How to Set Up Your Amazon Store: A Guide For New Sellers
A new high street is being built online – and you need to be ready for it, before your competitors are.
You may know already how to get shelf space in stores, but you need a different strategy when it comes to Amazon, the titan of e-commerce.
Now more than ever, e-commerce is plugging the gap in the limitations of the retail industry. Capitalise on this momentum before your competition wakes up out of their lull.
At Sell Beyond, we ran a webinar on how to unlock the hidden potential of e-commerce giant Amazon. You can view it here, but we’ve condensed some of our best tips about setting up an Amazon store in our blog for you.
Learn the key steps on how to set up your Amazon seller account and get the most out of your Amazon seller experience.
Profitability in E-commerce
How Can I Adapt My Current Sales Process for Amazon?
Are you a pure-play e-commerce business? Or do you sell into bricks and mortar stores, and also have an Amazon account?
Either way, you must consider what you need to improve to perfect your current Amazon sales process.
What Do People Want? Find Your Target on Amazon Right Now
Families want to relax in their gardens. People take downtime to pursue new skills or top up dusty ones. We all need to get gifts for special occasions for loved ones. Children will always need toys (or at least tell us this!) and their school equipment to keep themselves occupied and up to date with learning.
Putting your finger on the pulse of current events, trends, needs and stressors that affect your target market shapes your marketing strategy but with what products you choose to promote and when.
How to Identify Who My Competitors Are On Amazon
Your competitors are not necessarily identical to you but may occupy similar spaces on the market. Perhaps you sell a DIY gin kit? Your competitors will be sell in these categories too, but your competition occupies a Venn diagram: gins, gifting, DIY kits and even different types of alcohol.
One thing that trips a few people over when starting an Amazon is not researching the products that are exclusive to Amazon. Remember, you must do market research on brands that operate only on Amazon
While on Amazon, take a look at your competitors’ stats to see where they are succeeding and places where they’re missing out on some sales. This is exactly where you can come in and swipe basket abandoners.
It’s crucial you identify trends and anomalies with similar products sold by your competitors – it’s like being able to test and measure without using your own Amazon account.
Jungle Scout is a great tool to look at competitor listings and browse data such as your competitors’ average price, stock sold and average number of reviews. Jungle Scout scrapes data from Amazon, so it is not scientifically accurate on the numbers, but does provide an estimate – Helium 10 is also a similar tool for this kind of research.
You can use Jungle Scout to assess market opportunity for new product launches, understand how companies are performing in their space and view estimates of their sales velocity and volume.
Then, browse your competitor listings and see what you can copy. Why reinvent the wheel? Use what exists to explore opportunities to improve your product pages.
How to Identify My Amazon Product’s USP
You may have a solid product, but Amazon provides a large amount of competition when it comes to similar products. To capitalize on your unique selling point, you should identify your place in the market.
Find your niche by identifying the ‘it’ factor of competing listings that set them apart. Ask yourself, what drives people browsing this page to order one of these products? Can you replicate any of their tactics?
The Amazon search bar is a valuable tool to search out rich keywords and check out the competition. Use this feature to find similar products to conduct your research.
Using single keywords such as ‘DIY’ or ‘gin’ will yield only a few suggested searches (see screengrab above, but shoppers typically quantify what they’re looking for in more detail i.e. ‘DIY pink gin set gift for women’ (see screengrab below for an example of extensive long tail keyword suggestions).
These are long tail keywords and when included in your keyword strategy, this will increase your probability of conversion.
How Do I Make My Listings Profitable on Amazon?
When you launch your Amazon shop, there are a few things to consider.
Due to the commission that Amazon takes from each sale you make (around 15-20%), your profit margin naturally may be quite tight. The additional fee to have Amazon warehouse your product, automating the delivery process, could potentially alter or limit your overall pricing structure.
What makes sense for you to sell online right now? The answer is: sell what’s profitable. Is it summertime? Promote paddling pools, barbeques and sun loungers.
There are also more unusual products that shoppers may be ordering online, largely items for personal maintenance and grooming such as hairdressers/clippers as well as haberdashery items for repairing clothes.
Sell Beyond performed an analysis of the Amazon baskets across Europe for May 2020 and found some really interesting correlations- you can view this here.
Applying for Amazon Brand Registry
How to Create Your Seller Account
You create a Seller account by signing up to Seller Central. Before you do this, make sure you have GS1 barcodes. GS1 barcodes are unique numbers used in barcodes and you must have these when selling on Amazon (these need to be purchased each year).
Amazon Brand Registry
Then you can apply for Amazon Brand Registry. Brand Registry is a great way to eliminate third-party sellers from making a profit from your product, narrowing your competition to just competing brands. This works for products that you own, have either manufactured or you have imported and are rebranding. This gives you the title of Authorised Seller on Amazon.
Trademark registration costs can vary, depending on whether you go to a lawyer or through the government website, although the latter is more cost-effective. Once your application has been approved, no-one else can sell your brand on Amazon, as you own the trademark.
Amazon Product Pages
How Do I Improve My Amazon Pages?
- Highlight your ‘hero’ products, put your time and money into the products that give you the most profit. Use the 80:20 rule, focusing on which actions you can take which make the most difference.
- Decide what the ideal customer does and modify your product page accordingly:
Do they buy the product multiple times? Make sure you have listed all the product variations (size, colour) on the same page rather than have multiple product pages for similar items. This will funnel all your customers into the one page where they can buy again.
- Can customers buy other parts of the range at the same time? Have you told your customers about your product range? A+ content allows you to show consumers other products in your range. You can add links to the other product pages, tell people about the benefits and differences in features across your range.
- Is it possible for customers to upgrade to the most expensive version of the product you sell? Do they know about it? This may be a variation, or an upsell through the A+ content. Make sure customers are aware of their choices.
- Are customers able to subscribe? Make each page reflect this clearly, and consider adding a ‘Subscribe & Save’ option at the top of the listing.
- Check you have enough stock. Really. You don’t want to have business booming after optimising your listing when you don’t have the stock to back it up. Not only is this annoying for customers, but this also lowers your ranking on Amazon massively. This will negatively affect the number of people who reach your page and in turn, buy your product.
For more information on e-commerce and how to get the most out of Amazon, check out our summary blogs on our Sell Beyond blog here, or better yet exhaust our playlist of webinars on our YouTube channel SellBeyond.