If you are reading this blog, then you have probably heard the success stories of many people and businesses who are selling on Amazon. Some of them are wholesale companies while others are third party and retail arbitrage sellers. There are great success stories around those types of sellers, but in this blog, we are going to focus on branded sellers. If you are not familiar with Amazon as a selling platform. Pay attention to these following facts:
- Amazon is the largest online shopping platform in the market today.
- 368 Million products are offered on their platform.
- Google went on record claiming that Amazon is its biggest competitor in search advertising.
- Pause for one second… Amazon just shipped 35 items in the time frame of you reading this.
When shopping for a product, you may recall seeing other sellers offering the same product for a lower or more expensive price or perhaps you are experiencing this as a seller right now.
Every day there are thousands of sellers on the Amazon platform, but many of them are not marketing or managing themselves properly. Our partner ASDAL is a great choice for companies who are planning to sell on Amazon but aren’t sure how to get started. Amazon is a high risk; high reward platform and it is essential you prepare your account the best way possible. Although third party sellers are great and retail arbitrage takes intelligence and grit, in this blog, Asdal have shared five things for a brand or an aspiring brand owner to consider before selling on Amazon.
Register your trademark
You’ve spent months, even years, developing your ideas, therefore, you should protect your brand at all costs. In traditional retail, your trademark would be hard to enforce, but on Amazon credibility means everything. Without a trademark, you risk third-party sellers, resellers and counterfeit products. With a trademark, you gain access to various tools within the brand registry.
Establish a product network
If you don’t have an established Facebook page, Instagram account or Twitter feed for your product then start one. If you do not have a product network, you should connect with influencers or attend conferences and tradeshows to build awareness. The purpose behind building a product network or working with a team who has a product network is to generate buzz for your Amazon launch. If you have a following and a decent sized product network.
You should prepare and plan for promotions across your account and share this to your product network. For example, in traditional retail, in order to drive foot traffic, stores will offer discounts and promotions to shoppers. The same concept applies to Amazon and overall this helps toward rankings and sales in the long run.
Separate your Amazon inventory
Many sellers use their extra inventory for Amazon sales. Starting out this way is great, but long term, you are going to need to separate your Amazon stock from your traditional sales. It is a blessing and curse when you run out stock on Amazon. For one, you can slip in rankings when you do not maintain your stock levels, and customers will order from your competition. Furthermore, it is easier to track what your warehouse team needs to send, and which products will require additional labels and packaging.
Overall, the reason as to why sellers should separate their Amazon stock levels is to ensure you allocate the proper stock each month. We recommend you conduct channel forecasting. If you are at this step, feel to reach out to ASDAL to find out more about their FBA inventory transitions program, their account management or both.
Build an Amazon team
Teamwork makes the dream work! Depending on your account size, you are going to need a team of 2 – 4 members, which ensures all questions, emails, shipments, replenishments, and cases are taken care. Also, this ensures all strategies are consistently reviewed, considered and implemented. If you are in this stage and require a team, be sure to reach out to us with any questions.
Have a point-of-contact
When you are looking to grow your company and start the move on to Amazon. It is important to have a point-of-contact for all questions. They should be the ones who communicate what your Amazon team is up to. We recommend your point of contact understand all areas of your business from the legal side to operations and marketing.
In most cases, this person can be your Sales & Marketing or community manager and, in some cases, even your general counsel. This means one team member can inform all stakeholders as to what’s happening on the platform.
If you have any questions or are ready to start the Amazon process, you can reach out to ASDAL, and they can get you started! ASDAL provide teams with a software that offers a robust Infrastructure with automation and reporting that allows retail brands to streamline management on Amazon.
IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.