With data showing that as many as 73 percent of small business owners are considering selling on Amazon, many retailers are also looking into the complexities of selling there. The good news is that selling on Amazon isn't as difficult as you might think.
With a few pointers and a smart, long-term strategy, you can easily master sales on this platform. Let's look at a few key tips for selling on Amazon in 2018.
1. Consider your product and price point.
When it comes to the competitive selling environment of Amazon, it's important to ask a few key questions about how your product will stand out among similar offerings. Begin by asking: Do you have any unique or hard-to-find products that will draw in customers? If not, you may need to think about whether or not you can offer a market-leading price on your products that will help you win sales based on price point.
2. Optimize your listings.
Along with a general product description, images, and product titles, you'll want to consider how you'll optimize your product details for the Amazon search engine. Look for dynamic, relevant keywords your audience uses when searching for your products--and then work those into your listings in a natural way. This means not over-stuffing your descriptions with keywords for the sake of SEO, but instead including them in places where it feels relevant.
3. Know your costs.
Instead of waiting to see how your costs add up from selling on Amazon, it's important to calculate your profit margin with Amazon's projected fees ahead of time. This way you can be certain you're profitable before the end of the year when your bookkeeper adds up your expenses and paints the full picture. Keep in mind that according to Investopedia, a healthy profit margin falls in the range of 25 percent or more.
4. Be sure you can re-stock products quickly.
If you discover you have a hot selling item on Amazon, the last thing you want is to run out of product and not be able to re-stock it. Be sure you can replenish your inventory through a reliable channel and in a timely manner so you can capitalize on any forward momentum. Amazon forums indicate that many sellers try to keep 30-90 days of inventory on hand at all times.
Overall, it's important to remember that selling on Amazon is an ongoing learning experience--just like any other platform. As long as you're willing to be flexible and adjust your approach based on what works and what doesn't, it can quickly become a profitable platform that adds a new revenue stream to your business.