Amazon is a revolutionary platform for small and medium-sized businesses. Independent brands now have equal opportunities to compete with big companies by using the powerful eCommerce and marketing tools Amazon provides. However, it can be difficult to master the platform and there are many pitfalls that budding brands may encounter on Amazon.
This article will discuss real-life problems that Amazon sellers face and the best ways to overcome them, from understanding and implementing complex platform rules and restrictions to selling or marketing.
Challenge 1: Product-Market Fit and Branding
You should be aware of any restrictions that might apply to your product and brand before you make the leap to sell on Amazon. There are many ways that sellers can acquire products to sell. Some manufacture their product, others buy wholesale products from other brands or might purchase surplus inventory from other companies.
If you are a reseller, it is important to be aware of trademark and copyright laws. Amazon adheres to all federal and state/local laws. Please refer to their guide on brand representation and their anti-counterfeiting policies.
Why is it so important to read the fine print in copyright? Amazon says that even if you cause the mishap, you can be held liable.
“Even if the seller infringes on the intellectual property of someone without knowing, we will still take appropriate action. The seller’s account could be warned or suspended.”
You need to ensure that the product-market match is there, and that you aren’t copying other brands’ products by selling knockoffs. Amazon may charge the seller for destroying counterfeit merchandise or violating trademark laws.
Steps for Ensuring Product-Market Fit and Unique Brand
- Amazon searches for similar products to determine if there’s a demand or high-saturated markets.
- Analyze the price of similar/ comparable products and compare it to your ideal price. Will you still make enough profit to be in a position to sell it for a higher price than others?
- Analyze your brand to ensure that it isn’t already used and is unique enough to not be confused with other brands. You could be punished if you try to imitate a trademarked brand, either verbally or visually.
- Brand consistency: It’s important to remember that your brand isn’t static. Once you have established it, you should make sure you establish a strong digital presence outside of Amazon. Trust is built with your audience through social media and professionally designed websites.
Challenge 2: Setting the Operations Up for Success
After your brand and product compatibility are established, it is time to set up the system. Let’s start with the basics. Let’s take a look at the requirements and platform options for getting started.
Type of account. You can choose whether you want to sell as an individual or as a professional: 99c per sale is the price of the former, while $39,99 per month is the cost of the latter. Depending on the product you are likely to sell and your profit margins, you can choose which option you prefer. Do your math!
Amazon’s account settings: A credit card that is accepted internationally, a bank that accepts electronic transfer payments, your home address and a US EIN number, which can be obtained from the IRS by anyone, even if you do not have a US corporation.
Know what you are allowed to sell. Amazon has a long list of restricted products that you must pre-approve before you can list them. Make sure you are familiar with the list before you start listing.
Challenge 3: Mastering Marketing
It’s essential to establish a loop on Amazon where your brand drives sales. Sales drive positive reviews which, in turn, strengthen your brand and drive sales. How do you get to this virtuous circle?
Let’s look at a specific case and what steps you should take to build a brand that is compelling, has high-quality listings and successful marketing campaigns. This is the best area to outsource to freelancers if you are a newbie in marketing and design. You can find the help you need on platforms such as Fiverr and Upwork.
Steps for Successful Marketing
Keyword success is dependent on your research. Compare similar listings with positive reviews and sales. Also, look at the ads that are associated with these products. Do not mislead people in hopes of driving traffic. This will cause them to bounce, which can negatively impact your SEO. Think about what your customers would like to see in your title. You can use Amazon Keyword Research Tool to find relevant and buyer keywords.
Poor-quality or insufficient images of your products are the best way to turn away a customer. Do not include animations or illustrations in your photos. Instead, show the actual product. Multiple color variants of the same product should not be stuffed into one image. Instead, add them as separate options. All images must comply with the following requirements: Images must be 1000x1000px in square, use 85% of the frame, save it as a JPEG or TIFF, or GIF. Save it as RGB color space. We recommend that you review these rules in detail.
First, consider what you want to promote. Next, determine your goals. Campaigns will typically perform well if the products are competitively priced and sell well. Amazon Sponsored Products Ads are banner ads that target specific keywords. These ads can be found on product detail pages or search results. Pro tip: You can download a free keyword planner to help you plan your listings and target keywords. You can also include recommendation ads on your website, as well as video ads. Take a look at the various options to find what is best for you.
Read More : Proven tips to start Selling online in 2021.