It is no secret that e-commerce is a challenging game to play, and being an Amazon seller is no different. Although you have access to Amazon’s vast reach, you have plenty of competition just waiting to pounce on your business and take a bit out of it. Luckily, there is no shortage of tools that can provide you with a competitive edge that should keep your competition at bay and enable you to increase revenue.
What Are The Challenges That Amazon Sellers Face?
There are many benefits of selling on Amazon, like being able to create a brand and build a customer base through Amazon’s wide selection of products and services available on the marketplace. Nevertheless, the Amazon marketplace has a lot of challenges that sellers must face, such as competition and customer service.
Amazon sellers must learn how to manage their inventory and use the platform effectively while also understanding how to market their products. This is not easy for an individual seller who wants to succeed on Amazon. Therefore, web-based inventory software can help you a lot. The main difficulties faced usually include:
- Stiff competition: As the largest retailer online, Amazon is full of people trying to make their fortune. While it is possible to succeed, you will have to face a lot of competition along the way. This is from other sellers on the lookout for ways to sell similar products, to Amazon itself, which has been known to copy popular product categories using their own Amazon Basics brand.
- Draconian policies: Amazon is known for its commitment to customer service above all else. This is great for the customer, but it can be stressful for sellers. Some sellers find themselves shut down and locked out from the system due to one complaint too many.
- Pricing issues: Amazon sellers are always looking to undercut their rivals, resulting in a race to the bottom, significantly eating into profit margins.
- Customer reviews: Even if you offer a great product, some people just love to complain. Unfortunately, even one of two poor reviews can scupper a fledgling store before it has had time to take off.
Tools And Strategies That Can Help You Overcome These Challenges
Luckily, none of the issues mentioned are insurmountable, and with the proper use of tools and strategy, you can find yourself increasing revenue while reducing costs.
Find The Right Wholesaler
The place that you source your goods to sell can make or break your business. If you find a great supplier, then you are on cloud nine. Conversely, suppose you use one who consistently delivers an inferior product. In that case, you will be left to pick up the pieces and might be kicked out of the seller program if you engage in a practice like dropshipping and not screening the product before delivery. Fortunately, with the use of online solutions, finding wholesaler suppliers for Amazon can be a breeze. Many tools enable you to sort through product categories and prices and even provide wholesale buyer reviews, making your decision more straightforward. Whichever wholesaler you choose, you should always order some products yourself to check the quality and delivery times.
Use Tools To Boost Your Amazon SEO Efforts
Amazon is essentially a large search engine where users type in what they want, and Amazon provides relevant results. Amazon SEO is a process of optimizing your Amazon product listings to get the most sales out of them. This is achieved by following Amazon’s best practices for SEO and using the right keywords to rank on Amazon. By upping your SEO game, you will be able to get your product offerings to the top of most Amazon search terms over your competitors. You can use tools that will provide a list of keywords that customers use when searching your specific product ranges and that you can use to optimize your listings. However, there is a fine line between keyword stuffing and effective optimization.
Get Your Image Game On Point
Images are the most critical element of an Amazon listing. They make your product stand out, and they help people understand what your product is. The importance of images in Amazon listings is not a new concept, but it’s one that many sellers still struggle to grasp. In not so many words, if you want to sell on Amazon, you must have high-quality images for your listings. However, not only should your images be high-quality, they must be relevant.
For example, if you have images of real people using your products rather than a static image of the product, you are more likely to make a sale. You need to think out of the box when it comes to your images so that you stand out from the crowd. Moreover, your main image should be instantly appealing and direct customers’ eyes to it directly from the search result page.
Use An All In One Marketing Platform
An all-in-one platform is a software solution that provides all the relevant tools you need to succeed in one package. You have plenty of options, such as Helium10, AMZDataStudio, and Jungle Scout, to name a few. These tools provide you with raw data that you can sift through to assist you in getting every aspect of your listing correct. You can even receive alerts on price changes from your competitors so you can make similar changes to remain competitive. While they aren’t Cheap, implementing some of the data they offer could significantly increase revenue if used properly.
Utilize Amazon Advertising
Amazon seller advertising is a form of marketing that allows sellers to advertise their products on Amazon. It is a cost-effective way for businesses to reach relevant audiences, increase brand awareness, and generate more revenue. You can use some of the tools mentioned in the previous point to find keywords to take advantage of and gaps in the market to capitalize on.
Taking advantage of Amazon’s seller program and especially Fulfillment by Amazon has been a boon for online retailers. However, you have to be more sophisticated in conducting your business with increasing competition. Fortunately, there are many tools and strategies that you can use to give you an advantage over your competitors and hopefully help you succeed.