance to "win" a buy box share for a particular product, you'll need to meet a number of eligibility requirements. You'll need a professional selling account, strong performance metrics, and high stock volume to name just a few criteria. Plus, you'll be competing against other sellers of the same item, so pricing is important if you want your offering to stand out.

Top Tip: Approved Professional Sellers, who meet certain eligibility requirements, can enhance their product listings using Amazon Enhanced Brand Content or A+ Content, designed to increase conversion rates. There is an attractive arrangement of text and visuals.

05. Manage your inventory or use FBA.

You will need to find a place to store, organize and ship your inventory.

Once you have more inventory, however, tracking products and managing fulfillment will become more complicated.

Fulfilled by Merchant

If you fulfill orders yourself, you will be subject to the shipping options available in your selling plan on Amazon that matches the shipping rate. If you have an individual plan, you must use Amazon's designated shipping rates for all products. Shipping credits can be less than your total shipping cost, so in order to make a profit, you may need to consider adding these additional costs to your product price.

Fulfillment by Amazon

What is FBA?

FBA, or Fulfillment by Amazon, lets you ship your goods to Amazon's fulfillment centers, where they will store and manage your inventory, as well as fulfill your orders. All you have to do is keep track of your stock and ensure that there is enough supply.

In addition, products sold through FBA may offer two-day shipping for Amazon Prime customers.

You will need to pay for this service, so make sure you are selling enough to make it worth your while. When considering this option, check Amazon's FBA fees.

While you may not need this when deciding how to sell on Amazon as a beginner, you should eventually consider using this option if you scale your business.

06. Track your customer reviews

Reviews are often the tipping point between winning a sale or losing a sale. 93 percent of consumers say online reviews influenced their purchase decisions. Let's face it, most customers look at reviews to make sure they're not buying a dud.

Amazon encourages users to review products so shoppers can make smarter, more informed purchasing decisions. For sellers, more reviews can potentially boost your product rankings and lead to better rankings in search results.

Amazon automatically emails buyers to review a product, so technically you don't need to do anything, but if you want to get in touch and request a review, it's best to Familiarize yourself with Amazon's strict community guidelines and policies because there are many. Dos and Don'ts when it comes to getting reviews. You can't control if you get a 1-star or 5-star review, but rest assured that reviewers are also subject to strict guidelines.

Here are some ways to get more reviews:

Choose products to participate in Amazon's Early Reviewer Program, which helps new sellers get reviews on products that don't have reviews.

Join Amazon's Vine program which is open to sellers who have Amazon brand registered products and less than 30 reviews. In the Wine program, a seller collects 30 units of inventory. Selected Vine reviewers receive the product for free, test it, and write a review.

Place a revision request card with your packaging. Adding a personal touch like this encourages customers to give you feedback.

If you also sell online through an e-commerce website, set up automated post-purchase emails requesting product reviews.

Even one or two negative reviews can significantly reduce your reputation and turn buyers away from your products. Here's how to minimize negative reviews:

Avoid any problems with the buyer funnel.

Be accountable

Respond to customer reviews on the product detail page and, if you need to resolve a problem, ask them to contact you via the buyer-seller messaging service.

If you receive a bad review, you can try to reach out to the customer to offer compensation, such as a full or partial refund or a replacement item.

Track your performance in Amazon's Seller Central.

Consider implementing changes in aspects of your business that consistently receive negative feedback.

07. Create your Amazon Marketing Strategy

There are a few ways to get traffic and sales to your listings. Here are the most common:

Amazon PPC

While Amazon SEO can help your customers find your products organically, you can also invest some money in helping them find your products with Amazon Ads.

Create PPC (Pay-Per-Click) ads for your products and target key keywords that your target audience will be searching for. These sponsored ads appear as recommended products on search results and other product pages. There are three types of Amazon PPC ads available: Sponsored Products, Sponsored Brands, and Sponsored Displays.

From your Amazon Seller Central account, click the "Advertising" dropdown and select "Campaign Manager."

 

Choose your campaign type, create a campaign name, set your daily budget, and choose a time frame for how long you want your campaign to run.

 

Decide if you want to use automatic targeting or if you want to target your keywords manually. If you choose "Automatic Targeting," Amazon will determine which keywords to target based on your product listings.

Choose your product listings to advertise.

Bid for each keyword. Keep your daily budget in mind here. If you bid too high, you will limit the number of clicks you can receive per day.

 

Choose your keywords to target.

Use social media.

Choose the right social media channels for your target audience and create a content strategy to increase awareness for your e-commerce business. Connect with social influencers who can promote your products using an Amazon affiliate link, earning them a commission on sales.

 

Use your channels to communicate directly with your customers and build trust by answering their questions in a timely manner.

Amazon Badges

Amazon has created a variety of badges to help shoppers make purchasing decisions. Available only to sellers on the Professional plan, these badges—or ribbons—can appear on search engine results pages (SERPs) or in product listings. Some require more time and effort to achieve, but all can have a positive impact on your store's traffic and sales.

 

Amazon's Choice: Sellers may not purchase or apply for this required badge. It's the "best option" chosen by an algorithm specifically designed to streamline the customer journey. To qualify, you must be Prime eligible for competitively priced, high-quality products that are in stock and ready to ship.

 

Promotions and Coupons: Consumers love the thrill of bargains. Grab their attention in a crowded market by offering incentives like free shipping, percentage discounts, or seasonal promotions. Promo codes or percentage discounts are attractive and free to use, but they will only appear in your product listing. Coupon codes are discoverable in the SERP, but Amazon charges a fee to redeem each coupon. Ultimately, you'll need to do the math to see if price increases work for your business.

 

Deal of the Day or Limited Time Deals: Such short-term sales encourage shoppers to take advantage of discounted prices while stocks last. Because of its high visibility on the deals page, sellers must pay a fee to participate. However, sales are not guaranteed and you will be charged whether your campaign does well or not.

 

A unicorn-themed children's store, Betty's List, cleverly uses some of these sales techniques to offer value-conscious shoppers value for money — discounts on each product's original list price, plus Additional savings coupons with 5%-25% off. . This competitive pricing strategy, along with well-crafted product descriptions and solid product reviews, has earned some of their products the coveted Amazon Choice badge.

In fact, shoppers appreciate discounts no matter how small and easily transferable from one Amazon store to another. For example, a two-pronged marketing strategy used by Classic Lightbulb's competitors (see image above): a sponsored ad that increases their visibility among undecided Lightbulb browsers and increases conversions by 5% off coupon to help. In such situations, especially when it comes to saturated categories, advertising, pricing, and promotions can make all the difference in winning sales.

Today you don't have to choose between selling on your branded website and using Amazon's powerful marketplaceIndeed, integrating the two has never been easier. With a few clicks, you can sell Amazon products on your website or sell your products on Amazon.

 

A multi-channel sales strategy is beneficial for several reasons:

 

You are not dependent on bringing in customers through a single sales channel.

 

Your discovery opportunity increases with Amazon's international audience of loyal shoppers.

 

You can promote your products through Amazon Ads.

 

An online store adds credibility to your brand. Customers browsing Amazon can visit your website to learn more.

 

Even if you already have a successful online store, our data shows that selling on additional marketplaces is significantly more productive.

 

Amazon Fee

 

Fees are inevitable if you want to sell on Amazon. We've already provided a brief overview of the fees you can expect as an Amazon seller, and for some, these deductions can feel like a huge drag on profits. You will need to be financially astute to accurately forecast your margins and make a healthy profit.

 

Access to your data

 

As an Amazon seller, you give up control over your data and sales information Not surprisingly, they can use this data to their advantage and become one of your competitors.

 

Big competition

 

With such a large audience, comes stiff competition. In fact, you may find it difficult to stand out among the thousands of other sellers unless you have a unique niche, but don't be discouraged. When it comes to selling on Amazon, you have to play the long game rather than dream of overnight success.

 

Lack of control

 

Selling on Amazon comes with many terms and conditions. There are strict rules about what you can and can't sell, as well as restrictions on how you communicate with your customers, especially when it comes to receiving and responding to reviews. It comes to giving.

 

For multi-channel sellers, it's important to note that marketing your e-commerce website to customers who have purchased your products on Amazon is prohibited. If you want to succeed and stay as an Amazon seller you need to follow their rules, otherwise, they have the right to suspend or close your account for any violation. There is an option.

 

Frequent change

 

Amazon, as a platform, is always evolving, so you need to stay informed and up-to-date on all changes if you want to avoid penalties. Naturally, sellers can be frustrated, confused, and sometimes overwhelmed by the change, but compliance is essential if you want to stay on the platform.

Integrating Your Online Store with Amazon

 

When you integrate your e-commerce store with Amazon, you really end up with the best of both worlds.

 

Classic Lighting Bulb is a Wix store with successful Amazon integration. The store, which sells lighting and electrical goods, has an 85% positive rating on Amazon with over 280 reviews and advertises its omnichannel retail integration in the footer of its website homepage.

Qualis is another Wix store with Amazon integration, selling products across multiple categories, such as home, lifestyle, pet, and baby.

 

While Qualis sees the value of selling on Amazon by displaying "Proud Amazon Seller" status on the second fold of its homepage, it also sells directly from its online store. For Amazon shoppers, the Qualis website is their go-to place to learn more about the Colorado-based company. For website visitors, Amazon is the place to check customer reviews. Both the website and the Amazon page share the same look and feel — clean layouts, standard imagery, and easy-to-navigate category options — creating a symbolic unity between the two markets.

 

If you create your online store with Wix, you can connect it to your Professional Seller Amazon account to manage your inventory and your listings from one place.

Filter your orders by sales channel to see which orders came from Amazon.

Amazon's wide reach offers huge potential but won't automatically guarantee sales.

Selling successfully on Amazon involves strong brand management, financial management, and constant optimization of listings and PPC. To stand out in such a crowded market you need to adopt strategic planning, pay attention to fine details, and stay focused on your business goals.

 

Use this guide to set up your Amazon store and pave your way to a profitable business.

 

Ready to start your e-commerce journey? Create your online store today.