You Have To Get This Right To Sell On Amazon
5′ read time
This is part four in our four part series on sourcing in modern times. To read the other parts in the series, go here.
Selling products on Amazon today is incredibly difficult. The influx of sellers and the explosion of products for sale on Amazon has made getting into the game harder than ever. Running an e-commerce business has always been a challenge, but that challenge is ever more difficult to surmount, and you have to learn the game quick. If you can’t adapt to changing conditions on the fly, your Amazon-built business will surely wither and die in the ambivalence of the Amazon swamp – also known as search results page 2. To keep on top of your game, you need to understand how to balance costs, manage your product and sourcing knowledge, and figure out what works best to get in front of your customers. All three of these considerations can be time consuming, but they’re also worth the time to understand and to get right.
Getting The Numbers Right
If your prices aren’t calculated correctly, one of two things will happen: either you lose money on every sale because you priced too low, or you don’t get any sales because you priced too high. Do the math. If you’re not a math person, find a friend who is. But understand that Amazon changes 2.5 million product prices a day. Which means that you have to be on top of the price you’re offering versus what Amazon does to avoid losing money. That can be very stressful. Luckily, Amazon has a direct solution for you. You can use their profitability calculator [here](https://sellercentral.amazon.com/fba/profitabilitycalculator/index?lang=en_US). It will always be up to date with the current pricing and rule changes at Amazon. And as long as you know the basics of your account (fulfillment costs, product cost to you, etc.) you can enter sales and shipping prices with impunity until you find the right balance for you.
Becoming Customer Facing
If your customers can’t find you, you aren’t selling. And there are hundreds of ways to get in front of customers on Amazon – some more effective than others. A few examples:
Have exactly what the customer wants. This doesn’t mean another USB keyring. Everybody has that for sale. This means building products, as we have mentioned several times in this series. If your customers can only come to you for what they want, then you have a corner in the market.
Paid ads. Yup, you can pay to bump your products up the list. It comes complete with keywords, ad budgeting, and analytics. So you can perfect your ads and get yourself in front of people faster.
Customer reviews. On Amazon, customer reviews are everything. If you aren’t showing positive reviews, no one will buy from you. More than that, no one will even see your product, because you’ll be ranked under another seller with a better reputation.
Bundle products. To become a unique seller on Amazon can be as simple as taking several everyday items – pens, paperclips, and rubberbands, for example – and offering them together in one purchase. When customers can find everything they need in a single click you’ve accomplished two goals: you made their life easier by keeping their purchase simple, and you’ve made yourself a resource for that kind of purchase. They will come back.
Walk the $20-30 line. A product priced between $20 and 30 is easy to buy. It’s a price that is just high enough to seem high quality, and just low enough to make purchasing easy. More sales, more visibility.
These are just some sample solutions to getting yourself in front of customers. They’re diverse options, and by no means exhaustive. They can also be pretty basic. In the fast changing world of Amazon FBA, you can’t settle for the basic solutions. You have to learn what worked and what didn’t from people who have already been in your shoes. What’s important and what’s not. To stay up to date, then, you need collaboration. And the best, simplest, most modern way of collaborating is through social media. There are thousands of Facebook groups dedicated to teaching you the best methods for getting your Amazon business off the ground, and their different perspectives will all help formulate your plan. Some of our favorites are: JungleScout, Project Life Mastery, Amazing.com, and Advanced Fulfillment By Amazon
Finally, and possibly most important of all, you need a way to manage product knowledge. How do you find products to sell? Once you have, how do you manage the information about them, where they came from, who the supplier was, what your process was, and so on? As with all things, there’s more than one answer. You could spend hundreds of hours digging through suppliers you find online, hoping that a few have the answers (and products) you need. You could also spend hundreds more hours entering all that information into a spreadsheet, hoping that the data is actually readable at the end. Then you might be able to use that list to find a suitable product or two.
But let’s be realistic. In 2018, you need a tool that can take care of these problems for you. ShowSourcing is that tool. It allows you to build your products database, keep records of everything that has happened with each one, communicate with suppliers, or even find new ones, all in the same environment. Then you can take that data you just built and put it into a workflow, so you can make decisions on products far faster. This is easily the best tool to keep your life on Amazon organized. There is nothing like it.
Success on Amazon requires patience, discipline, experimentation, and organization. You will be successful if you focus on these core aspects of making your business great. Do the math (or get Amazon to do it for you), collaborate with other Amazon sellers, and keep organized, and you will be in a much stronger position to make money on Amazon.