- All businesses want to grow and expand. And in order to achieve it, there are many channels and strategies to implement. And Amazon is one of them.
- If you are an ecommerce business, integrating your website to an Amazon store is one of the best ways to grow your business and get more customers.
- How? Why? Where to get started? Get all of your answers right here and hurry up to implement them to grow your business with Amazon.
Let me guess…you’re reading this because you’re curious about how Amazon can help you grow your business, how it can save you time and how to get started? Well, you’ve come to the right place.
- First we’ll need to assess your products for the right fit.
- Next you’ll need to figure out which products to start selling on Amazon.
- Then you’ll need to know some tips and tricks for setting up your listings for success.
"I thought Amazon is a bookstore.” This is the thought you caught yourself thinking over the past month or two. Yep, it used to be. That’s how it started but now it’s “The Everything Store.” Fascinating book, by the way. Go to Amazon and get one!
How can Amazon help grow my business?
Well it’s one of the largest retailers in the world. When you learn how to operate Amazon Australia, you can get your foot in their other markets - UK, US, China, for example.
Nearly 50% of shoppers go to Amazon before going to any other brick and mortar or online retail store. Your customers will be looking for your products on Amazon.
Because almost 50% of shoppers go to Amazon first, the opportunity to reach more customers immediately increases.
How can Amazon save me time?
How much time and labour do you spend on shipping individual orders? Think about what you could do with all that time and money if you didn’t have to! Amazon Australia doesn’t offer Prime yet. But they will offer Prime to consumers soon.
*Don’t know what Prime means? Prime is a membership program that allows members to receive free expedited shipping. When Prime is offered, Amazon will also offer FBA (fulfilment by amazon) to sellers. This means you’ll be able to prep and ship by the case, once a month, instead of packing and shipping individual orders.
*What does FBA mean? It means when someone buys your product off Amazon, all you have to do is sit back and watch the money roll in. Your orders will be shipped from your inventory stocked at Amazon’s fulfilment centers. Additionally, you’ll be able to integrate your website to your Amazon inventory so web orders are fulfilled by Amazon too.
How do I get started?
Step 1: Assess the products you currently sell for Amazon viability. How do I assess my products for Amazon viability? Answer this: Are your products…
● Retail above $40
If you answered yes to any or all, then as a general rule, you’re products are probably a good fit for Amazon.
Step 2: Calculate viability because Amazon is all about data and numbers.
● Identify best selling products. Naturally, that’s Pareto’s principle: the top 20% of products bringing in 80% of revenues.
● Figure out your profit. That's retail price - costs. Costs are, but not limited to, Amazon FBA fees, Amazon commission (~15%), product cost, logistics costs.
● Figure out your profit margin percentage: profit/retail price x 100
● As a general rule, test products with profit margin percentage above 20%.
Step 3: Create a seller account.
Step 4: Create the listings in your Amazon store.
● Use the entire 250 characters Amazon allows for your listing title.
● Place the most important keywords at the front of the listing.
● Post lots of good pictures. Amazon allows 9 photos. Product should take up 85% of the image, include close ups, product in use, different angles, an infographic, etc.
Step 5 (when FBA is available): Create a shipment and send to Amazon.
Some other things to note:
- If you’re a wholesale customer, try to get exclusivity on Amazon from the brand owner.
You’ll want to use the relationship you’ve built over the years to instill trust in your brand owner. Amazon can become a savage marketplace, fast. Once you create a listing and do most of the work, other sellers can come in and sell on that listing. So you did all the work and you’re making a lot of sales, a seller finds out, gets access to inventory and start selling on your listing.
Now you have to split sales with this other seller. Then other sellers want a piece of the pie and price competition starts and perhaps after a while you don’t think it’s worth selling their product on Amazon anymore and you have to find some new ones to sell.
Offer protection to the brand in exchange for exclusivity. Tell them you’ll keep optimising the listing, help sell more product and you’ll obey their pricing and protect their brand.
- If you have your own brand, make sure you register your brand through Amazon’s brand registry and gating.
Brand registry and gating will give you control over your listings so no one can hijack them. It’ll also help keep your products safe from counterfeits. It’ll add extra protection against other sellers selling on your listing.
- The sooner you get your products and store running on Amazon, the more sales momentum you’ll have.
Good seller performance, product reviews and rank help with visibility on Amazon’s platform. Keep an eye on your store. Be attentive to customer needs and requests. Negative reviews that go unattended could be detrimental to a store and a product listing. You want a lot of 4 and 5 star reviews.
- Amazon vendor express will be available soon.
This is where you sell your products directly to Amazon and send them to Amazon’s fulfillment center. The listings say “sold by, shipped by Amazon.com.” It will be tempting. You’ll be promised high volumes, lots of money and extra marketing efforts. Do not be tempted. Amazon won’t pay you for months, they’ll request you drop the pricing you already negotiated with them or else they won’t market your products. They’ll hijack your listings and never give them back.
It’s possible that you’ll have to create new listings to escape from Amazon’s control and if you do that, you’ll be free but you’ll lose all your product reviews and rank. So now you know how valuable Amazon can be to your business.
Amazon attracts a massive amount of customers just because of its name and availability of products. Once you learn how to use Amazon Australia, you can expand into other markets. Assess your product offerings for Amazon viability. Create your listings to optimize visibility on Amazon’s platform and hurry! Because the sooner you do it, the better chances you have for success.