7 Strategies for Successfully Selling on Amazon

In a comprehensive interview with David Reske, CEO of Nowspeed Marketing, Mike Begg, CEO of AMZ Advisors, divulged strategic insights into the art of selling on Amazon. Given that a significant majority of online product searches originate on Amazon, understanding how to leverage this platform is essential for any e-commerce business.

Why Amazon is a Must for Sellers

Amazon isn’t just another e-commerce platform; it’s a pivotal player in the online retail world. Mike Begg pointed out that around 70% of online product searches begin on Amazon, making it an indispensable platform for visibility and sales. The high intent to purchase among Amazon users, compared to other platforms, gives businesses a clear advantage.

The Dual Role of Amazon: Brand Visibility and Sales

Amazon serves two key roles in e-commerce: enhancing brand visibility and driving sales. It acts as the top-of-the-funnel in the broader e-commerce ecosystem, aiding in brand discovery. This makes it a critical platform for acquiring new customers and subsequently directing them to other sales channels.

Identifying Winning Products on Amazon

Not all products have the same success rate on Amazon. Cheaper products generally sell better due to Amazon’s algorithm favoring high conversion rates and sales velocity. However, categories like electronics, cosmetics, supplements, and apparel can also find success with higher price points, given they have strong brand recognition and positive reviews.

Niche Categories: A Path to Success

Begg identified categories like pet supplies, baby products, and toys as particularly successful on Amazon. However, he noted that highly competitive categories like supplements and personal care products present challenges. The key is to find less competitive niches or subcategories where your product can stand out.

Brand Power vs. Social Proof: The Amazon Equation

Most searches on Amazon are non-branded, meaning consumers often search for a product type rather than a specific brand. Products with high-quality images, competitive pricing, and strong social proof, like good reviews, can outperform well-known brands.

Effective Amazon Strategies

1. Start with Sponsored Products Ads: This ad type is crucial for immediate sales opportunities and high visibility in search results.
2. Focus on Brand Awareness: Leveraging Amazon’s advertising options like sponsored display ads helps in increasing brand visibility.
3. Create Compelling Product Listings: Create high-quality images and detailed descriptions to make your listings attractive and informative.
4. Optimize for Amazon’s SEO: Understanding Amazon’s search algorithm and optimizing your product listings with relevant keywords is vital.
5. Leverage Data Insights: Use Amazon’s data, such as search term impression share, to inform strategy and optimize listings.
6. Monitor Key Performance Indicators (KPIs): Focus on conversion rates, click-through rates, and advertising cost metrics to gauge performance.
7. Build a Strong Reviews Profile: Encourage satisfied customers to leave positive reviews to boost social proof and trustworthiness.

Addressing Challenges in Amazon Selling

Success on Amazon requires more than just listing products; it involves navigating challenges such as product quality issues, budget constraints, and competition from dominant brands.

Amazon’s Evolving Landscape

Amazon is increasingly becoming a pay-to-play platform, emphasizing advertising and sophisticated data use. Staying abreast of these changes is crucial for maintaining a competitive edge.

Conclusion

Selling on Amazon involves a multifaceted approach, encompassing everything from strategic advertising to data analysis. With the right mix of product quality, marketing strategy, and understanding of Amazon’s ecosystem, businesses can harness the platform’s immense potential to boost online presence and sales.

For more detailed strategies and personalized advice, connect with Mike Begg at mike@amzadvisors.com or explore AMZ Advisors’ website.