The changing scenario of retail business has created numerous opportunities for young entrepreneurs. This, in particular, relates to the e-commerce giants like Amazon. Many small scale businessmen and enthusiastic entrepreneurs are benefiting from Amazon.
On the contrary, there is a group of others who might not have seen the sunshine through their business listing on Amazon. A curious entrepreneur may ask, what is the difference between these two groups?
Market Demography
As with any business, there is no growth unless the product reaches the desired customer base. This is what Amazon excels at. Amazon takes you before the audience looking for your product.
But, there’s a catch to it.
Amazon presents its users with relevant results in search. Moreover, it develops a database of user behavior to make sure that the users are always delivered with their desired product listings.
A seasoned entrepreneur would list the products that have demand in the market, whereas, a novice one would list what they like. In other words, you should understand and list only those products which have demand in the market. This would bring up your listing and fetch you the desired customers.
Highlight Your USP
For any business to be successful, a well defined USP is indispensable. Think of it, as selling the value to a customer and not just a product. Why should the customer buy a product when they either don’t feel the need for it or they have better options?
This is where clarity of the unique selling point helps convert the leads. For example, if a retailer lists out shoes on Amazon, they need to highlight what are the exceptional features of the product.
Further, the pricing may also be considered as a USP. The lower the price is offered by a seller, the better chances they have at selling their products. You should be considering the highlights of the product and its pricing when you are to become an Amazon Business Partner.
Learn About Seller Partnership Program
Amazon is a huge marketplace with millions of users that leave their footprint on the website every day. This makes it an ideal place for gaining unmatched exposure and acquiring new customers.
Becoming a business partner with Amazon, any retailer has three options. These include becoming a vendor to Amazon, affiliation to Fulfilment By Amazon, and Fulfilment By Merchant. All of these three have different benefits and different roles for the retailer.
While the vendor to the Amazon program is for suppliers, the other two are for retailers. The difference lies in the quantities of the orders placed.
Let’s keep the context of this discussion intact and stay focussed on retail business. The two programs provide merchants with entirely different opportunities. The former offers complete handling of the logistical requirements after-sale by Amazon, whereas the latter, offers more control to the retailer over the complete selling process.
What About Accounting?
A major issue faced by retailers when using the Amazon marketplace, especially for small scale businesses, is the accounting of these economic transactions. The sellers that have seen the dusk of their online business on Amazon, despite the exposure they receive, have made blunders in their accounting.
No matter how high the sales may rise, if there is no accurate track of the finances, any business may risk doom. If you sell goods on Amazon, Bob Kemple from Click And Mortar Accounting recommends using a professional accountant to help your business grow successfully. Having a professional to assist would not only help keep track of the finances but also evaluate the future prospects for growth.
Establish Your Private Label
An important factor that shall decide how well a product may perform in the market is the brand label. It has been observed that brands, whether established or struggling, generate more value as compared to the unbranded counterparts.
Surprisingly, many merchants to Amazon, have established their brands on Amazon. It is noteworthy that almost all of these brands are privately owned. In other words, retailers source a product as unlabeled and label them under their own brand name. It offers a dual benefit to retailers. The retailers can increase their sales along with earning value for their brand.
What you can do as a new-comer to the Amazon space is, you can source uniquely featured products under white label. Further, you can list your product under your own brand name, establishing your label as well as earning authority for your personal e-commerce website for your brand.
Should You Be Selling Seasonal Products?
Selling products that are in demand all year round is, for obvious reasons, way better than selling products that are in demand for specific seasons. For example, selling shoes on Amazon can bring in business all year, whereas, selling groceries and other seasonal products may not bring in the same revenue.
It’s not all so doomy and gloomy, selling seasonal products on Amazon. In fact, seasonal products tend to make higher sales throughout the season. A way out of the grave dilemma whether to sell seasonal products or not could be to draw a plan for products that can be sold in respective seasons. In other words, shifting between the seasonal products, season to season can be a good option, if you are looking for quick returns.
Is SEO Necessary For Amazon Retailing Business?
As with any website, e-commerce websites also need to be search engine optimized. Amazon is no different. The catch is to conduct SEO within Amazon’s search engine to show relevant products in search.
While listing products on Amazon, you need to make sure that the description, title of your ad and other contents related to your product include the keywords that people tend to put in while making a search on Amazon. This would ensure that your product comes up fast and on the first page for relevant search terms.
The SEO for amazon listings include many other things such as voice search optimization, reviews, feedback from the customer and many more.
Taking your retail business to aspirational heights is possible through Amazon. All you need to do is make sure that you do it the right way.
