Amazon is on pace to become the world’s first $1 Trillion Company. Here’s 3 reasons why Amazon is not saturated:
1. Amazon is disrupting marketplaces
Amazon is obsessed with the customer and innovating betters ways to serve them. From the latest acquisition of Whole Foods, to making the most innovative hardware of 2016 and 2017, and now setting it’s eyes on Education, the drug industry, drone deliveries, logistics, and on and on. They are disrupting industry one after the other.
2. Amazon’s every-increasing market cap.
In the past 2 years Amazon went from $140 billion market cap to over $473 billion. And by 2020 it’s projected Amazon will become the world’s First $1 Trillion Dollar Company.
Almost half of Amazon’s revenue comes from 3rd party sellers. This represents a HUGE opportunity for sellers.
3. FBA is driving the company’s overall growth
Fulfillment By Amazon (FBA) is a service that allows sellers to have Amazon handle warehousing, shipping, customer service, and… leverage Amazon’s brand name and conversion optimized product listings.
So with Amazon doing about 40% of ALL online sales, and because they’re on a huge growth curve, the opportunities are great. It just comes down to properly growing your brand within their emerging markets and knowing how to ride the wave.
Referenced article here.
Amazon continues to help brands establish more of a presence over resellers. Here’s 3 new Amazon tools for brands to sell more:
“Complete Your Drafts”
A small change to make adding products easier, “Complete Your Drafts” is helpful when adding products. For example when you set up an item and Amazon hasn’t approved it yet, it will show up in the Complete Your Draft.
The Complete Your Draft section is a good way to keep track of the products you’re adding that need approval.
Amazon has had stores for a long time, but they were limited and not very interesting.
Now if you Brand Registry you can choose from prebuilt templates, or create your own.
These enhanced stores with optional videos will improve your brands presence. Before these options were limited to Vendor Central sellers, now FBA sellers have these options.
Very similar to Enhanced Brand Content that was opened up to FBA sellers last year.
This feature is only available through this link: https://sellercentral.amazon.com/insights/intake/new
Basically, you can get insights into people who have bought and who hasn’t, asking them a bunch of questions so you can improve your product and marketing.
You can choose from questions Amazon selects, or create your own:
After you create your templated questions, you submit it to Amazon and they will contact you for the price to setup the campaign.
Need help with any of the above features? Contact me for a free consultation.
Referenced article: http://www.practicalecommerce.com/3-new-amazon-tools-for-brands
Amazon is getting great at one thing: Anticipating Customers Behaviours.
Walmart has low prices, large selection, but Amazon does too, and one special sauce…being anticipatory.
They are collecting data everyday, determining what people want in advance of us knowing what we want.
It boils down to convenience, and removing as much buying friction as possible.
Some examples of Amazon with Anticipatory Strategies are:
- Prime delivering products within 2 hours
- Dash and Echo seamlessly taking orders by the push of a button or voice
- Suggested products while your shopping on a product page
- Hot seller products related to your buying trends
What can you do to be more anticipatory in selling your product?
First determine what your product life cycle is.
e.g. If you have a consumable product, how many days out is the point where they should reorder? Let’s say it’s 30-60 days from the point of purchase, then you could email them saying “Hi Customer, I see that it’s been 30 days since you order our product, I hope you are loving the product! It’s probably time to reorder. Here’s a 10% off coupon for your next reorder…”
Likewise if you don’t have a consumable product, try emailing them with suggestions on complementary products or info that would benefit your customer.
One of Amazon’s core values is being customer obsessed, so regardless what strategy you use, be sure to prioritize listening and anticipating your customers needs. When you do, you’ll have an advantage over your competitors, and you’ll stand out from a crowd a reactive sellers.
For insights on Amazon customer mindset & buying behaviours click here.
Have any comments or strategies you’d like to share? Leave a comment!
Here’s the referenced article.
Creating an superb buying experience is an excellent way to retain Amazon customers.
Loyal customers who love your brand will share their experience to their friends and family, creating one of the best forms of advertising.
Here are 6 ways to retain amazon customers:
1. Deliver a first-rate experience
Meet and EXCEED customer expectations earns you repeat business. Don’t just match what other sellers do, find out ways to exceed and ‘better’ serve your buyers needs.
2. Be creative
Use images and interesting ways to use your product into your images. Give your customers reasons to buy your product and be long-term customers. Create an emotional impact. Let your customers feel great about your product as they imagine themselves using it.
3. Partner with bloggers
Contact with experts in your field who run successful blogs. Partner up with them, highlighting your product, reviewing your product, running promotions, etc. Getting endorsements from influencers is an awesome way to win trusted customers.
4. Make it easy to be charitable
Customer philanthropy is becoming more popular. Try putting Amazon Smile in your product description (Amazon Smile donates part of the purchase price to the customer’s organization of choice).
5. Share your values
Have you thought about your company values? Many people have not. If you have, make it clear what you stand for. Showcasing these gives customers another reason to keep coming back.
6. Post answers to your customers questions and reviews
Directly respond to customer questions and reviews. Go above and beyond and add any important questions or reviews to your product description which can help other customers.
Do you want a FREE Amazon product listing analysis? Click Here to get a FREE 14 point listing analysis report.
Referenced article here.
If you’ve been selling for at least 6 months then you might have long-term storage fees for inventory sitting in the Amazon warehouse.
Yep…Amazon will charge you for having inventory sitting in their warehouse that’s not selling.
On February 15 and August 15 of every year, FBA conducts an inventory cleanup.
Why do they charge you for long-term storage?
Amazon says that slow moving inventory limits their ability to provide space for fast moving products customers want.
Which of my products will be charged the long-term storage fee, and how much will I be charged?
You can use the Inventory Age and Inventory Health report reports (sign-in required) to identify which ASINs in your inventory are subject to the long-term storage fee.
Products will incur a long-term storage fee of $11.25 per cubic foot of shelf space occupied if they have been in an FBA warehouse between six and 12 months. That number doubles to $22.50 if the product has been in storage longer than 12-months.
The fee is based on the date an item is received in the fulfillment center.
How to Find Out Which Items Are Going to be Charged LTSFs
- Log in to Seller Central.
- Hover over Inventory and click on Manage Inventory.
- Click on Inventory Dashboard.
- Scroll down until you see the FBA Inventory Age box. Then, click View Details.
1. Pricing Strategies
About a month before an Amazon long term storage fee date, aggressively price your inventory so you get items sold so you don’t have to pay an extra fee
2. Use Amazon Promotions & Sponsored Product Ads
Run promotions and ads or offering a discount to get them sold.
3. Take Advantage of Free Removals
Checkout the Amazon liquidation program and you might recover some money. But you may have restrictions selling that product for several months. Note there is a deadline that needs to expire before you can send the item back to FBA warehouses. Typically this is 3 to 6 months in the future.
Try to use popular discounts sites where you can sell excess inventory. One platform, Honeysaver, is free. Other popular sites include Vipon.com, Snagshout, and Jumpsend.
4. Manage In Stock Levels from the start
One of the best ways to avoid long term storage fees is to manage the amount of inventory that you send in to FBA warehouses in the first place. If you only send in quantities that are likely to sell in 6 months or less then you should have minimal long term storage fees to worry about.
5. Time When You Send in Inventory
One other thing that can be done is timing when you send in your inventory to FBA warehouses. For example, on August 15th you will be charged a long term storage fee for items that have been in stock for exactly 6 months. However, you will not be charged for items that have been in stock for 5 months and 29 days. So if you have items hit the warehouse on say August 20th, you have nearly a full year before you will be charged LTS fees. This is as opposed to having an item hit the warehouse on August 14th, then you will only have 6 months and a day before a LTS fee will be charged.
The referenced article is here
Other resource: Seller Forums: Tips to avoid FBA long storage fees thread
Looking to write product descriptions that sell? Read on…
Many sellers write product descriptions that ‘describe’ their product. For example, give the dimensions and general information.
That’s a weak strategy.
As a seller you need to SELL your product. This is your chance to create the impulse buy.
The following are the summarized points in how to write to persuade your visitors with product descriptions that sell:
1. Focus on Your Ideal Buyer
Answer questions that your ideal customer has in their mind.
2. Entice with Benefits
Consider the benefits of each of your product features. Sell an experience.
3. Avoid Yeah, Yeah Phrases
Instead of using “excellent product quality”, be specific in describing it.
4. Justify Using Superlatives
If your product is really the best, provide specific proof why this is the case.
5. Appeal to Your Readers’ Imagination
Let your reader imagine what it would be like to own your product.
6. Cut Through Rational Barriers With Mini-Stories
When it comes to telling a story about your products, ask yourself:
- Who is making the product?
- What inspired creating the product?
- What obstacles did you need to overcome to develop the product?
- How was the product tested?
7. Seduce with Sensory Words
Restaurants have known it for a long time: sensory words increase sales, because they engage more brain processing power.
8. Tempt with Social Proof
When your web visitors are unsure about which product to purchase, they look for suggestions what to buy.
9. Make Your Description Scannable
Here’s some areas to focus on when designing yours:
- Entice your web visitor with headlines;
- Use easy-to-scan bullet points;
- Include plenty of white space;
- Increase your font size to promote readability;
Need a professional to write your product descriptions? Click Here to learn more.
The article being referenced is here.