Selling on the Amazon marketplace is a great way to make a profit quickly if you get it right, however the competition is fierce. The huge number of visitors Amazon received attracts many sellers, and in order to keep up with them you will need to climb a steep learning curve.
To help you on your way, here are ten top tricks that Amazon sellers are using to get ahead of the game on probably the best online selling site in the world.
If you already sell on other markets, then it is likely that you know all about your products, but if you are new to the game choosing the right products can be a huge challenge, but one that you must get right. Ideally you will sell products that you have an interest in and understand and are happy to answer questions about. Do some research and make sure that there is a market for what you intend to sell, and that you can sell into that market at a reasonable profit. This is one of the key reasons why top Amazon sellers are getting ahead.
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This is so basic that it is surprising that so many new sellers get it wrong with the result that they aren’t only failing to make a profit, they are actually losing money.
Establishing your margins is crucial to your whole business operation. You buy goods at a wholesale price and sell them at a profit, yet there are many other costs you need to cover from your sales revenue before the profit is real. There are the various Amazon fees, the cost of shipping, packing materials, transport costs, allowing a contingency for returned items, chargebacks, taxes including VAT and corporation tax, and other costs. This is crucial to becoming one of the top Amazon sellers.
Make sure that you detail all of your costs of sales, and that you still have enough margin to sell competitively and still make a profit.
Amazon has many rules and regulations so make sure that you thoroughly understand them, and also ensure that you adhere by them. If you break them there is a good chance that your Amazon seller account will be closed down and you will be banned from selling on Amazon; not a great way to begin your business.
When you sell on Amazon as an individual, you pay a per-item fee on each item you sell, but if you are a Pro Merchant you pay a monthly fee of £25 per month but you don’t pay a per-item selling fee. However you are charged a referral fee which depends on the type of goods you sell, and the price.
Referral fees have a minimum per-item charge which is from £0.40 on most items up to £1.25 (for instance on jewellery and watches). There is also a maximum referral fee which ranges from 7% per item up to an astronomic 45% (on Amazon device accessories). Expensive products are one of the fastest ways to become one of the top Amazon sellers. When you sell low priced items the minimum referral fee can be greater than the percentage referral fee, thus increasing the Amazon fees as a percentage of your sales revenue.
Whatever you are selling on Amazon, you are almost certain to get some returns. This might be because the product is defective, which is something that you will need to sort out with your supplier, and if you get too many of these then you should consider dumping the supplier.
Many returns, however, are because the customer fails to understand exactly what you are selling and has false perceptions about your product. Thus it is vitally important that you get your item description right, and that you anticipate the kind of questions your buyer might have and answer them truthfully.
If you want to increase your sales in the UK and abroad, then the fastest way to do so is by using the Amazon Fulfilment Service (AFS). In fact this is the number one trick used by most top Amazon sellers.
This is the best way to increase your visibility and become more competitive. It allows you to leverage Amazon Prime and Super Saver Free delivery, considerably increasing your chances of making a sale. Additionally, you have a chance of appearing in the Amazon Buy Box. Of all Amazon sellers who use AFS, 85% report increased sales. It also gives you the chance to sell internationally from a single Amazon account, with Amazon taking care of the various foreign languages.
With this service you ship your inventory to Amazon and they take care of everything else including packaging and despatch. You pay a basic charge for storage and shipping costs (often as discounted rates). You can even use the service for dispatching the items you sell on your own website.
Another important trick is to become a featured Amazon merchant. This will increase your overall visibility and will increase your chances of winning the Amazon Buy Box as described below. First of all you should become a Pro Merchant, which means registering as one and paying the appropriate fees. Once you have done this, your performance will be continually assessed by Amazon and once it meets acceptable standards you will be awarded Featured merchant status. This aspect is vital in order to become one of the top sellers on Amazon.
Whilst there are no published criteria, you must maintain good positive feedback, deliver goods as promised, have minimum products returns and chargebacks, and maintain good relationships with your customers.
Once you have joined the FBA and achieved Featured merchant status, your next aim should be to win a place in the Amazon Buy Box. This appears on the product detail page when a customer adds an item to their shopping cart and lists several sellers who currently are selling the same item. This greatly increases you chance of making a sale, particularly if your product is competitively priced.
Appearing in the Buy Box requires that you meet a range of criteria. Amazon selects seller who appear there from its pool of sellers that offer the same product. The specific criteria include current availability (it must be in stock), price, and your performance as a seller, for instance you will at least need to be a Featured Merchant. Although price is important, it isn’t always the lowest price that is selected. It is also important to offer several shipping options.
Over the year Amazon has several special promotions such as Black Friday, a US promotion that has recently found its way to the UK, and Prime Day. These promotions result in hugely increased sales, so make sure that you are prepared for them be having ample stock and competitive pricing. Also make sure that you have enough hands on deck to handle the increased sales volumes.
This tip is followed by a majority of the world’s top Amazon sellers.
It is much easier to sell to a satisfied existing customer than to gain a new one. So many sellers fail to capitalise on their major asset; their customer list. Follow up your Amazon sales with special offers and other promotions to keep your customer buying from you. It is the easiest trick in the book, yet so many Amazon sellers fail to make the best of it.
If you follow these tricks you are all set on the road to become one of the top Amazon sellers. If you need a loan to get your Amazon business going, why not visit bitbond.com for interest rates starting at 7.7%?