Amazon is the largest and most well-known online marketplace. As such, it provides great opportunities for building a profitable business, especially for entrepreneurs who are just beginning to explore the world of e-commerce. However, its famous and international nature also makes Amazon an increasingly competitive space.
In order to reach success on this platform, you need to make some smart decisions and pave the right way from the very beginning. To that end, here are some essential tips, such as posting an SBA business for sale, for building a thriving business as an Amazon seller:
- Choose a good niche
While it might seem like general stores are a profitable idea, there are plenty of Amazon sellers using this model, making it quite a competitive space. Instead, a better option would be to select a niche with great potential and stick to it. Niche products come with very targeted audiences, and will likely be easier to market and sell.
Choose an area that will provide both functionality and appeal to consumers, regardless of its value. Start with a narrower niche and move on to a wider offering as you grow. This will allow you to scale your Amazon business easily.
- Study your competitors
Carefully studying the market and your competitors are key to business success, including selling on Amazon. By researching the competition, you might get some ideas on the type of brand voice and aesthetic that might appeal to audiences.
This process will also help you determine the product ranges and marketing tactics that are currently working for other businesses, thus allowing you to leverage these strategies for success or even find inspiration for differentiating factors that will set you apart. Research both established industry names and smaller sellers to understand the branding and sales tactics that work best.
- Do product research
To ensure your business thrives on Amazon, conducting product research is just as important. See which products are currently trending, which all-time favourites remain popular, and which items your competitors are offering. When selecting products for your store, there will be several factors to consider in terms of designs and features. You can use advanced research tools like Helium 10 to help in product research, keyword research, analytics tools, and training of sales. You can get a Helium 10 discount code if you decide to try the software.
If you’re selling reusable water bottles, for example, you can think about the colour range, the various materials, different types of lids, included straws, etc. Product research will help you fulfill your customer’s needs and enable you to set a competitive pricing strategy.
- Set a solid budget
Once you’ve decided on the most profitable items to sell, it will be time to start building your business. In this crucial phase, leveraging financial tools such as Viably can provide invaluable insights into managing your cash flow, forecasting sales, and understanding the financial implications of inventory purchases. You might be asking yourself the following question: how much does it cost to start an Amazon business? In general, Amazon’s selling plans range from $0.99 per unit sale to $49.95 per month.
However, this will largely depend on the products you sell, where you sell them, and how you plan to fulfill your orders. In case you decide to hire employees or invest in a more elaborate marketing strategy, these factors can significantly increase your expenses as well.
- Focus on analytics
With an Amazon business, you will also get the opportunity to leverage Seller Central – a native content management system. From your offerings and inventory levels to your returns percentages and customer reviews, take advantage of all analytics you have at your disposal here.
Tracking these metrics will help you determine how customers view your products, how your sales are currently doing, and whether there are any areas for improvement. Using Seller Central, you can also create your product listings and perform helpful actions such as uploading images and writing appealing descriptions.
- Optimize your listings
Amazon is among the largest search engines in the world. To ensure success on this platform, you will have to use effective strategies for optimising your Amazon listings, too. This means conducting keyword research and implementing the most relevant and best-performing keywords into your page titles and product descriptions.
A clean layout and high-quality images that effectively convey features and details will be crucial as well. You can also consider highlighting any special benefits or unique features of your offerings in an effort to attract consumers more easily.
- Prioritise customer service
To support the continued success of your Amazon business, you must make an effort to provide exceptional customer service. Answer all questions your customers might have, respond to every product review and refund request, and aim to resolve potential issues as best as possible.
Do this in a timely and professional manner, if at all possible. The more quickly you react to queries, the higher the overall customer satisfaction will be. As a result, you can experience higher sales and greater customer loyalty, along with word-of-mouth marketing benefits.
Wrapping up
Being a successful seller on a competitive platform such as Amazon isn’t an easy task. Use the advice mentioned above to build a solid foundation for your business and support it as it grows and thrives.
By Mike Johnston