Having a strategy for selling on Amazon can lead to profit and financial freedom. There is plenty of customers who are ready to place their orders, the gist is offering them what they are looking for.
Seems easy but in fact, it is not a piece of cake. Yet while most sellers have managed this task, you have all the chances to achieve success as well.
This article will tell you the main steps to start your own business:
There are 3 simple reasons for doing this:
So, you now see that it is a good idea to come to Amazon, but there are already lots of competitors who sell all kinds of products. How does it rank products while people search for them? Like any other search engine, Amazon has own algorithm named A9.
Though it acts as a search engine, A9 differs from Google, Bing, and others. The main difference is the goal--making more money.
The more you sell, the more profit Amazon gets. So, A9 shows the most popular search results in the top. They put such products to the top as when you win, they win as well. And when you stop winning, they replace your products with more popular ones.
Here is an example.
When someone searches for ‘Ice tea infuser pitcher’. A9 finds the most relevant and popular results leading users to best-seller products.
ALWAYS keep in mind that A9 ranks goods in an order that helps maximize Amazon’s RPC (Revenue Per Customer).
The example above demonstrates that A9 shows the most popular and the cheapest items. It offers customers the best options. However, the lowest price can’t guarantee the first place for a certain product.
As we noted above, Amazon is fully motivated by growing Revenue Per Customer. For this, A9 defines which products can be purchased immediately and for which of the customers can return.
We can’t say what factors A9 uses for defining such products for sure, but here are our ideas regarding that:
It happens so as Amazon helps FBA merchants with logistics and shipping, while FBM sellers have to handle this on their own and not always this process is the same fast. You should choose FBA to achieve success on Amazon.
It means ‘Fulfillment by Amazon’ and it works so that all your products are stored in their warehouses, while Amazon is responsible for packing, shipping and providing customer service. Surely, they take a fee for that, however, the benefits are great:
Shopper’s mindset has changed recently. It means that loud brand names have become not very important for making a purchase decision. Any other brand can compete for buyer’s attention. Your brand can do this as well.
In general, Private labeling means getting high-quality products from an outsource supplier, customizing them and selling these goods on Amazon. Don’t hesitate to learn more about creating your own brand, as even large corporations use private labeling, it is a great deal for every business.
Check out our previous article Detailed How-To for Private Label Sellers.
Additionally, after you create a private label, you will have full control over pricing and marketing, as branded goods can be sold by a higher price than no-name ones. Another good news is that you get the ‘buy box’, as your branded product has all chances to own the ‘buy box’ as you will be the only seller of goods under your own brand.
The last benefit of Private labeling is building your own brand that can be extrapolated to other resources. You can create a website for your brand or use other platforms except for Amazon (for example, eBay or other shopping platforms).
We hope that your starting experience with Amazon will be wonderful and your brand will prosper. You can also check out our articles on How to Run Your FBA Business Successfully and How to Make Your Products Outstanding.