Expand Your Ecommerce Business: How to Sell on Amazon Successfully
May 18, 2022
Guest post by Liran Hirschkorn of Incrementum Digital.
Over 70% of eCommerce searches start on Amazon, according to Jungle Scout’s 2021 Amazon Advertising Report. That in itself is enough to make expanding your business to Amazon worthwhile. However, successfully selling on the world’s biggest eCommerce marketplace can be challenging.
We break down the benefits and obstacles of expanding to Amazon, and lay out the steps that eCommerce sellers should take when they’re ready to take the plunge.
Why Sell on Amazon
When done correctly, selling on Amazon can be a game-changer for growing your business. Due to the nature of Amazon, it is an unequaled opportunity to get access to potential customers who are ready to buy. It’s also a great way to gain exposure for your brand.
Another benefit is Amazon’s shipping and fulfillment service, FBA, or Fulfillment by Amazon. Sellers can leverage FBA and eliminate the need to worry about logistics and shipping. This cuts out a lot of the complications that come with running an eCommerce business. It also makes it possible to run a business with a smaller team, a benefit for many sellers who are running a one-person show.
Here’s how to expand your business and start selling on Amazon.
How to Get Started on Amazon
When you’re just getting started on Amazon, there are a few key things to remember. At the beginning, focus on selling as much as you can instead of profitability. While this might seem counterintuitive, remember that Amazon’s algorithm rewards sales velocity. If you can drive a high rate of sales early on, you set your business up to succeed.
It’s also vital to understand the data and your competitors. Do plenty of market research to make sure that you have a viable product and business strategy.
Once you’ve done your research and chosen your products, you’re ready to start selling on Amazon. Here are the steps to take:
1. Set up a seller central account
The first step to selling on Amazon is to set up a Seller Central account. You’ll need a bank account and routing number, a government-issued ID, a credit card number, tax information, and your phone number. Enter your information as accurately and with as much detail as possible. This helps build trust in your brand.
Thoroughly read through Amazon’s Seller Agreement, making sure that you understand the various policies and regulations. It is important to note that a seller can only open one Seller Central account in each region, unless there is a valid business reason why more than one account is necessary. In addition, Amazon requires that return policies are, at a minimum, as beneficial to customers as Amazon’s own policies.
Then, choose a selling plan based on how many units you plan to sell each month.
2. Apply for Amazon Brand Registry
If you are a brand owner, it is recommended that you apply for Amazon Brand Registry. While enrolling in Brand Registry is not mandatory, it can be an invaluable tool for brand owners. Brand Registry was designed to protect brands’ intellectual material against counterfeit products.
In addition to protecting against counterfeiters, Brand Registry also gives sellers a suite of useful marketing tools. Premium A+ content and Amazon Stores Builder, for example, are two tools that help sellers customize and optimize their listings.
In order to qualify for Amazon Brand Registry, sellers must have an active, registered trademark on their product (or packaging), be able to identify themselves as the rights owner, and have an Amazon account.
3. Create your listings
Your listings are critical if you want to succeed on Amazon. Listings are the face of your business, so it’s worth optimizing them. Before posting your products, spend some time gathering data and doing research. There are plenty of resources out there to help sellers master writing for conversion.
Thoroughly research keywords before writing your copy. Then, make sure to write for conversion and algorithms. Utilize backend search terms as well in order to get the greatest possible exposure.
The design of your listings can also be a game changer. Work on your images, making sure that the photographs are eye-catching and flatter your product. They should also be informative, and give potential customers all of the information they need. Most people don’t read the entire text, so it’s wise to include infographics that explain features and benefits of your product. Video can also add to your listing.
Try to set your product apart through a well designed, informative listing. If the product looks desirable and the listing looks trustworthy, people are more likely to press “buy”.
4. Send inventory
Once your store is registered and your listings are ready to go, it’s time to ship your inventory to your warehouse or storage facility.
Since Amazon offers their own fulfillment service, FBA, sellers can simply sign up and send their inventory to Amazon. Then Amazon will take care of the rest.
Sellers who utilize FBA pay a fee per unit. This fulfillment fee is set based on the size and weight of the product. For most sellers, this fee is lower than the cost of storing and shipping items themselves. Plus, FBA removes a lot of the stress and headache that comes with logistics management. Amazon also offers fast shipping speeds through FBA, which can help increase conversion rates.
5. Launch your product
It’s finally time to launch your product! However, before you do, make sure that you have a marketing strategy.
Using Amazon’s built in advertising platform is a great way to drive sales. People who navigate to Amazon have a higher buying intent compared with influencer marketing and Google ads. Therefore, advertising on Amazon tends to lead to the best conversion rates.
Amazon has an easy-to-use advertising console, but it is vital that sellers learn to use it properly. Many sellers let the auto campaign do the work for them, but this can be detrimental to their business. The auto campaign doesn’t use keywords properly, and may not update with the changing market. It is always more useful to run your own manual campaign so you can make sure it is effective and up to date. There are plenty of resources out there to help sellers educate themselves on advertising best practices.
Once you optimize your Amazon advertising campaigns, you can add other marketing strategies, from social media to Google ads.
Remember – Amazon’s algorithm rewards early sales velocity, so do what it takes to drive early sales. Be aggressive and don’t be afraid to lower your price or offer incentives such as coupons in order to gain organic rankings.
Challenges of Selling on Amazon
While there are indeed a whole host of benefits to expanding to Amazon, it comes with its fair share of challenges as well.
Amazon has a steep learning curve, and the company does not offer a lot of support for sellers. You can’t simply pick up the phone and talk to someone when you need help setting up your store.
Keep in mind that opening a store and listing your products on Amazon isn’t enough to succeed. In order to get sales, sellers need a strategy, a thoughtful approach that will set their product apart. It takes time, effort, and capital to truly succeed on Amazon.
This is where a good funding solution like 8fig is crucial. 8fig offers eCommerce sellers Growth Plans with continuous growth capital at every stage of their supply chain. It gives sellers the means to stock up on inventory from the get-go and avoid stockouts.
How to Expand Onto Amazon
Selling on Amazon is a great way to grow your business. Amazon gives you access to a huge market of potential buyers and its own fulfillment service. If you follow the above steps and stick with it, you’ll be on your way to success.
- Set up your Seller Central account.
- Apply for Amazon Brand Registry to protect your brand.
- Create your listings based on keyword research.
- Send your inventory to the FBA warehouse (or your chosen facility).
- Launch your product!
Growing your business takes working capital. 8fig’s Growth Plans were designed specifically to help eCommerce sellers scale. We provide you with continuous capital infused at each stage of your supply chain, including inventory and marketing. It’s also flexible, allowing you to adapt your plan to fit the inevitable ups and downs of your business.
Rebecca is an eCommerce writer at 8fig. She strives to provide sellers with the information and support they need to succeed in the ever changing eCommerce space.