I shared the basic information you need to start selling on Amazon in the first two issues. If you want to sell online in the UK, your sales channel is not limited to Amazon. You can also use marketplaces such as Ebay, ETSY, your own website, social networks such as Instagram and Facebook in order sell your products online.
The main reason for me to prioritise Amazon is that Amazon offers equal opportunities for every vendor. What I mean to say by the expression ‘equal opportunities’ is that if you are not born in the UK or if you haven’t lived in this country for a long time, you are naturally unfamiliar with a lot of important information, such as country’s culture, purchasing habits, and the factors that affect consumers’ purchasing decisions. Even if you speak English very well, if you do not have a substantial knowledge and experience of the culture in this country, you will have difficulty with being effective in digital marketing.
You need to have a brand, in order to be able to sell with your own website and social media accounts. By brand, I do not just mean a company name and logo, but a brand language, content and communication strategy that will make people choose you. If you do not have professional knowledge of the things I mentioned, an agency or consultant should do all of this on your behalf. This means an extra investment cost.
Building your website, managing the site’s Google ads, and undertaking SEO optimisation will enable your site to rank high in organic search results. You must have financial resources for all of these and incur these costs before making any sales.
Resource is not enough on its own
Allocating resources solely for marketing and advertising is not going to be enough for you. If you are not planning to enter into online sales as a hobby, you should create a certain volume with your monthly sales. When you consider the stock you need to build this volume, the cost of the warehouse to store your products, the management of the warehouse and the cost of human resources to send the products to customers after the sales, it is not hard to predict how high your investment is going to be, until you can make your products saleable.
With the Amazon FBA sales model, you can overcome all these challenges, and reduce the costs I mentioned above, to zero. How? Let’s elaborate on this a little bit;
If you have an individual Amazon Prime membership and shop several times a year on Amazon, even if not more often, you may have noticed that the decision to buy for most products is not based on the brand of the product you purchase, but on the impact that Amazon has created for you.
The fact that it’s easy to find a product you are looking for on Amazon, the availability of detailed information about the product, and the option to view the product with comprehensive pictures, also the ability to compare the product with alternative products and availability of user reviews enable Amazon to create an impact for you. This in turn makes your purchase decision much easier.
Most important of all, as an Amazon Prime customer, if you decide to return the product you purchased, or have problems with it, you will be able to return the product without any issues. All of these mean that Amazon users place their trust firstly with Amazon, before the brand of the products they buy on Amazon.
This trust, created by Amazon amongst its users, brings an opportunity for new and small businesses. Of course, you will need time for your products to start selling, get positive reviews and become competitive among their rivals, as soon as you start selling on Amazon. However, in this process, you will not have to make an investment for a warehouse and extra human resources. You won’t face any costs of digital marketing. You will try to sell your products with Amazon ads instead of Google ads.
You need ads
Amazon is a great opportunity to overcome the disadvantages of not knowing the country and the market. The only thing that you need to do as an Amazon reseller is to determine the selling potential of your product on Amazon and analyse the rights and wrongs of existing vendors who sell that product, and sell your product on Amazon.
You can access one of the technical tools for analysing the products you intend to sell on Amazon at http://bit.ly/amazonanaliz. You can easily find out the number of monthly sales of any product you see on Amazon, by using this tool. This will allow you to decide whether the product is right for sale or not, and when you decide to sell it, how many products you need to buy from the supplier and send to Amazon.
After you source the product you decide to sell, you can send it in bulk to one of Amazon’s warehouses. The products will be ready for sale after entering the Amazon warehouse, and you won’t have to deal with the delivery of the orders to your customer. All you need to do is manage your ads, any product related questions, and your stock, through the Amazon reseller screen.
Products similar to the one you will sell on Amazon are probably already sold by other vendors. As I mentioned earlier, in order to be seen first by Amazon users, which means in order to appear on top of the searches conducted by users, you’ll need Amazon ads. You can provide traffic to your product page with your Amazon ads. At this point, I would like to give you some important advice; since your product is new, there will be no customer reviews on your page. No matter how good your product might be, the lack of positive comments on the product page will make it difficult for customers to make a purchase decision. What you need to do is to keep the price of the product lower than its competitors initially, to make it easier to sell at the low price.
Monitor your stock
As your products sell more, Amazon will algorithmically move your product upwards in the search results. As customers become satisfied with the product and leave comments, customers who consider your products, make their decision to purchase much easier. The strategy you should apply to products you want to start selling consists of an active advertising campaign, to suit your budget, and low pricing. Then you can gradually increase the price, as sales and the number of product reviews increase.
An important matter that you should also be paying attention to, during these advertising and sales processes, is that as your product stock goes down, you should try sending new products to the Amazon warehouse, and never let your stock level go down to zero. If you’re importing your products from Turkey, or any other country, you should effectively manage the supply chain, i.e. the process of ordering from the supplier, shipping and sending it to Amazon warehouse in good time.
I will share some more detailed reviews and tips on the subjects I have covered so far, in my next article. Until then, you can follow my Amazon FBA sales experience on Muratbuyurgan.com and my social media accounts and send me any questions you might have.