From Newbie To Ninja: The Newbie Amazon Selling Guide (2)

Amazon Expert

Hi I’m Steven, Founder of My Amazon Guy, a 500+ person Amazon Seller Central agency out of Atlanta, GA. We Growth Hack eCommerce and Marketplaces through PPC, SEO, Design, and Catalog Management.

Welcome to Part 2 of the Newbie Amazon Selling Guide!

In Part 1, we delved into the essential aspects of setting up your Amazon seller account, conducting thorough product research, crafting compelling product listings, ensuring proper product packaging, and managing fulfillment and inventory. Now, in Part 2, we’ll embark on the next crucial steps to becoming a successful Amazon seller, covering:

  • Pricing Strategies and Profitability Analysis: Discover how to price your products competitively while maintaining profitability.
  • Order Processing and Customer Management: Learn how to efficiently process orders, handle customer inquiries, and maintain a positive seller reputation.
  • Marketing and Promotions: Explore various marketing strategies to boost your product visibility and drive sales.
  • Advertising on Amazon: Delve into the world of Amazon PPC (pay-per-click) advertising to maximize your product’s reach.
  • Analyzing Performance and Making Data-Driven Decisions: Understand how to track key performance indicators (KPIs) and make informed decisions based on data.

Whether you’re just starting or have some experience under your belt, Part 2 will provide valuable insights and practical guidance to help you navigate the ever-evolving Amazon marketplace. So, buckle up and get ready to take your Amazon selling journey to the next level!

Newbie Amazon Selling Guide: Marketing & Selling Techniques

Newbie Amazon Selling Guide 2 Ecommerce Marketing

Marketing on Amazon involves a combination of strategies to increase product visibility and drive sales. Here’s a concise guide on marketing inside the site:

  • Optimize Product Listings: Ensure your product titles, descriptions, and images are compelling and include relevant keywords.
  • Keyword Research: Use tools to identify high-ranking keywords related to your product. Incorporate these naturally into your product listing.
  • Amazon PPC (Pay-Per-Click) Advertising: Create targeted ad campaigns using Amazon PPC. Set a budget, bid on keywords, and pay only when a shopper clicks on your ad.
  • Leverage Amazon Coupons and Discounts: Use promotions, discounts, and coupons to attract customers. Amazon often highlights deals, increasing visibility.
  • Encourage Customer Reviews: Positive reviews boost credibility. Encourage customers to leave reviews through follow-up emails or by providing excellent customer service.
  • Optimize for Amazon A9 Algorithm: Understand how Amazon’s A9 algorithm works. Factors like sales velocity, conversion rates, and product relevance impact your product’s visibility.
  • Enhanced Brand Content (EBC): If you have a registered brand, use EBC to enhance your product listings with multimedia content, making them more appealing.
  • Utilize Amazon Influencer Program: Collaborate with influencers in your niche through Amazon’s Influencer Program to reach a broader audience.
  • Participate in Lightning Deals: If eligible, run Lightning Deals to showcase your product with a limited-time discount, creating a sense of urgency.
  • Amazon Live: Utilize Amazon Live to create live-streaming events showcasing your products. This can engage and attract potential customers.
  • Monitor Competitor Activity: Keep an eye on competitors’ pricing, promotions, and customer reviews to adjust your strategies accordingly.
  • Brand Registry: Enroll in Amazon’s Brand Registry to protect your brand and gain access to additional marketing tools. Find out How Amazon Brand Registry Can Help You Succeed in the Marketplace.

Off-Amazon Marketing:

Strategies for marketing outside of the site to bring buyers in are any marketing efforts that are conducted outside of the Amazon marketplace. This can include a variety of channels, such as:

  • Search engine optimization (SEO): Optimizing your website and content so that it ranks higher in search engine results pages (SERPs). This can help you attract more organic traffic to your website and drive sales from outside of Amazon.
  • Pay-per-click (PPC) advertising: Running paid ads on search engines and other websites. This can be a great way to reach a wider audience and target specific keywords that your potential customers are searching for.
  • Social media marketing: Using social media platforms like Facebook, Twitter, and Instagram to connect with your target audience and promote your products. You can also use social media to run contests and giveaways, and to build relationships with influencers who can help you reach a larger audience.
  • Email marketing: Building a list of subscribers and sending them regular emails with product updates, discounts, and other promotional offers. This can be a great way to stay top-of-mind with your customers and encourage them to buy from you again.
  • Content marketing: Creating and distributing valuable content that is relevant to your target audience. This could include blog posts, infographics, videos, and e-books. By providing high-quality content, you can position yourself as an expert in your industry and attract more visitors to your website.
  • Referral marketing: Partnering with other businesses in your industry to cross-promote each other’s products and services. This can be a great way to reach a new audience and generate sales from outside of Amazon.

In addition to these general strategies, there are also several specific off-Amazon marketing tactics that you can use, such as:

  • Affiliate marketing: Partnering with other websites and influencers to promote your products in exchange for a commission on sales.
  • Display advertising: Running ads on other websites and apps.
  • Public relations: Pitching your story to journalists and bloggers to get coverage for your products.
  • Event marketing: Sponsoring or participating in industry events to connect with potential customers and partners.

By implementing a well-rounded off-Amazon marketing strategy, you can reach a wider audience, drive more traffic to your website, and generate more sales from outside of Amazon.

Customer Engagement and Retention:

Amazon sellers can deal with customer engagement and retention in a number of ways. Some of the most effective strategies include:

  • Providing excellent customer service: This means being responsive to customer inquiries, resolving issues quickly and efficiently, and going the extra mile to make sure customers are satisfied. Amazon sellers can provide excellent customer service by responding to customer reviews promptly and thoughtfully, offering refunds or replacements for defective products, and resolving shipping and delivery issues quickly and efficiently.
  • Personalizing the customer experience: Amazon sellers can personalize the customer experience by offering product recommendations based on past purchases, sending targeted email campaigns, and offering exclusive discounts and promotions to loyal customers. Amazon sellers can also personalize the customer experience by responding to customer reviews in a way that shows that they understand the customer’s needs and are interested in providing a positive experience.
  • Building relationships with customers: Amazon sellers can build relationships with customers by engaging with them on social media, participating in forums and online communities, and offering helpful advice and support. Amazon sellers can also build relationships with customers by offering loyalty programs and rewards that encourage customers to keep coming back.
  • Offering excellent products and services: Amazon sellers can offer excellent products and services by consistently meeting or exceeding customer expectations. This means offering high-quality products at competitive prices, shipping products promptly and accurately, and providing excellent customer support.
  • Making it easy for customers to do business with you: Amazon sellers can make it easy for customers to do business with them by having a user-friendly website and checkout process, offering convenient payment options, and providing clear and concise product descriptions. Amazon sellers can also make it easy for customers to do business with them by offering helpful FAQs and tutorials on their website.

By following these tips, Amazon sellers can improve customer engagement and retention, which can lead to increased sales and profits.

Here are some specific examples of how Amazon sellers can improve customer engagement and retention:

  • Respond to customer reviews promptly and thoughtfully. This shows customers that you value their feedback and are interested in providing a positive experience.
  • Offer product recommendations based on past purchases. This shows customers that you are paying attention to their needs and are trying to help them find the products they are looking for.
  • Send targeted email campaigns. This allows you to reach out to customers with specific offers and promotions that are relevant to their interests.
  • Offer exclusive discounts and promotions to loyal customers. This shows customers that you appreciate their business and are willing to reward them for their loyalty.
  • Engage with customers on social media. This allows you to connect with customers on a personal level and build relationships with them.
  • Participate in forums and online communities. This allows you to share your expertise and build relationships with potential customers.
  • Offer helpful advice and support. This shows customers that you are committed to providing them with a positive experience.
  • Offer loyalty programs and rewards. This encourages customers to keep coming back and makes them feel valued as customers.
  • Consistently meet or exceed customer expectations. This means offering high-quality products at competitive prices, shipping products promptly and accurately, and providing excellent customer support.
  • Have a user-friendly website and checkout process. This makes it easy for customers to do business with you.
  • Offer convenient payment options. This gives customers flexibility in how they pay for their purchases.
  • Provide clear and concise product descriptions. This helps customers to understand what they are buying and makes it easier for them to make a purchase decision.
  • Offer helpful FAQs and tutorials on your website. This provides customers with the information they need to do business with you.

Newbie Amazon Selling Guide: Profitability and Growth

Newbie Amazon Selling Guide 2 Profitability

Calculating Product Cost

The product cost is the total amount you spend to acquire and prepare your product for sale on Amazon. This includes the following:

  • Cost of goods sold (COGS): This is the cost of the product itself, including the cost of materials, labor, and manufacturing.
  • Product sourcing costs: This includes the cost of shipping, customs duties, and other fees associated with getting your product to your warehouse.
  • Preparation costs: This includes the cost of packaging, labeling, and other tasks required to prepare your product for sale.

Calculating Selling Price

The selling price is the price you charge customers for your product on Amazon. This price should be high enough to cover your product costs and generate a profit, but it should also be competitive with other products in your category.

To calculate your selling price, you will need to consider your product costs, your desired profit margin, and the prices of similar products on Amazon. You can use a pricing tool like Jungle Scout or Helium 10 to help you research the competition and set a competitive price.

Calculating Profit

Your profit is the difference between your selling price and your product cost. To calculate your profit, simply subtract your product cost from your selling price.

Sample Cost & Profit Calculations

Product: Wireless Headphones

Cost of goods sold (COGS): $25.00

Product sourcing costs: $5.00

Preparation costs: $2.00

Total product cost: $32.00

Desired profit margin: 25%

Selling price: $40.00

Profit: $8.00

Here is the calculation of the selling price:

Selling price = (Product cost) + (Product cost * Desired profit margin)

Selling price = ($32.00) + ($32.00 * 0.25)

Selling price = $40.00

Here is the calculation of the profit:

Profit = Selling price – Total product cost

Profit = $40.00 – $32.00

Profit = $8.00

This is just an example, and your actual product costs, selling price, and profit will vary depending on a number of factors, such as the type of product you are selling, your supplier costs, and the prices of similar products on Amazon.

Additional Considerations

In addition to your product cost and selling price, there are a number of other factors that can affect your profitability on Amazon, such as:

  • Amazon fees: Amazon charges a variety of fees to sellers, including selling fees, fulfillment fees, and advertising fees. These fees can eat into your profits, so it is important to factor them into your pricing calculations.
  • Taxes: You may also be required to pay taxes on your Amazon sales. The specific taxes you owe will depend on your location and business structure.
  • Returns and refunds: Some customers will return or request a refund for their products. This can reduce your profits, so it is important to have a good return policy in place.

Tips for Improving Profitability

There are a number of things you can do to improve your profitability on Amazon, such as:

  • Sourcing products at a lower cost: This can be done by finding new suppliers, negotiating better prices, or buying in bulk.
  • Optimizing your product listings: This includes using high-quality product photos, writing compelling product descriptions, and using relevant keywords.
  • Running Amazon advertising campaigns: Amazon advertising can help you reach more customers and increase your sales.
  • Providing excellent customer service: This can help you reduce returns and refunds, and it can also lead to positive reviews, which can encourage more customers to buy from you.

Competition And Sales Analysis

Once you have a basic understanding of your product costs and profit margins, you can start to analyze your sales data and track your competition. This will help you identify areas where you can improve your profitability and grow your business.

Sales Analysis

There are a number of things you can track to analyze your sales, such as:

  • Sales volume: This is the total number of units of your product that you have sold.
  • Revenue: This is the total amount of money you have generated from sales of your product.
  • Average order value (AOV): This is the average amount of money that customers spend on each order.
  • Conversion rate: This is the percentage of visitors to your product listing who end up making a purchase.
  • Customer lifetime value (CLTV): This is the total amount of money you can expect to earn from a single customer over their lifetime.

You can use a variety of tools to track your sales data, such as Amazon Seller Central, Amazon Business Reports, and third-party analytics tools.

By analyzing your sales data, you can identify trends and patterns that can help you make better business decisions. For example, you may find that you are selling more of one product than another, or that you are converting more visitors from one source of traffic than another. This information can help you focus your marketing efforts and make sure that you are listing your products in the most effective way possible.

Competition Analysis

It is also important to track your competition in order to stay ahead of the curve. There are a number of things you can track to analyze your competition, such as:

  • Pricing: This is the price that your competitors are charging for similar products.
  • Product listings: This includes the product titles, descriptions, photos, and videos that your competitors are using.
  • Reviews: This is the number and rating of reviews that your competitors’ products have.
  • Advertising: This is the type and amount of advertising that your competitors are using.

You can use a variety of tools to track your competition, such as Jungle Scout, Helium 10, and Seller Labs.

By analyzing your competition, you can identify ways to differentiate your products and services. For example, you may find that you are able to offer lower prices than your competitors, or that you have a better selection of products. This information can help you attract more customers and grow your business.

Additional Considerations

In addition to sales analysis and competition analysis, there are a number of other things you can do to improve your profitability and grow your Amazon business, such as:

  • Expanding your product line: This can help you reach a wider audience and increase your sales.
  • Improving your customer service: This can help you build customer loyalty and reduce returns and refunds.
  • Internationalizing your business: This can help you tap into new markets and grow your sales beyond your local area.

Long-Term Growth Strategies

In addition to the day-to-day tasks of managing your Amazon business, it is also important to develop long-term growth strategies. These strategies will help you ensure that your business is sustainable and that you are able to achieve your long-term goals.

Here are a few long-term growth strategies for Amazon sellers:

  1. Expand your product line: One of the best ways to grow your Amazon business is to expand your product line. This will give you more opportunities to reach new customers and increase your sales. When expanding your product line, it is important to focus on products that are complementary to your existing products and that are in demand by your target audience.
  2. Improve your customer service: Customer service is essential for any business, but it is especially important for Amazon sellers. This is because Amazon customers have high expectations for customer service, and they are quick to leave negative reviews if they are not satisfied. By providing excellent customer service, you can build customer loyalty, reduce returns and refunds, and encourage repeat purchases.
  3. Internationalize your business: If you are only selling your products on Amazon.com, you are missing out on a huge opportunity to reach new customers. Amazon operates in a number of countries around the world, and you can easily sell your products in these countries. To internationalize your business, you will need to translate your product listings, comply with local regulations, and set up a shipping and fulfillment process that can handle international orders.
  4. Invest in Amazon advertising: Amazon advertising can be a great way to reach new customers and increase your sales. There are a number of different types of Amazon advertising, including Sponsored Products, Sponsored Brands, and Display Ads. Experiment with different types of advertising to see what works best for your business.
  5. Build your brand: Building a strong brand is essential for long-term success on Amazon. A strong brand will make your products more recognizable to customers and it will encourage them to choose your products over the competition. To build your brand, you can create high-quality product listings, use Amazon Stores, and participate in Amazon Vine.
  6. Diversify your sales channels: In addition to selling on Amazon, you should also consider selling your products on other channels, such as your own website, other online marketplaces, and brick-and-mortar stores. This will help you reach a wider audience and reduce your reliance on Amazon.
  7. Stay up-to-date on Amazon’s latest policies and procedures: Amazon is constantly changing its policies and procedures, so it is important to stay up-to-date on the latest changes. This will help you avoid penalties and ensure that you are compliant with all of Amazon’s requirements.
  8. Use Amazon’s tools and resources: Amazon offers several tools and resources to help sellers succeed. These tools and resources can help you with everything from product research to marketing and fulfillment.

Read our blog post, Empowering Information For Maximizing Your Amazon FBA Profitability and Income and watch this video below to know more.

Newbie Amazon Selling Guide: Indexing and Ranking

Understanding Indexing and Ranking on Amazon

Indexing and ranking are crucial aspects of How to get to the first page and first locations/places in my product’s niche on the sales platform. Indexing refers to the process of adding your products to Amazon’s search index, making them discoverable by potential customers. Ranking, on the other hand, determines the order in which your products appear in search results, influencing their visibility and click-through rates.

Factors Affecting Indexing and Ranking

Several factors influence the indexing and ranking of your products on Amazon:

  • Product Title: Your product title should be clear, concise, and accurately represent the product. Include relevant keywords that potential customers might use to search for similar products.
  • Product Description: Provide a detailed and informative product description that highlights the key features, benefits, and specifications of your product. Use keywords naturally throughout the description.
  • Product Images: Include high-quality, well-lit product images from different angles to showcase the product’s features and appeal to potential buyers.
  • Product Reviews: Positive customer reviews can significantly boost your product’s ranking. Encourage customers to leave reviews by providing excellent customer service and addressing any concerns promptly.
  • Product Categories: Choose the most relevant product categories for your products. This ensures they appear in the correct search results and reach the intended audience.
  • Keyword Optimization: Utilize relevant keywords throughout your product title, description, and backend search terms. Research trending keywords and use them strategically to enhance product visibility.
  • Sales Velocity: Products with a consistent sales history tend to rank higher in search results. Encourage sales through promotions, discounts, and effective marketing campaigns.
  • Price Competitiveness: Competitive pricing can attract more buyers and boost sales, ultimately improving product ranking.

Strategies for Enhancing Indexing and Ranking

To enhance indexing and ranking on Amazon, consider these strategies:

  • Regular Listing Optimization: Regularly review and optimize your product listings, ensuring they are up-to-date, informative, and keyword-rich.
  • Targeted Advertising: Utilize Amazon’s advertising tools, such as Sponsored Products and Sponsored Brands, to reach a wider audience and target specific keywords relevant to your products.
  • Price Optimization: Monitor competitor pricing and adjust your prices accordingly to maintain competitiveness and attract buyers.
  • Inventory Management: Maintain sufficient inventory to avoid stockouts, as out-of-stock products receive lower rankings.
  • Customer Engagement: Respond promptly to customer inquiries, address concerns effectively, and encourage positive reviews to boost product credibility and ranking.
  • Vendor Central vs. Seller Central: Consider using Amazon’s Vendor Central if you have a large product catalog or a strong relationship with Amazon. Vendor Central offers more control over product listings and pricing.

Watch these videos to know more: