Amazon is no longer an insider tip when it comes to buying and selling products online. After all, the marketplace offers both buyers and dealers some advantages. However, this article on sales: What does Amazon offer to sellers offer? How do you use the platform as profitably as possible? What should be considered when selling on Amazon? All questions concerning the topic „Selling on Amazon“ will be answered below.

WHY should you SELL ON AMAZON Germany?

As a marketplace, Amazon offers the dealers and customers are brought together directly. They have a wide range of products to choose from, while they have a large audience for their products from the very beginning, which initially has to be compiled in their own online shop. To be precise, Amazon already has over 44 million customers in Germany in 2016, of which 17 million have a prime account. There were more than 64,000 registered sellers that year, making Amazon’s reach unparalleled.

In addition, more and more people are starting product searches directly on Amazon instead of using search engines as Google. In 2016.34% of product searches on Amazon started in Germany. As the number of users and the range of products are increasing, this proportion will certainly continue to rise. If you are not on the market place. It is becoming clear that the presence of Amazon is playing an increasingly important role.

Furthermore, the conversion rate is correspondingly high at about 10% on average, thanks to the high range. The payment process is handled by Amazon, so you do not have to worry about it yourself. Amazon is generally easy for sellers to use and can take some work off your hands or make it easier.

WHAT ARE THE POSSIBILITIES TO SELL ON AMAZON?

AMAZON-seller CENTRAL

Seller Central offers an easy way for merchants to sell their products on the Amazon marketplace as a third-party vendor. Basically, anyone can register for free for the basic account and start selling according to the most important settings and information. For sellers who have more than 40 orders per month, the professional vendor account may be worthwhile. However, using this account will result in a monthly fee of 39 euros.

Amazon wants to take care of the payment process and pay the seller at regular intervals. This means that both buyers and sellers can rely on secure payment processing. In addition, as a seller you can advertise „sponsored products“ and thus increase the visibility of your products. The payment model for these ads is CPC (cost-per-click). Amazon thus offers a suitable analysis tool for this purpose. You also have the opportunity to analyze the demand for goods and receive feedback.

Generally, the seller is relatively free with Seller Central and can handle the sale of his goods independently. If you are interested, you can use FBA (Fulfillment by Amazon). In this case, Amazon wants to do some sort of shipping and storage of the goods and returns. In addition, your customers will then have access to Amazon’s customer service. According to Amazon itself, many customers prefer sales handled by FBA. Those who use FBA also have the possibility to offer products with Amazon Prime.

However, Seller Central has some disadvantages. Since it is the easiest way to use Amazon, marketing opportunities are limited. Amazon offers various ways to promote products, but they are limited to sponsored products. In addition, the self-design of prices is difficult in competitive situations. If you want to win the buy box, you will not be able to avoid using the re-pricing tools.

In principle, however, Seller Central is well suited to operate smaller shops on Amazon and to keep control of its own products and prices. If you also use FBA and possibly the possibility of sponsored products, you will certainly reach and appeal to a large number of potential customers.

AMAZON VENDOR CENTRAL

First of all, not every Amazon dealer can directly through Vendor Central, because it’s from Amazon is necessary. Amazon must therefore first of all draw attention to the relevant seller-central dealers and classify them as promising. If you agree, Amazon regularly buys a stock of your products and becomes the seller of your goods. For this reason, Vendor Central is primarily intended at manufacturers and well-known brands. As mentioned above, customers prefer products shipped by Amazon. However, trust is even higher in products that are sold by Amazon. By using Vendor Central, you can increase the willingness to buy even more.

Another advantage is that you can extend the content on your product. You now have the opportunity to add more detailed product descriptions and videos to make your offer more appealing. In addition, Vendor Central gives you additional marketing opportunities as you can now use Amazon Advertising and Amazon Marketing Services. In this way you can advertise your products in different ways. In addition, your products are now prime-qualified at no extra cost.

Before deciding to accept Amazon’s invitation, however, one should also consider the disadvantages, as it is not possible to drop out of the program and return to Seller Central without further ado. On the one hand, you’re giving a lot of control with the commitment. Amazon can now, for example, set the price of the free of your ideas. In addition, the vendor central program leads to a strong dependency on Amazon in the long run, as all requirements must be met if you do not want to forego the prize. The analysis capabilities of Seller Central are thus lost with this program. Anyone who wants to gain insight must adjust to additional costs. There is no longer any direct customer contact, which means that customer feedback is lost as a source of information.

Amazon Vendor Central can and should significantly improve sales and improve traceability. In this case, however, you should not have a problem with the Amazon and becoming a supplier of the goods from the retailer.

AMAZON VENDOR EXPRESS

Vendor Express is basically a „slimmed-down“ version of Vendor Central. Amazon is not necessary. Vendor Central and buy their products from Amazon. Registration for Vendor Express is free of charge. The advantages are those of Vendor Central. The sale is now handled by Amazon, which wants to increase the visibility of the product as well as the customer’s buying interest. This qualifies Prime. Consequently, it is possible to concentrate exclusively on the production and delivery of the products to Amazon.

The biggest difference to Vendor Central is that A + Content is not available for Vendor Express. This fact holds many retailers using Vendor Express, as A + content is one of the key criteria for many. Naturally, the same disclaimer as for Vendor Central. There is a great deal of control over the goods because you are no longer selling them yourself. The depiction on Amazon is no less pronounced here.

Vendor Express is thus recommended for those merchants who would like to benefit from Vendor Central. In this case, however, it should be accepted as compared to Vendor Central, no A + content is available.

WHAT TYPES OF SELLERS ARE THERE ON AMAZON?

trademark SELLERS (buy box)

Trade mark sellers, known as resellers, have a lot of competition on Amazon because they are not the only ones who offer the product. By far the most sales is made by the retailer who wins the buy box. The Buy Box is located on the right, where users add their desired products to the shopping cart. Hardly any customer takes the trouble to find out which ones are still offering the product, but makes the purchase directly via the buy box. This means that other sellers of the product are hardly, if at all, ignored, while the winner receives almost all orders.

As a reseller you should definitely work hard to win the buy box . Amazon selects sellers for the buy box according to its own algorithm, which takes into account many different criteria. In general, you should make sure you get the best ratings by satisfying customers. You can achieve this through helpful customer support, fast deliveries and fair prices. Distinctly positive assessments by the retailer always have a positive effect on the buy-box opportunities. This is the case for the Buy Box:

Low Price: Amazon tries to find the best and cheapest statistics. If you have good ratings. However, it must not be too high in comparison.
Amazon FBA (Fulfillment by Amazon): Amazon knows that customers have greater confidence and willingness to buy when shipping through Amazon. Therefore, FBA sellers are given preferential treatment in the buy box selection.
Amazon Prime: If you use FBA, you can benefit from Amazon Prime. Customers who have a Prime Account naturally prefer to purchase their Prime Account. This is also in the Buy Box.
Shipping time: You should try to offer the fastest possible shipping. Amazon is naturally interested in customer satisfaction and thus prefers sellers who deliver products as quickly as possible.

PRIVATE LABEL SELLER (AMAZON SEO)

Whoever manufactures and distributes their own brand does not have to worry about the buy box, as there is no competition in this area. Vendors of private labels, on the other hand, have to work hard to make their own products visible, because as many as 90% of Amazon users only look at the first results page. This contains only 14 results in desktop version 16 and mobile version. In order to receive as many orders as possible, it is therefore essential to work on getting among the first 16 – or better still among the first 14 – results. To achieve this, Search Engine Optimization (SEO) must be run on Amazon. The Amazon algorithm takes into account 35 different ranking factors that can be optimized. Below you will find a list of the most important ones:

Relevance for the search query: In a search, Amazon first filters out those products that are relevant for the search query. Your product description should therefore contain important keywords for potential customers to search for.
Sales: A factor that you can only influence indirectly at the beginning and that needs some time. However, the more sales you generate over time, the higher your product is ranked.
Conversion rate: Similar to sales, the higher the conversion rate for a given keyword, the higher you rank for that keyword.
CTR (Click-through rate): The same applies here. A high CTR for a keyword leads to a higher ranking for the corresponding keyword.
Since, apart from the first point, all mentioned aspects are dependent on the customer, here are some tips on how to increase the mentioned numbers:

Since, apart from the first point, all mentioned aspects are dependent on the customer, here are some tips on how to increase the mentioned numbers:

Appealing thumbnails: Choose advantageous images for your products that show them clearly and easily. They should motivate the customer to click on the result.
Fair price: Make sure that you don’t overestimate the price and that there aren’t too many cheaper competitor products.
Shipping costs: Amazon customers naturally prefer to order free shipping.
Amazon Prime: If possible, offer your products with Amazon Prime. Prime-shipment increases the conversion rate very much and is also a valuable ranking factor.
Product reviews: It is important that your customers are satisfied with your products and leave positive feedback. It is obvious that products with good ratings are much more likely to be viewed and bought.
Vendor ratings: You should also pay attention to seller ratings. Provide your customers with satisfactory support and ensure the fastest possible delivery times.
If you consider these aspects, both your conversion rate and your CTR will increase, which will ultimately automatically generate more sales.

WHAT SHIPPING METHODS ARE AVAILABLE (FBM VS. FBA)?

FBM

FBM stands for Fulfillment by Merchant and means that the seller handles the entire order process, including warehousing and shipping of the goods, independently. We also take care of our customers ourselves. FBM offers the advantage of full control over the shipping process. Sellers have the opportunity to pack their products in the best possible way and safely. If Amazon takes care of shipping the goods (FBA), the products are packed by Amazon employees and the seller has no influence over them. Of course Amazon is also not interested in delivering damaged goods to the customer, but the seller has clearly individual possibilities to adapt the packaging to the product.

A disadvantage of FBM is that the independent processing of orders requires a lot of work. Anyone who has been running their own online shop for a long time and has the appropriate staff will probably have no problems with shipping the goods, while smaller or new traders can quickly get this work done. In addition, customers have more confidence in shipping through Amazon and therefore prefer it, so FBA vendors are a major competitor.

FBA

FBA stands for Fulfillment by Amazon. With this model, Amazon will take care of shipping your goods for a fee. These are then stored in a Amazon warehouse and packed and shipped by Amazon staff. In this case Amazon will also take over the customer service. The biggest advantage of FBA is probably that a lot of work can be transferred to Amazon. In addition, many customers prefer shipping through Amazon. Another advantage of FBA is that you can offer your products with Prime if they are qualified. Most Prime users want to take advantage of Prime-shipment, as they pay money for membership and are reluctant to use traditional shipping products. If you offer your products with Prime, you can also add the large number of Prime members to your customer base.

With FBA, you give Amazon control over the packaging of your products. If you choose to use FBA, please let Amazon know exactly which products you are using and whether there is something to consider when packaging. In addition, there is the monthly fee for storage in Amazone’s logistics centers. It is therefore important to consider whether the additional costs are worthwhile.

WHICH SHIPPING MODEL IS BETTER?

As you can see, both shipping models have their advantages and disadvantages, so you can’t say that one of them is more recommendable than the other. If you are already familiar with the shipping of goods and are experienced in handling the work involved, you can basically save the additional costs for FBA and take over the processing of the orders yourself. This is also recommended for those who want to keep control over the packaging of their goods and value direct customer contact.

Especially for new dealers, however, FBA can be worthwhile. Although the monthly fee has to be paid, you can then benefit from the trust that customers place in Amazon’s shipping service and, if necessary, also Amazon Prime. This often makes it easier to generate initial sales and establish yourself as a trustworthy shop. In addition, the work involved in shipping the goods can be assigned to Amazon.

Prerequisites for SELLing SUCCESSFULLY ON AMAZON?

Especially if you decide against FBA or the two vendor programs and want to sell your products on your own, you will have to work to win the trust of the customers and to draw attention to yourself. Here you can find out which criteria play a role:

Vendor ratings: Trust in sellers who have little or no feedback is not particularly high. Sellers with very poor ratings are basically not trusted. Therefore, make sure to satisfy your customers by meeting them in case of problems and keeping your promised delivery times to get positive feedback.
Product reviews: Of course, confidence in the product should also be encouraged. If you pack your products yourself, do it carefully and safely. Defective or poorly packaged products inevitably lead to poor reviews that can be avoided. Also pay attention to the promised delivery time and select product images which correspond to the actual appearance of the product. Even bad reviews due to excessive deviations can be easily avoided.
Competitive prices: Of course, your price should not be too high, but even significantly lower prices than those of the competition can lead to mistrust and indicate poor quality. Therefore, choose a reasonable price that appeals to customers.
External Shop: Do you own an (online) shop outside Amazon? Then also refer to Amazon. Especially if you have no or few ratings yet, you can gain the trust of your potential customers. All the better if you already have positive reviews of your shop and products outside of Amazon.

The beginning of the course is most difficult because trust in your shop has to be built up by the customers. So the whole process will take some time. However, if you look at these aspects, your positive ratings and reviews will certainly rise quickly. Trust wants to grow, so FBA and prime sellers as well as Amazon itself no longer be too big competitors.

 

Selling on Amazon Germany
Bewerte diesen Beitrag