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9 Tips on How to Become an Effective Seller on Amazon

The Covid-19 pandemic is a curse that’s still hunting the world today. However, the pandemic has somehow become a gift to businesses like Amazon. The tech giant excels in digital services such as eCommerce, digital marketing, online payments, and cloud computing. In early 2020, Amazon came to join the $1 trillion market cap club and enjoyed the top spot on the retail eCommerce market for having a 38% share. That is why Amazon is teeming with competitive business owners who want to have a share of Amazon’s fortune.

If you are planning to do business with Amazon, this article has tips for you to become an effective seller. If you are already utilizing Amazon for your business, there might be some helpful pointers that will make you more profitable.

Table of Contents

Tip #1: Know the Basics of Business Management

Knowing how to run a business is the number one thing you should do to run your own Amazon store smoothly. It’s important that you learn how to understand accounting and the fundamentals of business in order for you to interpret cash flows, taxes, and do inventory management effectively and accurately. Being highly knowledgeable about different business strategies will give you many options when your business is on the brink of bankruptcy or even when it is flourishing.

If you already have a target product or service, research more about your competition and potential customers. One of the importance of market research is that you can have a feasible projection if you can stay long in the business. In case it is your first time, make sure that you select a product that is:

  • Profitable. Have an Amazon listing of products that are in trend, and try to think of ways to stand out against your biggest competitors.
  • Scalable. Your product should always be available to meet the constantly changing needs of your customers. Never let your items be out of stock, so you can keep on selling to satisfy your buyers. The fulfilment of your customers’ needs leads to a positive testimonial.
  • Easy to source. Partner with a supplier who can meet the volume of your products without delay. It is vital that you establish a good working relationship with your supplier.

Another effective way is by having the right mentor who will guide you through your online business ventures. Hiring a pro is a good investment, so choose someone who has direct evidence of sales and accomplishments to be your mentor. That way, you have proof that you hired the best with updated knowledge. In business, it is always 10% information and 90% effort.

Tip #2: Study how Amazon works.

The Amazon marketplace is a constantly evolving platform, and today, the competition is fierce. As you explore Amazon, it is best to look for the hottest products and select the item that works for you. As a starter, do not concentrate all your money on one product only, especially if you have big capital. For instance, you can start with £2,000 and see how much you can earn.

Different digital marketing strategies can boost your sales, and it is important for you to recognize what works best for Amazon. Since Amazon is online, and pay-per-click (PPC) is one of the easiest ways to rank your product.

Tip #3: Secure a capital (the more, the merrier!).

Nobody can establish a startup business without investing funds. Your capital can be personal or borrowed. As suggested earlier, you can begin at £2,000 capital to know more about how Amazon works. Earning a profit depends on the demand for the product you are selling. If you are fortunate with what you sell, and you are making a profit, you can relax and wait for your money in your bank. You can also consider launching other profitable products and add them to your product listing.

However, if things go in a different direction and your business is in a bad situation, it is time for you to consider paid advertisements like PPC, which is the best way to rank your product on Amazon. As mentioned, you will pay for it. That is why you need to allot a budget for paid advertisements if you want to sell.

Tip #4: Build your brand.

Building your own brand is the result of Tips #1 and #2. By now, you have already contemplated the importance of having your label and logo. However, you also have to register and protect your brand on Amazon and get rid of hijackers. Hijacking is one of the worst things that might happen to you on Amazon.

You must have a brand name and a logo on your packaging and product. Don’t forget to trademark your product because it provides a legal stance by proving that you’re the owner. Trademarking allows you to apply for a brand registry through Amazon, which leads your listing to an array of advanced listing features such as enhanced brand content.

amazon product packaging design

Remember to make your logo unique. You can always consult the help of a professional logo maker that will align your logo to your company. It is taboo to use a competitor’s brand name because it can be a reason for your business’s downfall due to copyright infringement.

Tip #5: Focus on one product at first.

Once you have a list of potential products that you can sell, choose one and focus on it in the meantime. This way, you will know more about the ins and outs of the Amazon business platform. Below are the things to consider when choosing a potential product.

  • Avoid fragile products. Items with glasses or any volatile material might break during shipping. You don’t want to receive negative comments, even though it is not your fault.
  • Do not consider electronics. Electronic devices have a warranty, and as a starter, you don’t want to spend extra cash for the warranty alone.
  • Patent-free. Choose commodities that all sellers like you can distribute.
  • Do not sell big and heavy products. Shipping for heavy and big items is more expensive compared to other in-demand products.
  • No seasonal products. Seasonal items are good to sell, but what happens next if they are off-season? There is a good chance that you will keep the remaining stocks stored. When the season of the product hits again, you never know if the design or style you have will still be in demand.

It is important to bundle your product to avoid hijackers. Instead of selling only one item, you can add other items and make a set by bundling. This way, you are making your product harder to copy. Bundle your primary product with extra items that are related to it.

If you already have multiple products on Amazon, the next tip is perfect for you!

Tip #6: Build a product portfolio and optimize your listing.

As the drill goes, you have to start small and accept that there are products that will fail. Then, once you identify the profitable products, create your product portfolio and keep optimizing your brand.

It’s essential to always have a catchy product title and your thumbnail image to make a statement. You can hire a professional photographer who will capture the message your product wants to convey. If you don’t want to hire one, you need to acquire skills in Photoshop or photo editing that will work wonders for your brand.

Another thing you can consider is to invest in copywriting for better search suggestions. Adding organic keywords to your product description will elevate its rank. With the product description, you can sell with real emotion that affects the subconscious mind of your target customers.

Lastly, you have to nail your product packaging and make it presentable. Good packaging prompts for immediate customer review.

Tip #7: Work with 2-3 suppliers.

Having a primary and secondary supplier lessens the probability of your product getting out of stock, especially if what you sell is in demand. In case your primary supplier runs out of supply, you can always contact your secondary supplier. Before partnering with a supplier, ask for samples and check if the price is right with its quality. Aside from that, consider the minimum order quantity (MOQ), reliability, and customer support.

You also have to build a solid client-supplier relationship. Gaining the trust and loyalty of your suppliers provides you with the edge of being informed if someone is trying to source your product.

Tip #8: Have realistic expectations.

Having a realistic expectation makes you more prepared for any type of setback. Knowing how long you will have the right amount of resources to keep your Amazon business moving is your leverage. Income statements and projections allow you to think of the steps you need to do to be more profitable.

Tip #9: Get a consultant or ad agency.

As an Amazon seller, you will do everything to reach your business goals in order to succeed. If you want sure results and have the budget, get a marketing consultant or partner with an Amazon ad agency because they know how to help your business be ahead of its competitors.

After choosing your consultant, listen to your partner agency and be ready for the fees you need to pay. There are affordable agencies online, and just like your customers, you have to read testimonials and case studies before considering the partnership.

Diploma in Publishing eBook on Amazon
You might encounter in publishing, taking this course will easily help you publish your works profitably on Amazon.
Diploma in Publishing eBook on Amazon
You might encounter in publishing, taking this course will easily help you publish your works profitably on Amazon.

Wrapping It Up!

Studying how Amazon works, your product and competition, and even your target customers are vital in your success. These things will tell you how much capital you need and the strategies you need to come up with to be on top of your game. It is not bad to be realistic and fail the first time. However, do not lose hope. Keep the fire in you to strive for the best, so you can keep trying no matter how many times you fail. 

Eventually, you will learn many lessons as you explore the competitive world of the Amazon marketplace. Always remember that you have these nine tips that will help you become a successful seller on Amazon. Apply them all and witness the wonders each tip can give you.

February 9, 2022

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