How to Sell on Amazon
Selling on Amazon is a very easy process especially if you have a smaller inventory of products to list online. If you plan on selling fewer than 40 items a month then you can register as an individual seller, but if you are a bigger company and will likely be selling more than 40 items a month, then you need to register as a professional seller. If you set up a professional selling account, you can sell an unlimited amount of products, but you will have to pay a monthly fee, as well as some additional selling fees. On the individual plan you would pay a very small fee for every item sold and no monthly fee but you are limited to 40 items maximum each month. Before you register and choose a selling plan you should decide what products you want to sell. Once you are ready, you can register online and start listing, selling and shipping.
Choosing Items to Sell on Amazon
When you are making the decision about which of your products to sell on Amazon there are a few things to consider. If you are a new business and just starting to use Amazon, then it might be a good idea to focus on smaller amounts of products that will be more profitable. Because Amazon is such a large site, sellers might find themselves listing products that a lot of other small businesses sell too making the competition pretty steep. In the beginning, it might be a good idea to narrow it down to products that are low competition, are unique to your company or could be considered a niche product. You should also make sure that you price your products carefully so that you aren’t the most expensive competitor but also aren’t undercutting your profit. Set a fair price and make sure to factor in the shipping costs and selling fees.
How to Sell on Amazon FBA
As a third party seller on Amazon, you can either sell as an FBA (Fulfillment by Amazon) or as an MF (merchant fulfilled) seller. If you have the resources in your business to handle all of your fulfillment and shipping then you can work as merchant fulfilled seller. However, using FBA can be a good option for smaller businesses because Amazon has a very advanced fulfillment network that can take care of some of the more time consuming and stressful aspects of getting products out to buyers on time. If you are already an Amazon seller you can sign up for FBA, list your products and ship all your items to an Amazon warehouse where they will store your inventory until it sells. Their warehouse employees will pick, pack and ship items that sell for you and you will pay a percentage of your sales for the service. One of the benefits of using FBA is that your products will be eligible for Amazon Prime meaning they will arrive within two days with free shipping.
Creating Your Amazon Products List
Whatever method you choose for selling your products, you will most likely have to list them yourself and figure out the best way for them to get found through your title and description. The way that you list products is important because if you leave out certain keywords or make the listing too vague, then customers may not find your product. There are likely a lot of competing products depending on what you are selling so the way that you list items can have a bit of influence over their success. A good product title will be concise but contain enough descriptive words and details that people will discover it based on a few different keywords that they search. Most keywords or variations of a keyword you will only need to include once but adding a few unique keywords related to your product can increase your chances of selling. Your description should address the main benefits of the product and important features that customers might be interested in. You should also include several images so users have a better idea of what the product looks like.
Marketing with Amazon Sponsored Ads
Although having a unique product with a well-written listing can make a difference in your sales, you may not always see the type of results you want until you make some investments in advertising. There are a few different ways to advertise using Amazon, one of which is using Amazon Sponsored Products as a way to lead people to your listings on the site. These sponsored ads help send traffic to your product listings on Amazon and not necessarily your website as other types of ads might do. Sponsored ads highlight your product in Amazon’s search results based on a keyword that you want to boost your ranking for. Amazon Sponsored Products is a great way to get off the ground if you are not that visible yet in the search engine. You can set up a campaign with a daily budget, target with keywords and you will start to see improved conversions over time.
Amazon Product Ads and PPC
Incorporating Google Maps Marketing
One of the most popular forms of advertising for Amazon came in the form of product ads that would should up in search engine results and lead users to the seller’s website. With Amazon Product Ads, businesses could use the advertising service without having to sell their products on the Amazon marketplace. Product ads through Amazon would appear with an image of the product, a description, and price as well as a link to the website where you could purchase the item. Although many retailers took advantage of this service, Amazon recently discontinued product ads for using Sponsored Products as their main pay per click advertising platform. Running a pay per click campaign can help you get your Amazon product listings a higher search rank, making users more familiar with your products and increasing sales numbers. To get more users to your actual website based on certain keywords you can use another product ads service such as Google Shopping.
Boost Organic Results with an Amazon SEO Service
If you want your marketing strategy to be more varied you can supplement any paid ads with search engine optimization to also improve results that come up naturally for certain keywords. Optimizing your product content can have a direct impact on your search ranking although many sellers are still figuring out what factors are most important to focus on. Most customers search for products using the Amazon SERP and having either sponsored ads or high ranking is the only way that your items will be found. In order to improve ranking, you need to understand how buyers interact with sellers and how the SERP for Amazon really works. Your best option might be to use and SEO service that specializes in optimizing for Amazon. An SEO service can help fix up your product content and use their expertise to ensure that you get improved results from your Amazon listings. Although paid ads can be beneficial, having a higher ranking organically can have a long term impact on sales.
Understanding Amazon Seller Account Fees
Listing your products on Amazon can be a great business move that can increase your profits over time by increasing exposure. However, Amazon is not completely a free service for sellers and the amount that you spend to sell your products can vary depending on certain factors. While there is no listing fee, there are other fees that Amazon charges sellers and you will need to take these into account when you are considering your profits. Those on the professional plan who sell more than 40 products a month will need to pay $39.99 per month as their subscription fee but will not have to pay a per-item fee. Individual sellers who stay under 40 products a month will have to pay $0.99 per item sold and no monthly subscription fee. In addition to these main fees there are also referral fees which are either the minimum fee per item or the category-specific referral fee which is usually 15% of the sales price. For media items there is also a variable closing fee $1.35 per item sold.
Amazon Web Services for Reduced Costs
For businesses that are just starting out or are looking for ways to cut costs, Amazon offers its own cloud computing service that can help with your IT needs. Amazon Web Services provides cloud computing so that businesses can avoid overspending on hardware and storage capacity. Cloud computing cuts down significantly on capital expenses and also improves business efficiency overall. Consuming shared computing, storage and other resources can be a major benefit because it makes IT more scalable and flexible for companies that are continuing to grow and expand. Cloud computing involves pay as you go pricing meaning you only pay for what you actually use in terms of IT resources. If you are already using Amazon to sell products you can also take advantage of their cloud computing service to give your business more room to make a profit through your listings.
Reasons to Sell Stuff on Amazon
Even though you will have to pay some selling fees, there are numerous advantages to listing your products on Amazon. Most importantly, the website offers you the opportunity to reach a much larger customer base than you would with any other platforms. Amazon customers are a diverse clientele that spend a lot of money online so reaching this new audience can be a huge boost to your business. With an estimated 237 million users, the number of potential customers you can reach on Amazon is about three times as many as you can with eBay. Amazon’s revenue continues to increase significantly every year with the amount of money people spend on the site going up all the time. Amazon also has a great reputation and is considered a trustworthy place to buy products without the kinds of complications that can come up with other sites. Using Amazon allows you to be associated with a brand that people know and trust as a safe bet for purchasing products.
The Amazon Prime service is also a major reason why buyers and sellers alike prefer Amazon. Prime can increase your revenue because it offers customers incentives like free shipping. Prime customers tend to spend more on the website than average customers so becoming involved with this service can be another way to reach the kind of buyers that you want. In addition to building up a customer base and increasing profit Amazon also makes the work easier for you especially if you sign up for Fulfillment by Amazon. You won’t have to keep relisting items and with FBA you also don’t need to worry about packing and shipping your products on time. Whatever method you choose for selling on Amazon, you are likely to get more exposure for your products and your brand.
Amazon Marketing Case Studies
Most businesses benefit from having multiple advertising strategies and including ads on Amazon can lead to enormous gains and the ability to reach new marketing goals. Although Amazon is competitive with a seemingly endless amount products, it is one of the most popular places to shop online and it can be valuable to any business to focus on their visibility through advertising on the platform. It is important for large businesses to establish themselves through Amazon and even smaller, local companies can experience success when they use the website’s marketing services. Amazon’s marketing services can provide a way to get new customers familiar with your products and ultimately increase sales.
Brita Increases Exposure with Amazon
Brita may already be a household name due the company’s highly popular water filtration system but Amazon marketing efforts still proved beneficial in their case. Brita worked with Amazon Media Group to help drive more awareness and sales of their Brita pitchers through an advertising campaign. The company also used Amazon’s analytics tools to measure the success of their campaign and understand its effects on customer activity both on and offline. Amazon helped come up with a cross-screen campaign that would reach people most likely to be interested in the products through onsite and mobile ads. Brita advertised to users who were searching for green home and garden products, kitchen utensils and gadgets because they might be more inclined to purchase a pitcher.
By using targeted ads aimed at certain kinds of shoppers across different types of screens, Brita was able to increase their exposure and avoid any wasteful ad spending. Following their advertising campaign on Amazon, Brita found that users who were exposed to the ads were 4.8 times more likely to consider buying a pitcher than those who were not exposed. Their campaign cost per consideration was also 30 percent lower that category benchmarks and they experienced a significant increase in offline sales as well.
Just Paper Roses Doubles Sales with Online Ads
A company specializing in handcrafted paper gifts called Just Paper Roses has been a small but steadily growing business that has seen a boost in popularity since incorporating Amazon into their marketing plans. The owner of the company recently decided to sell his paper flowers on Amazon and created a landing page on the site. He also began running keyword-targeted Headline Search Ads to help drive traffic to the new page and set up some Product Display Ads on Amazon to increase visibility to shoppers. Just Paper Roses was surprised by how easy it was create ads on Amazon compare to other more complicated services and have even decided to direct most of their marketing budget to the platform.
After setting up their products on Amazon and launching the marketing campaign, Just Paper Roses was able to double their units sold within a month. They were also able to increase the visibility of some of their more high-end products like paper orchids for which they expect an eight-fold increase in sales. The results were far above what the company expected with hundreds of additional orders rolling in every month. Their huge increase in sales helped to offset the amount that they spent on advertising so that the campaign was well worthwhile.
Sun Products Uses Sponsored Product Ads for Better Sales
The company known as Sun Products which manufactures and sells laundry detergent, fabric softeners and other types of household products was able to use Amazon to increase awareness for their brand and drive up sales. Sun Products began using Amazon’s Product Display Ads a few years ago and then eventually began to expand into Headline Search ads. More recently, the company launched Sponsored Product Ads for all of their laundry brands.
The combination of the different advertising strategies they were using helped to increase visibility with over 35 million ad impressions in six months. They used Sponsored Products to bid on relevant keywords and maintained high bids because the market is competitive. Using specific keywords for their target audience helped them achieve an ROI of 5:1 with their campaign. Getting a quick 500 percent return on investment helped them appreciate how effective keyword advertising on Amazon can be. They were able to take advantage of the reporting tool that Amazon offers which monitors clicks, budget spent, impressions generated and estimated total sales generated. They were able to start a new campaign quickly because Amazon allows advertisers to clone campaigns even with a few adjustments.
Starz Advertises New Show with Amazon Media Group
In addition to traditional types of advertising using product displays, businesses involved in media can also create brand awareness through videos and photos. The television network Starz was interested in generating viewers for the new drama “Outlander” by advertising to customers who might be interested in watching the first season. They wanted to create demand for the program among fans of the book series and fans of similar types of television shows. Starz worked with Amazon Media Group to target users on IMDb, Amazon.com, Fire tablets and Kindle eReaders. They created a custom landing page which featured show content such as videos, photos, and series background. They also featured the trailer on IMDb and also branded the site with Outlander imagery to generate buzz for the first season.
The Amazon campaign proved successful as the series garnered more than 5 million viewers in the first week and the premiere trended twice on U.S. at number two in U.S. Twitter Trends. Their advertisements on the Fire tablet led to more than 1,000 hours of user initiated Outlander video playback with an average video view time of over 113 seconds. Their branded imagery on IMDb drove engagement with an eCPC of $0.60 and almost 300K clicks. The show’s custom landing page received over 68K user actions and an 84 percent visitor interaction rate. Generating interest in a television show may be a different process than advertising specific products but Amazon proved to be a useful tool for Starz to reach their goals in creating an audience for their new series.