Amazon is the largest e-com marketspace which not only controls the market share but also the mindshare. The e-com platform made a revenue of $232.887B in 2018; a 30.93% increase year-over-year with the combined desktop and mobile visits touching 2.4 billion.
No wonder the place is inundated with products and jostling with competition. The enormous prospects of selling on this lucrative platform make it apparent why most of the sellers set out straight to Amazon to start their enterprise. It can prove to be a great start for sellers who have got it right and figured out ways to make Amazon work for them.
However, Amazon's market is not a closed ecosystem and there is an ever increasing competition that keeps sellers up on their toes. To increase sales on Amazon sellers must keep up with the competition and learn quickly about what works and what proves to be a deterrent.
Here are some of the top tips that will add to your success and increase sales on Amazon.
Win The Buy Box
The coveted Buy Box on Amazon is located on the right side of the product detail page where customers can click to buy an item sold by multiple sellers who have the brand authorization to sell it, however, Amazons allocates the Buy Box to its most preferred sellers.
Securing a Buy Box increases your chances of selling an item exponentially. To win a Buy Box it is imperative to meet certain criteria which makes Amazon choose a particular seller over the others.
Appearing in the Buy Box requires certain criteria to be fulfilled. Here's how you can bag the Buy Box:
Be a featured merchant with an impressive overall performance
Utilize FBA and software to track inventory quantities
Communicate effectively; respond to queries and complaints quickly as reviews is a crucial factor
Track your inventory to minimize ODR(Order Defect Rate) with the help of an Inventory Management Software
In an intensely competitive environment on Amazon, the biggest differentiator is the price. Keeping price slightly lower than the competitors that doesn't hinder the profitability is the way to go. Sell items that have a sufficient margin with competitive rates and don’t forget to take into account factors like inventory procurement cost, order fulfillment cost, and overhead expenses to better your sales.
Pricing is a top consideration not only for higher sales but for winning the Buy Box as well. However, offering the lowest price may quickly become a race to the bottom. Many sellers lower the price and increase the shipping cost; well that works neither because you cannot fool Amazon's A9.
Offering discounts on a timely interval and running daily deals can get much needed exposure to the product and a significant increase in the number of buyers and repeat buyers.
The best way to keep up with competitive pricing is to use Amazon’s Repricer tool that changes price based on competition by using an advanced algorithm. You can set your own rules, set sellers you want to compete against, set the floor limits, and take many other factors into consideration for an error free dynamic pricing.
Automate To Push Sales If You Haven’t Won The Buy Box
Use Amazon’s automation tool to lower the price for an SKU that hasn’t been able to win a Buy Box for a while and shake things up to give a push to the SKU. Implementing a more aggressive rule for the SKU that is lagging behind. You can implement this change as a short-term quick fixer until things get better for the particular SKU.
Here’s an example of how the price is lowered slightly more than the normal benchmark.
Amazon’s subscription-based service acts as a powerful filter. Prime members often filter out non-Prime items, therefore if you are not a prime seller your products don’t stand much of a chance. For your consideration, there are 63 million Prime members who have far outnumbered non-prime users.
Sellers can benefit from becoming a Prime-eligible seller and register their product in the Prime category. This will definitely boost sales and increase the chance to win a Buy Box as well.
Sellers with Prime eligibility automatically gain the upper hand against those who don’t leverage Prime or FBA.
Advertising with Amazon
Great listings are simply not enough especially when a product is new and obscure. To make your product visible and increase sales launch vendor and seller central advertising campaigns for your product. To know how you can manage Amazon Marketing Services – AMS and keep the ACoS (Advertising Cost of Sale) within control you can write to WestonCorica .
Market Outside of Amazon
Market outside Amazon to bring customers to your Amazon store. Every seller must have a conventional website and they should run ubiquitous promotions on Facebook, Google Adwords, Instagram, Youtube, Pinterest, and other platforms on a regular basis.
Subscribe to Amazon Subscribe & Save Program
This Amazon Sellers program offers discounts to repeat buyers who opt for regular and recurring order as a way to maintain the goodwill and brand loyalty for a product.
Methods For Collecting Emails - Discount Promotions With Amazon Landing Page Tool
Amazon strictly prevents any attempts to bypass its sales process or prompt buyers to leave the Amazon website by diverting them to a different platform. It doesn’t allow any marketing messages, calls to action, hyperlinks to URLs, or web addresses within any seller-generated confirmation email. This is precisely the reason why it has its own Buyer-Seller messaging service to enable communication between the buyer and seller.
Therefore you can either collect the email off of Amazon or before a sale is made on Amazon.
However, you can generate a landing page from an Amazon listing. On that page, you can offer a promo code in exchange for the email address.
WestonCorica is a full-service Amazon Seller Program Trainer & FBA consultant that offers consultancy right from deciding a winning product to Wireframing Strategies on how to launch a product on Amazon. We handle everything from undertaking product designing, developing, implementing a customized responsive store to drive high volume traffic that leads to higher conversion and profitability.
Our aim is to give a seamless experience to our customers and facilitate them right from product discover ability journey to driving incremental sales and handling Amazon Advertising, manage all the off-Amazon traffic generation – both organically and artificially, solicit reviews, track product performance reports, manage add spend and more.