Weekly Business Insights from Top Ten Business Magazines | Week 330
Extractive summaries and key takeaways from the articles curated from TOP TEN BUSINESS MAGAZINES to promote informed business decision-making | Since September 2017 | Week 330 | January 5-11, 2024
Entrepreneurship Section | 1
Selling on Amazon? Take These 5 Steps to Knock Your Sales Out of the Park
By Bryan Fowler | Entrepreneur Magazine | January 9, 2024
Extractive Summary of the Article | Listen
Amazon is set to become the largest retailer in 2024, according to JPMorgan analysts. While sellers flock to the ecommerce giant for its prominence online and how easy it is to start selling, success on Amazon is far from guaranteed. Just as many brands run into significant problems selling on Amazon as those that have effortlessly carved out their own distinct niche. How do you ensure a good partnership with Amazon? The following are often the best places to start.
- Conduct market research. Differentiation is key to any brand selling on Amazon; and though this goes without saying, the best means is market research. Like any other launch, take time to identify gaps and opportunities in your selling strategies. Get to know the competition, market and customers. Then, use this information to determine what sets your brand apart — unique features, service quality, bundled options, price or something else entirely. Highlight these differentiators in your product listings and marketing materials to help your brand stand apart from the thousands of other options.
- Determine inventory logistics. Managing inventory is critical. Just ask Amazon, which was plagued by warehouse closures, layoffs and operational expansion slowdowns as ecommerce sales slowed down this year. In response to shifting consumer preferences and slower sales, retailers have been strategically discounting prices earlier this holiday season to help solve inventory issues. Fortunately, technology (i.e. inventory management software and forecasting software) can help you monitor inventory levels and sales velocity, forecast demand and determine reorder quantities.
- Prioritize fulfillment. Ensure products are prepared and packaged, especially when using Fulfillment by Amazon (FBA). And leverage customer relationship management (CRM) software to track customer interactions, automate responses and maintain a record of customer communications. With an ever-increasing number of Amazon sellers on the site (there are nearly 10 million right now), you should never give consumers a reason to look elsewhere by neglecting the fulfillment process. It’s one of the biggest Amazon FBA mistakes you can make, as the company is known for prompt delivery.
- Monitor performance regularly. Amazon provides a range of seller performance metrics, including conversion rates, inventory turnover, advertising campaign performance and more. Third-party tools like Sellics, SellerApp, Merchant Spring or ManageByStats can fill in any informational gaps, as they offer more comprehensive performance tracking and reporting features. Then, adjust your pricing, inventory levels and advertising campaigns to remain competitive and maximize results — as well as circumvent the more common Amazon Seller Central problems.
- Adapt when necessary. While Amazon offers unimaginable reach, the site is notorious for making changes to its Amazon policies for sellers. The same can be said for fees, features and structures. Fortunately, you can join seller forums, subscribe to industry newsletters and attend specialized webinars to stay informed. News aggregator tools like Feedly can shoulder some of the load, allowing you to create custom news feeds and notifications of any changes to Amazon selling rules.
2 key takeaways from the article
- Amazon is set to become the largest retailer in 2024, according to JPMorgan analysts. While sellers flock to the ecommerce giant for its prominence online and how easy it is to start selling, success on Amazon is far from guaranteed. Just as many brands run into significant problems selling on Amazon as those that have effortlessly carved out their own distinct niche.
- How do you ensure a good partnership with Amazon? The following are often the best places to start: conduct market research, determine inventory logistics, prioritize fulfillment, monitor performance regularly, and adapt when necessary.
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Topics: Marketing, Entrepreneurship, Amazon