How to increase your product sales on Amazon today
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Amazon is an undisputed leader in the field of e-commerce and, therefore, attracts millions of sellers worldwide. With so much competition, the valuation of your FBA business in a possible exit depends a lot on your sales.
Your sales record in the 12 months prior to your exit is one of the most influential factors used to determine how much profit you will make from selling your business. But many Amazon sellers are struggling with sluggish sales and don’t always have the reliable expertise to help them out of a slump.
After helping many e-commerce brands grow their business, I’ve identified the key areas you’ll need to focus on to increase your product sales on Amazon. Whether you’re a DIY seller or prefer to hire a growth acceleration agency, focusing on the points below will help take your assessment to the next level:
Killer Product Lists
It’s no secret that without high-quality product listings, you’re sure to get lost in the noise. A great product listing is based on five pillars:
Keyword research: Create your product titles around the keywords your potential customers are looking for. You can use several free and paid keyword research tools to discover the most relevant keywords for your products.
Images and video: High-resolution images and videos add authority to your brand and help differentiate your ads from the crowd. Moreover, value-added videos increase buyers’ confidence and eliminate their doubts.
Optimized Descriptions: Your customers get the maximum product information from your product descriptions. Keep fluff to a minimum in your descriptions and try to provide maximum value through concise and accurate information.
Automatic Repricers: Make sure your prices always reflect up-to-date market conditions. You can use advanced tools to automatically update your prices on the fly. It also increases your chances of winning the Buy Box (more on that later).
- social proof: Product reviews on Amazon are very influential and can make or break a sale for a new customer. Always invite buyers to post a review after a purchase. You can entice them with add-ons to post a review.
Related: 5 Common Mistakes Made in Amazon Product Listings and How to Fix Them
Advertising and buy box
It is essential for you as a seller to use all the tools at your disposal. Amazon PPC advertising and the Buy Box are two goldmines that should be part of your strategy.
Amazon CPC: PPC advertising on Amazon offers an efficient and cost-effective way to increase the visibility of your products. With multiple options such as Sponsored Product Ads, Branded Ads, and Display Ads available, you have plenty to experiment with. Caveat: It’s easy to lose money with PPC advertising if you don’t have advertising expertise. From keyword research to copywriting, every aspect counts. If possible, get help from a full service agency to manage it. Otherwise, you risk losing money, time and customers.
Buy Box: Amazon prioritizes sellers who excel in competitive pricing, in-stock products, reviews, and seller performance standards to algorithmically decide the Buy Box winner. Winning the buy box means you become the first option for your customers, increasing the chances of conversion.
You cannot expect to generate the maximum valuation for your business by focusing solely on Amazon’s unique platform. You need to spread your efforts across multiple channels to unlock maximum traffic and brand stickiness. FBA buyers look for companies that have a strong brand and can resist copycat sellers.
Website and other marketplaces: When building your Amazon business, don’t ignore other acquisition channels like Walmart, eBay, and most importantly, your own website. This increases your brand recognition, which makes customers more likely to buy from you.
Content marketing: Your website and YouTube channel should be the go-to sources for your customers to find out about the latest in your niche. Post regular, relevant content to your visitors to establish yourself as the leader in your niche and drive organic traffic for your Amazon listings.
Social Media Marketing: Your potential customers spend almost 2.5 hours per day on social media platforms. Take the opportunity to chat with them and build your community. Take advantage of this to increase your sales and get a prize bonus later.
Influencer Marketing: For every dollar you spend on influencer marketing, you earn a media value of $5.78 as a return on investment. So, use the power of influencers and their communities to generate additional traffic. The right influencers will also give you exposure to your ideal audience. Take advantage of this opportunity to develop brand value and increase brand awareness.
Related: 4 Actionable Steps for Multi-Channel Marketing
Inventory and product mix
The strength of your supply chain operations is the foundation of your sales and valuation. If you increase your sales, but your supply chain is unable to meet the demands, your efforts will fail.
- Inventory management: Your products should never be out of stock. This hurts the buyer’s experience and your chances of winning the Buy Box. Use analysis tools to always sync your inventory across all platforms and be notified in advance of low inventory or seasonal changes in demand.
- The range of products: You need to double down on your top-selling products and choose a targeted marketing strategy focused on those select products. At the same time, having a business focused only on a few products is risky and can lower your valuation.
- Global expansion: You should explore international markets using Amazon’s custom websites for different countries. Accessing a whole new audience can be the final step in scaling your business.
Above all, be sure to follow Amazon’s regulations. It may seem obvious, but many sellers often ignore them and end up facing account suspension. Having healthy sales is important for your business profits, but it also goes a long way to ensuring the best possible valuation for your FBA business, should you have exit plans. Working on the above aspects of your business is not only sure to give you a head start, but you will also be in a good position when it comes to your exit.
Related: Guide to Starting a Fulfillment by Amazon Business