Are you considering selling on Amazon FBA this year? You might be wondering whether this is still a good option, or if you should be considering other possibilities.
On this post, we’ll explore the benefits of this solution and whether it is still the right choice.
Is Amazon Still Growing?
It’s crucial when exploring business opportunities to see whether there is substantial growth. A high level of growth is always going to mean significant demand and there’s definitely positive news on this front.
Indeed, this year, Amazon will invest $15 billion in new tools, specifically designed to help medium-sized and small businesses succeed and grow on the market.
The new tools include Target Inventory Levels and Sold by Amazon. Both of these are designed to provide an easier process for those using the Amazon FBA inventory to manage fulfillment.
Furthermore, one study revealed that nearly half the number of shoppers online go directly to Amazon to search for products that they are interested in purchasing. Indeed, 56% visit Amazon directly when completing product research.
In 2019, it’s also true to say that more products were purchased on Prime Day than Black Friday and Cyber Monday during 2018 combined. This highlights one of the key reasons why customers favor Amazon.
They are keen to gain access to fast deliveries through solutions such as Amazon Prime. This again is shown through levels of demand with over a 100 million people signed up to Prime in 2019.
Finally, according to the latest research, Amazon will have 1,029,528 new sellers in 2019 and shows no designs of slowing down. As for FBA, this provides sellers with a 30-50% sales increase and boosts your conversion rate.
So the demand and success rates are still relevant today. But how do you achieve the level of success you want through Amazon FBA?
Coping With A High Level Of Competition
While the popularity of Amazon is certainly a positive sign, it also means that the market can be significantly saturated. As such, you need to make sure that you are taking the right steps to succeed here and outperform the competition.
For instance, you should make sure that you are developing a solid strategy when making purchases. You must completely research into merchandise before you buy. If you do this, you can avoid ending up with the products that are non-competitive and potentially unreliable.
When exploring the ASINs (Amazon Standard Identification Number, you should explore products that either has a significantly high ranking or ones with no ranking at all. While a high ranking is already going to be popular with buyers, a ranking that is virtually non-existent could lead to a brand new untapped market.
You also need to explore customer reviews. A high level of positive reviews is a great sign and you should never be put off by a few outliers here and there.
Do make sure you look at how many sellers are working on an ASIN. This is referred to by Amazon as ‘offer depth.’ If you explore a product with limited offer depth than you can actually establish yourself as a key seller on the market.
Focus On The Who, Not The What
A key element for success with Amazon FBA is to make sure that you are focusing on the who, rather than what.
Essentially, you need to consider who you’re selling to. Then, you should select about five or six products that these customers would want to purchase. Complete a deep dive into your chosen market exploring reviews, patterns and do make sure that you are asking questions. Remember, the products that you sell will ideally solve issues with other products that a customer may have discovered on the market.
This is a mistake that a lot of Amazon FBA sellers make. They don’t put in enough legwork and they don’t engage with the customer base that they are trying to sell to. It’s important that you own your customers because ultimately, Amazon will not be the only place where you sell your products. You need to build loyalty and ensure that they are willing to follow you to other sources online.
Provide A Higher Level Of Customer Support
You do need to make sure that you are delivering a great service to your customers if you want to see success with Amazon FBA.
There are a few areas that you should be focusing on. Once you FBA business begins to grow, you should consider focusing on product inspection as well as preparation. You may be able to use prep warehouses to support your business here and it will guarantee that you do have quality control in place.
You should also consider the images that are uploaded to Amazon and product photography. Remember, this is a key area of the listing that customers will explore before purchasing a product.
At the same time, it’s essential that you monitor customer reviews. If you don’t do this, then you could quickly find that there’s a problem here with negative reviews significantly impacting sales.
Furthermore, many FBA businesses now hire freelancers to provide the absolute best sales copy. This entices customers to buy and ensures that your products get the attention that they deserve on the market.
Don’t forget, selling on Amazon is becoming easier and that’s due to automation. With automated solutions, you can speed up selling processes and ensure that you are dramatically increasing efficiency levels in your business. There are various software solutions that will provide the right level of support here and ensure that you are on track to perform at a higher level.
Ultimately, there are significant benefits of using Amazon FBA. Logistics and shipping are effortless and you do access shipping rates at great discounts. The entire process is outsourced and even the management of returns which can be a nightmare is handled by Amazon.
With tremendous levels of growth apparent now and expected for the future, there’s still every reason to use this resource. You just need to make sure that you are researching and marketing the right way to beat your competition and reach higher levels of success.