Did you know:
- 55% of shoppers go directly to Amazon to start product searches
- Amazon is responsible for 44 cents of every dollar spent on ecommerce
- More than 300,000 third-party sellers started selling on Amazon in 2017
Amazon has achieved great success since the beginning. It has changed the way consumers shop for products by offering a convenient, personalized shopping experience and a platform for gathering positive reviews.
Amazon is also a competitive marketplace, so it is important that you know the best tips and practices to sell successfully. Here is an easy guide to navigating the platform and ensuring you have the best strategy for selling your products.
Who can sell on Amazon?
Individuals (Open to anyone)
- Limited to 40 items per month
- No access to the Buy Box or Amazon Advertising
Professionals/Seller Central (Open to anyone)
- Sell directly to Amazon’s customers
- Flexible logistical options
- Quick payment terms
- Brand controls retail pricing
- Limited advertising options
- Enhanced Brand Content
Professionals/Vendor Central (This plan is by invite only)
- Sell to Amazon
- Fixed logistical options
- Traditional payment terms
- Amazon controls retail pricing
- Multiple advertising options
- A+ content
- Access to Amazon Vine
- Subscribe & Save
Tips for Selling on Amazon
Before you gear up to list all of your products on Amazon, keep these tips in mind to help you aim for success.
1. Know your margins on each product
Amazon is a platform where unique, hobby or niche and used products sell well. If you are in a high competition niche with low margins and ZERO value add, Amazon is probably not the place for you.
2. Register your brand
Once you have established your margins, you should register your brand. This step will allow you to manage your product listings and prevent others from selling your same products. One way to boost your seller profile is by creating an Amazon Store for your brand, which is free and self-service.
3. Set up your branded Amazon store
You can further optimize your product listings by making product titles and descriptions clear and accurate, uploading high-quality images and collecting reviews.
Key features of selling on Amazon
The Amazon Buy Box is the box on the product detail page where customers can add the product to their shopping cart. If there are multiple sellers of the same product, sellers will try to “win” the Buy Box to beat out the competition. Buy Box placement can get your products higher visibility and increase your sales, but you must meet certain Amazon requirements to be eligible for the Buy Box placement.
You can increase your chances of winning the Buy Box if you take advantage of FBA (Fulfillment by Amazon). FBA is when you store your products in Amazon’s fulfillment centers, and Amazon picks, packs, ships and provides customer service for those products. Your product listings will be available for Amazon Prime members, too.
Amazon Vine is a program that allows certain reviewers whose reviews have been received by the Amazon community as helpful and accurate to be selected to review sellers’ products for free. In order for sellers to participate in Amazon Vine and get reviews, there is an enrollment fee on a per-product basis.
Advertising on Amazon
If you’re looking to drive more traffic to your Amazon product pages, Amazon Marketing Services (AMS) offers keyword-targeted ad campaigns available for both sellers and vendors. Vendor Central users have an added advantage because they are allowed to promote deals and coupon offers, as well. AMS lets you advertise in the three following ways:
- Sponsored Products Ads: These ads are similar to Google Shopping ads. They link directly to your product detail page and are keyword-targeted so they appear in search results.
- Headline Search Ads: Your headline search ad will appear as a banner in the search results based on keyword targeting, linking to your brand page, best-selling products page or any customized search results page.
- Product Display Ads: Unlike the first two ad types, display ads appear on the product detail page of a competing or complementary product and general interest categories, linking directly to your product detail page.
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