Amazon Marketplace is an attractive option for many small businesses. Selling on Amazon, which has a huge consumer base, can take a startup to the next level, but it's not without risks. However, by understanding the challenges, sellers can be in the best position to make the most of the opportunities of the Amazon platform.
Since its founding in 2007, Amazon has become an absolute giant in the retail industry, accounting for nearly 40% of the e-commerce market and reaching a whopping $514 billion in sales in 2023. As a business owner, you look at these numbers and want a piece of the pie.
Amazon is also unique in e-commerce, offering a platform for independent sellers who can choose to handle processing and shipping with Amazon or in-house. The approximately 2 million independent sellers on Amazon account for approximately 60% of the platform's sales, and approximately 86% of their orders are fulfilled by Amazon.
Still, with millions of sellers already on the platform and thousands more joining each week, the logistics that can come with running an Amazon store in addition to a brand-specific e-commerce site Not to mention the above issues, standing out can be difficult.
There are best practices and rules of thumb to help sellers maximize the effectiveness of their Amazon stores. There are a few things to keep in mind as you get started.
Build your Amazon product pages for maximum impact
Even if you sell through Amazon. your shop. All content on product pages must be clean, complete, and accurate.
It may be tempting to cram as much information as possible above the fold, but keeping bulleted sections to short descriptions that convey important information about your product helps customers read and fully understand your product. You can encourage them to understand.
Sellers can use below-the-fold space to fully flesh out product details while providing valuable real estate to sell their products. It can be difficult to strike a balance between too much content that shoppers can easily ignore and useful information that drives sales. Breaking up your content with rich images will help keep your page interesting.
Product photos and videos are also essential and should not be underestimated. Amazon has relatively strict image guidelines, but exceeding them will ensure accuracy and engagement. Get the highest resolution photos that best represent your product, especially for different color variations.
Amazon's return rate is between 5% and 15%, but the return rate for clothing is over 25%. For products where size and color are important to buyers, make sure the images best represent the product and set customer expectations accordingly.
Additionally, leveraging A/B testing or split testing on your product pages is a powerful way to increase sales. By comparing different page versions, you can see which elements (images, product descriptions, call-to-action phrases) attract customers and drive conversions. This targeted approach allows you to fine-tune your listings to increase both sales and customer satisfaction, thereby increasing the competitiveness of your Amazon store.
Focus on content to increase discoverability
For Amazon, content is king. In a competitive market, it's important to do everything you can to make your product stand out. However, unlike your own e-commerce store, you are limited by the structure of Amazon product pages. Getting creative with your on-page copy and product images is a surefire way to stand out.
However, for sellers in highly competitive categories, getting customers to the product page in the first place can be a challenge. Search engine optimization (SEO) plays a key role in clearing that hurdle for Amazon sellers.
When creating your product name and description, try to include as many descriptors as possible that convey what the product is and what it is used for. This practice can be difficult, especially when balancing content for his SEO without burying your brand.
We've all seen product names that are 40 words long, listing all the potential keywords for that product. By intentionally using the words you choose to describe your product while keeping your brand and product name front and center, you can increase discoverability without sacrificing brand equity.
Review and update your products regularly to ensure they're in line with current trends and Amazon algorithm changes. This proactive approach can increase your product's discoverability and competitiveness on the platform.
It's also essential to understand and optimize Amazon's A9 algorithm, a system that ranks products based on relevance to customer searches and other factors. Incorporate the most relevant keywords into your product listings in a natural and customer-friendly way. This strategic approach increases product awareness and aligns with Amazon's goal of connecting customers with the products they are most likely to purchase.
Integrate Amazon into your omnichannel strategy
Amazon is a great platform, but it's not the only place your brand exists. When creating product pages, make sure all information and creative assets are consistent across all platforms.
Mirroring your Amazon product pages on e-commerce sites, other social selling platforms, and third-party sellers can help increase your brand's credibility and credibility. Customers who search for your product and visit five different sites with five different descriptions are less likely to trust your brand.
Viewing Amazon as part of a broader omnichannel commerce experience is also essential for logistics and inventory management. Especially for the majority of sellers who utilize Fulfillment by Amazon (FBA), understanding inventory levels in Amazon facilities is essential.
If your inventory is low, you'll not only see out-of-stock messages in search results (another brand credibility issue), but you'll also be penalized by Amazon, including lower search and buy box rankings and account suspension. There is a possibility.
Cultivating community through Amazon
The real value of Amazon is that it is a high-traffic, high-visibility platform. Even if your margins aren't as lucrative as your own e-commerce store, the sales volume and brand awareness generated through Amazon can make it a worthwhile endeavor.
Amazon's large audience can be a great tool for community and brand building. On Amazon, that community exists in reviews. After a sale occurs, especially early in the Amazon sales period, reach out to customers directly to encourage reviews and feedback.
The benefits of this engagement are twofold. One is to notify customers to leave positive reviews, and the other is to proactively resolve issues and prevent negative reviews from accumulating. Remember that following Amazon's guidelines for customer relations is paramount to ensuring compliance and maintaining good standing as a seller.
The visibility Amazon provides puts your brand in the spotlight. By going above and beyond with your customer service efforts and addressing every concern completely and courteously, you can show potential customers that your brand truly cares.
Selling on Amazon can be a daunting proposition. However, aligning your Amazon presence with your overall brand messaging and focusing on content quality can be a powerful sales tool to take your brand to the next level.
