You’ve been thinking about becoming an Amazon seller, but you’re not sure where to start. There are thousands of sellers on Amazon today, so breaking into such a heavily saturated competitive market can feel overwhelming for newcomers.
But you shouldn’t let the competition scare you off. In fact, the competition should invigorate you. The sheer volume of sellers on Amazon proves that you can make a steady living with an Amazon business.
So what should you focus on if you’re just starting out selling on Amazon? How can you break into the market and set yourself up for long-term success?
If you’re a new reseller on Amazon, there’s one key aspect to Amazon selling: the Buy Box. The Buy Box is the box on the side of the product listing where customers add the item to their cart. This box shows the multiple sellers of a given product, and customers can choose from whom they’d like to purchase based on price, seller ranking, and item condition. In order to appear in the Buy Box, you need to meet certain performance-based requirements.
“Winning” the Buy Box means being the first and primary seller the customers will see on the product detail page. There are five major components to winning the Buy Box:
So what can you do to win the Buy Box and boost your business’ sales as a new Amazon reseller?
If you haven’t sold a product on Amazon before, you’ll likely find trouble gaining traction with new products. Getting an influx of sales attached to your seller account should be your first priority.
Selling a low competition item allows you a better opportunity to win the Buy Box and gain more sales for future products. An increase in sales and reviews will boost your overall seller ranking. With a strong seller ranking, you have the backbone to break into more competitive products.
Another option for boosting your sales and seller ranking is offering a lower price on a competitive product. If you offer a low price, you have a better chance of winning the Buy Box and attracting bargain shoppers. From here, you can gain a high number of sales, thus increasing your sales history and ranking. Once you have the ranking you need, you can start selling other products and raising your prices on competitive products.
Note that this is an effective method of improving seller ranking, but it’s not always optimal for branding purposes. You don’t want to sacrifice quality of your products in order to offer a lower price. Having low-quality products will result in high returns and poor reviews, which can hurt your seller account in the long-term. Thus, you should only take the “low price” route if you have a strong supplier relationship and are willing to make minimal margins at the beginning of your business growth.
Once you improve your seller ranking, you’ll want to reevaluate your product portfolio. The products you offer will define your brand moving forward. The best types of products to resell as a new Amazon seller are:
If you are selling private label products, you want to partner with a tight-knit community of sellers. This ensures that the private label you sell always has a strong brand image and loyal following. For example, HomeRev sellers adhere to specific branding and growth plans to ensure that the HomeRev name always has positive associations and reviews.
Fulfillment By Amazon is a service provided by Amazon that stocks, stores, picks, and sends your goods for you. They will also handle shipping, customer service, and returns after a customer has made a purchase. Although FBA will slightly cut into your margins, it’s ideal for new sellers who are still getting a hang of the operations process.
Amazon has some of the best customer service in the world. Amazon FBA can help you improve your rankings and metrics, ensuring your customers remain happy and leave positive reviews—which helps you win the Buy Box.
Moreover, FBA makes your products Prime Eligible. Amazon customers are loyal to Prime and will often buy only from sellers who offer Prime shipping. Amazon doesn’t allow new merchants to offer specialty shipping methods, so FBA is a way to quickly overcome shipping barriers.
You’re not just a seller; you’re a brand. You should promote your business off of the Amazon platform. This includes having your own website, blog, and social media accounts where you can market your business freely.
With thousands of sellers on Amazon, you can easily get lost in the shuffle. Make yourself stand out by differentiating yourself off of the Amazon platform.
You should also differentiate yourself on the Amazon platform. This means you should always have optimized product listings. Listing optimization is the strongest way to attract and convert customers on Amazon. If you don’t optimize, your products and brand won’t be seen.
It’s important to note that you’ll often “share” your product listings with other sellers. This means you can use their listings if you have the same product—and they can use your listings. In this way, private label or unique products allow for more optimization control.
Learn more about product listings with our partner Seller’s Choice:
As a new seller, watching your numbers is crucial. You should understand your market and competition for your overall brand and for each individual product. You want to know the appropriate keywords in your industry and the buying behaviors of your consumers.
You should also be watching your sales, inventory levels, and margins closely. The finances are more than COGS and revenue. Track each number, fee, and sale in-depth.
From there, you should perform a consistent audit and analysis to stay up to date on your business. Data is your key to long-term growth.
Reselling on Amazon can be risky, but there are thousands of sellers making a substantial living on the Amazon platform. The best way to learn how to resell on Amazon is to model sellers who have already seen success. Find a mentor and company who can lead you through each process in a personalized, customized way.
Our team at HomeRev has been through it ourselves. We sell our products firsthand. We have learned what does and doesn’t work, and we’re constantly continuing to improve our operations and processes.
We are Amazon sellers providing products and expertise to other sellers. If you’re a new reseller, we look forward to giving you our tools, resources, our products.
Contact us now to build a partnership with HomeRev. Learn from experienced sellers who have seen success and growth firsthand.