Tag: selling on Amazon

5 Ways to Use ChatGPT as an Amazon Seller

What is ChatGPT?

In recent months, ChatGPT has garnered significant attention due to its versatility and wide range of applications. This AI chatbot can be utilized for various purposes, including writing tasks such as essays, poems, blog articles, and even music composition. It also proves valuable for coding and debugging, text translation, data set discovery, complex question answering, math equation solving, and more. This makes it a great tool for Amazon sellers who want to improve their customer service and marketing efforts.

As with any new technology, ChatGPT has both pros and cons.

Pro: It is a powerful tool for automation and efficiency.

Con: At its core, it is still a machine.

ChatGPT lacks the capacity for nuanced understanding, critical thinking, and emotional intelligence.

Despite its limitations, ChatGPT can be an invaluable marketing tool for Amazon sellers when used appropriately and strategically. Below, we outline five effective ways to boost Amazon sales using ChatGPT:

Boosting Amazon Sales Using ChatGPT: 5 Effective Strategies

Generate Product Listing Copy

Compelling product descriptions play a vital role in enticing visitors to make a purchase. If writing them from scratch seems daunting, ChatGPT can assist in generating content for new listings, including titles, bullet points, and product descriptions that highlight features and benefits. For instance, a prompt like “Create an Amazon listing title for a set of bamboo bed sheets” can be a starting point for ChatGPT to generate relevant content.

Optimize Listings with Keyword Research

Creating quality content and optimizing product listings are crucial for a successful Amazon store. While there are online tools available for keyword research, they can be expensive and require a learning curve. ChatGPT can assist by generating a list of high-volume keywords for free. Simply provide a product-related prompt, like “create a list of keywords for an Amazon ad on bamboo bed sheets.” Although it may not be as comprehensive as dedicated tools, it offers a starting point that can be fine-tuned to specific requirements. This feature is useful for new listings or optimizing existing ones.

Leverage Social Media

Influencers

Leveraging social media influencers can significantly impact product sales in the eCommerce sector. However, identifying suitable influencers can be time-consuming. ChatGPT can simplify this process by searching for influencers within specific criteria. You can instruct ChatGPT to “Find influencers with 20K to 75K followers on Instagram in the home and lifestyle niche.” Once you have a list with contact information, ChatGPT can even help draft an outreach message to engage with these influencers.

Social Media Content

Social media remains a crucial platform for promoting Amazon products, whether or not influencers are involved. Engaging social media posts can effectively advertise new products or entice first-time buyers to try your brand. ChatGPT can assist in creating social media content by providing text, images, captions, and hashtags. For example, you can instruct ChatGPT to “Create social media content for a bamboo bed sheet promotion and offer a $5 coupon to first-time customers using the code BAMBOO5.” This helps drive customers to your listing and encourage conversions.

Create Advertising Content

Sponsored brand ads that appear in relevant Amazon search results are a popular method for sellers to reach more customers. Crafting compelling headlines is crucial for effective ads. When you find yourself lacking inspiration, ChatGPT can help by generating a list of headlines. Make sure to provide necessary guidance, such as character count limits, by instructing the chatbot to “Write a headline of 60 characters or less highlighting the benefits of my Bamboo bed sheets.” Even if the initial results aren’t perfect, a few adjustments can refine them to your liking.

Provide Timely Customers Service

Promptly addressing customer inquiries and concerns is crucial for maintaining customer satisfaction, especially when dealing with negative experiences. However, it can be challenging to respond to dissatisfied customers while maintaining a professional and empathetic tone. ChatGPT can assist in drafting personalized responses that address the customer’s concerns in a courteous and helpful manner.

To utilize ChatGPT for this purpose, you can provide a prompt like, “A customer is unhappy with the bed sheets they purchased from me and wants a refund or product replacement. How do I respond?” By leveraging ChatGPT’s capabilities, you can draft a well-crafted and tailored response that shows your commitment to resolving the issue and ensuring customer satisfaction.

Conclusion

Using ChatGPT for Amazon marketing provides valuable support and inspiration, giving you an edge with your Amazon seller account. While ChatGPT won’t handle every aspect of your marketing strategy, these tools can prove beneficial in generating ideas and content. If you find that the information provided by ChatGPT doesn’t fully meet your needs, try adjusting your prompts. By exploring its potential as an Amazon marketer, market researcher, copywriter, and more, you can obtain different outputs and uncover valuable insights.

It’s important for marketers to experiment with these tools, even if immediate value isn’t apparent. By familiarizing yourself with ChatGPT and similar AI technologies, you’ll gain valuable experience and stay ahead of the curve. So, take advantage of ChatGPT’s capabilities to enhance your Amazon marketing efforts and discover new possibilities for growth and success.

Stay tuned for an exciting announcement from Viral Launch! Coming soon, our revolutionary AI-powered Amazon seller tool will transform your selling experience and supercharge your success.

Amazon’s Strategy Shift: Regional Warehouses and Faster Delivery Impact on Search Results and Customer Experience

In a bid to prioritize delivery speed and enhance customer experience, Amazon has undergone significant changes to its logistics strategy. Recent reports indicate that the e-commerce giant is now focusing on regional warehouses to streamline its shipping process. We will explain this potential change, highlighting Amazon’s shift from a national to a regional model and its potential impact on search results. Let’s delve into the details.

Amazon Strategy Shifts

The Push for Faster Delivery

Amazon’s Vice President of Transportation, Udit Madan, has emphasized the company’s commitment to accelerating the delivery process. By expanding its warehouse footprint, Amazon has increased its ability to ship items within specific regions of the United States at a faster pace. The company’s efforts to revamp its delivery and inventory systems during the pandemic have played a crucial role in achieving this goal. According to Madan, Amazon’s data reveals a strong correlation between delivery speed and customer retention, underscoring the importance of efficient logistics operations.

Embracing Regional Warehouses

To optimize its delivery network, Amazon has divided the United States into eight regions, strategically locating regional warehouses across the country. The rationale behind this approach is to store commonly ordered items in each region, allowing for more localized and cost-effective shipping. By leveraging the increased warehouse space, Amazon aims to minimize the distance items travel between fulfillment centers and customers. The shift from a national to regional model reflects the company’s desire to reduce costs while capitalizing on the improved proximity to customers.

Impact on Search Results

One notable aspect of Amazon’s regional warehousing strategy is its potential influence on search results. The company may prioritize items that are geographically closer to a user when displaying search results. By doing so, Amazon aims to expedite shipping times and reduce associated costs. While this change could benefit customers by offering faster delivery, it raises questions about how it may affect sellers, particularly smaller ones. Larger sellers with products available across multiple regions may have an advantage over smaller sellers who cannot distribute their products as widely.

Increased Efficiency and Customer Satisfaction

Amazon’s efforts to establish regional warehouses and streamline its logistics network have resulted in notable improvements. The company now reports fulfilling 76% of orders from a warehouse within the same region as the customer, compared to 62% in the previous year. Additionally, the distance items travel between fulfillment centers and customers has decreased by approximately 15%. The expansion of same-day delivery centers, which store essential items for quick delivery, has also contributed to enhanced efficiency. Madan reveals that the use of same-day delivery has grown by 50% in the first quarter of 2023, with an increasing number of customers opting for this expedited option.

Conclusion

As Amazon continues to prioritize delivery speed and improve its logistics network, the shift towards regional warehouses has emerged as a significant development. By placing items closer to customers and reducing shipping distances, the company aims to offer faster and more cost-effective deliveries. While the impact on search results remains to be fully understood, the growing emphasis on regional warehousing is undoubtedly transforming Amazon’s fulfillment capabilities.

In the ever-changing landscape of Amazon and its dynamic search result placement algorithms, sellers need reliable tools. With Viral Launch’s comprehensive suite of Amazon seller tools, sellers can confidently navigate any changes thrown their way. From product research and keyword optimization to listing optimization and product launch services, Viral Launch equips sellers with powerful insights and data-driven strategies to compensate for any potential losses in search result placement. By leveraging Viral Launch’s tools, sellers can stay ahead of the competition, identify profitable opportunities, and optimize their listings to maximize visibility, ultimately driving sales and achieving long-term success.

Viral Launch is here to help you understand and adapt to the ever-evolving Amazon strategy!

Amazon Removes Editorial Recommendations: How Brands Can Adapt

In recent news, Amazon has made a significant change that has slid under the radar and gone unnoticed by many. Amazon has removed editorial recommendations from its search results. This change has forced some brands to pivot their marketing strategies and focus on other methods to get their products seen.

What are (or were) Amazon editorial recommendations?

The editorial recommendations on Amazon have been a valuable tool for both brands and consumers alike. Positioned prominently on the first page of search results, these recommendations showcase a curated selection of items that have garnered recognition from third-party editors, writers, influencers, and publishers who deem them as top contenders within their respective categories. However, with the recent change, these recommendations are no longer visible in search results.

Sellers greatly benefited from the inclusion of their listings in the editorial recommendations section as it held a prominent position on the first page of search results. These recommendations not only enhanced the shopping experience for customers but also simplified product research. It served as trusted endorsements from publishers and content creators within the specific product category. The presence of an editorial review would significantly boost clicks and sales for sellers, making it a valuable asset for driving success in their listings.

How Can Brands Adapt ?

Amazon PPC

So what does this mean for brands and their marketing strategies? On one hand, this change opens up another pay-per-click (PPC) slot on Amazon, which can drive down the cost per click as bids are spread out over more slots. This can be seen as a positive development for brands, especially ones that don’t have high ratings or many reviews.

For Amazon sellers looking to navigate the changing landscape of Amazon advertising, Viral Launch’s Kinetic Amazon PPC tool can provide a valuable solution. This tool offers a range of features to help sellers manage their Amazon PPC campaigns, including the ability to create rules, automate campaigns, and monitor results. Additionally, the tool provides data that allows for informed decision-making and can help sellers optimize their campaigns for maximum results. With Viral Launch’s Amazon PPC Kinetic tool, Amazon sellers can stay ahead of the curve and achieve their advertising goals on the platform.

Drive Organic Traffic

On the other hand, this change also means that brands will need to pivot their editorial marketing strategies to focus on organic traffic. This could include investing more in content marketing and influencer partnerships to generate buzz. By focusing on building relationships with influencers and editors in their niche, brands can continue to drive organic traffic by earning more editorial placements.

Final Thoughts

To sum up, Amazon’s decision to remove editorial recommendations from search results is a game-changer for brands and requires them to reevaluate their marketing strategies. While the removal of these recommendations opens up another PPC slot, brands need to pivot towards generating organic traffic from editorials. This may involve investing in content marketing, building relationships with influencers and editors, and being creative when it comes to attracting and retaining customers. With the right approach, brands can continue to thrive on Amazon and achieve their sales goals.

How to Sustain Your Ecommerce Business in a Recession

Official thinking is that the economy will likely experience a recession in mid-2023. So, how can you protect your eCommerce business with a recession looming?

The National Bureau of Economic Research defines a recession as “a significant decline in economic activity that is spread across the economy and lasts more than a few months.” Another common definition is “two consecutive quarters of negative gross domestic product (GDP).”

This article will show you how to review eCommerce performance and implement recession-proof strategies to help you survive and thrive during challenging times.

The impact of recession on eCommerce businesses

The past year saw a steep rise in inflation, with higher prices on everything from fuel to food. This has already led to a drop in consumer spending, as shoppers find they have less disposable income.

It also means higher costs for warehouse operations and shipping, while your suppliers and manufacturers will have increased their prices. B2B customers may be slower to make payments, and you’ve now got less cash in the coffers to see you through the looming recession.

Declines in consumer demand, employment, and economic output characterize a recession. During this time, spending will slow even further as consumers try to save money and focus on buying essential products rather than luxuries, potentially leaving you with a glut of unsold inventory.

When your business is tightening its belt, the marketing budget is often an early casualty. But without spending on ads, you won’t reach as many people. That translates into less traffic to your website and a smaller group of potential customers to convert—and a further drop in sales.

Factors affecting eCommerce performance during a recession

Consumer behavior changes

In a recession, shoppers typically look for cheaper options and bargains, and their perceptions of value-for-money will change. They may still browse your website but fail to make a purchase—or abandon their cart if the shipping fees or taxes are higher than expected.

Consumers will focus on brands they know and trust rather than buying from an unknown business. 82% of shoppers who said they’re spending less still buy from their favorite brands. They want to support companies that have always provided a good experience.

It’s up to you to adjust to customers’ changing needs. When people align their spending with their values and priorities, it’s more important than ever to know your audience well and keep track of behavioral changes.

Economic uncertainty

eCommerce enjoyed a huge boom during the pandemic, but the market is no longer growing exponentially. It’s true that people have gotten used to doing most of their spending online, and that’s not likely to change. But growth has slowed­­—and in a recession, they’ll spend even less.

In a time of economic uncertainty, making informed decisions is harder. Should you keep spending on inventory to avoid stockouts or carry less stock to avoid being left with unsold goods? Should you cut the marketing budget or continue advertising to attract more customers?

Pricing is also a minefield during a recession. Customers want lower prices, but you’d prefer to raise them to maintain revenue. You don’t want to damage your reputation by going too far in either direction.

Competitor landscape changes

eCommerce is already highly competitive and a recession can make it even more so. Countless companies operate in the same market, trying hard to maintain sales. Plus, during the pandemic growth we mentioned earlier, eCommerce witnessed several new players and investments, making the market more crowded.

It’s always important to conduct an analysis to gain a competitive advantage, but should you copy their strategies? For instance, they might drop their prices to attract customers. But if you do likewise, you risk a price war—and when the recession ends, you could upset customers with a sudden return to pre-recession prices. 

Government policies and regulations

The Federal Reserve has a dual mandate from Congress to maintain price stability in the US economy. It started hiking interest rates in March 2022 in an attempt to combat rising inflation. But some suggest that continued increases will actually tip the economy into recession.

In an official recession, the Fed is likely to cut interest rates to encourage borrowing and allow consumers to make more purchases on credit. This has a knock-on effect throughout the economy. The Fed may also try quantitative easing (QE), which is the direct purchase of assets to inject more money into the economy.

The government may introduce fiscal policies to help fight a recession, such as lowering taxes and increasing federal spending. Deregulation is sometimes used to stimulate economic activity by reducing restrictions on new businesses entering the market and increasing competition.

How to thrive in the midst of a recession

Review business successes and failures

When times are tight, you need to make sure that you’re maximizing every cent spent on your business. That means reviewing your performance and identifying ways to improve. Your business systems will give you the data you need, from Customer Relationship Management (CRM) tools to Enterprise Resource Planning (ERP) software. 

What is ERP? Think of it as an all-encompassing platform that offers you real-time insights into your business. It connects various data points across the company, from accounting to inventory management. When reviewing your business, it’s a reliable way to identify areas for improvement, helping you make cost-effective decisions to implement during a recession and in the future.

Points to consider when analyzing your business’ successes include:

  • What are your current successes? 
  • Which products always sell well? 
  • Which sales and marketing channels work best? 
  • Consider your repeat customers—what are you doing right?

Once you have the answers, you can invest in areas that you know will generate revenue.

You also need to look at your failures and figure out how to fix them. Did you experience stockouts? Did customers complain about late delivery? A customer-first approach is vital for eCommerce during a recession, so ask for feedback and use it wisely. You can also benchmark your performance against competitors.

Diversify revenue streams

It’s best not to keep all your eggs in one basket when the economic outlook is uncertain. Diversifying your revenue streams is an excellent way of protecting your eCommerce business—but that doesn’t have to mean expanding your product offering (as we’ll explore in the next section).

Instead, you could add extra sales channels, attracting a wider audience for the same products. Social media is a valuable (and largely free) method of promotion. You can even branch into social commerce and enable customers to buy directly from Facebook or Instagram.

You might start selling subscription boxes (which ensure regular payments and predictable cash flow), work with influencers or affiliates, or form partnerships with other businesses to encourage cross-promotion. A customer loyalty program can also generate more revenue.

Focus on core products/services

Instead of launching new product lines, concentrate on what you already do well. Identify the products or services that bring consistent revenue and good customer reviews, and double down on them. These are your recession-proof products.

Maintaining the quality of your core offering is essential, so don’t cut corners on production or packaging for these products. You could also make improvements by adding an extra feature or two while saving money by dropping products or services that don’t perform as well.

Focus on the value of the core offering. Does the product beat the competition on quality or durability? Does it have more functionality? You need to communicate this to your customers. Instead of cutting prices, try offering perks like extended return windows, guarantees, or loyalty points.

Cut costs without compromising quality or service

When customers have less to spend, they want to make their dollars go further, which means choosing quality products and services that represent value for money. But how do you square that with your need to keep costs down?

One method is to boost productivity so that you can achieve more with fewer resources. Optimize your warehouse layout and ensure inventory is stored correctly to avoid breakages or spoilage. 

Use technology to streamline processes, reduce expenses, and make smart decisions based on real-time data—this is one of the key benefits of cloud ERP system and other cloud-based tools.

If you order inventory more often and in smaller batches, you’re protected if demand changes or one shipment is delayed. This may also mean you can reduce overheads with a smaller warehouse, especially if you implement the JIT inventory method or use dropshipping for some items.

Finally, review your spending with suppliers and shipping carriers to see if you can renegotiate deals. You could also reduce shipping costs by using more economical packaging.

Strengthen online presence

If you haven’t already, establish a presence on all the major social media sites. You don’t have to use paid ads unless you want to, but you can build brand awareness. That way, you’ll be top-of-mind when the recession’s over and customers start spending again.

Even if most people are just browsing right now, it’s vital to provide a good experience on your eCommerce website. Carry out an audit to ensure your site is performing well in terms of page load speed and easy navigation, and it’s optimized for SEO. After all, a sleek website is no use if people can’t find it.

A strong website also means eliminating friction from the checkout process, with flexible payment and shipping options and pre-filled forms. Provide detailed product descriptions, transparent returns policies, and social proof that shows customers they can trust you.

Key takeaways

Recessions are generally bad news for businesses, but there are plenty of ways to lessen the effects. 

Make sure you’re prepared by maximizing efficiency and reducing costs wherever possible—without compromising quality. Stay agile by keeping track of changing customer needs and preferences. Double down on your core offering, focus on demonstrating value and trust, and maintain brand awareness so that customers know where to come when normality resumes.

It won’t be easy, but use this guide to manage your eCommerce business in a recession. With the right mindset and approach, you can weather the storm and emerge stronger than ever!

How Much Does it Cost to Sell on Amazon in 2023?

It’s no secret that the cost of living has gone up in recent months. This also applies to the costs of running a business, like Amazon selling.

If you’re an Amazon seller already, you might have noticed that as of January 17, 2023, the Amazon fee increase has impacted your bottom line.

Even Amazon, the biggest retailer in the world, had to adjust to the rising costs. As a result, they shifted some of the burdens onto Amazon Sellers.

This post will cover all of the different Amazon fees, what they are, how fees have changed, and how much it costs to sell on Amazon in 2023.

What Fees Do Amazon Sellers Have To Pay?

Depending upon which type of Amazon business model you operate, there are a number of fees that you will have to pay in order to sell your products on the Amazon platform.

Here is a breakdown of all of the fees that Amazon charges:

Selling Fees

Amazon selling fees are based on the product’s price and are charged per item sold. The fee is a percentage of the sale price plus a minimum fee.

Fulfillment By Amazon (FBA) Fees

There are a number of different fees within the FBA fees, including storage fees, pick and pack fees, and shipping fees. The amount will vary depending on the size and weight of the product.

Referral Fees

The referral fee is a percentage of the item’s sale price and varies based on the category in which the item is sold.

Advertising Fees

To run Pay Per Click (PPC) ads on the Amazon selling platform, sellers must pay Amazon to display these. These fees are based on the cost-per-click model, where the seller pays every time someone clicks on their ad.

Subscription/ Amazon Seller fees

There are two different seller account options – Individual or Professional. An individual account is free, and a Professional account is $39.99 per month.

Returns Processing Fee

If a seller uses Amazon’s Fulfilment By Amazon program, they may be subject to processing fees based on the type and size of their item(s) should there be any returns.

Long-term Storage Fees

Sellers who use FBA and keep their inventory in Amazon’s fulfillment centers for more than one year will be charged long-term storage fees.

How Have Amazon FBA Fees Changed In 2023?

Previously, Amazon has attempted to keep fee changes low by reducing or eliminating certain fees like customer returns.

Starting in 2022 some of those fees were put back onto sellers, particularly FBA fulfillment fees, which will continue into 2023.

Fuel prices and inflation are the main reason for the Amazon fee increase.

Here are some of the changes sellers can expect to see:

Fulfillment Fees

The outbound FBA fees have increased on average by $0.22.

However, FBA still remains super competitive as the $0.22 rise is much cheaper than all other logistics providers.

The reason for the price increase is to cover the costs of increased shipping fees, fuel prices, and inflation.

Storage Fees

Amazon FBA storage fees change depending on the time of year.

Here are the changes in storage fees:

  • Off Peak (January – September): increase of $0.04 per cubic foot
  • Peak (October – December): increase of $0.20 per cubic foot

As of April 1, 2023, a storage utilization surcharge will be brought in for sellers who have high levels of inventory taking up space.

The surcharge will be relative to the cube of recent weekly sales and will affect around 8% of sellers who have the highest volume of storage relative to sales volume.

There will also be a surcharge for sellers with aged inventory stored for 271-365 days.

FBA Removal and Disposal Fee Changes

FBA removal and disposal fees are determined based on the size tier, per unit fee, and the item’s shipping weight.

These fees will increase between $0.45 to $1.06 for standard-size products and between $1.62 to $4.38, depending on the shipping weight of your product.

Amazon Selling Fee Increase Summary

Here is a summary of what’s changing for FBA sellers:

  • Non-peak storage fees are increasing by $0.04 per cubic foot for standard-size items and $0.03 per cubic foot for oversized items.
  • Effective April 15, 2023, the aged inventory surcharge will apply to items sitting in Amazon warehouses for 180 days or more, excluding product categories such as watches, apparel, shoes, and jewelry.
  • An average of $0.20 reduction in returns processing fees for Apparel and Shoes category products.
  • FBA Returns and Disposal fees will almost double.

How Can Sellers Reduce The Cost Of Amazon Selling ?

The rise in fees can impact a seller’s bottom line, but there are some ways to maintain healthy profit margins.

Here are some suggestions to help keep costs down and maintain healthy profit margins:

Optimize Your PPC Ads

Sellers can spend a lot of money on unnecessary clicks to their PPC ads that don’t convert.

Pay close attention to your campaigns and make sure that you’re not paying for clicks that don’t have a high chance of converting.

The best way to run Amazon PPC ads is with a killer PPC Management tool like the Viral Launch Kinetic PPC Tool.

How does the Kinetic tool help sellers get more out of their PPC ads?

  • Control results – Can create more customizable rules to achieve the highest return on ad spend.
  • Maximize Profits – Gain access to more data to see what is impacting ad campaigns.
  • Clear Strategies – Integrating the Viral Launch research tools directly into the Kinetic PPC tool helps conversions of relevant keywords, improves organic rankings, and drives organic sales.
  • Create Automation – Set up automated rules to control your results around the clock. Ensures sellers don’t lose ranking or overspend on ads.

Optimize Product Listings

Optimizing your product listing so that it is ranking for the most relevant, and highest converting keywords is the best way to increase organic ranking and traffic to the listing.

The most important parts of a product listing to Optimize to increase rankings are:

  • Product Title
  • Product bullet points
  • Product Description

Use the Viral Launch Keyword Research tool to audit your listing, and find high-converting keywords, longtail keywords, and other search terms to add to your product listing.

Stay On Top Of Your Inventory

Monitor inventory levels and make sure they don’t become too large by taking advantage of seasonal discounts or promotions.

This is especially important if you store products in Amazon FBA warehouses as this will help avoid long-term storage fees or surcharges.

Review Product Prices

Make sure your prices remain competitive so you don’t lose customers to competitors. You can also focus on selling high-margin products to increase profits despite the increased fee structure.

What Amazon Sellers Should Not Spend Money On

Expensive Tools

There are many different tasks involved when it comes to running a successful Amazon store, so naturally, there are many different tools to solve problems and provide services for Sellers.

Cutting unnecessary monthly subscriptions to tools that are not always required is will help free up cash flow.

Viral Launch, however, offers a “one-stop-shop” array of tools that sellers will require to run their businesses successfully, all under one subscription fee.

Expensive Training/Courses

There are some fantastic Amazon FBA Courses available to sellers, but most of them come with a premium price tag. In some cases, courses can cost upwards of $5k!

Viral Launch has a FREE course hosted on the teachable platform where sellers can learn the basics of Amazon, confidently build an online business, and get one step closer to financial freedom:

As well as the free course, the Viral Launch YouTube channel has a lot of great information videos

Legal Fees

Too many sellers are too hasty to incorporate their business in the early phases of getting started. Setting up an LLC, or establishing a legal structure for your business is something that can be expensive and something that can be done further down the line when the business is more established.

Realistically, How Much Does It Cost To Start An Amazon Business?

There are many factors to consider when putting a price tag on a business startup. But here are what Sellers could expect to spend on starting their own Amazon store:

  • Ordering Product Samples – $100
  • First Inventory Order – Average price for 500units + shipping = $2000
  • UPC Code – $30
  • Amazon Professional Seller Account – $39.99p/m

Grand Total = $2,170

You will also need to invest in Amazon PPC in order to run a successful launch campaign. You should expect to spend around $10 per day for the first month. Be sure to use the best PPC Tools in order to maximize the effectiveness of your ads.

Unless you are a skilled creative, you may also need to hire a designer for your product’s logo and product packaging, and a photographer for your product listing photographs.

Cashflow

Something that I feel is not talked about enough with newbie sellers is the matter of Cashflow.

You will need access to enough working capital to be able to afford a second inventory order before you receive payment from the first. (Ideally, you should be placing another order with your supplier as soon as your first inventory reaches the FBA centers)

If you have to wait until you are sold out of your product before you can place a second order, your product will be out of stock for far too long and any organic ranking that you achieved with your launch will be lost by the time your inventory is replenished.

So as a rule of thumb – I figure out my first month’s startup costs, and double it!

Is Starting An Amazon FBA Business Still Worth It?

The answer is YES!

Starting an Amazon FBA business still remains a very viable way to start an online business. The potential for success is huge. With the right planning and strategy, Amazon selling can be a great choice if you’re looking to start your own business and work toward financial freedom.

Be sure to plan ahead and budget carefully so that you remain in control of your finances. Keeping track of costs and staying on top of fees will help you avoid unexpected surprises, while also managing cash flow correctly will ensure that your business continues to grow over time.

Remember – it’s important not to get carried away with unnecessary expenses when starting out. These can quickly add up over time. Careful spending, coupled with the right tools and resources, is essential to getting your business off the ground.

Viral Launch makes this process even easier by giving you all the necessary tools and resources to get started on Amazon. With Viral Launch, you can easily manage your daily activities, monitor changes in the marketplace, track product performance, optimize PPC campaigns, and launch new products – all under one subscription fee!

Reasons Behind Abandoned Ecommerce Shopping Carts and How to Reduce Their Frequency

One of the major challenges eCommerce companies face today is cart abandonment. It is a persistent problem that significantly impacts the overall performance and success of an online store. Ecommerce shopping cart abandonment occurs when a shopper adds items to their virtual cart, browses the website, and then exits the site without finalizing their purchase. This situation is all too common in the world of eCommerce, and the statistics are alarming. So, why is shopping cart abandonment a problem for retailers? With the average abandonment rate hovering around 70%, businesses are losing a substantial portion of potential revenue and customers.

So, what can you do to minimize this phenomenon in your business?

In this article, we will examine key aspects of the online shopping experience and share steps you can take to optimize your eCommerce store so that customers follow through with their purchases. We will also suggest various marketing strategies for you to implement to re-engage lost customers and encourage them to complete their transactions.

Read on to discover how to optimize your online shopping experience, retain valuable customers, boost your revenue, and secure your eCommerce business’s long-term success.

1. Complicated checkout process

One of the main reasons for shopping cart abandonment is the long and confusing checkout process. Many eCommerce companies want to add numerous fields in the checkout process to try to get to know their customers better. However, client expectations differ – they prefer quick and easy shopping. Therefore, the first thing you can do is minimize form elements and only ask for necessary information. Moreover, to save even more time, try to minimize typing tasks with features such as drop-down menus or auto-filling forms. It’s worth considering offering a guest checkout, which would save the amount of time it takes to create an account on your website.

Another way to make the checkout process more user-friendly is by streamlining site navigation. Try to reduce the number of screens from initiation to completion to help your clients save time and guarantee a better shopping experience. Inform them about how many steps are left to finalize the transaction and allow them to effortlessly return to each step if they want to make any changes. You can also consider providing clear instructions to guide customers through the process.

A good practice that your customers will surely appreciate is the auto-save capability for abandoned carts. This solution ensures that customers do not lose their selected items when they return to your website, even after leaving it for a while. It demonstrates that you care about their time and preferences. Moreover, you can use this feature to re-engage customers and bring them back to the purchasing process.

To summarize, a surefire way to keep users away from checkout is a clunky user experience. Unless you simplify the process as much as possible and remove all friction, you will have users leave before they make the purchase. However, appropriate decisions require knowledge in this area. If you don’t have the expertise in this or a UX specialist on your team, it’s worth considering working with an outside consultant or UX agency.

2. Website performance issues

Slow loading, frequent errors, crashes, inadequate mobile optimization, and website security issues can negatively impact your eCommerce platform and deter customers from completing purchases. You need to address these problems to create a seamless and secure shopping experience. One solution is to regularly perform website audits, especially after making any significant structural or design changes or adding new pages. Tools like site audit by SE Ranking can help assess essential security, speed, and usability metrics while providing guidance on how to resolve identified issues.

Source: SE Ranking

Additionally, it’s essential to implement strategies that prevent downtime, such as using reliable web hosting services and keeping your software up-to-date. You also need to prioritize security by conducting regular checks to avoid data breaches and hacking attempts. 

Why is UX important? Addressing even minor performance issues can significantly improve the overall customer experience, preventing potential eCommerce shopping cart abandonment and ensuring a more successful eCommerce operation. Thus, it is essential to test and analyze your shopping cart and checkout process, identifying weak points and optimizing performance accordingly.

3. Unexpected Costs (taxes, shipping fees, and others)

Unexpected costs, such as taxes and shipping fees, can negatively affect the customer experience, especially when they are not clearly communicated upfront. This lack of transparency can lead to cart abandonment, as customers may be put off by the final price at checkout. To address this issue, you should display the estimated delivery cost alongside each item even before it is added to the cart.

Source: Amazon

An effective option is to create a simple calculator that allows customers to input their zip code for a more accurate quote. Transparency is highly valued by online shoppers, and being transparent will help you gain more loyal clients.

If possible, consider offering free shipping or discounts to encourage purchases. If you offer relatively inexpensive products, you might consider offering free shipping with a minimum purchase threshold. This approach not only improves customer satisfaction, but can also lead to an increase in average order value.

4. Account Creation 

Forcing users to create an account or register to finalize a purchase can be counterproductive. It disrupts the purchase cycle and may deter potential customers. According to Baymard Institute research, 24% of people abandon their online shopping carts because the site requires them to create an account.

To increase customer satisfaction, offer guest checkout options and never force users to create an account.

Source: eBay

If you want to collect emails and other contact information for remarketing purposes, consider doing so after the purchase. A good option is to prompt users to create an account on the purchase confirmation page, allowing them to use the saved data from the completed order.

To encourage account creation, provide clear benefits such as: “Join our loyalty program for exclusive discounts and early access to new products” or “Register now to receive personalized recommendations based on your purchase history.” You can also highlight practical benefits such as shipment tracking or having access to all invoices in one place.

Once you’ve successfully enticed users to sign up for an account, reduce the risk of them abandoning the registration process. Avoid lengthy, complicated fields and complex password requirements. Instead, offer guidance on how to create a secure password if needed. A convenient option for setting up an account quickly is the ability to register through well-known platforms like Gmail and Facebook. This way, users save time as most fields are filled automatically.

5. No incentive for researchers to return

Online shoppers often meticulously research various products, brands, and deals before making their final purchasing decision. Consequently, they add items to their eCommerce shopping cart for easy reference or comparison, intending to return later to complete the purchase.

To increase the likelihood of them returning to your website, implement service-oriented solutions such as “email my cart” or “visit summary” offers. Additionally, consider setting up retargeting ads to remind customers of their incomplete orders and entice them back to your store.

Another crucial step is to provide comprehensive product information on your site. This approach can prevent potential customers from seeking additional details elsewhere. Incorporating customer reviews of purchased products can also be beneficial, allowing potential buyers to access genuine feedback directly on your site instead of from other sources.

6. Lack of Personalization

Retailers often possess valuable customer data but struggle to understand how to utilize it effectively to prevent shopping cart abandonment. Addressing this issue is crucial for improvement.

By employing personalization techniques such as:

  • Displaying tailored product recommendations
  • Greeting customers by name
  • Saving customer preferences (such as shipping addresses and payment methods)
  • Showcasing content relevant to their interests and behavior

You can create a more engaging shopping experience.

Moreover, personalized retargeting ads can have a significant impact on getting qualified leads to return to an eCommerce site. Statistics show that brands that segment different retargeting audience lists based on specific customer behaviors have seen more than 1300% ROIs.

For example, featuring the exact product a person added to their eCommerce shopping cart before abandoning it, rather than a generic ad, can encourage customers to return and complete their purchase.

When crafting personalized, triggered cart abandonment emails, consider the customer’s profile and the context of their journey, including their reasons for cart abandonment and stage in the buying process. Identifying these factors will help automation to enhance customization to offer product recommendations that complement the saved cart items.

7. Payment issues

In today’s fast-paced world, people appreciate convenient payment methods. Around 9% of customers abandon their shopping carts online because the retailer doesn’t offer enough payment options.

Offering a wide range of payment options can significantly reduce cart abandonment. Some popular payment methods include shopping apps (such as PayPal), digital wallets (such as Apple Pay and Google Pay), and buy now, pay later options (such as Shop Pay Installments and AfterPay).

You can start by prioritizing primary payment methods like MasterCard, Visa, and PayPal and then expand to more specialized options when viable. Additionally, consider optimizing forms for updating payment information and creating a payment recovery plan.

However, it’s not only limited payment options that can discourage customers from completing a purchase. Other factors may include an outdated site design, not having an SSL certificate, unfamiliar brand names, or payment gateways. These issues can raise concerns about your site’s reliability and security. To address these concerns, consider incorporating user-generated content, such as reviews and testimonials, to build customer trust.

8. Lack of Customer Support

When making a purchase, users often need assistance, and a prompt response can help them make the right decision. To address this issue, consider investing in technology and adopting an omnichannel approach to provide seamless support throughout the shopping experience. Experiment with offering live chat or other support tools, even if only for a trial period.

One viable option is to implement a chatbot for handling simple and repetitive tasks, freeing human agents for more complex inquiries. An automated assistant can respond instantly and 24/7, significantly affecting customer satisfaction. According to Tidio, 62% of respondents would rather interact with a customer service chatbot than wait for an agent to respond. However, ensure that customers can easily connect with a live representative if the chatbot’s assistance proves insufficient.

Providing timely and effective customer support can significantly reduce eCommerce shopping cart abandonment rates and lead to more completed transactions. After implementing such solutions, monitor the impact they have on sales and customer satisfaction. This will help you determine if the investment is worth it.

9. Insufficient return policy

In online shopping, an important issue for customers is the return policy. After adding items to their cart, they often seek information on return policies and warranties. To address this issue, link to the return policy early in the process. This will help customers feel more comfortable purchasing. 

Source: Amazon

However, visibility is not the only factor; offering a simple customer service system to facilitate returns is also essential. Statistics show that up to 66% of shoppers would spend more with a generous return policy. Unfortunately, many stores impose strict limits on returns, such as restrictive timeframes or charging for return shipping.

To find the right solution for your store, start by tracking the number of returns and associated costs. Then, consider offering a free, 30-day return policy. Test this approach for a month or two to evaluate any increase in sales and compare it to the added costs to determine if it’s a profitable strategy for your business.

Summary

As you can see, addressing eCommerce shopping cart abandonment is essential for businesses to maximize revenue and enhance customer satisfaction. By streamlining the shopping experience, offering tailored support, and fostering transparency, you can encourage customers to complete their purchases. Remember to regularly monitor the results when implementing these strategies and improvements to ensure your business remains responsive to customer needs.

By prioritizing customer-centric solutions, you can foster long-term loyalty and pave the way for continued success. Good luck!

How To Do A Competitor Analysis for Amazon FBA

Every Amazon seller needs to know how to sell in a competitive market, and a top-shelf competitor analysis can give you the edge you need.

Because of the immense potential, it should be no surprise that the Amazon seller competition is fierce. With the convenience of the FBA program, access to a customer base in the hundreds of millions, and opportunity for growth, it’s the premier space for those with an entrepreneurial mindset. Many experience issues dealing with the Amazon seller competition, as it’s out of their control with constantly changing variables.

So how can you navigate a path to success on Amazon? It’s all about maximizing every opportunity made available to you. To identify these opportunities and become aware of what works in your marketplace and what mistakes your Amazon seller competitors are making.

“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.”

Sun Tzu, The Art of War

Tzu made his name as a military general and philosopher thousands of years ago. However, his strategy also broadly summarizes the idea behind performing a competitor analysis and why you should have a deep understanding of your Amazon seller competition.

In a crowded marketplace, selling a phenomenal product is only the beginning. You must know your selling space inside and out to stand out and steal customers from competitors. In the process, you’ll identify opportunities to increase visibility, better meet the needs of consumers, and capitalize on mistakes or shortcomings of the competition.

What is an Amazon Competitor Analysis?

An Amazon Competitor Analysis is more or less a SWOT (strengths, weaknesses, opportunities, and threats) analysis for sellers you’re competing with in the Amazon marketplace. Also called a situational assessment or situational analysis, a SWOT analysis is a framework used to evaluate a competitive position and develop strategies to maximize performance.

This analysis allows you to identify opportunities for improvement and areas where you can differentiate yourself from your competitors. If you’re considering selling on Amazon FBA, it’s important to conduct a competitor analysis to understand the market and identify areas of opportunity.

With a proper competitor analysis, you can uncover gems

Here are some steps to help you conduct a thorough competitor analysis for Amazon FBA:

Identify Your Competitors

Sounds easy, right? To a degree, it is, but there are levels to this.

Conduct a keyword search with your primary keyword, and the search results will compile a page full of your Amazon seller competition. And while every listing in your category competes with you, not all competitors are created equally. So first, we must define competitor within this distinctive context.

It’s important to remember the end goal of the analysis will be to make intelligent, actionable decisions to elevate your Amazon business. Considering this, you may be better served to base most of your research on listings with success more comparable to your own.

Monitoring the success of top sellers or brand names can be helpful, but their market share might not be for the taking yet. For newer or lesser established brands, no strategy can overcome a household brand name or entrenched top seller with thousands of positive reviews or a trusted reputation.

For sellers with a Viral Launch subscription, Listing Analyzer’s Competing & Complementary Products tab can help point you toward your closest competitors.

Audit competitor listings

Take a look at your opponents’ listing in great detail. For the most part, Amazon gives each seller in a category an equal opportunity to create their listing with the same amount of space. By analyzing what others are doing with this space, you can implement what works for others into your listing and recognize shortcomings to avoid.

Images

Product images play a pivotal role on Amazon. Unlike shopping in a brick-and-mortar store, customers can’t touch or see the product in person. High-quality product images bridge the gap for customers, allowing them to get a more thorough look at the product and answering their questions through detailed imagery and infographics.

Additionally, do the photos showcase unique features or benefits? Does it show the customer how it works and what settings it may be used in? Taking note of what your competitors are doing right and wrong and taking action with your own photos can be the difference between a standout listing that jumps off the search results page and a generic listing that gets overlooked.

Title

For SEO purposes, the product title possesses the most indexing weight of any section for a product listing. The keywords in a product title should be relevant to the product and with the most search volume.

If you see a common word or phrase thrown into titles to the point where it seems odd, it warrants additional research. Utilize a tool with access to Amazon search volume data, such as Keyword Research, to see any opportunities to capitalize on competitor mistakes.

From the format to the keywords, the product title represents your first opportunity beyond images to get your product in front of customers. Most likely, customers discover your listing via search, surrounded by a sea of competitors. Put yourself in the customer’s shoes. Consider what information you want to see in a product title and what would earn your click to learn more in the product description before adding to cart.

What information are your competitors sharing in this space? Which keywords do they use?

Bullet points & description

The customer saw your photos, read your title, and wants to learn more. The bullet points and product description are your next shot at convince the customer why your product is what they need. Keyword indexation remains an essential part of the bullet points, but you can start selling your product in these sections. Check through your competitors’ bullet points and descriptions to better understand how others in the market speak about the product.

Learn from what information others include in their listings and apply it to your own. If you’re going to miss out on sales, never want it to be due to things you can control and information left unanswered in your description. As you analyze the listings, perhaps make a list of questions for your product and check them off as you go. Hopefully, you can even find more questions to make sure you answer with your copy.

Reviews

Often overlooked, you can learn a lot by skimming through competitor reviews. Unhappy customers tend to voice their complaints and Amazon encourages them to explain why in their reviews.

Within the reviews page, sort through the reviews to see what issues customers experience with the product. For example, you can click on the 1-star and 2-star reviews to see what competitors are doing wrong.

On the positive side, check the 5-star reviews for a more comprehensive look into what customers appreciate about a product. What problems are they solving? Is there any way the competition goes above and beyond that you can replicate? Four-star reviews provide precious insights, as they often entail satisfied customers who have experienced a minor problem or see room for improvement.

Be a keyword sleuth

The most successful Amazon sellers leave no stone unturned regarding visibility. Whether through organic search or sponsored ads, the best sellers ensure their products are seen in high-volume searches and built to turn those impressions into purchases.

Finding out which keywords your competitors are competing for can do wonders for your strategy for overtaking them, in a few different ways.

You can attack head-on by prioritizing the keywords they’re prioritizing. Customers can find your product through various search terms. Most products are found through a few primary keywords, many more secondary phrases, and an assortment of tertiary, low-volume keywords.

While they all provide value, visibility for higher-searched terms can be much more fruitful. Because of this, however, the competition can be intense, with sky-high costs in advertising and costly promotions to climb the ranks. However for sellers without the benefit of a never-ending bankroll, targeting search terms with low-to-medium visibility may be more profitable through advertising and inclusion in your listing copy.

Monitor prices

The hallmark of competitive markets: price wars.

In any market where products are comparable, the cheaper price typically wins. As a result, knowing how low your competition can go and being aware of price changes as soon as possible so you can avoid being undercut can be a lifesaver, especially during high-volume sales events.

Monitoring competitor prices over time presents invaluable information into how they run their business. For instance, tracking prices and how products perform at various price points can consistently give you an edge to optimize your positioning. When you know how low the competition can go and how their performance at each price point, you can exploit weaknesses to climb the ranks.

Streamline your competitor analysis process with Competitor Intelligence

For Amazon business owners, performing these tasks can be extremely tedious and time-consuming. Even worse, the results constantly change as new competitors emerge and existing competitors evolve.

Enter Competitor Intelligence, one of the most helpful competitor analysis tools around! Competitor Intelligence is a reverse ASIN lookup tool that provides a quick and easy one-stop shop for tracking your marketplace rivals across various categories.

Enter a product ASIN to quickly get a massive list of their top-performing and underutilized keywords, alongside the ability to analyze and track indexation, keyword rank, sponsored ad rank, sales, price, reviews, search volumes, notification options and more.

Within Competitor Intelligence, you can enter the ASIN and instantly glean most of the information listed to this point for any ASIN.

Up-to-the-minute and historical data points related to price, rank, sales, revenue and a breakdown of estimated fees are just some of the in-depth details that can be found within seconds. Additionally, if you grant MWS access to the Viral Launch platform, you can compare how your product measures up categorically.

Find out where your challengers rank on a keyword-by-keyword basis for organic and sponsored searches. In the Competitor Keywords tab, a comprehensive list of keywords associated with the product appears. Within the tab, you can find out how the competition stacks up for each keyword. This is sortable by estimated volume, rank, and more.

Get an in-depth look into your competitor’s keyword performance in Competitor Intelligence.

You can even sign up for rank change alerts and hourly keyword tracking. This allows you to stay on top of updates as they happen and never miss a beat when the competition changes.

In summary, a tool like Competitor Intelligence makes analyzing the Amazon seller competition a breeze considering the tedious alternatives.

Conclusion

At this point in the Amazon FBA marketplace, fierce competition in nearly every market appears inevitable. It’s vital for sellers to maximize positioning and offer an enticing value proposition for a realistic shot at lasting long-term success. With this in mind, the importance of analyzing the competition becomes apparent. It’s the most thorough way to uncover advantages in the market.

Whether in competitor analysis tools like Competitor Intelligence or another method, an Amazon seller competitor analysis can uncover the answers to take your e-commerce business to the top. Since the Amazon seller competition is fierce, this type of research has evolved from an elective to a prerequisite.

For this reason, few tasks are more worthwhile than mastering the art and science of competitor analysis.

Sign up for Competitor Intelligence today to take your Amazon seller competitor analysis to the next level and optimize your business.

How To Sell On Amazon Without Inventory

Starting an Amazon business can be highly lucrative, but one of the downsides to selling on Amazon is needing space to store the products you sell.

As your business expands, so do the requirements for space. The need to streamline the process of getting products shipped to customers.

In this post, I will explain how to sell on Amazon without inventory and the different ways to run an Amazon store that require little-to-no involvement with actual physical inventory.

Amazon FBA

FBA stands for Fulfilment By Amazon.

FBA is the process of selling and shipping products through the Amazon platform. It is the most popular way of running an Amazon business with 96% of sellers choosing the FBA business model.

How does FBA work?

The seller sends all inventory directly to the Amazon Fulfillment centers, and then Amazon handles all aspects of selling, storage, and shipment for you.

This allows sellers to focus on the more important aspect of the business, like sourcing more products to sell and launching them to increase their profits.

The Pros Of Selling With Amazon FBA

There are many benefits of running an Amazon FBA Business, here are some of them:

  • You’re able to sell private-label products online without having to hold any inventory yourself.
  • Amazon will keep your products in their Amazon fulfillment centers and send them out to the customer as soon as they order.
  • Over 200 Million customers are searching for products on Amazon per month. The FBA business model allows you to take a slice of the very large pie that already exists.
  • Amazon FBA requires very little time commitment after the initial setup, making it perfect for those just getting started with online businesses.
  • You can access powerful analytics tools to track the performance of your products.

The Cons Of Selling With Amazon FBA

Selling with Amazon FBA is a great way to generate passive income, but it doesn’t come without its problems:

  • FBA is a competitive business model, but there are many great FBA courses that can guide you to get an advantage over the competition
  • Starting an FBA business can require a high financial investment in wholesale quantities of inventory.
  • You are not in control of the customer service experience for your products (although the FBA experience tends to be world-class)
  • You may find it difficult to differentiate yourself from other sellers on Amazon.

Dropshipping

Dropshipping is a business model where the seller doesn’t actually hold any inventory, but instead uses a third-party supplier to ship products directly to the customer.

Dropshipping is the best way to sell on Amazon without inventory. Not only do you not need to store inventory – you don’t even need to own any!

How Does Dropshipping Work?

You simply act as the middleman between your customers and the supplier who stocks the product.

Once a customer places an order on your Amazon store, you then forward the order to your supplier who will then send the product directly to the customer.

The Pros Of Dropshipping

• No need to purchase or store any inventory.

• Can offer a wide variety of products without investing in additional storage space or staff.

• You don’t need to worry about shipping or packaging orders.

• You can focus more on marketing and growing your sales rather than managing the day-to-day operations.

• Overhead costs are much lower as there is no need for additional storage space.

The Cons Of Dropshipping

• Less control over the quality of the products being shipped as you are relying on a third-party supplier.

• Highly competitive business model, so you may have lower profit margins in order to compete.

• The customer service experience is out of your hands and any issues relating to delivery or product quality must be handled by the supplier.

• There may be delays in getting orders processed

Use Third-Party Logistics Companies

Third-Party Logistics (3PL) companies are businesses that provide outsourced services such as warehousing, inventory management, and order fulfillment.

Essentially, A third-party logistics company would offer the same service as Amazon FBA.

3PLs help sellers save time, money, and resources by managing the shipping process for them and are a great way to sell on Amazon without inventory.

For some sellers, using a 3PL may not make the most sense. Amazon FBA could offer the same service, but more efficiently run and cost-effective for sellers.

Not to mention that a 3PL wouldn’t be able to offer the same next-day delivery service as FBA would to Prime members.

The best time to consider working with a 3PL is when you are a new seller. Especially a new seller who wants to increase their storage capacity during sales events, like Black Friday or Prime Day.

Sellers can add the FBM (Fulfill By Merchant) option to the product listing, and be able to offer higher qualities of products to allow for an increase in sales during the sales event.

The Pros Of Using 3PLs

Much like Amazon FBA, working with a Third-party Logistics company is a great way to run a passive Amazon business. Here are some of the benefits of working with a 3PL:

• No need to manage or store any inventory.

• Access competitive rates without having to pay for additional staff or storage space.

• Increased flexibility in terms of pricing. You won’t be paying for shipping costs upfront or storing your own products.

• You can focus on marketing and growing your business, rather than managing the day-to-day operations.

• You have access to powerful analytics tools to track performance and inventory levels.

• Scale quickly without having to invest in additional staff or storage space.

The Cons Of Using 3PLs

The downside to working with third-party inventory solutions is that Amazon already provides a world-class solution. This is very difficult to compete with.

Here are some of the other cons to working with a 3PL:

• You may not have as much control over customer service as you would if you were handling all of the processes yourself.

• Certain 3PL companies may require minimum orders, which could limit your ability to manage costs effectively.

• There is a risk that something may go wrong with the order fulfillment process and it’s out of your hands if it does.

Sell Digital Products

Selling digital products is the ultimate answer to “how to sell on Amazon without inventory”. Technically, your product doesn’t ‘physically” exist!

Digital products are any type of product that is available in digital forms, such as ebooks, video lessons, software programs, music downloads, etc.

Selling digital products is an attractive option for those who want to know how to sell on Amazon without inventory. It eliminates the need to purchase or store any physical inventory.

The Pros Of Selling Digital Products

• You don’t need to worry about shipping or packaging orders.

• You have access to a global market since you can easily deliver your product digitally in any corner of the world.

• No need to manage returns or defective products. You are simply delivering information rather than a physical product.

• You don’t need to worry about buying or storing any inventory, which reduces overhead costs.

• You can easily scale up your product offering without having to invest in additional storage space or staff.

The Cons Of Selling Digital Products

• Margins may be tight since customers are used to paying significantly less for digital products than physical ones.

• You will have to deal with digital theft, as it is easy for customers to copy and distribute your work without permission.

• There is a risk that the customer may not be satisfied with the product, which could lead to negative reviews or refunds.

• It can take time and resources to create high-quality digital products,

How To Get Started Selling On Amazon

Whether you decided to sell on Amazon leveraging the FBA model, or sell digital products, the process is similar in regards to set up.

If you’re a complete newbie and need some guidance on:

  • how to start an Amazon store,
  • how to source products,
  • how to launch your brand,
  • and how to scale your business,

Viral Launch has an incredible FREE course that will show you how to do all of these tasks and more:

In Summary

Hopefully, this post has shown you 4 ways how to sell on Amazon without inventory.

Selling on Amazon without inventory can be a great way to start or expand your business.

There are several options available, such as dropshipping, using third-party logistics companies, and selling digital products.

Each of these methods has its own pros and cons. It’s important to carefully consider which one is right for you before taking the plunge.

No matter what option you choose, with the right strategy in place, you can find success selling on Amazon without investing in any inventory.

How to Find Products to Sell on Amazon: Advanced Amazon Product Research Strategies for Experienced Sellers

When it comes to thriving in the competitive world of eCommerce, selling on Amazon remains one of the most lucrative avenues, especially for experienced sellers. The question that every seller faces at some point or another is: How to find products to sell on Amazon?

According to Marketplace Pulse research, there are currently over 6.3 million third-party sellers on Amazon, with over 50% of them selling on Amazon in North America. This statistic highlights the fierce competition among Amazon sellers and the need for advanced product research strategies to stay ahead.

This guide will dive deep into some of the most effective and advanced Amazon product research strategies. Experienced sellers can leverage these strategies to gain the competitive edge they need to make their desired sales.

Overview of Advanced Amazon Product Research Strategies

What is advanced Amazon product research?

When it comes to selling on Amazon, there are a few secrets you need to know to succeed, and one of them is knowing how to find products to sell on Amazon. 

Product research involves all the processes used to identify profitable product opportunities. Analyzing key metrics such as market trends, demand, and competition are pivotal to this process.

According to Jim Pendergast, Senior Vice President at altLINE Sobanco, “Experienced sellers may need to dig deeper and go beyond the basic Amazon product research techniques that everyone is already using. That’s where the magic of advanced Amazon product research comes into the picture.”

Advanced Amazon product research goes beyond just scratching the surface. It involves a more in-depth approach to identifying the most profitable and less competitive product opportunities on Amazon. You can remove the guesswork from your product research using an Amazon product research tool and other techniques to analyze data, uncover hidden trends, and make data-driven decisions.

Advanced Amazon product research may require that you invest a significant amount of your time and effort. However, you can be sure that it will pay off handsomely in terms of increased sales and revenue.

Importance of advanced Amazon product research

There are many reasons why sellers on Amazon should be intensely interested in conducting product research and leveling up their strategies.

First, it lets you identify and explore potentially profitable opportunities and niches. Amazon product research can aid you in identifying gaps in the market and finding the perfect product categories – those in high demand but with low competition. This will set you apart from the crowd and help sky-rocket your sales.

Furthermore, Amazon product research can provide you with a head-start by aiding in evaluating and assessing competitors and the potential lucrativeness of a product before committing your time and money to it. This can save you money, as it can prevent you from investing in goods that won’t assist you in reaching your financial targets.

Knowing how to find products to sell on Amazon using an Amazon product research tool and advanced product research techniques can help you refine your product descriptions for search engines and improve your product’s visibility in search results. 

Once you possess a robust knowledge of the key terms clients are searching for, you can devise superior titles, descriptions, and tags for your products. This will facilitate your products to appear higher in the search results, ultimately increasing their visibility and the likelihood of generating more revenue.

Advanced Amazon product research techniques

Having recognized the significance of Amazon product research, the subsequent step entails examining the methods for executing and leveling these methods up. A few of these include the following:

• Reverse Engineering:

It entails carefully scrutinizing the best-selling products in a specific market segment and disassembling their attributes, constituents, and pricing to construct a comparable or superior product.

Reverse engineering can provide you with invaluable insights into what constitutes a specific product’s success. Subsequently, you can apply this knowledge to design a product that surpasses your competitors.

• Bundling:

It involves grouping related products and selling them at a reduced cost. This approach can be highly effective since it enhances the assessed value of the product and stimulates customers to purchase multiple items at once, increasing the seller’s earnings.

• Keyword research:

When customers visit Amazon to explore products, they enter keywords or phrases pertaining to their desired purchase.

By conducting thorough keyword research, you can discover high-traffic search terms that can increase your product’s visibility to prospective customers. This tactic can enhance the likelihood of attracting customers to your product when they conduct a search.

• Identifying and analyzing competitor products and listings:

Acquiring a comprehensive understanding of the competitive landscape and identifying effective strategies to differentiate your offerings is a crucial step. By evaluating the offerings of your competitors, you can identify opportunities to improve your existing products and establish unique selling points that set your products apart.

• Finding unique or custom products to sell:

There exist numerous products that are not commonly available on Amazon or that can be personalized to meet the specific requirements of clients. If you can find such unique or bespoke products, you will achieve a competitive edge and entice niche markets that might not be adequately served by existing products.

These strategies, when applied effectively, can lead to a significant increase in sales and profits and, ultimately, success on Amazon.

However, it is noteworthy that the online shopping landscape continuously changes, and what was effective in the past may not inevitably be fruitful today. Therefore, you must remain updated on the most recent product research trends and tools, including how to find products to sell on Amazon, to facilitate expanding your business on Amazon.

Identifying and analyzing competitor products and listings

Techniques for identifying and analyzing competitor products and listings

When selling on Amazon, one of the most critical factors determining your success is how well you understand your competition. Taking time to identify and analyze your competitor’s products and listings will help you locate loopholes you can capitalize on to stand out from the crowd.

Below are some proven methods of identifying and analyzing your competitors on Amazon.

• Conduct keyword research:

Look up keywords and phrases related to your product or niche on Amazon. 

Anthony Martin, Founder and CEO of Choice Mutual, adds, “Go through the top results and analyze the listings to see what your competitors are doing – what they are selling, how they are positioning their products, and the specific keywords they are targeting.”

• Use Amazon’s “Customers who bought this also bought” feature:

Many sellers on Amazon still don’t know how useful this feature is in helping to identify related products that their customers are also interested in. You must analyze these products to see if your competitors offer them.

• Utilize Amazon’s “Sponsored Products” ads:

These appear on Amazon’s search results page and are a great way to identify and track your competitors. Study these ads to find out what products your competitors are promoting and what keywords they are targeting.

• Analyze your competitor’s product reviews:

Knowing what customers think about your competitor’s products is invaluable when selling on Amazon. Such reviews may provide detailed insights into consumers’ preferences, empowering you to utilize this data to enhance your product offerings.

Having made significant progress in recognizing your competitors, the next phase involves analyzing their product listings. Here are some crucial elements that you should pay attention to:

• Product title:

In this case, it’s crucial to take a few hints from how your competitors are naming their products. Are they utilizing brief or lengthy titles? Are they integrating their brand name? Or are there any other descriptive terms they are utilizing? Answering these questions will aid you in devising your unique and appealing product title.

• Product Description:

Your product description is the perfect avenue to exhibit and highlight your product’s distinctive characteristics and advantages. You can analyze the product descriptions of your competitors and explore methods to distinguish your products from theirs.

• Images:

To draw the interest of potential buyers swiftly on Amazon result pages, deploying catchy images is crucial. One of the most effective techniques to accomplish this is utilizing exceptional-quality images. It is necessary to look at the images used by your competitors to present their products, compare them with yours, and ascertain if there is room for improvement.

Make an effort to identify and analyze the products and listings of your competitors. You will obtain precious insights that reveal how to find products to sell on Amazon efficiently, including what’s effective in your niche, and give you ideas for enhancing your offerings.

Finding unique or custom products to sell

Strategies for identifying and sourcing unique or custom products

Eric Mills, Owner of Lightning Card Collection, says, “As a novice seller on Amazon, it is essential to steer clear of selling products already excessively saturated with competition. This will help you to minimize the risk of being overshadowed by the already established market players.”

To stand out among the multitude of other Amazon sellers and draw in shoppers searching for something distinct, exclusive, or personalized, it is advisable to discover a means of distinguishing yourself. An excellent approach to achieving this is by finding unique or bespoke items to sell.

However, recognizing and procuring these unique products that can put you ahead of the competition may present a challenge. Below are some suggestions that can steer you in the right direction as you embark on your quest to discover one-of-a-kind or personalized products to sell on Amazon:

• Search for handmade products:

Handmade products hold a significant spot in the hearts of numerous buyers, and these consumers are usually prepared to pay a higher price for them. Websites like Etsy, a platform for vintage and handmade items, offer a wide range of handmade products. Additionally, it’s a good idea to prioritize visiting craft fairs and exhibitions to discover artisans who produce one-of-a-kind products.

• Consider private label products:

Not sure what private label products are? Don’t fret. They are products you don’t manufacture yourself but can be sold under your brand name. After receiving the product, all you have to do is customize it to your taste and make it appealing to customers. 

This strategy can be very effective, primarily when you identify a currently trending product with few customization options.

• Take advantage of online marketplaces:

There are so many online marketplaces, such as DHgate, where you can find reliable suppliers specializing in custom or unique products.

You can ask these suppliers if they offer a range of customization options. Options, such as different colors, sizes, or materials, so you can be creative and bring your unique product to life.

• Work with a designer:

If you have a specific idea in mind for a unique product but need to know how to put the pieces together, you can employ the services of a designer to create a custom design.

Where to find designers? Easy! You can go on sites such as Upwork and Fiverr or attend design conferences and events to network and collaborate with designers in person.

You need to be ready to explore new opportunities and put your creativity to use when trying to learn how to find products to sell on Amazon. These unique products might just be what you need to take your sales game to the next level!

Tips for finding and working with suppliers for custom products

Identifying unique source products can be overwhelming, particularly if you lack experience collaborating with suppliers. Here are some pointers to facilitate and streamline the process of discovering and engaging with manufacturers of bespoke items:

• Know your product requirements:

Before commencing your search for suppliers, it is vital to carry out research. Have a distinct understanding of your product requirements, including the type of material, dimensions, and design you desire.

A clearly outlined product specification will make explaining to potential suppliers what you are looking for easier and ensure you get the exact product you want.

• Check supplier credentials:

When encountering a potential supplier, look at their credentials. It’s imperative to find a supplier with substantial expertise in dealing with your category of merchandise and a favorable reputation in the industry.

• Request samples:

To discover the appropriate supplier, demand samples of products from potential suppliers. This will grant you a glimpse into the quality of their work. Asking for samples should assist you in determining whether you intend to proceed and collaborate with the supplier.

• Negotiate prices:

While collaborating with suppliers, it is crucial to ensure that you negotiate cost-effectively to secure the best deal. Disclose your budget and expectations transparently, and do not be reluctant to negotiate a deal that is favorable to you.

Conclusion

In the world of e-commerce, the competition is intense. Only the most seasoned sellers who implement advanced product research techniques will prosper.

Although traditional product research strategies are still utilized, they possess limitations, and sellers who exclusively rely on them are likely to miss numerous opportunities.

Performing advanced product research requires time, energy, and resources. Sellers must allocate resources to reliable tools and stay current with the most recent advancements to make more informed decisions.

By implementing the strategies detailed in this guide and continuously refining their tactics, sellers will know how to find products to sell on Amazon, maintain a competitive edge, and establish themselves for long-term success in Amazon’s marketplace.

Top 5 Profitable Amazon Product Categories: Find Your Niche Today

If you’re an Amazon seller, you already know that choosing the right product categories can make or break your sales. Some are simply more profitable than others, making it crucial to focus on those that are in high demand and offer good profit margins. In this blog post, we’ll explore the most profitable Amazon product categories and provide some insights into why they’re so successful. 

Finding profitable product categories can be a daunting task, but it doesn’t have to be. With tools like Viral Launch’s Product Discovery or Market Intelligence, sellers can quickly and easily identify high-potential products and categories to target. These tools use data-driven insights to help sellers make informed decisions about which products to sell and which markets to target. By leveraging Viral Launch’s expertise and resources, sellers can stay ahead of the competition and maximize their profits on Amazon.

From electronics to toys and games, we’ll cover the categories that are making the biggest impact on Amazon and provide some tips for sellers looking to capitalize on these trends. So, whether you’re just starting out or looking to expand your product offerings, read on to discover the most profitable Amazon product categories.

Top Amazon Product Categories

1. Electronics

When it comes to product categories that are consistently profitable on Amazon, electronics is certainly near the top of the list. Not only are electronics some of the most in-demand products on the platform, but they also offer sellers the potential for high profit margins. In fact, according to a recent report by Jungle Scout, the electronics category was responsible for more than $96.97 billion in sales on Amazon (US) in 2022, making it one of the top selling categories on Amazon.

Within the electronics category, there are a few specific product categories that stand out as Amazon trending products:

  • Laptops: These are a hot commodity, as remote work and online learning continue to drive demand for high-quality, portable computing devices.
  • Smartphone: People upgrade their devices seeking out the latest features and technology. 
  • Smart home technology: Devices like thermostats, security cameras, and voice assistants are increasingly popular.
  • Gaming consoles
  • Headphones
  • Home theater systems

What’s particularly appealing about selling electronics on Amazon is the potential for high profit margins. While it’s true that some electronics can be expensive to source and ship, the demand for these products can make up for the extra cost. Additionally, many electronics have a high retail value, which means that sellers can mark up their prices and still offer competitive pricing. 

Of course, it’s important to research each product category and carefully consider factors like competition and seasonality before diving in. With the right strategy, though, electronics can be a very lucrative Amazon product category.

2. Health and Personal Care

The Health and Personal Care category has emerged as a growing segment on Amazon. With the increase in health awareness among consumers, this category has seen rapid growth in recent years. The convenience of online shopping and competitive pricing offered by Amazon makes it an attractive option for customers looking to purchase health and personal care products.

Some of the best-selling health and personal care products on Amazon include:

  • Vitamins and supplements: Vitamins and supplements category has seen steady growth in recent years, with a wide range of products from various brands. 
  • Personal hygiene products: Shampoo, soap, and toothpaste, etc.
  • Medical equipment: This subcategory has seen significant growth on Amazon, with products like blood pressure monitors, thermometers, and nebulizers being among the best-selling items.

The Health and Personal Care category also has the advantage of the potential for high profit margins. Many of these products have a high markup, making it easier to generate a healthy profit margin. 

However, researching products in the health and personal care category is crucial. As these products may be FDA-regulated, they could require specific labels, disclaimers in their product descriptions, and other selling requirements. Failure to comply with these regulations can result in legal consequences, such as account suspension or even lawsuits, making it imperative for sellers to understand and follow all necessary guidelines. 

3. Home and kitchen 

It is no surprise the Home and Kitchen category is one of the most profitable given the demand for products that make our lives easier and more comfortable. According to Amazon, home and kitchen products have been among the top-selling categories for several years. This category includes a wide range of products from small kitchen appliances to furniture and home decor. In 2021, the category saw a surge in sales due to the COVID-19 pandemic, as people spent more time at home and invested in their living spaces.

Some of the best-selling home and kitchen categories on Amazon include:

  • Home appliances: Air fryers, coffee makers, and blenders have been trending products on Amazon due to their convenience and functionality.
  • Cooking utensils
  • Home decor 

Sellers can also utilize Amazon’s Best Sellers in Home & Kitchen page to keep track of the top-selling products in this category and stay ahead of the competition.

4. Beauty and Personal Care

The beauty and personal care category is one of the fastest-growing and most profitable categories on Amazon. With the rise of social media and influencer marketing, people are being ”influenced” to invest in high-quality beauty and personal care products. In fact, in 2022, beauty and personal care e-commerce sales more than doubled that of 2019.

Some of the best-selling beauty and personal care categories on Amazon include: 

  • Skincare
  • Hair care: Hair care products, such as shampoos, conditioners, and styling products, are also in high demand, especially those that address specific hair concerns such as hair loss, thinning, and damage.
  • Makeup

With the right strategy, sellers can achieve high profit margins in this category by offering unique and high-quality products that meet the needs and preferences of their target audience.

However, it should be noted that some of these products may also be FDA regulated and require more intensive research. For example, the FDA’s definition of a “medical device” is considerably vague meaning products like facial rollers and electric toothbrushes are regulated. Sellers should be aware of potential restrictions and requirements when selling products in the Beauty and Personal category. For more information on products that have been cleared by the FDA, check out Amazon’s permitted products list.

5. Toys and Games

Toys and games have always been popular on Amazon, especially during the holiday season when people are searching for gifts for their loved ones. 

The toys and games category is a diverse one, with products for children of all ages as well as adults who enjoy playing board games or building sets. The vastness and diversity of this category means more opportunity for sellers regardless of competition. According to eMarketer, the toys and hobby category on Amazon generated $33.38 billion in sales in 2022, and this number is expected to grow in the coming years.

Some of the best-selling toys and games categories on Amazon include: 

  • Action figures
  • Board games
  • Puzzles 

The potential for high profit margins in the toys and games category is significant, especially for products with a loyal fan base or popular licenses. 

Final Thoughts

We’ve covered some of the most profitable Amazon product categories including, electronics, health and personal care, home and kitchen, beauty and personal care, and toys and games. Each category has its unique characteristics and offers potential for success. 

However, this is just the tip of the iceberg. With Viral Launch’s Amazon seller software suite, sellers can further research each category with real-time data to identify profitable opportunities and stay ahead of the competition. Choosing the right product category is crucial to step in the Amazon seller journey. 

Whether you’re new to Amazon or a seasoned seller, it’s essential to stay up-to-date with the latest trends and research each category thoroughly to find the right product to sell. By doing so, you can increase your chances of success and thrive in the ever-changing world of e-commerce.

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