Advantages of Brand Selling on Amazon
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Are you still unsure about launching your brand on Amazon? It is natural to carefully consider the advantages and disadvantages of selling on Amazon. It requires courage and determination to begin your business on this platform, given the intense competition and strict regulations that must be followed.
It is important to note that Amazon has consistently supported third-party sellers in building their businesses and expanding their clientele, regardless of whether they have registered brands or not. This serves as strong proof of the marketplace’s remarkable capability to empower businesses and promote their prosperity. To gain further insights, the following article will delve into the key advantages of selling on Amazon.
1. The customer base of Amazon is consistently expanding and has a significant size.
Since Amazon began allowing third-party sellers, the volume of customers purchasing on this marketplace has significantly grown, solidifying its position as one of the largest eCommerce platforms globally. With its current reach to over 100 countries, Amazon has become the preferred choice for online shopping among a larger audience compared to other platforms.
As the COVID-19 pandemic began, individuals were compelled to remain indoors and utilize online shopping for their essentials. This significant change in consumer behavior has significantly contributed to the increase in sales and more than 2 billion monthly site visitors for Amazon in the first half of 2021. This demonstrates the vast reach of potential customers that Amazon sellers can target globally.
In spite of the pandemic and its resulting impact on global supply chains, Amazon remained a reliable online marketplace for numerous customers.
2. Amazon provides a range of options that can assist in the growth and safeguarding of brands.
Amazon offers a range of programs, resources, and tools to assist in the expansion of businesses. These are readily accessible to sellers, with certain ones exclusively reserved for registered brand sellers. As an Amazon brand seller, you can take advantage of several noteworthy features.
Central for Amazon Sellers
After successfully setting up a selling account on Amazon, Seller Central becomes the gateway to access your account. Through this portal, users can access various useful tools and content, as well as track their sales activity. For those who prefer using their tablet or phone, the Amazon Seller app can be downloaded to access their account.
By utilizing Amazon Seller Central, you have the ability to make modifications to your product listings, monitor your inventory, and oversee your payments, returns, and refunds. Moreover, it provides the functionality to generate business reports, keep track of customer reviews, and manage features such as Fulfillment by Amazon (FBA) and Amazon Custom.
In order to expand your market globally and sell your products, you can utilize the Amazon Global Selling feature on Seller Central.
University for Sellers
Before beginning to sell on Amazon, it is important to educate yourself about the platform. One way to do this is by utilizing the resources available at Seller University. This platform offers a variety of articles and short videos that are specifically designed for both new sellers and established brands. These resources can assist you in effectively managing your online store on Amazon. Additionally, you can also refer to the frequently asked questions section, which provides valuable information and answers to common queries, helping you stay well-informed.
Protection and Registration of Brands
The Amazon Brand Registry safeguards your intellectual property by utilizing tools such as automated protections and the recently introduced Impact dashboard to eliminate potentially harmful product listings. Additionally, it provides support for the Brand Registry, offering aid in resolving issues related to product listings, policy violations, and other concerns.
Advertising on Amazon
The promotion of your Amazon enterprise is a vital aspect of its establishment. This will aid in reaching out to potential customers and consistently fulfilling their needs with your merchandise and services. Amazon presents three types of cost-per-click advertisements: Sponsored Products, Sponsored Brands, and Sponsored Displays. These campaigns can be efficiently managed through Amazon Seller Central.
3. Companies that market their products on Amazon have the opportunity to reach millions of Prime members.
The subscription-based platform, Amazon Prime, offers exclusive benefits to its users, including Prime Video, Prime Music, and most notably, speedy delivery services. Amazon guarantees speedy delivery within two days or even on the same day, which adds to the convenience and appeal of online shopping for customers.
As of 2021, it was reported that Amazon had 200 million Prime subscribers, and this figure is expected to increase due to the increasing satisfaction of customers with the services provided. The eligibility for Prime membership is also considered a key factor for customers when making purchases.
If Prime shipping is not available, customers are more inclined to seek out alternative brands. It may be beneficial for sellers to also apply for Amazon FBA, which provides the opportunity for two-day free shipping through Prime, as well as other perks like free shipping for eligible orders and assistance with managing FBA inventory.
An alternative option is to participate in the Seller-Fulfilled Prime program, where sellers have the ability to ship products directly to domestic Prime customers from their own warehouses.
4. Amazon’s advanced search engine is designed to assist customers in locating your products.
Customers primarily utilize the search engine to find the items they desire. As a result, the online retail platform has created its own search engine that utilizes specialized algorithms to meet the needs of shoppers.
The A10 algorithm is utilized by Amazon to rank product listings, taking into consideration a variety of factors such as the sales record, reliability of the seller, conversion rate, reviews, and click-through rate.
In order to achieve a high position on the SERP, it is necessary to come up with and execute a range of SEO techniques, including incorporating appropriate keywords, crafting engaging content, uploading top-notch images, and obtaining legitimate positive reviews. Another effective way to boost traffic to your product listings is through utilizing Amazon ads.
5. Utilizing Amazon FBA makes selling on the Amazon marketplace a simple and hassle-free process.
The Amazon marketplace provides a smooth and effortless process for selling, especially when utilizing Amazon FBA. Here’s the breakdown:
Amazon is responsible for all logistics and storage duties, including picking, packing, and shipping of goods. They also handle customer service matters, such as refunds and returns. Sellers can take advantage of Amazon’s fulfillment centers for storage. By enrolling in Amazon FBA, sellers have a better chance of getting approved for the Amazon Buy Box, which showcases products and enables customers to quickly purchase items through the “Buy Now” option.
6. Companies who own a brand have unique resources to enhance the recognition of their brand.
Brand owners enrolled in Amazon’s Brand Registry program are highly valued by the company. As a result, Amazon is constantly working to introduce new features that can assist these brands in increasing their sales and brand recognition. If you are a registered seller, there are several tools available on the platform for you to utilize.
High-Quality A+ Content
Once you have set up a sales account on Amazon, the next task is to generate your initial product listings and start selling your merchandise. When creating a listing on Amazon, it is important to include the product’s title, features in bullet points, a detailed description, images, and delivery details.
By utilizing Brand Registry, you will have access to unique tools for promoting your brand, such as Premium A+ Content. This functionality allows you to enhance the content of your product listings with visually appealing elements. Through the use of additional text, images, and videos, you can attract potential customers and increase the likelihood of them purchasing your product.
Analytics for Brand Analysis
Amazon Brand Analytics can be accessed through Seller Central and is a valuable resource for registered brand merchants to make strategic choices for their businesses. The tool produces detailed insights about customer actions, such as conversions and repeat purchases, to aid in decision-making.
The data of interest can be obtained by Amazon sellers via the Brand Analytics dashboards, which encompass information such as Search Catalog Performance, Top Search Terms, and Repeat Purchase Behavior.
Final Remarks
Running an eCommerce shop can be challenging, regardless of the platform you choose to use. However, opting to sell on Amazon offers a distinct advantage in terms of expanding your business and creating a strong brand identity. By starting your Amazon selling endeavor as a brand, you can tap into its large customer base, Prime membership, and useful resources, programs, and services.
If you are considering launching your brand’s products on Amazon, it would be beneficial to seek the assistance of a professional agency, such as Seller Interactive, to help you obtain brand protection services. With our experienced teams, we can assist you in handling hijackers and counterfeiters, ensuring that they do not harm your sales or brand image.