If you plan on selling your products on Amazon, you need to make sure you’re primed for success. Selling on Amazon is one way to broaden their customer base while boosting sales. Many businesses have achieved amazing results using the Amazon sales platform.
Before starting your journey into Amazon’s treasure trove, let’s get some questions answered about the basics of using this platform to prepare your business and product for success. Here are some things you need to do to get started.
The Basics of Selling on Amazon
To get an idea of how the business or product performs in this marketplace environment, you should get a picture of what Amazon selling entails. The more you know about the sales environment, the better your chances of gaining customers and increasing your sales volume.
1. What is the Buy Box?
When you borrow on Amazon, customer navigates to the product’s main page and clicks the “offer” links below the product’s description to see a list of available sellers. This is indicated by the red circle in the screenshot.
Amazon offers merchants the chance to compete for the “Buy Box”. This CTA button is that familiar yellow shade. $56 billion of Amazon’s $62 billion in annual sales happens in this box, so it’s important that you understand how the “Buy Box” works.
This is the Buy Box. You should understand it and live by it.
The Buy Box is placed on the product’s detail page. This is where customers begin the purchasing process and add items to their shopping cart. You stand a better chance of making a sale if your product is listed in the Buy Box.
2. How does Amazon choose who will win the Buy Box and the order of the merchant list?
One key feature of the Amazon platform is that many sellers can offer the same product. That makes it difficult to become the seller who wins the Buy Box. In fact, it’s unrealistic to believe your site is going to get ranked high enough to become a featured seller.
However, even if you never win the Buy Box, it’s important to understand how things work and how the different parts of the site are weighted. Many things valued by Amazon fall in line with the best practices of e-commerce. It’s in your best interest to do these things.
There are several factors affecting where a merchant appears in an offer list, including:
Competitive Pricing: This can include not only the cost of the product but shipping costs. Many shoppers expect low prices on Amazon. The lowest combined price has the best chance of appearing on the list.
Competing Offers: Generally, if a product has many sellers, it’s harder to climb to the top. Fewer sellers mean you have a better chance of getting a sale.
The Merchant’s History on Amazon as a Seller: A merchant with a long and positive selling history on Amazon have a better chance of obtaining a top spot.
The Number of Seller Reviews on Amazon. Online reviews have a great impact on sales, and can really make or break your business.
There are other factors and some good articles about how to optimize sales on Amazon. As a rule of thumb, the most effective solution is to ensure transactions received through Amazon runs smoothly. That means delivering products in a timely matter and communicating with customers throughout the buying process.
However, if you want to break into the market faster, here are two shortcuts which can help:
Sell a low-competition item that can boost your seller ranking. This increases the probability that an offer will show higher for more competitive products.
Try offering a competitive price on a popular product. This can draw bargain shoppers and increase your seller ranking. You can check Amazon’s “Most Wished For” list to see an industry’s most popular items for inspiration.
3. What is Fulfilled by Amazon?
The Fulfillment by Amazon (FBA) program allows you to send your merchandise to one of Amazon’s fulfillment centers to be stocked. Customers can buy products from you and Amazon will ship them to the customers. This arrangement will allow you to focus on aspects of running your business while Amazon handles customer service and shipping.
Some benefits include extending your product’s reach to the Amazon Prime members. This can give your product an extra push towards placement in the Buy Box, even if your product has a higher price. With Volusion, a merchant can set up a different shipping option, like drop shipping, which allows flexibility when trying to use FBA. Just be aware of the Amazon VAT rules for FBA sellers.
4. What types of merchants tend to benefit most from selling on amazon?
Three kinds of merchants perform well on Amazon:
Merchants sell unique-to-them products, including companies producing their own products, like companies that design their own jewelry.
Merchants who sell niche or hobby products. Amazon won’t start carrying or fulfilling many niche or hobby products so that it’s less risky that you’d be competing with Amazon itself. You’d only be competing against other sellers.
Merchants sell used or refurbished products. Amazon has a large market for these types of products since they attract shoppers who’re mainly concerned with price and doesn’t mind waiting for shipping. It’s worth noting, that used products can’t win the Buy Box position.
That said, the fully branded website and store’s URL cannot be overstated. This can give you an extra level of authority and credibility. Visitors are likely to remember you over another seller. Many merchants achieving popularity on Amazon find it essential to have control of their branding and e-commerce website. This allows a person to market to a large audience or achieve a fully independent store presence outside of Amazon using other marketing channels.
These are some other frequently asked questions about selling on the Amazon Marketplace.
Now that the basics are covered, let’s get into the nitty-gritty. There are some common questions about selling on Amazon.
5. Why should I associate my products with an Amazon product already listed?
Products are only allowed to be listed once in Amazon. If you create a second detail page for existing products, it will eventually result in the listing being removed. If you can match products to the product detail page already existing, your offer has more of a chance of being seen.
6. Why can’t I use some shipping methods at first?
Amazon doesn’t allow a new merchant to offer shipping methods off the bat, such as two-day shipping. These shipping methods have to be earned by establishing a history of reliable shipping slower shipping speeds.
7. Why aren’t I being compensated for shipping?
Amazon determines how much it would cost to ship a product based on the customer’s address, merchant’s origin, and the weight of the product. However, often the money Amazon reimburses a merchant for shipping, however, it won’t match the real shipping cost.
8. How can I increase the number of Seller reviews on my account?
Merchants are forbidden from paying for or soliciting Seller Account reviews. If you are caught engaging in these practices, you will be a risk for an account suspension.
Your best bet for getting a review is to give your customers a great shopping experience. This experience includes shipping reliability, informative, clear customer communication, and product pricing. If a customer has a pleasant experience with your business, they will want to vouch for you on their own. If your business needs some reviews, we have advice that can help.
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