As an Amazon seller, you are competing with several hundred sellers on similar products. Amazon currently has over 2.5 million sellers actively selling on its marketplace. If your product cannot stand out from the competition, you are more likely to make negligible or no sales. With Amazon promoting sellers from China and India to sell directly in the US using FBA, there is a substantial increase in the number of sellers on this platform. This increase means that your product has to be visible in the competition to be in the consumer’s consideration list. The buyer will most probably make their purchase decision from the first few top search results. If your product is not on the first or the second page on the Amazon search results, your chances to sell are thin. It becomes crucial to evaluate your listing regularly to stay ahead.
Pricing your product:
Pricing your product right while competing with several hundred sellers on the same product is the most complex part of selling on any e-commerce platform. You may not only want to be competitive but also make good profit margins. You may want to price your items with an appropriate mark-up so that you don’t lose money. It also doesn’t mean that you list your product at a price that is more than the value they provide to your customers.
There are a couple of fees that Amazon charges, and as a seller, you will have to keep in mind all those fees before setting a sales price. If you are using FBA, consider the storage costs, shipping fees, per order fees, and the amazon commission before pricing your product. It may help if you can maintain an excel with all expenses, costs, taxes, and an appropriate margin for all products. Excel is not only cheap but also simple to learn. You may want to have competitive pricing but not at the cost of profits. But always remember, your purpose of selling is to make profits. Don’t sell your products for a price that only pays for Amazon’s fees. Keeping an eye on the competitor price will direct you on a market price and help with your pricing strategy. But it does not mean that if your competition sells a product at $19.99, you have to re-price your item to be less expensive. There are other ways to be competitive without losing a shirt.
Reviews and Seller Feedback:
A low priced product with 3-star reviews is less likely to get attention over a 5-stars rated product. It is imperative to monitor the reviews that your product receives. A buyer with an unpleasant experience with your product is more likely to leave a negative review than a happy buyer. It becomes necessary to address the buyer’s concern on time. Sending a follow-up email to the buyer within a few days of receiving the order will resolve any concerns on time. It will build a buyer’s trust in your brand and demonstrate that you stand behind your products.
A few review soliciting tools are available in the market that you can use to send requests for reviews and feedback. If you still receive a negative review after all your best efforts, please leave a comment with your explanation. Be sure not to be disrespectful. Acknowledging the buyer’s concerns can be a kind gesture that can alter the impact of the review.
You cannot list your products and wait for a buyer to find it. No pricing strategy will work if your product is invisible to the customers. With an extensive choice, no customer will look beyond the first or second search page. If your product is not visible on the first two pages, it is unlikely to sell. It becomes crucial that you choose your keywords that are product specific, including relevant product-related keywords on title. Paid advertising can be an excellent choice to give a boost to your sales and increase visibility.
Branding is an excellent way to improve product visibility and sales on Amazon. The brand dashboard on Amazon offers several free services for the brand owners to enhance their product search and visibility. Using their enhanced brand features, you can create A+ content for all your products. This content will improve your product’s search rankings and visibility. With an enhanced listing, you can tell your brand story on the product page with additional images and videos. The customers feel more confident purchasing a product that shares a story about a product and its seller, than just a few bullet points. You can also list your branded products in virtual bundles with sorted products that can be purchased together. The brand dashboard provides an analytic tool that can help aggregate customer search and behavioral data to recognize the traffic on your product.
Selling on Amazon can be a blessing to your business. You should know how to perform under this massive competition. With a good description, images, videos, and positive reviews, you can surpass the competition with good margins.