Amazon’s selling strategies are key to launching a new business that is more successful than the rest. These four strategies will help you earn more and qualify for the Buy Box.
Use a Loss Leader
Loss leaders refer to products that are sold at a loss (or below cost or just below acceptable margins). This is a popular strategy that works well on Amazon.
This could be called the razors and blades strategy. If you don’t know this, shaving supply companies often sell razors at a loss but sell razor blades at a substantial markup. Because they are still cheaper than new razors, customers will gladly purchase the high-priced blades. Profit!
Building Up a Seller Rating
Without a high Amazon seller rating, it’s almost impossible to sell anything. Customers will be less likely to purchase from new sellers if they are offered a low price.
Showing Up in Search Results
You have to worry about what most sellers don’t care about: getting your product noticed by Amazon if you are selling your product.
We explain this in “Selling Private label on Amazon”: You can’t make any sales unless you have made sales. Amazon places new products at the bottom of search results. They only increase their ranking if people buy them.
Yours will be a top-selling product for bargain hunters if it has a lower price than the competition. This will allow you to rise in search results and make your products more visible to shoppers with higher incomes. You can then raise your price.
Keep in mind, however, that people may think your product isn’t worth the price you want to charge. If you want to distinguish something on the basis of quality or luxury, think twice.
Use Data-Driven Pricing
Many sellers place too much trust in their instincts and opinions when setting prices. This can lead to prices that are too high or low for optimal profit.
Amazon prices change millions of times per hour, making it difficult for humans to quickly crunch the numbers to determine the best price. Intelligent Amazon repricing software can help you increase your sales and profits by automatically making decisions based upon big data.
Stick to High-Quality Products
It’s natural for someone to sell lower-quality products. This is especially true when you use loss leaders. Sticking to high-quality products is more effective.
Why is this? This is because customers are more likely to be satisfied with their purchases. This means that customers are less likely to leave negative reviews and request returns.
Reducing your return requests will help you reduce losses and allow you to concentrate on selling. A high Amazon seller rating will increase your chances of making sales. Loss leaders are gone!
Amazon customers aren’t very frugal, it’s worth noting. eBay is the place to be if you’re looking for serious bargains. The average Amazon buyer is more concerned about the experience and the product.
Prioritize Customer Service to Win the Buy Box
The Amazon Buy Box is the ultimate goal for most Amazon selling strategies. The Buy Box is a key component of Amazon’s sales strategy. Sellers who win the Buy Box often sell at 20% more than their competitors. It’s just as important as getting your website ranked #1 in Google.
Amazon uses many metrics to determine who is eligible for the Buy Box. They never give out exact numbers. They boil down to this: Have a professional selling account and make enough sales. Treat your customers as best as you can.
The Order Defect Rate is a key factor (few chargebacks, A-to-z Guarantee claims, and little negative feedback), and the shipping time. These can be handled either the easy or difficult way.
The Easy Way
Fulfillment by Amazon. Fulfillment by Amazon takes care of customer service so that you can meet the Order Defect rate requirement. Amazon expedited shipping and eligible products are automatically eligible for Prime.
But, you will have to pay Amazon FBA fees, and deal with a lot of other obstacles that can make it difficult to ask the question, “Is Amazon FBA worth it?” Your fulfillment will allow you to control your pricing and deal with less paperwork. You can also make more profit by being in charge of your fulfillment. However, you will still need to get to the Buy Box.
Conclusion
These four Amazon selling strategies will help you attract new customers and keep them happy. You’ll soon see Amazon profits rise if you price intelligently, service your customers well, streamline your company, and then you’ll be able to charge smartly.
Learn More : How to Increase Amazon Product Relevance
