News
Sales on Amazon
6 tips to help you get started on Amazon
5 May 2022
The Amazon Portal is currently the largest global marketplace. Every day, hundreds of thousands of transactions take place there. Are you tempted to join the sellers on this platform and take advantage of its potential? This e-commerce giant allows you to reach billions of customers worldwide. It has a strong market position that it maintains despite considerable competition. This presents a significant opportunity for producers and distributors to introduce their offerings to foreign markets. As a result, they can grow their business and promote their brands outside of Poland as well. Have we sparked your interest? That's great! Discover 6 steps to help you decide to start selling on Amazon.
Selling on Amazon - how to choose products?
When entering this vast marketplace, it’s best to avoid introducing your entire offering at once. Your initial sales should be based on proven products. If you have specific hits or goods that generate consistent satisfactory turnover, focus on those! Remember, they will be your business card on this portal and will directly impact your brand's image. If you plan to sell products from other manufacturers, concentrate on premium items. This way, you guarantee customers high quality and build a stable sales account. At the beginning, it’s best to avoid products that require additional approvals or certificates, such as organic foods. Be sure to check if your offering complies with locally applicable regulations.
Fulfillment by Merchant or Fulfillment by Amazon - what’s the difference?
On the discussed platform, sellers can choose from 3 sales models: Amazon FBM, FBA, and Vendor. The first two are immediately available to every new user, while to join the third, you need to receive a special invitation. In the first program, the logistical and sales process goes as follows:
The customer orders the goods
You package it
You confirm and ship the package
You receive payment.
The e-commerce portal only facilitates the transaction. With Amazon FBA, it looks a bit different. After sending the goods to the warehouses of this online giant, its employees handle the assembly of shipments, packaging, and delivery to the end recipients. Beyond functioning as a distribution channel, the platform thus becomes part of the logistical process. What benefits does this model provide? Primarily it guarantees:
Customer service in the local languages of each marketplace
Warehousing and logistics
Payment and returns handling.
This outsourcing of some tasks allows you to focus on other important aspects of your business. You can also simultaneously use FBM and FBA by sending only the best rotating products to the warehouses of this giant.
Efficient organisation of the shipping process
Regardless of whether you choose the FBM or FBA model, you should carefully plan the shipping process of goods to the customer or Amazon warehouse. If you decide on the first option, make sure to meet shipping deadlines! Otherwise, you may risk having your account blocked. In the second case, ensure regular deliveries so that your products are continuously available. This is very important because downtime means a drop in product page ranking. As a result, you could lose your position in a few days, one that you’ve worked on for months. Keep in mind that sales on Amazon can quickly grow overnight, especially when you offer seasonal products. Therefore, it’s best to always maintain a reasonable stock level in the warehouse to prevent rapid sell-outs and stock zeroing.
Positive shopping experiences for customers are key to success
In every industry - regardless of the sales platform - the experiences of customers buying in your store determine whether you will succeed. By offering high-quality products that match the description on the page, at an attractive price, you can be sure you will gain positive ratings and reviews on Amazon. As a result, other internet users will conclude that you are a trustworthy seller and that it’s worth shopping with you. Therefore, always ensure that transactions proceed smoothly. In the FBM model, you must take care of this yourself, while in FBA, some of the matters will be handled by the platform. Make it easier for customers to make decisions:
By placing high-quality images on listings that faithfully reflect the product's features
By preparing a description rich in keywords that effectively presents the goods
By ensuring fast delivery.
Optimising your offering guarantees increased trust in you as a seller and has a real impact on sales.
Adjust pricing to market realities and competitors' strategies
Do you know what the Buy Box is? Winning it is the most important goal for every business operating on Amazon! It is a decisive element affecting whether a customer will purchase a product from you or a competitor. If you sell unique items, you have a problem solved, as you will likely become the first-choice seller. However, if there are multiple offers differing in price, the one who offers the lowest purchase cost will win it. For this reason, pricing strategy is very important. You must shape it to be competitive. This way, a buyer clicking the "Add to Cart" button will complete the purchase with you. Remember that nearly 9 out of 10 transactions on this e-commerce platform are conducted through the Buy Box.
When is the best time to enter Amazon?
The answer to this question is conditional on many factors. Your industry and specific product have a significant impact on the right timing for starting sales on the Amazon platform. If you sell beach accessories, it is best to prepare photos and texts for listings at the beginning of the year. You will have plenty of time to register your account, upload content, and position your listings before the season. If you are targeting Christmas, which is peak season, start preparations many months in advance. This marketplace is filled with sellers aiming for large profits during the holiday season precisely. Therefore, by December, you should have a high and secure position in search results to compete effectively in your category. How can you do this? Show customers that your offering is unique. Convince them that the purchase is essential to making their lives easier, better organised, or making a loved one happy. Care for high-quality listings.
Amazon - 6 steps to success
Now you already know what to pay attention to when preparing to start selling on Amazon. If you take into account the elements of strategy discussed in the article, you will find it easier to succeed. Pay particular attention to:
The selection of products that you will first introduce to the platform
Which model will be the most convenient for you: Amazon FBM or FBA
The smooth organisation of the shipping process to prevent problems and delays;
The customers’ experiences, as they will decide whether you will succeed
The pricing strategy
The timing for beginning preparations and sales.
A global platform is an extraordinary opportunity for every entrepreneur to reach millions of potential customers. Take advantage of its potential and conquer foreign markets! We are happy to answer your questions about collaborating with this e-commerce market giant. Contact us to learn more.
Happy Selling
Amata Borys-Chudek
Head of Content