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Amazon is a profitable selling platform with an ever-growing customer base. In 2020, a massive 1.3 million new sellers joined the Amazon marketplace worldwide. This is no surprise, as many Amazon sellers utilize the platform's success to boost sales and increase company revenue. 

However, just like any ecommerce platform, there are various online marketing strategies involved in becoming a successful Amazon seller. 

Are you a new seller trying to break into the Amazon marketplace? 

Read on as we go through six essential tips you need to know as you start selling on Amazon. These tips will get you started on the right note and help you grow revenue with Amazon. 

How to set up your Amazon Seller Central account 

To start your journey on Amazon, you will need to open an Amazon Seller Central account. This is an online platform that allows retailers to sell their products on Amazon. With your Amazon Seller Central account, you don’t have to worry about creating your website or processing payments and returns. 

Here’s a simple guide to setting up your Amazon Seller Central account: 

• First, you will need to get the following information: business information, bank account number, routing number, credit card, government-issued ID, phone number, and tax information. 
• Next, go to the Amazon website, click on the ‘Sell’ tab and create your Seller account
• Once done, you will be directed to the configuration page of five sections where you will need to fill in all the information as mentioned in step one. 
• Make sure to double-check all information provided. If you plan to sell in multiple regions or continents, you may need to set up multiple accounts. 

6 essential tips for new sellers 

While setting up your Amazon seller central account, here are six essential tips that will guide you on the path to success: 

1. Optimize your product page
2. Choose a fulfillment method
3. Utilize marketing and advertising 
4. Keep your prices competitive 
5. Prioritize customer service 
6. Follow Amazon guidelines 

Optimize your product page

On Amazon's website, you will see millions of products from various product categories. The average visitor is searching for a product with a description in mind. The goal is that when an online visitor types in your product, you appear in search results. So how can your product page become visible to them? 

Here are a few ways you optimize your product page:

• The first and most important part of optimizing your product page is to optimize your keywords. Keywords are essentially words or phrases people type in search engines when looking for something. To get the right keywords your customers are searching for, you will need to carry out keyword research. You can use keyword research tools like Jungle Scout and Ahrefs. Ensure your keywords are well-researched. Insert these keywords into your product titles, bullets, and description. Also ensure features like size, color, gender, etc are featured in your title. Remember to follow Amazon keyword guidelines including character limits, abbreviations, and punctuations. 
• Optimize your product images. Your product images are the one-shot customers get to have a good look at your product and make an informed decision. You want to make sure you use high-quality product images that reveal the dimensions of your product sufficiently. Infuse some creative lifestyle images that communicate the benefit of using your product. 
• Keep the bullet point section concise and full of relevant product information. This section has a 200 character limit, so you want to make sure you include all the product features and benefits that give your customers all the details they need to make a buying decision. Ensure you infuse major keywords into your content. 
• Get positive customer reviews. Amazon tends to rank products with high ratings and positive reviews higher on search results. To get a review, You can use the “Request a Review” button on Amazon or utilize other channels including social media, emails, or even adding product inserts in your packaging. You want to make sure you don't compromise on the quality of your product and service so as not to get bad reviews from your customers. 

Choose a fulfillment method 

Your fulfillment method is an important part of succeeding on Amazon. There are two fulfillment methods on Amazon: Fulfillment by Amazon(FBA) and Fulfilment by Merchant (FBM). 

• Fulfillment by Amazon (FBA): FBA is a fulfillment method that involves sellers sending their inventory to an Amazon warehouse or fulfillment center to be stored and shipped. Basically, with this method, Amazon handles everything from storage to shipping to customer service.
• Fulfillment by Merchant (FBM): With the FBM fulfillment method, the seller takes care of everything from storage of inventory to shipping and customer service

Both methods of fulfillment come with their pros and cons. Some sellers also use a hybrid method, combining both FBA and FBM.

If you choose to use Amazon FBA, it is important to consider the FBA fees involved. Using the FBA service also comes with product and packaging requirements. 

If you choose to use the FBM service, you will need to be prepared to fulfill orders and respond to customers. 

Utilize marketing and advertising 

Are you looking for how to increase conversion rate on Amazon? One of the best ways to drive traffic to your product page and increase sales on Amazon is to utilize marketing and advertising. Even with a well-optimized product page, customers may still not be able to find your product on search results. 

You can utilize Amazon Sponsored Ads including Sponsored Product Ads, Sponsored Brand Ads, and Amazon Display Ads to increase your brand visibility, drive sales, and grow revenue. 

Prepare a marketing plan and budget to ensure sustainability. You might also want to use other marketing and advertising platforms like Facebook Ads and Google Ads to drive external traffic to your product page.

Keep your prices competitive 

Your product pricing is a very important part of your business. Unfavorable pricing could ruin the credibility of your business. 

Most online shoppers do their research before purchasing a product and they will go for an item that best fits their pocket.

When it comes to pricing, it is important to carry out extensive research. You want to make sure your prices are both competitive and profitable. Consider your product acquisition costs including shipping fees, custom fees, FBA fees, commission fees, and so on.  

Here are a few other strategies you can implement when deciding on how to price your product:

• Keep an eye on your competitor’s pricing for better price management. If you are selling a new product consider a temporary strategy of slightly lowering your prices for a few dollars below your competitors. This will help you gain traction and product reviews. 
• Make sure your product stands out from the crowd. If you are charging a higher price, you need to justify it. Look out for lapses from competitors and see how you can improve in those areas. Can you improve customer experience? Is your product material of better quality? 
• Adjust your prices to match the lowest prices available. Using automated reproducing tools, you can compare your prices with those of your competitors and ensure your prices stay competitive. 

Prioritize customer service 

Good customer service can turn one-time customers into recurring customers. You want to make sure you create a positive buying experience for your customers from start to finish. This starts with personal interaction with your customers. Ensure you answer their questions and seek to resolve their complaints at least within 24 hours. Use the question and answer section to provide specific answers to product-related questions. You can also utilize platforms outside Amazon, like social media and emails. Thank your customers when they make a purchase and provide them with so much value

Follow Amazon guidelines

Amazon is a successful selling platform with millions of sellers. With all the competition on the platform, Amazon is intolerant of sellers who don’t follow the rules. You could get penalized or get your account permanently shut down if you go against the rules and guidelines of selling on Amazon.

The easiest way to set yourself up for success is to be up to date and follow all the guidelines for selling on the Amazon platform. 

How much does it cost to sell on Amazon? 

Amazon offers two major selling plans: the Individual seller plan and the Professional seller plan.

The individual seller plan is for sellers who are likely to sell 40 units or less of their product in a month while the professional seller plan is for sellers who plan to sell more than 40 units of their products every month. The individual sellers pay a fee of $0.99 for every sales transaction. The professional sellers pay a one-time fee of $39.99 monthly. There are also other fees including referral fees, closing fees, shipping fees, and FBA fees. 

Conclusion 

Selling on Amazon is profitable. However, to drive success, you will need to ensure you piece together the best online marketing strategies that increase sales on Amazon.

The tips mentioned above should get you started on the right path. However, if you need further assistance, you can contact ePlaybooks.