5 Ways to Gain a Competitive Edge on Amazon
Published by Abbi in Amazon
The Amazon marketplace is constantly growing and with it so is the competition. With increasing numbers of people selling products on Amazon, it is becoming more difficult to make a business stand out. Below are five suggestions to give your site the boost it needs and help improve sales and marketability.
1. Be objective and trust data
Whilst it's important to be passionate about your products, it's also important not to let emotions cloud your judgement. Sometimes items you thought would be best sellers aren't. Make sure you are constantly looking at data to see which of your products are performing best. Don't waste your time or capital on underperforming items.
2. Supplier relations
Creating and maintaining good relationships with suppliers is key to running a profitable business. It can also be mutually beneficial for both parties when a long term commitment is formed. Gaining a solid foundation with a supplier can lead to improved negotiations on prices and return options, benefiting profit margins. If you can, getting brand exclusivity with a supplier will also help boost your sales as it completely limits the competition. Make sure you create good relationships with a few suppliers though, as you should have options in case problems arise with one.
3. Know all your costs
Just tracking revenue won't give you a full picture of how much you are actually earning and what practices are working best. It's essential to know what your costs are across all parts of your business to get a full idea of where exactly your money is going. Small details such as the cost of shipping and returns, ad money and even electricity have an impact on profit margins. Once you work this out, you can more easily see which spends are being effectively used.
4. Invest in your store
If you are a reseller, consider adding a private label to your store. This can be risky as an initial investment but tailoring your market towards a niche can give your business exclusivity. Also think about investing in marketing practices that will help boost your company. Amazon Sponsored Products are a prime opportunity to easily get your product out there.
5. Try more channels
If you are only using one channel to sell from, you are potentially limiting the amount of sales you could be making. Think about utilising FBA and selling your products on other Amazon markets, such as within Europe or the US. You may find your product has a niche there. There are also other selling platforms that may work well for your products, such as eBay, Facebook or even setting up your own shop site. Do some research and see if any of them work well for you.