10 Must-Haves for Amazon Sellers in 2023 and Beyond
Growing your Amazon channel isn’t as easy as it used to be. Here are 10 core strategies to maximize your chances of success with the world’s largest eCommerce retailer.
With over two million active sellers and a revenue of $514 billion in 2022, it’s no wonder that an increasing number of entrepreneurs are carving out their own turf on Amazon’s giant marketplace.
But with such an influx of new sellers, how is it possible to differentiate yourself from the tens of thousands with similar ideas?
In this post, we’re going to explore the top 10 strategies that will help make sure that you’re on the best path towards online-selling success.
1. Sell the Right Product
The first step to successful Amazon selling is choosing the right product to begin with. Looking for products with high demand and low competition is the obvious starting point but as you can imagine, you won’t be the only eCommerce seller with that same idea.
Yes, high demand and low competition will make it easier for you to rank higher in search results and drive sales, but to increase the viability of your prospective products, use tools like Jungle Scout or Helium 10 to analyze sales data and track trends in different product categories.
Then, slightly lower your standards. It sounds counterintuitive, but aiming for slightly less profitability or traffic will help eliminate a lot of the hyper-competitive sellers that make Amazon’s ecosystem such a battleground.
When selecting a product, also consider factors such as profit margin, sourcing options, and whether it complements your existing product range.
2. Make Sure Your Product Listings are FULLY Optimized
This is another opportunity to separate yourself from your competitors. Not only will your product listing help you to convince potential customers to press the Buy Button, it’ll also make sure that your listing is there at the top of the page for shoppers to see it.
When you boost your Amazon SEO (search engine optimization), you’re making Amazon’s algorithm happy. That will help you rank higher in search results, drive traffic to your product page, and ultimately increase sales.
Here’s how to make that happen:
- Write a Compelling Title – Include your main keyword and highlight the most important features of your product.
- Use high-quality images to stop the scroll – Include multiple images showcasing your product from different angles, and highlight its key features.
- Take shoppers on a journey with detailed bullet points – Break down the most important product features and benefits in a clear and concise manner.
- Tell a story with a well-crafted product description – Explain the benefits of your product and why customers should choose it over competitors.
- Don’t forget about the backend of your product listing. If you want to make sure and tip Amazon’s ranking scale in your direction, be sure to pay attention to what shoppers don’t see.
3. (Great) Reviews and Ratings Can be Your Superpower
Reviews and ratings play a crucial role in building trust with potential customers and influencing their purchase decisions. Amazon itself says that products with higher ratings and more reviews will rank higher in search results. It’s pretty clear that they will ultimately convert better.
To increase your reviews and ratings:
- Provide excellent customer service – Respond to customer inquiries and resolve issues promptly.
- Follow up with customers – Send follow-up emails after a purchase to ask for reviews and feedback.
4. Amazon Advertising Helps Create Sales Velocity
As the global leader in sales, nothing matches Amazon’s eCommerce footprint.
Unfortunately, that also means that it’s a competitive place to get noticed without a solid marketing strategy in place. To increase your product’s visibility and drive more sales, for most sellers, Amazon Advertising has become a required expenditure.
Amazon’s advertising platform includes Sponsored Product, Sponsored Brand, Sponsored Display, and their next-level (and high-priced) Demand-Side Platform ads that appear in search results and on product pages.
It’s no longer a question of whether Amazon ads are necessary. They almost certainly are.
Here’s how to start checking the right boxes:
- Target relevant keywords – Use Amazon’s keyword research tools to find high-traffic, low-competition keywords.
- Set an appropriate budget – Allocate a budget that allows you to be competitive while maintaining profitability.
- Monitor and optimize your campaigns – Regularly review your campaigns’ performance and make adjustments to improve results.
5. Effective Inventory Management is the X Factor
Stockouts and the inability to anticipate seasonal fluctuations are Amazon business killers. Stockouts can lead to lost sales and damage your seller reputation. Seasonal changes result in a surplus of inventory that combined with Amazon’s increasingly punitive storage fees, can siphon profits that would otherwise allow you to scale your business.
Efficient inventory management is essential for keeping your business running smoothly.
To manage your inventory effectively:
- Forecast demand – Analyze historical sales data and trends to predict future demand.
- Set reorder points – Determine when you need to reorder products based on lead times and desired stock levels.
- Track inventory levels – Use inventory management software or Amazon’s Seller Central dashboard to monitor your stock levels and ensure you’re always prepared.
6. Offer Competitive Pricing
Pricing your products competitively is crucial to attracting customers and generating sales. To find the right price for your products:
- Analyze competitor pricing – Research the prices of similar products on Amazon to understand the market value.
- Consider costs – Take into account all costs associated with selling the product, including manufacturing, shipping, taxes, and Amazon fees.
- Monitor and adjust – Regularly review your pricing strategy and adjust as needed to stay competitive and maintain profitability.
7. Provide Excellent Customer Service
Don’t forget that as far as Amazon is concerned, the shoppers buying your products are first and foremost, their customers. Providing a high level of customer service will not only help you build trust with buyers, encourage repeat purchases, and generate positive reviews, your Amazon product ranking depends on it.
To offer excellent customer service:
- Respond quickly – Answer customer inquiries within 24 hours, if possible.
- Be professional and polite – Treat customers with respect and address their concerns in a courteous manner.
- Go the extra mile – Offer solutions that exceed customer expectations to turn negative experiences into positive ones.
8. Leverage Amazon FBA (Fulfillment by Amazon)
It’s estimated that over 90% of sellers use Amazon FBA to save time and resources by handing off the responsibilities of storage, shipping, and customer service back to Amazon. FBA does come with additional fees, so it’s important to evaluate whether it’s the right choice for your business.
FBA offers several benefits, including:
- Prime eligibility – Shoppers expect fast shipping on the Amazon platform. FBA products are eligible for Amazon Prime, leading to increased sales.
- Better customer experience – Amazon’s efficient fulfillment process ensures fast shipping and a seamless customer experience.
- Easier international shipping – Amazon handles customs and import taxes, making it easier for you to sell to customers worldwide.
9. Optimize for Mobile
The often-reported 24% of Amazon shoppers using mobile might seem like an underwhelming percentage until you do the math. Multiplied by Amazon’s estimated 310 million active users means that there are 74,400,000 reasons to optimize your product listings for mobile users.
To ensure your listing is mobile-friendly:
- Keep titles and bullet points concise – Mobile users typically scan content quickly, so keep your titles and bullet points short and to the point.
- Use high-quality images – Images are even more important on mobile devices, as they take up more screen space. Ensure your images are clear, well-lit, and showcase your product’s features.
- Test your listing on different devices – Check how your listing appears on different mobile devices to ensure it’s easy to read and navigate.
10. Don’t Get Complacent
With eCommerce, the finish line is constantly moving away from you. Success on Amazon is not a set-it-and-forget-it affair. Instead, it requires continuous improvement and optimization.
Take the time to regularly analyze your sales data, monitor customer feedback, and constantly review market trends to identify areas for improvement. This might include updating your product listings, adjusting your pricing strategy, or introducing new products.
And, perhaps most importantly, stay informed about Amazon’s policies and best practices, and be prepared to adapt to changes in the platform and the market. Amazon is constantly changing their rules and regulations to react to global economical changes as well as localized marketplace events.
How Canopy Management Can Help
By implementing these 10 strategies you can dramatically boost your product’s visibility, drive sales, and build a thriving eCommerce business on the world’s largest online marketplace. It’s important to keep in mind that success on Amazon requires patience, persistence, and a commitment to continuous improvement.
Increasingly, Amazon’s competitive landscape has sellers reaching out to Amazon Agencies such as Canopy Management. Expert assistance from an Amazon Agency helps you to stay focused on your goals, and adapt to Amazon’s constantly-changing ecosystem.
Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.
When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy”
- Strategic Growth Planning
- Listing Copywriting Optimization
- Listing Photography
- Product Videography
- Advertising Management
- Customer Service
- Demand Side Platform (Amazon DSP)
- Amazon Posts
- Full Service Management
- Amazon Review Aggregation