Amazon as a selling channel can be a huge opportunity for businesses already operating on e-commerce to expand. It’s also an intriguing method to begin selling the latest product or brand. But the days of little work and huge sales are now over. In the last few years, we’ve launched and grew several brands on Amazon, so I’m reaching out and assisting all businesses considering launching on Amazon. If you’re looking to perform great on the platform and you don’t want to be a victim, examine these three boxes instantly:
price sensitivity
The cost on an Amazon product is often the most crucial factor (besides the reviews of customers), which determines whether someone is likely to purchase it. The sensitivity to the price to be fair and low is greater on Amazon than when you shop in your online store. Therefore, it would help if you examined your product’s category price average before launching your new product on Amazon.
If you have an established brand that is popular within your market, this is the only way an above-average price can be effective. If not, you stand low chances. When you launch, I suggest discounts of 10% to 20% or a price cut to increase your rankings and sales even if it implies that you will not earn any money from these initial sales.
Stock Management
Never be closed on Amazon! This happened because of supply shortages during the pandemic. Also, reactivating sales of a product that has sold out is much more complex than launching a completely new product. You can lose your rank and subscribers, and you must stop every PPC campaign.
Suppose your inventory is becoming smaller, and you can only maintain the sales if you are sold out. In that case, concentrate on organic sales (reduce PPC campaigns to a minimum) and increase the price of your product since the possibility of pumping out just 50 percent of your daily sales is better than being rapidly sold out.
An Investment Mindset
Launching your business on Amazon will always be an investment, and you need to become used to having months or even weeks of little or no income.
The launch phase is about achieving the first sales, enhancing the position of your product on the market, and proving that your product is in line with the demands of your targeted segment. Even if your product has an income of up to 50% after considering all Amazon costs (which is a great deal), you’ll need to consider giving discounts like the ones mentioned above as well as paid campaigns. Generally costly. For instance, Omega-3 capsules are a category on Amazon packed with quality products with an impressive track record of sales. According to our experience, in terms of advertising costs for this kind of product, you will need to shell out around 3-5 EUR per click! Even if you’ve got a high conversion percentage, you’ll be required to pay between 15 and 25 euros for just one advertisement sale.
Read the article thoroughly and examine every aspect of the product(s). It is essential to have the exact figures of your product, which includes all costs that will come your way, primarily if you sell it on Amazon. The highest price is associated with the Amazon fee (15 percent of sales) and shipping charges since you must offer no-cost shipping through Amazon. The shipping cost is based on the item amount; however, they are usually between 3-5 EUR.
Of course, it is essential to verify the category of your product as well. Check the price and read all reviews to understand the preferences and needs of the people you want to target.
