Almost half of the German population orders regularlyAmazon. A huge market! Nevertheless, even with the e-commerce giant it doesn't sell itself. Retailers are well advised to develop a strategy. SellerLogic explains to you in this guest article what you must absolutely pay attention to!
Until a few years agoAmazon , the trade promised fast money. Set up an account, discontinue product, that's it. Even today you can still read this already then quite dubious promise here and there in the depths of the Internet. Unfortunately, on closer inspection, hardly anything of this myth remains - on the contrary, the pressure of competition is now immense and it is hard, laborious work to sell successfully on the e-commerce platform.
Nevertheless, most online merchants do not want to do without such a huge customer base: Because almost every e-commerce buyer has an Amazonaccount and around 44 million Germans regularly shop via this account. If you do your homework, you can certainly get a piece of the Amazoncake. But this requires the right strategy. Today we will show you what is important.
The optimal strategy: private label or merchandise?
Perhaps the most important question Amazonretailers need to ask themselves is: Do I sell merchandise or private label products? Because this is the basis for all further decisions that retailers have to make regarding their strategy.
- Merchandise is defined as products that are sold by third parties. These are often branded products that are not only sold by the brand owner but also by other dealers. These could be, for example, a television from Panasonic or sports shoes from Adidas, but also the distributor for the small monastery brewery from the next village.
- By contrast, private label is about products sold under your own brand, whether it be handmade bath balls or printed coffee cups.
While in the case of merchandise, the main goal is to win the buy box, private label retailers usually already own it and should instead strive to optimize their listing, i.e. the product page.
For the selection of the optimal strategy, the most important factor is therefore what selling rights the seller has. We will look at the various scenarios in more detail below.
Strategy 1: You sell a product exclusively
For retailers who sell a product exclusively on Amazon - for example, products purchased via platforms such as Alibaba and branded with their own brand - the battle for the buy box is usually eliminated. This is definitely an advantage, but nevertheless such dealers are usually in a competitive situation - namely with similar products from other sellers. In this case, dealers must above all optimise the ranking within the search results and design the product page to suit the target group.
- The algorithm determines the ranking primarily on the basis of relevance and performance. Good Amazon SEO with the right keywords in the title, bullet points and other relevant places works wonders here.
- The product side also plays a major role when it comes to achieving good performance. For a high conversion rate, however, qualitative texts tailored to the target group are required.
For some products it may also be useful to use Amazon A+ content. More space is available for the product description, where pictures or graphics can also be used. Additional content is particularly suitable for products that are not self-explanatory or have special features. Likewise, PPC ads and sponsored products can help to direct more traffic to your site and thus generate more sales. The fact that this in turn improves conversion rates and rankings is a nice side effect.
Strategy 2: You and unfortunately many others sell the same product
It is Amazon the standard situation as far as things are concerned: not just one retailer, but a whole team offers a certain product. However, only one can end up in the Buy Box. All the others are inconspicuously listed under Other Sellers - and thus have hardly any chance that a customer will get lost to them.
Strategically, everything here must be about conquering the buy box, because the product side is normally managed by the brand owner. All others have no access to texts and Co. Who owns the Buy Box, when and for how long is decided by a whole bundle of metrics, first and foremost the retailer's performance. This consists, for example, of the shipping time, the final price or the average seller rating. All these factors must be flawless. As a rule, only sellers who have their fulfillment managed by Amazon (FBA) or who are accredited in the Prime by Seller Program have a chance.
Which values you have to reach in detail, you can read here: The most important criteria for winning the Buy Box.
In addition, it is enormously important, especially with merchandise, that retailers have their business under control. A thorough analysis of the competition should not be made only after the product has already been discontinued. For exampleAmazon , if the product is already selling itself, an entry is more likely to be a loss-making business.
The final price should also be systematically calculated. In most cases, only a small margin is left over for trading goods and relevant profits only arise once a certain amount of products have been sold. However, this is only possible if the price is neither too low nor too high. The crux of the matter: Where exactly the right price is at the moment can change several times within a few hours. Sometimes, cent amounts decide which seller ends up in the Buy Box. Therefore, Amazontraders should use a dynamic repricer that automatically adjusts prices based on continuous Big Data analysis. Setting minimum prices prevents traders from falling prey to price dumping and ultimately selling at a loss.
Conclusion: Amazon makes work
Regardless of what the legends claim: Amazon does work, sometimes seven days a week and on holiday. Easy money is not buried here. Nevertheless, retailers can still get a piece of the pie if they come up with a strategy tailored to their product or range.
On the other hand, those who build up their Amazon SEO in an unthinking way, do not answer customer concerns immediately or neglect price adjustments, will quickly end up in the storeroom of the e-commerce giant. Staying on the ball pays off. Particularly with merchandise, retailers should also use a repricing tool, because even with just a few products it is no longer possible to adjust prices manually. The more work can be done automatically, the better.
SellerLogic's portfolio includes two dynamic tools that connect to your Amazonaccount with a few clicks - SellerLogic Repricer for Amazon and SellerLogic Lost & Found for Amazon. While Lost & Found monitors your FBA processes and reports reimbursement claims to Amazon the merchant, the dynamic Repricer automates price adjustments in an unlimited scalable and flexible manner. Both solutions ensure efficient and convenient profit maximization in the e-commerce business - and save the merchant a lot of time and money.