In the last decade, many small business owners wishing to reach a large audience have flocked to Amazon.
Attracting nearly 50% of all online product search traffic, Amazon is a tried-and-true retail juggernaut and third-party sellers are the driving force behind amazon’s continuous growth.
The platform offers a win-win collaboration as it provides a huge audience of potential customers and distribution tools to help sellers scale their business in a shorter period. It is therefore not surprising that sales from the Amazon marketplace are expected to surpass over 70% of the company’s business by the end of 2019.
So as a small business owner with a unique product, selling on amazon is an extremely wise and beneficial idea. Even if you run a service business and provide B2C services, you, too, can use Amazon Home Services to grow your business. Regardless of what you are selling on Amazon, it all comes down to how you choose to leverage the marketplace, and Amazon’s various opportunities, to fit your small business’s needs.
But, how exactly can your small business best benefit from selling on Amazon? How can you successfully start selling on amazon and gain tons of sales? Simple, by following the below-mentioned tips.
1. Follow the Amazon Seller Guidelines and Understand the Platform
You might be familiar with the platform from a buyer’s perspective, but it is also important to understand the platform from an eCommerce seller’s standpoint to develop a selling strategy that’s specific to Amazon.
You must also know amazon’s seller guidelines and adhere to them. This is crucial because, with all of the competition on the platform, Amazon is not going to tolerate sellers who don’t follow their rules.
2. Sign Up for an Amazon Seller Account
The next logical step is to sign up for a seller account. There are three different selling categories: Amazon Individual Seller, for Solopreneurs planning to sell fewer than 40 items per month. Amazon Pro Seller: for entrepreneurs planning to sell more than 40 individual items per month. Amazon Vendor: for wholesalers and manufacturers.
Choose the category you’ll sell under and provide information such as your business name, legal name, and address, contact information, etc. Once your account is active, move on and set up your seller profile.
3. Listing Products on Amazon
Congratulations, you now have your very own seller account on amazon. Your next step should be listing your product. This process will be a breeze if the product you’re listing is already on Amazon. And you can use the available stock image. It is wiser to write your own description with your own keywords so you can rank higher.
For products not yet listed on Amazon, you’ll need to provide information such as the SKU number, images, keywords, etc. But the great news is that you’ll definitely face less competition. Try to make your product listing appealing by providing enough info about your products.
4. Manage Your Inventory
Inventory levels are extremely important. With 95% of amazon U.S customers having a prime membership, it is imperative to replenish your inventory level. Realizing that you’re unexpectedly out of stock and can’t fulfill an order is a recipe for disaster and an open invitation for negative customer feedback—which can have a dramatic impact on your future sales and your ranking in the marketplace.
5. Fulfill and Sell Your Products
Once a customer places an order, you must make sure that they receive the product on time. Amazon offers two options for product fulfillment and shipment:
- Fulfillment by Merchant (FBM): You do all the inventory, packaging, labeling, and shipping products to clients.
- Fulfillment by Amazon (FBA): Amazon stores your products in their fulfillment centers, and they’ll handle packaging and shipping products to customers. If you choose this method you’ll also notice a 30% -50% increase in sales.
Most third-party sellers choose the latter.
6. Receive Your Earnings
Amazon is a great way to expand your business’s reach, but there’s obviously a cost to selling on Amazon. Amazon Payments automatically deducts the payment for services sold through from your sales proceeds every two weeks and deposit the balance into your bank account.
7. Build a Five-Star Feedback Rating
Cultivating a strong customer feedback rating is key to selling on amazon. 95 percent of customers will read online reviews before making a purchase. This indicates that positive ratings improve buyer perception of your product listings and thus improves the placement of your products on the website. To build a strong feedback rating you should:
- Provide an accurate, detailed product description.
- Ship products promptly.
- Offer great customer support
- Solicit positive customer feedback on your product packing slips
8. Follow up Customer Reviews
Customer reviews are important for your business. These testimonials are social proof of your products. They prove that you provide high-quality products and services which in turn boosts your credibility.
It is always a nice gesture to follow up and thank the customer for their review. This will increase their trust in you and want to continue to do business with you.
Starting on Amazon might be an arduous task to many. However, by following the above-mentioned steps you will be able to figure out the whole process while making minimal errors along the way.