Selling on Amazon is one of the safest ways to start a business nowadays. You don’t need to have a physical shop to display the products, while Amazon’s search ensures your product sells without the need for advertising. Fulfillment by Amazon (FBA) even eliminates the need to worry about storage and shipping.
The only factor that determines the winner among the competitors on Amazon is, well, competition. Here are 4 tips to becoming a successful seller on Amazon by beating your competitors and claiming the arena for your brand.
Do not Compete with Large Brands
Unless you’re willing to invest millions in your brand, you would definitely lose if you went up against market leaders. Jeremy Leung, the co-founder of Ascend Ecom, says, based on his experience of starting tens of Amazon businesses, “As a new seller, it’s much better to sell niche products that target a smaller but significant portion of the market.”
Do Your Market Research
Before you decide a sell a specific product, do your research on future demand for the product. Jeremy Leung says, “we use various software tools to determine which products will be scarce on Amazon in the future, and then we buy those products for our client’s Amazon businesses.”
As a beginner, you should choose products with higher liquidity even if you have to sacrifice higher profits. This will decrease your risk of losing money from having to sell at cost or lower.
Write an Exceptional Product Description
Even with an inferior product at a higher cost, you can outsell your competitor if your product has an accurate description while their product doesn’t. Product description helps you gain the customer’s trust in the product. The more details you give about the product, the more trustworthy you seem.
This doesn’t mean boasting the features of your product while hiding the limitations. Try to be completely disclosed, even if you use marketing language. Leong says, “Adding a proper professional description is absolutely essential to selling on Amazon.”
Use Fulfilment by Amazon
Fulfillment by Amazon is a service that allows sellers on the Amazon marketplace access to Amazon’s storage and shipping services. All you have to do is ship your products to one of Amazon’s fulfillment centers, and Amazon does the rest, including storing your product and shipping it to your customers. Amazon’s deals with some of the largest shipping companies allow it to ship products at rates much cheaper than you as an independent business could ever have hoped to get.
Sarah Jay is a senior logo design developer. With a decade worth of experience in the field of designing, she loves to inspire others with her work. She also has a wide variety of additional skills which include, but are not limited to, creating a custom logo design for various companies.