If you are not selling on Amazon.com, you are missing out on making big bucks. Amazon is the largest e-commerce company that started out selling books and has gone onto sell products consumer electronics, online retail, computing services, digital content and almost everything under the sun that can be bought with the click of a button while sitting at home.
Consumers consider Amazon as a reliable search engine for products rather than the Google search tab.
Amazon attracts 50% of online product search traffic with 70% of people in the US who make purchases from Amazon. The 2018 net sales of the company in 2018 were close to $232 billion and by 2021, Amazon’s share in the e-commerce market is set to hit 50%. That shows the popularity amongst consumers and selling on Amazon is a serious business to get your brand in the main league.
Ways to sell on Amazon
- Fulfilled by Amazon
Take the pressure off your shoulders and rely on Amazon to stock products, maintain an inventory and ship products to consumers.
Fulfilment by Amazon (FBA) is a service provides packaging and shipping assistance. Sellers ship their products to the Amazon fulfilment center where they are stored in warehouses until they are sold. Once an order is received, the Amazon staff package the products and ship them across to consumers.
Opting for FBA means your brand gets an association with Amazon which in-turn means consumers are assured of quality products. Hence consumers are more prone to patronizing products by FBA sellers.
- Connect with dropship suppliers
If you want to look beyond Amazon as your direct contact for dropshipping, find dropship suppliers offering competitive prices outside the platform.
Dropshipping makes the business less risky as you don’t hold inventory. This not just means less work but also lesser costs.
Decide what supplies you want to sell. Research and connect with dropship suppliers willing to store your product. Dropship suppliers cater to different requirements. Identify which supplier will serve your purpose and deliver to maximum destinations in a hassle-free manner.
- Maintain inventory
You can employ manpower to manage inventory and packaging and shipping logistics. Alternatively, managing inventory for your products can be a hassle. Look to minimize manpower costs while you save time and allow dropship suppliers to manage inventory.
When consumers order your products, your dropship supplier is intimated and initiates the process of packaging and shipping. The challenge is that you’re dependant on your dropship supplier for finer packaging details.
While you save the costs of managing inventory, the packaging is key to create an impression on consumers, which is why choosing the right dropship supplier is important.
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Table of Contents
- How to become a millionaire by selling on Amazon
- 1. Find a great product
- 2. Identify your niche audience
- 3. Find reliable suppliers
- 4. Optimize your product listing
- 5. High-quality images
- 6. Identify the processes an Amazon order will follow
- 7. Automate processes you can, outsource others
- 8. Reviews are social proof
- 9. Get on the first page on Amazon
- 10.Release new products
How to become a millionaire by selling on Amazon
1. Find a great product
Find a product that catches the eyes of consumers on Amazon and your job is half done. It does not matter whether these are essential or not, a great product prompts consumers to check out the detailed product description and click the buy button.
Pricing is the next step, but you have overcome the main hurdle of getting consumers to view your products.
How do you choose great products?
You delve into an established market with a lot of proven buyers, or you can create something new in the marketplace. Research latest trends, check interest and competition, what are people buying and why, before you zero in on your product.
Understand what consumers want currently, track demographics and the price they are willing to pay. Check if the items are already sold on Amazon which is the largest ecommerce marketplace for products.
For example, a wifi router and notebook are simple yet essential office supplies that are essential, yet common. Find ways to make these products unique to catch consumers’ attention.
2. Identify your niche audience
First identify your target audience, what problem you want to solve and how they perceive the product you plan to launch. Product launches and marketing strategies are centered around consumer behaviour and those most likely to buy your product amidst competition.
There are several products in the market to meet consumer requirements. Amidst the vast ecommerce marketplace, it is important to keep your target audience and their demographics in mind and map competition to understand what kind of products your target audience requires and how much they are willing to pay for the product.
The first step is to figure out the need for your product, the second step is to focus on the problems it can solve, the third step is to refine your target group and identify who bought your products and services. Different products appeal differently to different people. Some consumers may not need your products in which case it is futile to sell to those consumers.
3. Find reliable suppliers
If you opt for drop shipping which is a smart strategy, be certain to choose a drop shipper carefully. Suppliers are key business partners who handle your product inventory which includes storing products, packaging and shipping them across to consumers on time and in an undamaged manner after an order is received.
A poorly packaged item, delay in delivery or sending the wrong product can dent your brand reputation and decrease customer satisfaction with time. Customer satisfaction is crucial for a successful dropshipping business.
There can be different types of dropshipping IT wholesalers which may include manufacturers, importers, exclusive distributors and regional distributors. Manufacturers have strong connections with some of the best drop shippers in their industry. Check with the manufacturer on wholesale distributor connections and whether they offer drop-ship services.
4. Optimize your product listing
Amazon showed an 8% incline in the overall competition in 2018. Hence, sellers are optimizing product listing to reach a wide audience on Amazon.
The higher you rank, the more you sell.
An optimized product listing can drive more traffic and increase sales conversions while it also helps sellers to understand where they stand amongst competition.
Copy writing is of prime importance. Adding keywords during optimization helps your product rank higher on searches. Optimizing images, titles, and descriptions is another factor responsible for greater conversion rates.
5. High-quality images
Consumers like high-quality images to get a better idea of product features. It is like giving consumers a feel of walking into a store to experience the look and feel of products.
If you are opting for videos to enhance product description, using a 3D effect makes a big difference. Electronic products like a laptop shown in a 3D video can boost consumer confidence to click the buy button after creating an aspiration to own the product and experience the feel of the product.
Shoot your images and videos in-house as you know your product best and know how you want the outcome of the content to be.
Alternatively, you can outsource the shoots and instead focus on other aspects of your business. Remember to be clear of your vision of how you want the images and videos to enhance the product and highlight key features. This is a major factor to make your product stand out on Amazon and rank higher in optimization with more views.
6. Identify the processes an Amazon order will follow
Want to sell on Amazon? Register as a seller on the Amazon website. As a seller, you have access to Seller Central which is your one-stop portal for all selling needs.
The next step is to list your products on Seller Central or through the seller app. Prepare a catalog because that will make you visible on the website amongst other competition. A presence on Amazon makes your product visible to millions of consumers in the United States looking for your products.
It is then up to you to opt for Fulfilled by Amazon (FBA) which makes you eligible for Amazon Prime and builds consumer confidence in a big way. Opting for sponsored products is another option to consider highlighting your products.
When an order is received, Amazon notifies you on email and the Seller Central dashboard after which products are packaged and shipped by Amazon under FBA. If you opt for other drop shippers, products are delivered to consumers by them.
Finally, receive your payment by the end of the week. Search for and implement software services that simplify these steps.
7. Automate processes you can, outsource others
Automation is software built to automate tasks, processes, or campaigns within your e-commerce business. Automating certain processes helps save, time, money and sell more, especially for small volume businesses. Choose a robust software to automate these processes:
Instead of manually determining the pricing of products, use software to determine the price automatically. The software calculates pricing depending on a set of rules or constraints.
- Inventory and catalog management
Use software to manage product inventory which makes it easier than manually maintaining a record. Catalogs of products are also stocked together using software which is efficient to reach out to suppliers and consumers.
You have to pay taxes in states where you conduct business. This can be an overwhelming process as you risk missing out on certain payments. An automated taxation system keeps the burden off the seller to maintain a manual oversight on all processed orders.
You might tie-up with Amazon or other drop shippers, but automating shipping details before and after delivery of products eases the burden of looking into every single aspect of shipping details.
Alternatively, there are benefits of outsourcing products:
- Processes you can outsource
Identify and outsource processes that are cost-effective and save time. Utilize the time to develop other aspects of the business.
- Social media management
Outsource social media marketing which cannot be automated. This takes the onus off you to be entirely responsible for promotions.
- Product pictures
There is no shortcut to taking product pictures and videos. Opt to outsource this process if you don’t have time on your hands.
- Product Description
Avail VARStreet services to write out detailed product descriptions for product catalogs that can be accessed by suppliers across various e-commerce platforms.
- Creating a unique video
Launching a new product like an IPad requires a unique way to portray the product and reach a wider audience. Outsourcing the job to experienced companies gives you value for money.
Outsource your content writing to bloggers or content agencies.
Criticism is key to mapping how consumers perceive a product and in-turn guides you to tweak products to stay relevant. Reviews are social proof that determines consumers’ choices while researching a product. Once they get a better idea about the product, they decide whether or not to make the purchase.
9. Get on the first page on Amazon
Search engine optimization(SEO) is vital for your products to be on the first page of Amazon. Consumers are spoilt for choice with a vast variety of products and you have to be on the first page to be noticed in a competitive space. Have detailed product descriptions with keywords to make you get noticed Amazon. Catchy product pictures and videos too help you get on top of the page.
10.Release new products
Stay relevant, stay exciting. Give consumers something more innovative to look forward to, keeping the buzz alive of your company and products. Catch their attention to prevent them from heading to your competition. New product launches also prompt aggressive marketing strategies that catch consumer attention.
Sell on Amazon, be in the big league and be a millionaire. You cannot ignore the largest e-commerce marketplace. When you cannot beat them, join them and watch your business soar. All you have to do is get the aspects right of being associated with Amazon.