Selling on Amazon: Longevity in the Marketplace
In February, Amazon announced that there are now more than 15,000 sellers in the US exceeding $1 million in sales in 2019. The figures include domestic and international sellers, showcasing steady growth for all types of sellers on the platform.
Internationally, more than 30,000 sellers surpassed the $1 million sales benchmark in 2019. This is an increase from 20,000 in 2018 and 20,000 in 2017. However, the data reveals the marketplace is still dominated by less than one percent of all sellers and only a small fraction of all sellers generate a large amount of sales.
What’s the Secret?
Optimise
Strategy can make a difference with the longevity of a marketplace store. There is no set formula that works for each store as there are many variables that need to be considered, however, there are practices that can be implemented to maximise the chances for success.
Optimising all product listings is necessary for all Amazon sellers and can make a huge difference with Amazon’s product placement algorithm. It is recommended to use clear, detailed product titles utilising the maximum amount of characters allowed (250 characters or 50 words). Always ensure to include the product’s added value, focusing on what differentiates the product from competitors and why the customer should purchase. Priority target keywords should always be added, as they have the biggest effect.
Product images also have a great effect on positioning and the overall branding that is communicated to users. For more information about creating structured content following good practices, read about A+ Content.
Creating campaigns and optimising products takes time and practice to perfect. Therefore, we recommend running manual campaigns initially, to learn more about keywords, performance metrics and customer shopping patterns.
Reviews
Reviews are one of the most important aspects of an Amazon listing. Amazon recommends obtaining at least 15 reviews, boasting a 3.5-star rating or above for better positioning. Aside from providing a positive shopping experience and maintaining frequent communication, we recommend using the Early Reviewer Program to incentivise customers and build a reputation.
Use the Tools
Luckily for all sellers, Amazon and third-party offer support with a vast selection of tools. Automating pricing is a good tool for maintaining the competitiveness of your products, regardless of whether the market prices change. Using the tool can also showcase the fluctuations in prices and help understand your buyers better.
Another tool for monitoring competitors and products in the same market is the Amazon Assistant. Available to install as a direct browser extension, this tool helps to create product comparisons on the go and explore daily deals. This is particularly helpful for monitoring competitors and comparing the differences. The Brand Analytics is another effective tool that is built-in to accounts and offers multiple reports, allowing sellers to delve into customer data and analyse the various customer touchpoints which are performing well and the ones which can be improved.
For more information about achieving sustainable growth on Amazon, contact us to discover which solutions can take your marketplace store to the next level.