Eight steps to successful selling on Amazon
I certainly don't need to introduce Amazon to anyone. This online store giant is a virtually unrivaled sales platform in many countries and is growing at an amazing rate. Amazon is not only a traditional online shop, but also a supermarket that delivers purchases to your home within two hours, a video library for the home, a wholesaler for companies and a virtual wallet. Amazon's services are beginning to accompany every step of daily life, no longer just for American and German citizens.
When I started my adventure with Amazon as a seller in the US market in 2009, it took me very little to get a satisfactory profit from my sales. Those were the days! There was little competition on Amazon, and it didn't take even the slightest amount of advertising to make a product a bestseller. But over time it became more and more difficult. The growing share of Amazon in the market for online shops and the tendency of Internet users to search for products directly on Amazon has resulted in Amazon becoming a marketplace where almost everyone wants to present their products. Millions of providers compete with each other for millions of customers.
Now in 2021, to be successful as a seller on Amazon, you need to undertake a number of marketing actions related to the quality of your products and services. In addition, you almost constantly need to keep up to date with Amazon's new options and algorithms that may affect your product's position on the search engine pages. Twelve years of experience positioning and selling a variety of products on Amazon marketplaces around the world has allowed me to review the most valuable and inevitable steps to making profit on Amazon. And these are exactly the steps I want to share with you.
Does my product have a chance of becoming a bestseller?
Whether you're a manufacturer, a wholesaler, or an individual with a business idea, the first few tasks that are a must on Amazon are the same.
Before setting up an account on the Amazon Merchant panel, you should check whether your products have a chance of success and whether they meet the formal requirements. It pays to start by answering the three basic questions you should always ask yourself before embarking on your Amazon adventure.
1. How does my product stand out from the competition?
If well-known brands offer similar products or there are already many sellers with very similar offers, this does not mean that there is no chance of landing on the first page of Amazon searches. On the contrary, it could be an indication that demand for the products in question is high and all good sellers are making a satisfactory profit.
When reviewing the potential of a particular product or category, tools that estimate revenue, number of units sold, and average competitor purchase price are very helpful. Many websites offer demos that allow you to estimate the above parameters of your competitors for free.
2. What profits can I make from the sale?
In order to estimate the return on projected sales volume, you need to understand the basic costs associated with one-off and recurring sales. The main costs associated with selling on amazon.de include:
a. Sales commission
In most categories, this is a commission of 15% of the gross sales price.
b. Monthly subscription
The monthly subscription for a "Professional" account at Amazon Merchant panel is €39. The "Professional" account offers the possibility to sell in several categories, access to statistics and professional options and to add products on the Amazon platform. You can also have an "individual" account, which does not incur a monthly fee, but in this case Amazon charges €0.99 per product sold. This option is for sellers who have extremely low sales. I do not recommend the "Individual" version as its features are limited compared to the "Professional" version.
c. Costs related to logistics
The fees for the Amazon Fulfillment program, i. e. Using Amazon's services to store, pack, and ship products to customers depends on the type and size of the products.
d. Advertising and Promotion
The type of advertising and the associated costs must be individually tailored to the product, the budget and the brand strategy. Most of our clients start with a budget of €10 to €20 per day and gradually increase this spending.
e. One-time and recurring accounting and legal expenses
The costs associated with setting up and maintaining a seller account on Amazon relate to legal and tax services (e.g. preparation of the imprint, VAT returns and statements in your country and in other countries).
3. Can I customize the product and its packaging to meet Amazon's requirements?
If you intend to use Amazon's fulfillment warehouses (Amazon Fulfillment), the product's packaging must comply with certain guidelines and the relevant codes, product and manufacturer information must appear on the packaging. All of this information - broken down by product type - can be found on the platform's website.
I assume that your product has interesting features that differentiate it from the competition, that the costs have been checked and that the packaging has been adjusted.
So let's get down to business!
What is the key to the success on Amazon?
Below I present the eight most important steps to success on Amazon, which form the basis for positioning products on the first pages of search. Working with more than 40 companies over the past few years has shown me that these steps are almost universal, fitting for any type and category of product.
1. A distinctive brand
David Ogilvy, dubbed the father of advertising, believed that "Any fool can make a deal, but it takes genius, faith and perseverance to create a brand". Amazon values sellers who have their own registered trademarks and work on their image. Only registered brands have access to a wide range of free presentation tools on Amazon's platforms. This includes:
- Web shop. Amazon offers the possibility to create an integrated online shop. The shop on the Amazon platform is called Storefront. This is where you present your brand, your company vision and your products. Many sellers don't even have a traditional online store and only use Amazon Storefront.
- Brand Description,or Your Brand Story, is a content area on the product page where you can tell your story and highlight the unique features of your products.
- Additional Content This is extended content that describes and introduces your product.
- Promo Videos Only protected brands have the ability to add promotional videos to their listings.
Registering your company name and logo with the EUIPO Patent Office for 10 years costs around €850. It's worth the investment if you plan to sell on Amazon long-term.
2. Professional photos and videos
You can only make a first impression once! More and more purchases are made via mobile devices and customers tend to make purchasing decisions based solely on images. The content and the product description have a positioning role, i.e. placing the right keywords. Professional, high-resolution photos that show the product from all perspectives on a white background are already standard for sellers. It is worth enriching the product presentation with lifestyle photos that show the use of the product in everyday life. Brand owners also have the option to upload promotional videos. Unofficially, it is said that promotional videos position a product higher and result in 5% more sales on Amazon.
3. Ensuring a positive customer experience on a daily basis
Customer service is an often underestimated and unnoticed part of a company's day-to-day operational tasks. However, in our experience, it is one of the key elements that testifies to a company and how it treats its customers. In addition, the friendly and professional handling of every customer inquiry and complaint avoids not only the return of goods, but also negative reviews and comments.
According to Bill Gates, the most dissatisfied customers are the best source of learning. Therefore, the customer service department should cooperate with other departments of the company and regularly report the problems that arise. Nobody knows more about product quality or sudden delivery problems than customer service.
And these are the most important characteristics of a professional after-sales service:
- Response to every customer question within 24 hours
- Contact via live chat, phone and email
- Communication in the customer's native language
- Individual and personal approach to customer inquiries
- Understanding, courtesy and patience with each customer
Amazon pays very close attention to meeting customer service requirements. Late responses to emails related to buyer complaints or a high volume of returns may result in an irreversible suspension of the seller's account.
4. Interesting SEO descriptions or content creation
"Think like a customer" is the message that usually accompanies me when creating content on Amazon. Paul Gillin, public speaker, author of numerous books and marketing strategist specializing in social media, points out that content aimed at potential customers should be tailored to their needs and ideas. So when you're describing your products or talking about your brand, it's a good idea to switch roles for a moment and put yourself in the customer's shoes.
Understanding your customers and creating descriptions that fit their needs is one of the most important elements, but not the only one. Before you start creating content, it is worth looking for the so-called keywords with which you will enrich your texts. Various tools that contain an extensive database of the keywords most frequently entered by customers will help you with this. Another notable technique is the use of autocomplete, which works in a way that you can know from Internet browsers. All you have to do is type the first term into the search bar and Amazon will automatically tell you which words are most frequently entered by customers. The descriptions of your competitors are also a source rich in keywords. Also, look out for customer reviews of competing products. This allows you to see what words customers are using when they review a product they have purchased. With a list of keywords, you can start creating content.
"Headlines are absolutely essential in any marketing. On a website, in emails, in a newsletter, anywhere - the headline catches the reader like a hook, draws them in and ultimately converts them into a customer." I like to transfer this thought from Angus McLeod to the design of titles for our customers' products. Imagine you are a customer searching on Amazon for a leather handbag as a gift for a loved one. Many interesting suggestions appear on the first page and you just select a few for a closer look. So what sets it apart from thousands of similar offerings? The pictures probably play an important role, but the first words of the title are no less important. The title for your product can be up to 200 characters long. However, it is recommended to create shorter titles - up to 80 characters, since more characters will not be displayed on mobile devices. Amazon is constantly changing product title requirements, but it's a good idea to stick to the 200-character limit for now. However, the full product title is not visible on the search page. Customers see no more than 1/3 of the title among the many competing offers, so it's important to focus on the most important features when creating it. In the title, use as many keywords as possible that you previously searched for. Don't worry if they don't all fit - you can use them to create bullet points and those missing from the description can be included in the backend. Keywords in these three places are taken into account by Amazon's algorithms and, if selected correctly, have a positive effect on the positioning of your products.
Amazon offers you the opportunity to create additional content in which you can include other product information. If you can't accommodate them, you can include them in the product description, in the "Additional Information" box, or in Expanded Content (for Amazon registered brand owners only). Any additional content is visible below the title and attributes, but there is no point in repeating the same information there. However, it is worth including here all the detailed information that was previously missing due to the character limit. The most notable section is Additional Content. This is only possible for registered brands. In addition to photos, you can also refer to specific product properties here. You can prepare photos that focus on individual elements of the product, and then write a brief comment about them. It is also a good idea to insert a table to compare similar products. For example, if you sell sporting goods and have 5 types of skis in your range, compare them in a table that is clear for the customer. Thanks to such a summary, the customer first of all sees that there are similar items from the same seller and has the opportunity to choose the right product for himself.
One thing to remember when creating content on Amazon is that it must be written in language that is easy to understand and will not alienate the buyer. Do not use incomprehensible expressions and write as you would like to read about the product yourself as a customer. Amazon is now represented in several markets, so content should also be created in different languages. What if you don't speak the foreign language? The first thought of many sellers would probably be to hire a translator. However, keep in mind that your texts will be read by people who have a perfect command of the language. A translator can translate a text in an unprofessional way, for example by omitting key words. Second, the text itself can be inappropriate, and sometimes it can even sound frivolous. Therefore, in professional marketing agencies, the texts are written by people who are fluent in the respective foreign language. The descriptions are checked by native speakers, so there are no translation errors or funny expressions that often result from using a translator. So it pays to use the knowledge of translators and professionals in order not to discourage a potential client with a strange-sounding text.
5. Effective advertising
If you ever "need to hide a body," put it on the second page of Amazon search results. This saying makes you smile, but it's true.
You certainly didn't come to Amazon to hide a corpse. Much less your products. Remember the way you searched for the last product you bought online. You booted up your computer and started your browser, then went to Google.de and described the product you were interested in. "Wireless headphones for running". Google showed you about fifteen search results, 30% of which were sponsored ads. Have you viewed the second page of search results? No, because you found the results on the first page satisfactory enough to open and explore the offerings. Did you click on the paid search results? Yes, because there was a chance that what you were looking for was presented there better than the organic results.
The analogy is the same on Amazon. If a customer does not find your items on the first search page, the chance that they will find your offer is very small. If you enter "Bluetooth Headphones Sport" on Amazon.de, you will see that more than 1,000 products have been found for your search. How to rank high in search results, beat the competition, and win customers?
Start promoting your products on Amazon. However, before running paid advertising, you should make sure your listings on Amazon are well-optimized, contain keywords, have comprehensive descriptions and detailed images, and the title grabs attention and encourages clicks.
At this point I have to tell you a surprising truth: the purpose of advertising is not to sell. For real! The purpose of advertising is to show an optimized product in the right place, at the right time and to the right customer. It is your offer designed to generate sales. That's why I emphasized right at the beginning how important it is to optimize your offers.
Assuming we've got the listing perfect - what are our options for advertising on Amazon? There is a whole range of possibilities. Let's break them down into promotions and PPC ads (pay per click).
Promotions can have a significant impact on your listing's CTR. In order to make your offer stand out at the level of the search results, it is worth applying a promotional price for a certain period of time (sale price). In most cases, this will cross out the old price and show the new price next to it, drawing customers' attention. If you have excess inventory - such as B. Mouth and nose masks - you can add these as a free gift to any product. All you have to do is use a buy one get one promotion. (Buy one, get one). This will increase your chances of making a purchase while also getting rid of excess inventory. You can also ask for product reviews on Vine or by requesting a review. If you are confident in the quality of your products, you will receive positive feedback that will push your offering up in search results. Would you like to reward your loyal customers with a discount voucher? Then you create a discount coupon and give it to your customers. Organizing promotions is a great way to boost sales.
Caution: Do not under-price your products as Amazon's algorithm - A9 - will see this as an attempt to manipulate supply and you may have the opposite effect i.e. a sharp drop in sales.
The advertising opportunities on Amazon are constantly increasing. The most experimental market is the US, where voice ads are currently being tested, e.g. go to the Alexa devices sold by Amazon. The minimum budget for such an advertisement is $25,000 and requires close cooperation with an Amazon consultant.
Can we start promoting products without spending a large amount? If you want granular control over your ad spend, consider targeting ads with specific keywords. Example: You sell "palo santo" natural incense - only advertise the term "palo santo". You save budget and reach the customers who are looking exactly for your product. If customers are unfamiliar with Palo Santo products but are searching for incense sticks, you can run an automated ad that matches your search results with the customer's query. This type of advertising allows you to reach a larger audience, but you have much less control over your ad spend.
It is worth building brand awareness among customers. Graphic or video ads are ideal for this. They generate a lot of traffic, arouse the interest of customers, but do not necessarily contribute to a significant increase in sales. But have patience. Positioning is a lengthy process, but at the end of it you will have achieved your goal: a returning customer who will be happy to recommend your brand to others. This is the best form of advertising that Amazon does not offer (yet).
6. Expansion to other Amazon marketplaces
After you set up your main marketplace (aka source marketplace), created all offers, uploaded professional images and added keywords, surely you are thinking about the possibility of expanding your customer channels to other marketplaces - target marketplaces. Currently, Amazon, through the Amazon Global Selling Tool, allows sellers to list and sell their products in 7 European countries, North and South America, Asia and the Middle East.
Selling products on Amazon outside of your home country has advantages, but also disadvantages that you should consider before you decide to take this step. Of course, one of the main advantages is that you can increase your sales. However, you must not forget that selling internationally also comes with many challenges. When entering new markets, you have to deal with different currencies, foreign languages, returns from other countries, shipping and logistics issues. Don't forget customer service, which must be in the local language. If your new country is outside of your current continent (e.g. you have a Seller Central account for a European country and want to expand your sales into the American market), you will also need to pay an additional monthly fee for your Amazon account . If you opt out of the FBA program, you are responsible for packaging and shipping your items sold, processing returns and customer service, and in some cases, clearing customs.
Don't worry, selling internationally doesn't have to be all about hassles. By creating listings on any of Amazon's international marketplaces, you gain instant access to customers around the world. When browsing your listings, they will likely come across your products. Increasing the number of new potential customers gives you the opportunity to increase sales of your products. Although customers in a new country may not be familiar with your brand, they have great confidence in the Amazon platform. If you choose FBA to sell in other markets, Amazon will process international orders, handle customer returns, and sometimes even provide local language customer service on your behalf. And with the Build International Listings tool, you can use the Amazon translator to list on other marketplaces for free. Even if the product descriptions prepared in this way are not perfect - sometimes the same two words appear instead of a synonym - you can activate advertisements in other markets with minimal effort. Such directories may be modified and improved over time.
There are a few more things to consider before deciding to sell on other marketplaces through Amazon. The ratings of your product are transferred to other countries, but only within one continent. This means that if you get five stars in the German market, they will show up in France, Italy or Spain, but no longer in the US. This situation is beneficial when the feedback is negative. A new continent also means different marketing strategies and product ranges. What sells well in Europe does not necessarily sell well in America. An example is a German company that offers accessories for telephones. In the home market, the best-selling products were iPhone cases, while in America, the greatest interest was in BlackBerry phone accessories. As the new market and audience grows, so does the number of competitors similar to your brand that you haven't previously had to compete with for customers.
In summary, I would like to list the basic factors that I think you should consider before you start selling in a new market. First select what you want to offer and in which countries you want to sell. Analyse whether you prefer to focus on one product or multiple products. While it sounds tempting to list everything, it's better to start with a smaller number and gradually explore the demand in the new market. It's also worth checking which of your products are eligible for international shipping. Remember that each country has its own regulations. And don't forget that a different country means a different culture and different purchasing decisions. As I wrote earlier, what sells well in one market may not be popular in another. It is also worth marking in your calendar the main holidays and sales days that prevail in other markets. You often make substantial profits on such days and it would be a shame if you missed out. The last factor to be mentioned is the issue of patents and legislation. Sometimes it happens that a design or a product name is registered in a certain country.
7. Patience
All of the measures mentioned in the previous six points together form a major factor for product positioning. High sales from the first day of product launch do happen, but not often. You need to be patient to get satisfactory increases in sales over a period of 3 to 6 months. The fact is, in the 12 years that we've been working with products from different brands, we've never seen a salesperson fail to meet expected KPIs (Key Performance Indicators) within six months of going on sale, even if the products appear to be were not very promising, e.g. Vitamin C in 5 kg packs or very expensive GPS watches for children
8. Outsourcing
"Those who work hard all the time don't have time to make money" - this still relevant quote from John D. Rockefeller aptly applies to the world of selling on Amazon. It's not easy, with the complexity of product positioning and to keep up with dynamically changing algorithms. Therefore, it is worth outsourcing part of the tasks to specialists and focus on the core competencies of your company yourself. Experts in product positioning on Amazon use a range of tools and programs, are always up to date State of the rules and features of this platform and know how to effectively increase sales and avoid unnecessary costs.According to the German saying "whoever buys cheap, pays twice", we would like to encourage sellers to use the services of reputable and professional agencies .
At the end of the article, a table summarizes and prioritizes the basic steps for beginners on Amazon. It is designed to facilitate the sequence of steps to your success. We wish you luck in achieving your goals, perseverance and making the right decisions. You'll soon agree that "if you don't sell on Amazon, you don't drink champagne".
Steps to Success on Amazon |
Very important | Important | Optional | |
---|---|---|---|---|
Formalities |
Trademark registration at the EUIPO | ✓ | ||
VAT registration | ✓ | |||
Seller Account: Regulamin, Imprint | ✓ | |||
Presentation of the product | Professional photos on white background | ✓ | ||
Lifestyle photos | ✓ | |||
Descriptions written by a native speaker | ✓ | |||
SEO check of the descriptions | ✓ | |||
Promotional videos | ✓ | |||
Additional content, i.e. extended content on the product card | ✓ | |||
Presentation of the brand | Webshop - a shop on the Amazon platform | ✓ | ||
Brand Description - Presentation of the brand history | ✓ | |||
Types of advertising | Classic advertising "Sponsored Products" | ✓ | ||
Participation in promotional offers and special promotions | ✓ | |||
Creation of an advertisement | ✓ | |||
Improved advertising, so-called HSA, targeting | ✓ | |||
Logistics | Amazon's Fulfillment | ✓ | ||
Fulfillment of orders by the seller | ✓ | |||
Selling directly to Amazon | ✓ | |||
Sales in other markets | European markets | ✓ | ||
Markets outside the EU | ✓ | |||
Customer care | Response within 24 hours | ✓ | ||
Answer in the customer's language | ✓ | |||
Personalization of responses | ✓ | |||
Courtesy and understanding | ✓ | |||
Live chat and phone | ✓ |

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