Amazon Marketplace, a colossal e-commerce platform, has been instrumental in catapulting businesses and brands to success since 1995. With a staggering 12 million products and counting sold through its platform, it’s no wonder that Amazon is responsible for 37.6% of e-commerce sales in the US market alone. Operating in over 100 more countries, Amazon offers a global reach that can significantly boost your business growth. It’s time to explore how Amazon can be your growth catalyst.
Keep reading for 10 ways to optimize your business for Amazon success.
1. 3P vs 1P platforms
There has long been a debate about whether the 1P or 3P platforms are best for running an Amazon business.
The difference between 1P, the Vendor Central Program, and 3P, the Seller Central Program, lies in how much intervention and control Amazon has over your business.
With 1P, an invite-only platform, Amazon controls the prices of items, and a lot of data and metrics analysis is undertaken for you. Of course, there can be comfort for some businesses in knowing that they are partnered so closely with this eCommerce giant, but at the same time, there has been growing tension around the fees and chargebacks Amazon offers for these services. 1P has fallen out of favor so much in Europe that Amazon is discontinuing the 1P program there, and we could see this happen in other regions, too.
3P, on the other hand, empowers businesses with greater control and access to data and reporting. Unlike 1P, where Amazon controls the prices of items and undertakes a lot of data and metrics analysis for you, 3P puts the power in your hands. It’s an approach that can be advantageous for businesses that can utilize it effectively, allowing them to control pricing and stock levels, take advantage of consumer trends, and align with other business strategies and marketing techniques.
2. Inventory management practices
Solid Amazon inventory management practices are crucial to business growth and success. Consumers need readily available access to the items they desire and will start gaining trust and connection with brands that meet their fulfillment needs.
If you are selling through multiple channels, ensure each one is sufficiently stocked and monitor purchase levels. By maintaining thorough sales reporting, you can not only ensure your inventory is efficiently managed but also account for any consumer trends, both positive and negative, that may occur with data-driven forecasting.
3. Be on the pulse with customer reviews and reports
Being a global marketplace means Amazon is a hub for millions of people to conclude their purchase journey and, in turn, let others know what they think about what they have bought.
With around 33% of consumers reading at least 4 reviews before deciding to purchase on Amazon, ensuring that you understand what users are saying about your products and their impact can make a difference.
Optimizing customer feedback is not just a suggestion, it’s a crucial step towards Amazon business growth and success. Conducting thorough A/B testing is a powerful tool in your arsenal. This approach allows you to experiment with different product pages, marketing strategies, and customer experiences to determine what resonates best. By testing variations, you can optimize for higher conversion rates, engagement, and customer satisfaction, making your business more customer-centric and data-driven.
4. Communicate with customers through your listings
People tend to think that selling through Amazon doesn’t involve as much communication with customers as there might be through other e-commerce channels. However, these views are far from the truth, and believing them can stifle your Amazon business success.
While it’s true that you can’t write Amazon listings in the same way as other content, once you learn how to optimize your listings with Amazon-friendly language and keywords, you can start communicating with customers and building a brand narrative through your product descriptions that lead to conversions and repeat custom.
Suppose you need to know where to begin. In that case, AnjasDev’s experience in Amazon account management and Amazon PPC services means we know exactly how to sweet-talk the Amazon algorithms to help you reach the markets that you want to engage most. Get in touch for a consultation to see how we can help.
5. Leverage Fulfilment by Amazon (FBA)
Over 600,000 businesses use Fulfillment by Amazon (FBA), and it may be something you wish to consider, especially if you are looking to scale your business quickly.
For Amazon FBA businesses, Amazon does most of the heavy lifting when it comes to all stages of the consumer process. Your products can become eligible for perks such as Amazon Prime shipping and Subscribe and Save, which can be incredibly powerful factors during a customer’s decision-making and lead to higher conversion rates.
This option works well for those who don’t have the warehouse space or may struggle with staffing to fulfill orders in bulk, but it is only for some. Remember to check that the costs and requirements for FBA are better for your business model than going it alone or using a different fulfillment service.
6. Data scraping
Amazon is a treasure trove of data, and if you’re not leveraging it, you’re missing out. Data scraping, the practice of extracting information for analysis, can provide you with a wealth of insights. From competitor analysis to historical sales and pricing data, the possibilities are endless. The key is to focus on the data that aligns with your business goals and can give you a competitive edge.
There is a lot of data out there, so to avoid overwhelm, focus on what sort of data you wish to collect and act upon first. If you need help with Amazon inventory management, data scraping for product levels and sales data will be beneficial. Competitor data analysis and customer demographics could lend you the upper hand if you are looking to find ways to distinguish yourself from the crowd.
Make sure, though, that if you employ data scraping practices, they are carried out by a program or provider that you trust and that all Amazon Terms of Service are adhered to simultaneously.
7. Look at targeting international markets
Amazon ships to over 100 countries and has a warehouse presence in 58 of them. Twenty countries, including the US, UK, Japan, Australia, Germany, and many more, have their own dedicated Amazon website. If you are looking for a new way to fuel your business growth in Amazon, entering a new international market with the help of Amazon’s global reach is well worth considering.
This is especially true if you see a gap in the market for your particular brand or products, but remember to do your research first to make sure the gap is not there for a reason due to differing cultures or buying habits. Additionally, make sure your supply chain is set up to facilitate international fulfillment, something which Amazon FBA, which we talked about earlier, could be very useful for.
8. Use the Featured Offer option for targeted sales (Buy Box)
A great way to achieve quick sales for your products is to utilize the Featured Offer option for your Amazon marketplace listings. Previously known as the “Buy Box,” the Featured Offer is a box at the top right of a product listing search screen. It shows the featured product and allows the consumer to buy or add to their cart with one click.
Optimize your listings to make them ready for the Featured Offer, giving you an advantage over your competitors thanks to the enhanced consumer visibility that the box offers. Ensure you meet all eligibility criteria, including item condition, competitive pricing, and stock levels, to secure this prestigious spot. For the best results, pair this with Amazon PPC optimization.
9. Grow your brand
Amazon is a crowded marketplace, and it can sometimes take work for brands to stand out. Even those who are successful can risk having their business stolen from them by copycats trying to profit from their hard work.
Although growing your brand through positive customer experience with your products and listing optimization for visibility are great tactics, you may also consider signing up for the Amazon Brand Registry. This free service helps to protect your IP on the platform, ensuring that your customers know they are dealing with a verified and trusted seller.
10. Think about the whole sales journey and touchpoints
A full-funnel sales awareness on Amazon is crucial for reaching and converting potential customers. Although Amazon is the e-commerce channel of choice for almost 63% of online users looking for a new product, the time between loading up a search result and finally deciding to make a purchase can take weeks.
By ensuring your Amazon business strategy includes approaches for generating leads, such as sound Amazon PPC management, nurturing them through listing descriptions and reviews, and retention after they make a purchase, you can sustainably increase your reach and sales potential on the platform.
Wrap-up
As you explore the opportunities of the Amazon Marketplace, remember to thoroughly research and conduct due diligence to ensure the strategies you implement fit your unique business needs and goals. With careful planning, the Amazon platform can be a powerful engine for sustainable business growth.
If you want to leave things in the hands of the experts, AnjasDev has got your back. With years of experience in Amazon account management services and as a dedicated Amazon PPC agency, we have the know-how to create data-driven strategies to drive your business to success and grow your brand. Contact our team today and see what we can do for you.
