It is a new year, and it promises a new beginning. 2020 has been a challenging time for many of us, and retail was hit hard by the COVID-19 pandemic. However, while regular brick and mortar stores struggled to adapt to changing consumer behavior, e-commerce came out the clear winner.
Amazon sales skyrocketed as more and more people started purchasing online. This demand will continue in 2021, so sellers have an opportunity to create a fortune through the online retail platform.
Before getting started, it is essential to learn the basic strategies that sellers use to be profitable on Amazon. Just like any business, there is always a risk when becoming a third-party seller. For instance, you could end up wasting money on a product that does not sell. That is why we are listing the seven most effective strategies for selling on Amazon. They are the fundamentals of every successful Amazon business.
1. Product research
You need a killer product in a profitable niche to be successful on Amazon. I’m going to be straight here – many categories are saturated on Amazon. There is a lot of competition, and fighting the competition head-on is generally not advisable. New sellers need to carve out their niche. It translates to identifying gaps in the market using reliable data. That is where Amazon product research comes into the picture.
In general, you need to find a product with high demand and low to medium competition.
You can get a few ideas from the Amazon best sellers list and start from there. Once you have identified a few possible products, you need to dig into the data – the sales, BSR, and keyword volume.
2. Keyword research
Amazon is a search engine. It is a search engine that connects sellers with buyers. Like every other search engine, keywords are how Amazon connects a search term and a product.
You need to ensure that your product is indexed for all the relevant search terms. If your product is not part of the search results, you will not get any orders. It is that simple. That is why detailed keyword research is essential.
It is not just your listings, keyword research is pivotal for your sponsored ads as well. Most Amazon PPC campaigns are targeted using keywords, so finding the right ones can make the difference.
3. Product listing optimization
Your product listing is your sales pitch. You need to effectively use the space provided by the product title, bullet points, and description to maximize SEO and conversions.
How do you do that?
Start by using your keywords. Include relevant keywords whenever possible, and add the rest as part of your backend keywords.
Okay, keywords are essential. But when it comes to product listings, some things are even more important – content readability and engagement. That is why you do not find listings stuffed with keywords anymore.
Your sales pitch needs to resonate with your target audience. It needs to be informative. It should be easy to read, and you need to be transparent about the product and its benefits. In summary, a customer should understand the product inside and out by reading your bullet points and product description.
What happens when that is not the case? Well, the customer will most likely not buy a product they do not understand.
4. Product images
All the top listings have stunning product images. They are professionally shot and highlight the key features of the product.
When shopping online, customers cannot touch or see the product like in a regular store. The product image is supposed to bridge that gap. It gives the customer a visual idea of what the product is like.
Your listing needs product images. Make sure you add at least six high-quality photos. Cover every angle of the product. Remember, this is your sales pitch. You need to sell your product. If you have the budget, I recommend hiring a professional. If you have a kickass product, it is more than worth the investment.
Early on, after product launch, it is necessary to get a few sales under your belt. I recommend pricing your product competitively to get the ball moving. Amazon’s algorithm loves lower prices, the customers also love lower prices. Everyone’s a winner as long as you pay attention to your bottom line and margins while setting the product price.
There is more! Lowering your prices is one of the best ways to compete for the Amazon Buy Box. Getting control over that elusive yellow button can skyrocket your sales!
6. Amazon PPC
Amazon sponsored ads offer a massive return on investment if you play your cards right. Do your research before you get started.
That being said, it is the best way to improve product visibility and sales – provided you have the budget. Create a sponsored ad for your new product and start by targeting impressions. I suggest starting with an automatic campaign if you are new to Amazon sponsored ads. The Amazon algorithms usually deliver a good result.
However, to take your Amazon advertising to the next level, you need to create manually managed campaigns. It is difficult to optimize them, but it is worth the time. Make sure you make decisions based on actionable data. You can use tools like SellerApp to quickly get your hands on actionable data, or you can regularly go through the search term reports.
7. Get some customer reviews
I am not implying that you should buy reviews from review farms. Don’t do that. It is against Amazon’s terms, and your account could even be suspended! The problem is, reviews are hard to get.
Since it directly affects your search rank and conversion rate, reviews cannot be ignored. So, how do you get reviews legally?
Amazon has you covered. To get some reviews early on, you can sign up for Amazon’s vine program or the early reviewer program. The early reviewer program has a fixed cost, while in the vine program, you have to send your product for free to the reviewers. If you have a cheap product, you should definitely sign up for Amazon vine.
It isn’t free, but it is a sure-shot way to get some early reviews.
Arishekar is a leading SEO and digital marketing expert in India, he is the Senior Marketing Manager At SellerApp, he specializes in digital marketing, inbound marketing and lead generation In addition His areas of expertise include enhancing the organic ranking on search engines with innovative digital strategies and online promotions.