7 Tips&Tricks Before You Start Business On Amazon In 2022

Selling on can be a great opportunity for an online business, but there’re some things sellers should know before they jump in. Read our guide and enhance your chances of success!

Seven Things to Consider Before You Start Selling on Amazon

Selling on Amazon can be an excellent opportunity to grow your e-commerce business. Still, there are a couple of things you should consider before getting started with this online marketplace.

It has been more than twenty years since the marketplace sold its first item over the Internet. During this time, Amazon has become the largest online business platform and has had a significant impact on how people over the globe shop and do their business.

An entrepreneur who plans to sell online needs a website to attract customers, list products, process orders, and communicate with customers. Of course, it is possible to set up your online store. Still, when it comes to a foreign market, most entrepreneurs choose the other way – to use the site of a large marketplace, such as Amazon, to make it easier for them to enter an unfamiliar market.

A seller who lists items on Amazon gains access to the company’s online services and resources, including a huge user base – potential customers.

In the US alone, 200 million users shop on Amazon’s website. SMBs sell over 4,000 items per minute on the platform. It seems that the opportunities are enormous, but not everyone succeeds. To succeed, you must first understand what difficulties you will face. Let’s delve into some crucial aspects you should consider when launching your business in the marketplace.

Amazon Charges Commissions, like any other business, needs to earn money. Thus, any income opportunity for you is also a chance for Amazon to make money. For instance, the Fulfillment by Amazon (FBA) solution allows merchants to sell their goods to more customers. Still, the platform can charge hundreds or even thousands of dollars in fees to process orders, store, and ship your products. So before you register, find out how much the marketplace will charge you to ship your goods to customers so you can calculate your profit correctly.

Competition Is Harsh

Amazon has 2 million merchants – competition is harsh, of course. You can pick two paths: either find an empty or not very saturated segment or offer the products in the highest demand, spending more on advertising. If you want to sell under your brand, apply for registration with the Amazon Brand Registry solution to safeguard your trademarks.

FBA and FBM Models

The FBA option sellers you to store products in Amazon distribution centers; its staff will process orders and ship them to clients for you. Besides, program members get the bonus of having their products appear on the Prime Finished list, opening access to more interested shoppers. Order volumes will rise, but this will come at a cost: FBA fees (which have gone up lately) will cut your margins. So while you may end up choosing to handle orders yourself, you can never compete with your FBA listing. It can take away your independence as a seller, so think carefully before signing up. It might be better to opt for the FBM program right away, given that since this year, Amazon has taken measures to limit the volume of products from third-party sellers in its fulfillment centers.

Mind Your Customer Reviews

Client service is crucial for shoppers’ retention and turning first-time buyers into lifelong customers. In addition, customers like to shop with sellers that they know will go the extra mile to ensure their needs are met. For instance, 72% of clients do not take any action until they have read reviews of an item they are looking at. So, to put it simply, if you get more reviews on the platform, you’ll also get more sales!

The better your client service is, the more likely your shoppers will leave a positive review on Amazon. All the more so if you request them. There are many great marketing techniques on how to get reviews on Amazon. From writing the best review requests to automating the process with the right feedback management service, there is a lot you can do.

Think of Your USP

A unique selling proposition (USP) can be a turning point whether a visitor purchases from you or your competitor on the Amazon platform. Whether it is a clear product description, a better guarantee, or a pleasant bonus, something in your selling proposition should make clients pay attention to your products. How to develop it? One way is to read client reviews for your category or products (if you have been in sales for a while) and use that information to realize why people choose certain products.

Placing Ads Doesn’t Guarantee Sales

Amazon helps any registered seller list an item on its site, and every website user can find it. However, the platform is huge, and listing products on this marketplace doesn’t guarantee that they will sell. So do not expect to begin selling by creating an account and listing your product. Instead, analyze competitors and optimize the ads. Remember that the selling process directly depends on the effort you put in.

Constantly Improve Your Business Performance

Your business on Amazon is not going to run itself. If you are serious about trading large volumes of your products, you will need to regularly track your performance and metrics. In this way, you can always enhance your efforts.

Pay close attention to the dynamics of your sales (both increasing and decreasing), seller rating, and return rate. All of these are essential in determining where you have room for improvement.

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