Amazon Strategy Essentials

The key to increasing eCommerce sales is having an effective Amazon strategy. 

 

You may hear that successful sellers can earn up to $25,000 a month when selling on Amazon. But on the lower scale, other sellers may only earn $1,000 a month.

 

If you’re new to Amazon, you may be wondering what makes a seller successful and high-earning. Many share the same secret: they have a powerful Amazon strategy.

 

An Amazon selling strategy provides the insights and tactics to help your store and products stand out from competitors. Plus, customers in your niche will have more trust in your brand, leading to repeat sales.

 

But how do you create an effective Amazon strategy and not fail while doing so?

 

Amazon Strategy Best Practices

Your Amazon strategy should consist of many components that all work together to optimize your store. Here are the main best practices to remember:

 

 

Operations

One of the most important aspects of your Amazon strategy is your operations. This involves sourcing, storing, fulfilling, and shipping your products and orders.

 

For new sellers, fulfillment by Amazon (FBA) is one of the top picks. With FBA, sellers send their inventory to Amazon warehouses, where staff will pick, pack, and ship orders. Sellers must still plan for other aspects of their supply chain, such as where they will source or purchase inventory.

 

If you realize FBA isn’t the best solution for you, you can always choose fulfillment by merchant (FBM) and handle your own storage and fulfillment.

 

If you’re working on an Amazon growth strategy, sellers may also expand their business to sell white label products to Amazon as a vendor. 

 

Many vendors also continue selling to end customers using a hybrid business model, but there are others you can use. These include:

 

• 3PL fulfillment
• Print on demand
• Dropshipping
• In-house fulfillment
• Private label
• Wholesale

 

It’s best to look into each fulfillment and selling type to see what’s best for your business.

 

Inventory Management

Inventory management is another vital aspect of your operations and your entire Amazon seller strategy. You must learn to strike a balance between having enough product on hand and not storing too much, which will drive costs.

 

Amazon Seller Central offers a metric called sell-through rate, which tells you how well you balance your inventory. Amazon also provides additional insights, such as restock limits and Inventory Age.

 

Competitor Analysis

There are more than 55,000 sellers on Amazon. Because of this, staying ahead of the competition is the true secret to being a successful seller.

 

Identify your top competitors and analyze their key strategies, including marketing/advertising, pricing, and rankings. Note when your competitors make any changes and try to adjust your strategy to meet them.

 

Most sellers can regularly visit competing stores or monitor Amazon SERPs. Sellers can also try competitor tracking tools or seek help from an Amazon consultant.

 

Pricing Strategy

An excellent pricing strategy is the key to profitability. Sellers must ensure they earn back the cost to make the product while not setting prices too high. 

 

Focus on setting affordable prices to attract customers and maximize revenue. You can also gauge what competitors are charging and see if you can decrease prices slightly to increase sales while maintaining your ROI.

 

Product Listing Optimization

If your product listings aren’t effective, customers won’t find them in Amazon SERPs. 

 

Use SEO and keyword optimization to improve your visibility and increase organic rankings. Invest in well-written product descriptions that are engaging and offer all essential features and information. 

 

Upload high-res product images that showcase the product from various angles, highlight its key features, and display the item in real-world settings.

 

If you’re eligible for A+ content, this tool can help you create richer product descriptions that include adding images, videos, and customized text placements. All this content offers more leverage to encourage prospective customers to make a purchase. 

 

Advertising

Amazon offers multiple types of advertising. For instance, PPC tactics can advertise your product listings and keywords, and you only pay when a user clicks on your ad.

 

If you’re still stuck, consider partnering with a trusted marketing agency experienced in Amazon advertising.

 

Review Management

64% of shoppers are influenced to purchase products with the best reviews. This is why review management is another key part of an Amazon strategy; however, this is one of the few components that’s outside a seller’s control. 

 

Sellers can’t force or bribe customers to leave a review, but you can request a review after a buyer receives their product. Amazon also has its Vine program, where sellers can access a pool of reviewers who will rate their products in exchange for free items.

 

When you start receiving regular reviews, it’s essential to monitor what buyers are saying. If you receive a negative review, respond to the customer and see if you can resolve the issue.

 

Pay Attention to Your Amazon Seller Account

As stated previously, Amazon offers selling metrics so sellers can pay attention to their account health. It’s vital to pay attention to these KPIs and ensure you’re in good standing with Amazon. 

 

Amazon has metrics related to product listings, seller performance, shipping, and more. You can view all of these metrics on the Account Health dashboard.

 

All sellers must read Amazon’s terms of service and follow all rules, guidelines, and requirements. Breaking any of these rules can result in suspension or termination.

 

FAQs

What other types of organic marketing can I do?

In addition to optimizing your listings for SEO, responding to reviews and answering FAQs are all actions recognized by Amazon’s algorithms. You can also do organic marketing off Amazon, such as social media marketing.

 

I’m still not getting more sales on Amazon! What am I doing wrong?

First, getting a significant amount of Amazon sales takes time―especially if your store is new. Fortunately, all you need to do is follow the same advice for your Amazon sales strategy. Continue selling high-quality products and create listings with compelling descriptions and images.

 

If this doesn’t work, invest more in paid ads to quickly increase brand awareness. If you still have no luck, consider reading your reviews or contacting customers with feedback. If there are product issues, you should address them quickly to prevent further damage to your business.

 

How can I adjust my Amazon strategy?

Once your business grows, you can unlock more tools and features. If you qualify for premium tools, take advantage of these perks. If Amazon likes your products, they may invite you to become a vendor. And if you sell white label or private-label products, consider joining Amazon Brand Registry.

 

Do You Still Need Help?

While it’s possible to be a successful seller, you’ll need the right approach to attract more customers and increase sales. 

 

An effective Amazon strategy encompasses several key components, including maintaining account health and planning operations. If you follow these best practices, your Amazon eCommerce strategy should be successful.

 

Another option is to work with an eCommerce agency like AMZ Advisers. We’ll match you with an expert team that has all the expertise required for a successful Amazon launch. 

 

Author

Stephanie Jensen has been writing ecommerce content for seven years, and her copy has helped numerous stores rank on Amazon. Follow her on LinkedIn for more insight into freelance writing and creating high-quality content.

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