Are you eyeing Amazon to start your e-commerce business? Then embrace yourself for a tough competition ahead! And to help you out, we have come up with these 7 easy Amazon selling tips and tricks for new sellers.
But before I narrate the tips and tricks, here are some fascinating facts that new Amazon sellers would like to know:-
- According to data published by Marketplacepluse 2019, more than two million Amazon sellers are actively operating on the platform.
- Third-party sellers are quite dominant on Amazon as they bring in more than 50% of the entire Amazon sales.
- Want to know whom to target on Amazon? Well, Amazon buyers are mostly Millennials, i.e. the age group between 26 to 40 years.
- When it comes to online shopping, almost 90% of buyers trust Amazon.
So, yes, if you are looking for a quick way to start your ecommerce business, then it has to be on Amazon!
Which Category of an Amazon Seller Are You – Answer This Question Before Applying Amazon Selling Tips and Tricks
If you don’t know the answer yet, then let me clarify.
Amazon typically has these following types of sellers:
- There is this category of sellers who follow Online Arbitrage. What they do is they buy products online at cheap prices. And how do they do that? They spend time to trace cheap deals online. After buying the products, they ship those items to Amazon fulfillment centers. And yes, quite naturally they sell these items at higher prices on Amazon.
- The second category is those who follow retail arbitrage. These sellers explore local markets and buy from local retailers. Then they sell with a profit margin on Amazon.
- The third category is wholesalers who buy at wholesale prices and then sell the products. They are the ones who aim to win Amazon Buy Box.
- And, last but not the least is this category of private brand sellers. They spend time building their own brands. Usually, they buy products directly from other manufacturers and then put their own logos on those products. To keep it simple, you can start with small, easy-to-sell products. Design your business logo and then print the logo on products you want to sell. Then you can start selling on Amazon. This strategy works for those who are ready to invest some money for brand building and marketing purposes.
Now let’s start with 7 easy Amazon selling tips and tricks for new sellers.
Define Your Niche – One of the Key Amazon Selling Tips and Tricks Which New Sellers Tend to Overlook!
As a new seller, you have to be very clear about “what you want to sell on Amazon?” Don’t make this mistake of trying to sell anything and everything! Even Jeff Bezos started Amazon as an online bookstore, before establishing it as an “A to Z” marketplace.
Apparently it might sound easy picking up a random niche. But it can prove to be disastrous if you do so without a comprehensive strategy.
What you can do is, shortlist at least three e-commerce niches and then ask yourself these questions:
- Am I really passionate about these particular e-commerce niches?
- Do I have any knowledge or experience in these fields?
- How these products are performing on Amazon?
Now that you have shortlisted a few products/categories, let’s move to the next tip.
Focus on a Detailed Research To Know If Your Selected Niches are Indeed Profitable
Many may disagree but the fact is there’s no simpler strategy for business success than this! As a new seller, you can start by following what is already working. And the strategy applies to Amazon sales also.
Let me explain. Suppose you decided to sell baby gift products online. What you can do is look for products that are already doing well. Then you can plan to offer something better.
Now you must be wondering, as an entrepreneur am I not supposed to do something different? Yes, maybe out of 1,000, a meager 1 or 2 enterprising entrepreneurs become successful by doing something unique. However, for the rest, it can be safely said that they can follow a proven model. But you must always try to improve it as much as possible.
Find out What is Trending on Amazon in Your Specific Niche
What is the easy method to determine the income potential of a product? Well, you can do so by tracking its sales rank over a period of time, preferably a minimum of six months.
Here are some useful facts about Amazon sales rank:
- Every product sold on Amazon in the past has a sales rank
- A product that sells better and faster has a lower sales rank
- This sales rank varies daily as per the sales figure.
So how do you track sales rank for Amazon products? There are free and paid tools available for this purpose. Most of them are paid tools but here are some free and premium options that can serve the purpose for new sellers.
CamelCamelCamel – is quite a popular FBA tool offered for free. It lets you monitor sales for a specific product on a daily basis. In fact, you can use it multiple times a day. What is great about the tool is that it allows you to track prices over a long period of time. With the data, you can easily identify the trends on Amazon. Accordingly, you can pick products that sell fast.
For example, you can focus on products that have a lower profit margin but tend to sell fast. Else you can find out on products that are slow-moving but gives you a higher profit margin.
Amazon FBA Calculator- lets you instantly calculate the profit margin of an item, after taking into account fees and charges. You can install it and start working with it directly on the product page.
AMZ Base– can be downloaded for free. And then you can use it to trace ASINs and product descriptions without spending much time.
Apart from these, you can also consider Keepa (quite similar to CamelCamelCamel), Google Trends, Google Keyword Planner, Keyword Tool, Unicorn Smasher (colorful graphical presentation), and Sonar-tool.
Decide Profit Margins Carefully
As a new seller, you might be confused about good profit margins.
Let me explain with an example. Suppose you have decided to sell a small product on Amazon for $17. Now if you use FBA, i.e. Fulfillment by Amazon then you need to pay them approx. $11 for the service. This is almost two-third of your selling price.
And then to top it up, you need to consider the shipping costs to send the product to Amazon. Then there are shipping supplies that you might use to ship the product to warehouses of Amazon. And finally, while calculating profit margin, you should also work out a “refund budget”. This way you can cover the loss, in case the product is refunded by the buyer.
Thus it is very important to calculate the Amazon fees and decide whether it is cost-effective to sell using Fulfillment by Amazon. While calculating profit margins, be extra careful and plan for unexpected things!
Write Attractive Product Descriptions With SEO in Mind
Yes, people do read product descriptions. So, don’t ignore this important part.
It’s better to hire a copywriter who can handle the job professionally. In case, you can’t afford a writer right now, then I suggest you take a close look at the product descriptions of some of the top sellers. This way you can have a clear idea of how to write product descriptions that are loved by both search engines and buyers alike!
And, yes, besides writing attractive product descriptions, you need to click some equally fascinating product photos from different angles for your product pages. Shoot a short video for products or gadgets which are a little bit complicated to use. This way buyers can have a precise idea of your product and how to use it.
Work Out Special Deals and Discounts if Possible – One of The Effective Amazon Selling Tips and Tricks That Always Work For New Sellers!
Buyers love discounts, right? So, if your product comes with catchy offers like “up to 50% off”, “buy 3 get 1 free”, “midnight sale” or “flat 10% off for today only” then these quickly get noticed!
However, as a new seller trying to get a foothold in the highly competitive Amazon marketplace, I won’t suggest entering into a “discount war” with already established sellers. Rather you can work out deals as per your own ability and budget.
Maybe you can provide the discount for a particular day or to the first 100 buyers. Or you can work out discount coupons that can be redeemed only if the purchase exceeds a certain amount. The other most popular offer that buyers love to have is “free shipping”. So, you can provide that too if the purchase value exceeds a specific amount.
Review, Review, and More Review!
How do I buy on Amazon? I always make it a point to check customer reviews and then take the decision. And I am sure a majority of seasoned buyers do the same!
So, yes, the more positive feedback your product receives from customers, the higher gets its ranking on Amazon. Quite naturally that creates a positive impression on buyers who are likely to click on products that have been reviewed positively by other purchasers.
However, the problem is it is not so easy to get reviews from buyers. As per statistics, only 2-5% of buyers care to leave feedback after the purchase. You can follow some of these tips to get customer reviews on Amazon.
Prioritize Customer Service
When it comes to establishing an online business, be it on Amazon or any other platform, you have to prioritize customer service. This is the only way to retain customers long-term. Few things which you should do to strengthen customer service:-
Respond to negative feedback and disputes promptly. This shows that you are sincerely sorry for the flawed delivery and are ready to take action as per customer grievance.
If someone has posted any query about your product, try to reply as soon as possible. This can encourage a prospective buyer to proceed with the purchase process.
Be particular and prompt about product return/exchange. Keep the customer informed about the return status via email, SMS, or Whatsapp chat.
Closely monitor Amazon inventory. This is to ensure that you don’t end up selling products online which are not available physically. Such action is sure to break the trust of buyers. And even worst is that you may end up getting penalized by Amazon!
The most important piece of advice that I would like to give is, get started ASAP! Otherwise, you will never know which of these Amazon selling tips and tricks are working for you or whether you need to modify them as per your business goal. So, get started by learning the basics, and you will gain confidence gradually!
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