In the final edition of our “How to Sell on Amazon in 2020” series we bring you a plethora of Amazon seller strategies and tips. So, if you’re thinking about selling on Amazon this year, you needn’t look any further.
It’s no mystery that more people are giving the idea of selling on Amazon some serious thought. We’re rounding off our series titled “How to Sell on Amazon in 2020” with valuable advice for our readers who are doing just that.
If you find yourself flirting with the idea, you should work your way up from Part 1 to see if you’ve got what it takes to sell on Amazon.
But if you’re pressed for time, feel free to start here, with our tips on Amazon seller strategies and how to apply them.
Amazon’s mantra is ‘customer obsession’. And if you’re selling on Amazon, it follows that you should have a customer-centric approach too.
But it’s hard to make customers happy if you don’t know what their tastes, budgets, and life circumstances are. Which brings us to buyer demographics…
Understand Your Customers
On Amazon, a buyer’s personal information is encrypted. So, you don’t have enough buyer data to inform your marketing strategy and boost customer engagement. Unless you sign up for Brand Registry, that is. It enables you to get to know your buyer. That’s crucial if you want to be good at selling on Amazon.
When you sign up for Brand Registry, you gain access to the Brand Analytics tool.
Aside from valuable SEO data, this tool features the Consumer Behavior Dashboard. It’s here that you’ll find your Buyer Demographics data. You’ll be able to see the buyer’s age, gender, marital status, education, and income.
This dashboard breaks down your sales into age groups and income brackets.
It gives you a rough idea who to target with your campaigns.
So, you can choose your keywords and phrase your listings in such a way as to attract that specific demographic (e.g. wealthy baby boomers, single millennials, etc.).
Advertise with Intent
There are many tools you can use when you’re selling on Amazon to make your products reach more buyers.
You can make your listing more appealing with the A+ tool, for instance.
But when you’re new to selling on Amazon, PPC campaigns are the most convenient way to highlight your offers.
You should opt for both Pay-Per-Click (PPC) ad platform f… More and Pay-Per-Click (PPC) ad platform for Amaz… More campaigns until you get the hang of things. Make sure your brand banner and USPs display well.
And as for your sponsored product, check the look and location of your ad snippet on various types of devices.
The Advertising is a means of communication … More stats below will help you gauge your returns. But before you spend on ads, make sure these products are what the buyers wanted.
Know Your Products
There’s a page in Seller Central that shows you what your customers think of your products, among other things. It’s called Voice of the Customer.
It enables you to see buyer comments, edit listings, create removal orders, and resolve item issues quickly.
Products rated ‘Fair’ or worse could be troublesome.
2. Sales Strategies
Keep Tabs on the Competition
Being successful at selling on Amazon comes down to profit, not turnover. And competitors can be a major thorn in your side when it comes to profit. That’s why it’s a good idea to keep up with the competition. Monitor their storefronts, listings, sales volume, keywords, and promotions as shown here.
To get an understanding of their packaging, equipment, locations, business model, internal practices, etc. place some test orders.
But don’t stop with your immediate competitors. Use a tool like Sellery to identify competitors from across your product category, especially if you sell This is what you call products manufactu… More items.
Monitor Your Own Sales
Obviously, the faster you sell the greater the demand for your product. But sales velocity also ties in with stock levels and pricing. Assuming you don’t reach your velocity limit, you can use sales velocity data to streamline your inventory management, boost turnover, and maximize profits.
With Sellery, you can take every opportunity to raise prices for top-selling items. Simply generate a Smart List of titles for which you’ve sold at least X units in the last Y days. Then direct Sellery to raise their prices automatically.
The same goes for slow-movers. Just ask Sellery to lower prices so sales pick up.
Manage Your Costs
The funny thing about the cost of selling on Amazon is that it’s not so straight-forward. Sure, you have up-front costs like Amazon’s selling fees, which amount to about a quarter of your revenues. But there are many other add-on fees for returns, chargebacks, FBA slow-movers, etc.
Sellers might also not factor in their start-up costs, trademark registering fees, or the cost of sourcing UPC labels, for instance. Then there are repackaging, restocking, and removal costs. And let’s not forget that Amazon’s fees change all the time. Yet another reason to use a tool like Sellery.
Sellery automatically calculates shipping costs based on the location, weight, source, fulfilment, and size of the item.
And it knows when Amazon changes its fees.
Within hours, the change will reflect in your price calculation. But that’s just one way Sellery keeps you from losing money.
To cover your overheads and other expenses, you can set your own markup in Sellery. That way, you make sure you never lose a cent.
If you’re comfortable dropping the price, just tweak the markup. And if you’d like to make a profit, set your margin.
Sellery will make sure that you never sell for anything less.
3. Pricing Strategies
Make the Most of Buy Box Rotation
Gone are the days when sellers decided what and for how much to sell based on abstract numbers. More specifically, The sales rank of products on Amazon ind… More and Simply the lowest price an Amazon… More. Today it’s all about the Boy Box. Owning it for just a few hours can make up for hefty losses due to It’s a technique many sellers u… More.
The This refers to the situation where a sel… More gets a reshuffle every few minutes, as shown above. The zigzagging offers pictured in red and blue take turns owning it. These sellers raise their price (gray line) as soon as they seize the Buy Box. But there’s also a third seller at the bottom (also blue) who doesn’t reprice.
That’s a missed opportunity. The Buy Box gets reshuffled when sellers change their prices (either lowering or raising them). So, you won’t earn the Buy Box just for having the Simply the lowest price an Amazon… More. As seen above, sellers with flexible pricing sell for more and for longer than those who stay put.
Tip #1: When you have the Buy Box, steadily increase your price until you lose it.
Target the Buy Box Winner
Buy Box rotations aren’t just fast. They’re also biased. Usually towards the seller with the best ‘price + customer experience’ combo. That last part has a lot to do with fulfillment channel. FBA and Seller-Fulfilled Prime take precedence here. But switching fulfillment isn’t the end-all for Third-party sellers are independent indi… More sellers.
If there’s a clear “favorite”, ignore other sellers. Undercut their price only, like the red seller did in the graph above. But be sure to only take into account the This refers to the situation where a sel… More price that corresponds to your Products can only be listed on Amazon if… More category. If you’re selling a used item, It’s a technique many sellers u… More the New Buy Box price won’t work.
Tip # 2: If you don’t have the Buy Box, undercut the winner in your category (Used/New).
Get a Fast Repricer
Using a repricing tool like Sellery can be of great help in a highly competitive landscape.
You can’t change your prices manually several times per hour, 24 hours a day. So, your chances of winning the Buy Box without an automated repricer are virtually null. And it’s not just the rate with which you reprice.
Speed matters too. Whenever you edit a listing manually, there’s a time lag before the change goes live, as shown below. But in that time, your competitor’s software will have picked up on your upcoming price change. And as your price goes live, their new one does too. Can you guess who has the better price?
That’s where Sellery has the upper hand. It can reprice in real time, making your price change instantaneous. As your competitor picks up on it, you can cook up another one in the background. And just as your competitor goes live with their price change, you bring your second one to the table.
Tip # 3: Real-time repricing means you’re always 2 steps ahead of the competition.
This brings our series to an end, but you can be sure that we’ll be coming up with many more tips and tricks for people selling on Amazon.
If you’ve enjoyed learning how to sell on Amazon in 2020, please feel free to start testing our Amazon seller strategies and tips right away.
As for software tools that keep tabs on the competition and keep your prices in check, they don’t come any faster or smarter than Sellery. And it even comes with a free trial. So, what are you waiting for? Let’s outsmart those competitors!
Melanie takes an active interest in all things Amazon. She keeps an eye on the latest developments and keeps Amazon sellers up to speed.