January 24, 2022

Amazon FBA: Trends and predictions to look out for in 2022 

Understanding trends and predictions are key for any business, and the amazon marketplace is not an exception. Outlined in this article are the trends and predictions to look out for as a seller on amazon in 2022.
Amazon FBA: Trends and predictions to look out for in 2022 
Amazon FBA: Trends and predictions to look out for in 2022 

Amazon is an e-commerce platform that has successfully positioned itself as a leader in online retail over the years. 


With millions of retailers selling on Amazon, the platform has provided massive opportunities for business owners to increase company sales and grow revenue, thanks to its large customer base. 


With more sellers and consumers trooping into the platform, it is important to know what to expect in 2022. 


Read on as we look into the future to make predictions and spot a few trends that will make running an Amazon FBA business different in 2022. 


8 Amazon FBA trends and predictions in 2022 

To help you increase sales and carve out strategies on how to generate more income for your business, let’s take a look at seven Amazon FBA trends and predictions for the year. 


  1. Creation of more tools and programs for brand owners
  2. Increased product search on Amazon 
  3. Increase in advertising costs 
  4. Second-hand products will take the stage
  5. Improved consumer experience with VR and AR expansion 
  6. A focus on brand authenticity 
  7. Supply chain challenges will continue 
  8. Sellers will seek experts to grow their business


#1 - Creation of more tools and programs for brand owners

If you have enrolled on Amazon’s Brand Registry, you know that this program gives you access to various tools and features for branding your business. From A+ content to Amazon stores, Video Ads and so much more. This is not available to third-party sellers or non-registered sellers. 


We believe that this year, Amazon will continue to create tools that benefit the Amazon brand owner. We can expect to see more Amazon store features that increase traffic, build brand awareness, and increase conversion rates. 


Amazon stores allow sellers to create their brand on Amazon. It functions as a website, allowing sellers to display their products and brand message all in one place. It also comes with a unique URL that you can share. 


We also expect to see more accounting tools in the Amazon Seller Central account to give sellers a breakdown of their costs as well as profits and losses. 

So how can you leverage this? Well firstly, you need to enroll in Amazon’s Brand Registry Program to get access to all these tools and features. Once registered, you can create your Amazon store for free. 

#2 - Increased product search on Amazon 

According to reports, 23% of online shoppers go to Amazon for inspiration on products to buy. Also, reports from Jungle Scout reveal that 74% of US consumers begin product searches on Amazon. 


In 2022, more shoppers will turn to Amazon to find product information. This is because consumers want to check for prices and product reviews before purchasing a product.

 

Amazon features a sophisticated user interface, product recommendations, pricing options, one-click ordering, a wide range of product reviews that help validate the quality of the product, as well as other features that help consumers make a more informed buying decision. 

Also, because of the site’s popularity, 89% of shoppers say they are more likely to buy a product from Amazon than other e-commerce sites. 


To leverage this trend, it is important to optimize your listings with the right keywords and provide quality product information. Also, investing in PPC campaigns will help you rank better in search results, increasing visibility and conversion rates. 

#3 - Increase in advertising costs

Amazon allows sellers to advertise their products using specific keywords targeted to customers. However, with the launch of new products and an increasing number of new sellers on the platform, Amazon Advertising costs will keep rising. In 2021, Cost Per Click experienced an increase of about 52%, and we expect to see more of this in 2022. 


What can you do about the increased CPC? 


  • Optimize your product listings: Ensure your Amazon SEO is top-notch. Make sure you are using the right keywords, high-quality images and videos, and crafting a compelling product description that attracts customers and informs them to make a buying decision. If your ads are converting to sales, you won’t need to worry about CPCs. 
  • Be strategic with your ads: You can test different types of ads on Amazon. Sponsored Product Ads are only one of the different ads available on Amazon. You can run different ads using less competitive keywords. Being strategic will help you reduce CPC costs, make your campaigns more effective and give you an increase in Amazon sales. 

#4 - Second-hand products will take the stage 

The world is evolving and sustainability has become a major concern for consumers. 

Amazon has a few sustainability programs like Fulfillment by Amazon(FBA) Donations and FBA Grade and Resell. We believe that Amazon will pay attention to second-hand products. Not only because they are more sustainable, but also because they give buyers an option when shortages occur. We believe that Amazon will give buyers filter options to select used products in search results. 

#5 - Improved consumer experience with VR and AR expansion

Sellers are looking for new ways to improve consumer experience and showcase their products using mixed reality technology. 


The global mixed reality market is projected to reach 300 billion dollars by 2024. This is more than ten times its current value. We expect that online retailers will spend more investing in VR and AR technologies, pushing the frontiers of the industry and creating a seamless experience from showcasing the product to purchasing it, all without leaving the platform. 


As an Amazon seller, you can take advantage of this while selling on Amazon FBA. You can get creative with this cutting-edge technology to help you stand out from the crowd.   

#6 - A focus on brand authenticity 

Consumers are becoming less tolerant of counterfeiters and Amazon is taking more steps to get rid of shady selling tactics. From fake reviews to fake products. 

Amazon plans to bring down the counterfeits using both technology and manual screenings. There are assessments on Amazon Stores that let brand owners establish their authenticity. We believe that Amazon will intensify efforts to get rid of any cheating on the platform. 

Protect your listings and improve the consumer experience on your Amazon storefront. Thanks to the features and tools available, you can improve your store and establish consumer trust. 

#7 - Supply chain challenges will continue

The post-pandemic era is faced with supply chain challenges that we don’t see changing soon. 


Inflation of raw materials, trucks, labor, and supply chain challenges are factors affecting product availability on Amazon and other e-commerce platforms. This is not something that may improve throughout the year, as many economies are struggling to recover from the effects of recurring lockdowns and increasing pandemic cases. 

We predict that sellers will turn to domestic manufacturers. This will incur a higher cost for sourcing products. For example, sourcing products in the US will be costlier than sourcing products from China. With these hurdles, brands need to be prepared to navigate them. 


As an Amazon FBA seller, increasing the prices of your product will help increase your profit margin and cut down on losses when your products are out of stock. 

Also, it is important to manage your FBA inventory properly in 2022. Keep your eye on stock levels, schedule orders, and look for ways to reduce costs. This will help increase your profit margin. 

#8 - Sellers will seek experts to grow their business

Amazon continues to grow and expand. With this growth comes increased competition and complexities. Outperforming the competition will take more than knowing the basics. 

Many sellers will turn to experts and professionals for every aspect of their business. From product to marketing and design. In 2022, it is important to seek the help of experts to help you navigate through the complexities that come with outperforming on the platform. Seek to work with creative professionals to create videos, images, and ads of high quality. 

Final thoughts 

2022 presents a whole new world of opportunities and challenges. However, with these trends and predictions top of mind, you can create effective strategies and navigate through the challenges to gain a competitive edge, increase sales and grow revenue with Amazon. 

You can get in touch with our team of Amazon experts to help you gain momentum and a competitive edge. 


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