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What’s Keeping Amazon Sellers Up at Night in 2024?

How to navigate fierce competition, AI, suspensions, and the challenges of mobile optimization to stay ahead in Amazon’s evolving marketplace

  • July 1, 2024
  • /
  • CANOPY Management
An amazon seller in amazon branded pajamas having a nightmare signified by a thought bubble above the bed with monsters in it

As we reach the midpoint of 2024, Amazon sellers continue to navigate a marketplace that’s more dynamic than ever. Fierce competition, rapid advancements in AI, and the challenges of mobile search are just a few of the ways that the Amazon ecosystem is testing the patience of entrepreneurs. 

This post explores the top concerns that might be giving you nightmares and offers strategic solutions to help you not just survive, but thrive in this ever-changing landscape.

To begin with, first and foremost there’s the . . . 

1. Increased Competition On Amazon 

With the Amazon seller count skyrocketing past 9.7 million, competition in 2024 is fiercer than ever. Standing out in this crowded marketplace isn’t just a nice-to-have – it’s essential for survival.

The Solution:

Make Your Products Pop with Unique Features, Benefits, or Packaging

You know what selling on Amazon can be like. In a sea of sameness, you need to be the brand that stands out. To differentiate your products, focus on developing innovative features that address specific customer needs and pain points. 

Highlight unique benefits that set your products apart from the competition. For instance, if your product has superior functionality or is made from sustainable materials, make sure these points are prominently featured in your listings. 

Additionally, invest in eye-catching packaging that not only protects your product but also tells a compelling brand story. Packaging that reflects your brand values and creates a memorable unboxing experience can significantly enhance customer perception and loyalty.

Don’t Put All Your Eggs in One Amazon Basket

Diversify your sales channels to mitigate risks and expand your market reach. Yes, Amazon is a powerful platform, but relying solely on it can put you – and your brand – in a dangerous position. Explore other ecommerce platforms like eBay, Walmart, or Shopify to reach different customer segments. 

Embrace Social Commerce

Potential customers are already spending significant time on social commerce platforms like Facebook, Instagram, and TikTok. By integrating your products into these social networks, you can tap into organic reach and paid advertising options to create a seamless shopping experience that encourages impulse buying and customer interaction. 

Additionally, social commerce makes it possible for you to leverage user-generated content, reviews, and influencer partnerships to build trust and authenticity around your products. This diversified approach not only helps mitigate the intense competition within Amazon’s marketplace but also ensures a broader and more resilient customer base.

Prioritize Customer Engagement and Loyalty

Building strong relationships with your customers can set you apart in a competitive market. Provide exceptional customer service by promptly addressing inquiries and resolving issues. Encourage customer feedback and use it to improve your products and services. Implement loyalty programs or offer exclusive deals to repeat customers to drive long-term loyalty. 

Engaging with your customers on social media and through personalized email marketing can also strengthen your brand connection and encourage repeat business.

Stay Agile and Adaptable

The ecommerce landscape is constantly changing, and staying agile is crucial for maintaining a competitive edge. Keep a close eye on industry trends, competitor movements, and shifts in customer behavior. Be willing to pivot your strategies and adapt to new opportunities or challenges. Continuous learning and flexibility will help you stay ahead in a crowded marketplace.

an Amazon seller sitting in a chair, imagining the use of AI, with a thought bubble above their head showing symbols of artificial intelligence.

2. How to Deal With Artificial Intelligence (AI) 

AI isn’t just coming – it’s here, and it’s reshaping the Amazon landscape. If you’re not leveraging AI for product research, marketing, or optimization, you risk being left in the digital dust. Embracing AI can significantly enhance your business operations and keep you ahead of the competition.

The Solution:

Put AI to Work Digging Through Data 

Use AI-powered tools to spot market trends, analyze customer preferences, and identify products with serious potential. AI can sift through massive amounts of data to uncover emerging trends and forecast future demand, giving you a competitive edge in selecting the right products. 

It’s like having a crystal ball for your product line, helping you make informed decisions and reducing the risk associated with new product launches. AI can also identify gaps in the market by analyzing competitor products, ensuring your offerings meet customer needs and stand out.

Automate and Personalize Your Marketing with AI

AI-driven platforms are able to create laser-targeted campaigns based on customer behavior. Personalization of your marketing is a great way to differentiate your brand. AI can also segment your audience with incredible precision, delivering personalized content that resonates with each customer. 

This level of personalization increases engagement and conversion rates. AI can also manage and optimize your PPC campaigns in real-time, adjusting bids and targeting strategies to maximize ROI. 

Get Your Pricing Right with AI

Repricing tools can adjust your prices in real-time based on market conditions, competitor pricing, and demand fluctuations. AI can ensure that you are always offering the right price at the right time, maintaining your competitive edge while optimizing your profit margins. 

Dynamic pricing strategies powered by AI can respond to changes instantly, helping you attract more buyers and increase sales volume. By balancing competitiveness with profitability, AI repricing tools can significantly enhance your pricing strategy.

Enhance Inventory Management with AI

Expert entrepreneurs always say that poor inventory management is a quiet killer of ecommerce brands. AI can revolutionize your inventory management by predicting stock needs and preventing overstocking or stockouts. 

By analyzing sales data, seasonal trends, and market demands, AI provides accurate forecasts, ensuring you have the right amount of stock at all times. This not only saves storage costs but also keeps your products available when customers are ready to buy. AI can optimize your supply chain by identifying the most efficient shipping routes and schedules, reducing delivery times and costs.

A black and white image of an entrepreneur looking at their mobile phone

3. Am I Missing Out On Mobile Sales? 

By the end of 2024, it’s predicted that 190 million U.S. shoppers will make a purchase on mobile. Because of that, your listings need to look as good on a smartphone as they do on a desktop – maybe even better. The mobile shopping experience is critical, as it significantly impacts customer engagement and conversion rates.

The Solution:

Optimize Your Amazon Listing for Mobile 

Everything happens faster on mobile. That’s why you need to craft easy-to-read storylines that resonate with your audience, and make them stop scrolling and start buying. 

Here’s how:

Mobile-Friendly Product Titles: On mobile platforms, only the first 70-80 characters of a title are typically visible before truncation occurs. To maximize impact, place your most crucial keywords and product information at the beginning of the title. Incorporate key elements such as the brand name, product type, and primary features within those initial 70-80 characters. 

High-Quality, Mobile-Optimized Images: In the mobile shopping experience, images play a pivotal role as they often create the first impression. Use high-resolution photographs that clearly showcase your product against a clean, white background. Your main image should be particularly striking and easily discernible on smaller screens. 

Streamlined Product Descriptions and Bullet Points: The mobile layout differs from desktop, with the product description appearing above the bullet points. Craft your description to be concise and easily scannable. Remember that only the first three bullet points are immediately visible on mobile devices without scrolling. 

Amazon A+ Content is Critical: To optimize Amazon A+ content for mobile, create a dedicated mobile version with a strong, concise product description at the top. Use square images with captions instead of wide banners, and ensure high-resolution visuals with contrasting colors for text readability. 

Keep copy brief with compelling subheaders, and utilize mobile-friendly modules like videos, interactive hotspots, and navigation carousels for Premium A+ content. Design images for mobile ratios, use larger text, and balance visuals with information. 

This is where the help of an Amazon agency can make a big difference. When you only have a moment to make a first impression, this separates winners from the rest. 

an amazon store on a mobile phone with a closed sign and yellow tape in front of it

4. What Happens if My Amazon Listing Gets Suspended?

Amazon is still number one. If you want to sell online, the path to success passes right through Amazon’s front gate. However, with its vast reach and influence comes a complex web of rules and regulations that you need to navigate.

Staying compliant with Amazon’s policies is not just a matter of good practice—it’s essential for the survival and growth of your business. Here’s why it’s crucial and some best practices to keep your account in good standing.

The Solution

Regularly Review Amazon’s Policies

Amazon frequently updates its policies. Make it a habit to review the Amazon Seller Central dashboard for any policy changes and updates. Subscribe to Amazon’s newsletters and updates to stay informed about new regulations.

Maintain High Product Quality and Customer Service

High product quality and excellent customer service are cornerstones of maintaining good standing on Amazon. Ensure that your products meet Amazon’s quality standards and that you respond to customer inquiries and issues promptly and professionally. Resolve any negative feedback swiftly.

Monitor Performance Metrics

Keep a close eye on key performance metrics such as Order Defect Rate (ODR), Late Shipment Rate (LSR), and Valid Tracking Rate (VTR). Regularly review your Account Health Dashboard and take proactive steps to address any areas of concern.

Use Automated Tools

Consider using automated tools to help manage your compliance efforts. Tools that monitor feedback, manage inventory, and track performance metrics can help you stay on top of Amazon’s requirements more efficiently.

Understand and Follow Category-Specific Guidelines

Different product categories may have specific guidelines and restrictions. Ensure that you understand and comply with the rules relevant to the categories you sell in. This includes knowing the restricted products list and adhering to product listing standards.

Handle Policy Violations Promptly

If you receive a notification of a policy violation, address it immediately. Understand the nature of the violation, correct it, and communicate with Amazon to resolve the issue. A proactive approach can help mitigate the impact of any infractions.

Canopy Management Can Help

As we navigate the twists and turns of the 2024 Amazon marketplace, addressing these top concerns isn’t just about survival – it’s about setting yourself up for long-term success. 

Increasingly, top Amazon sellers are taking an additional step; reaching out to an Amazon agency for help. It’s a little like the progression of pay-per-click advertising. In the beginning, it was just one of the ways to launch a product. Now, it’s almost a requirement to get ahead. 

Very quietly, Canopy Management has gained a reputation as the secret ingredient behind some of the top brands in ecommerce. 

Ever wonder what adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Experts with smart tools and tech, you get industry-leading results like this:

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.”

Thinking About Hiring an Amazon Management Agency?

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