In 2020, Amazon made $263.5 billion in sales, making it the *largest online marketplace in the US. As with the whole world tilting towards digital means to fulfill their shopping needs, one thing is for certain—there are plenty of opportunities for Amazon sellers to make more money.
Tips To Increase Sales On Amazon
A boost in Amazon sales doesn’t happen overnight. And there is no cheat code or magic number when it comes to your ad spend that’ll make it happen. Instead, you’ll need to commit to a series of steps that will work collectively in the long run.
If you’re ready to walk the path, then here are our top tips for earning more on Amazon than you already are.
Optimize Your Listing
Optimizing your Amazon listings takes a bit of time, patience, and effort. But ultimately, it’s one of the most rewarding practices you’ll ever follow as an Amazon seller.
This process follows tailoring your title, bullet points, product description, and images to make sure they rank well on the Amazon search engine. Not only that, but it could also help make your product more visible on Google.
So what does optimizing a listing entail?
Essentially, it involves adding relevant keywords and applying them throughout your product listing to make sure you’re more visible to the people looking for your product or others like it.
Take note that Amazon has a very specific set of product listing guidelines that you’ll also need to follow. These include:
- Specific byte/character count for your titles, bullet points, product descriptions
- Image guides
- Prohibited words and keywords that you need to avoid
To write an effective product listing, make sure you focus on the benefits of your product’s features. Customers might not understand all the jargon about specs, but they will appreciate it when you explain how your product’s design will help them.
This may not be the first time you’re hearing about running ads on Amazon. It can be costly—some advertisers pay around $0.81 per click on their ad. However, that number isn’t rigid. Strategy is what makes it economical to run ads. The principle is similar to running social media ads.
Here are some of our top tips for advertising on Amazon:
- Use sponsored brands to your advantage by building brand awareness
- Product-level profitability should be your top priority
- Target categories efficiently
- Optimize your ad bids
- Set a flexible advertising cost of sale goal
Work With Influencers
Influencers have steadily become part of recommended digital marketing practices. Wondering why? Did you know that in 2020, experts concluded that for every $1 invested in influencer marketing, advertisers earned $6.50 in revenue on average?
It is evident that influencer marketing can greatly affect your sales. With Amazon, you can connect with influencers via their Amazon Influencer Program to find qualified candidates.
Be thorough with your influencer research, though. 15% of a top brand’s influencer marketing budget in 2019 was lost to influencer fraud.
So, how do you go about selecting the right influencers? Ensure you pick someone with loyal followers and plenty of interaction instead of someone who has more followers but no interaction with their following.
Check Your Competition And Other Marketplaces
It’s always a good idea to keep an eye on your competition to see what they’re doing and how you can improve your strategy based on that information. For example, here’s a list of what items sell the best on eBay. By comparing these with your product list, you’ll better understand where your products stand—for instance, is there a slump in demand, or is it just your product that is struggling to attract sales?
Other valuable takeaways from studying your competition include how they handle customer communication, response time to support tickets or negative reviews, and perks or promotional offers that really hit it off with customers. By visiting your competitor’s store on competing marketplaces, how you rank up against their design, product display, etc.
Price Your Products Properly
Many sellers believe that undercutting their competition can help boost sales. And while it’s true that you might notice an increase in visitors and inquiries, undercutting is not sustainable. Not only will your bottom line stay red, but potential customers will believe your product to be cheap quality.
So, how do you determine what the best price point is for your products? A good starting point is checking out how your competitors are pricing their products. Determine if yours has more features or offers additional value. If so, you can price higher than your competitor. You also need to know your customer and what they’re willing to pay.
Understanding where the market is headed will also help you with pricing—external factors can increase or reduce product pricing, and staying rigid in your pricing will cost you customers.
Luckily, Amazon is quite flexible when it comes to pricing your products. Just make sure you’re within a reasonable margin based on determining factors covered above, and you should be good to go.
Get More Reviews
A great way to naturally attract new customers is to earn their trust. And one of the simplest ways to do that is by gathering as many reviews as you can from your repeat customers. It’s important to make sure that your reviews come from qualified purchases.
What if you are new to Amazon and don’t have any qualified purchases? In that situation, you can always reach out to professional Amazon product reviewers to see if they’d be willing to work with you. The goal here is to collect personal experience snippets that showcase your product from a consumer’s point of view.
Boosting your Amazon sales is a lot of work—it is a constant cycle of optimizing your listings, advertising, and seeing what you can improve on until you can find a formula that works best for your product. But the rewards are so worth it!
*Source, Statista, Annual net sales of Amazon in selected leading markets from 2014 to 2020