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Which Amazon Sales Strategy is Best for Brand Owners?

To be profitable on Amazon, you must have a strong sales plan. Amazon provides retailers with a clear set of selling guidelines and a summ...

Amazon Sales Strategy

To be profitable on Amazon, you must have a strong sales plan. Amazon provides retailers with a clear set of selling guidelines and a summary of best practices in Seller Central. However, a lack of an Amazon sales plan still causes a lot of people to be hesitant to start selling on Amazon or to never consider it as a new way to do business.


The two most frequent excuses I hear for not having a plan for selling on Amazon are


1.   Lack of time and

2.   Time constraints and channel conflicts (i.e., opening a channel that causes issues with prices in all other distribution channels)


Amazon is seen as being too powerful, and the worst part is that it might ruin your current e-commerce or conventional sales channels.


This is ludicrous, of course.


Even with the vastness of the Amazon network, selling on Amazon does not have to be a binary decision. By the same reasoning, Columbus would not have been able to set out since he would not have had the time to chart the entire globe. A carefully thought-out Amazon sales strategy will enable you to expand your company profitably!


It's also important to note that, in all likelihood, someone else is already selling your brand on Amazon if it has any kind of large following. For most brands, the question is not if they will be present on Amazon, but rather, what kind of presence they will have in order to safeguard their brand.


Let's explore your alternatives now.


Amazon Sales Technique will help you save money and time

Don't proceed entirely

Nobody has to sell every item they have on Start by adding a few things to your Amazon account to get acquainted with the platform. Setting up a small number of products at first lets you become familiar with some Amazon procedures, which you can then use to your advantage as you grow. Most likely, this is the first time you are putting someone through an Amazon-specific process or educating them for Amazon sales strategy. Before attempting to enhance what you are doing, strive to comprehend it first to give yourself the best chance of success.


If you're still not convinced about expanding your business to Amazon, keep in mind that your rivals are already selling there. How can you ensure that the Amazon customer consideration set includes your brand? If you're not there, your rivals will take advantage of the more than 200 million active Amazon users and the more than $100 billion in yearly sales that the company generates.


Even a small number of products are worthwhile to have there as an extra sales channel.


Manage well, and delegate tasks to others.

For your company, expedited shipment, ratings, comments, optimization, and sponsored search are frequently uncharted territory. All of these are valid worries that new Amazon sellers should take seriously, but fortunately, there are plenty of answers available.


It is not only less expensive but also quite successful to outsource these tasks that are outside of your area of expertise. For between $10 and $50 per hour, thousands of Amazon experts are accessible for a range of services. Similarly, Amazon allows you to assign seller central administration to a third party by creating secondary accounts within your Amazon listing.


The owner of the company is the one who knows it the best! Although joining Amazon can be scary, there is less risk involved if you organize your entry into the Amazon Marketplace to match your objectives and the organization structure.


Which choices are available to you while selling on Amazon?

Just as a Swiss Army Knife is a knife, so too is Amazon a website for purchasing. You are losing out on 95% of its worth if you only use it for its most basic functions.


When it comes to selling on Amazon, aim high and you'll achieve even more success! If you set up your selling strategy effectively on Amazon, you may make a ton of money with a lot less work.


Here is how.


Fulfilled by the Merchant Listing

This is just the basic Amazon listing, fulfilled by Merchant. You design a product listing on Amazon or take over an already-existing one, handle all customer support, and handle all product selection, packing, shipping, and return handling on your own.



As your principal listing, use the Fulfilled by Merchant option as little as feasible. As a fallback for your inventory at Amazon's fulfillment centers in the event of stock outs, it is OK to maintain an active merchant fulfilled listing, but that is about all that should be done.


The Amazon search algorithm gives the least weight to these offerings. These are usually suitable for extremely low-speed sellers or really expensive things that you can't afford to stock.


How Not to Do It

You're not doing it right if a merchant fulfills any of your finest products, especially in highly competitive areas. To view instances of these listings, just conduct an Amazon search for any product, then scroll through pages 20 and above.


Do you believe the lack of Prime-eligible items this far down the results page is merely a coincidence?


How to Execute It Correctly

The best-selling outdoor ice maker on Amazon is shown below. Three things to keep in mind are that it's heavy, pricey, and doesn't sell very often.


This is how the merchant should use fulfilled. To begin with, the fact that it is the category bestseller while only receiving five reviews suggests that it is not a significant mover.


This and the second factor, the cost.


Stocking a large number of these and storing them at Amazon might not be the best idea. Why not drop-ship them from the manufacturer after you have the sale and cash in simply by putting up a listing on Amazon? That's probably what's going on.


Finally, considering its weight of 129 lbs., shipping it to you, Amazon, and finally the buyer could make using any other option unfeasible.


Completed via Amazon Listing

The more advanced iteration of the standard Amazon listing is called FBA. Even when you send merchandise to Amazon's fulfillment facilities, you are still the seller.


Amazon now automatically selects, packs, and sends your products to the buyers when an item sells (for a fee). Additionally, they take care of all routine customer care duties including tracking and returns.


You can use this strategy to make your items eligible for Prime. Both customers and Amazon's search algorithm find this appealing.



When you want to streamline the online sales process while keeping complete control over the details and pricing of your product listings, use this strategy. You set the price, therefore this is especially crucial for vendors that have to maintain MAP pricing.


How Not to Do It

The following vendor has made the decision to buy stock and ship it to Amazon. This must be done in the hopes that customers who have faith in the brand will not be concerned about the cost if Amazon fulfills the order. But these goods will remain on the shelf until their expiration date unless you can offer a lower price.


How to Execute It Correctly

Should a customer choose to click "Add to Cart," they would be purchasing this item from "Professional Grade Products" for $499. Take note that the identical item, as displayed in the second image, is available from a different seller for $399 (plus a small amount for delivery). Why, therefore, does Amazon advertise the $499 deal and force users to select it by default?


since Amazon fulfills the order.


Items fulfilled by Amazon have a significant positive influence from Amazon's search algorithm. Even while the Prime deal costs $85 more, in this instance, it believes that it offers the consumer a superior overall value. "Northern Tool" would most likely always win the Buy Box if there was no Prime offer.


But another vendor has increased their margin and volume of sales by employing Amazon fulfillment.


Employ a Loss Leader:

Products that are sold at a loss (either slightly below acceptable margins or below cost) are known as loss leaders. This highly-liked retail tactic performs exceptionally well on Amazon.


This could be compared to the razor and razor blades tactic. For those who are unaware, the majority of shaving supply firms offer razors at a loss but charge a significant markup for fresh blades. Since purchasing expensive razor blades still saves money compared to purchasing new ones, customers gladly purchase them later. Profit, hey!


So, how are you going to achieve this with your Amazon sales strategy?

A. Building Your Rating as a Good Seller

Selling anything before you have a strong Amazon seller rating is nearly impossible. You can acquire the initial sales you require to build your reputation as a dependable and trustworthy seller by selling at a loss.


B. Increasing Item Reviews Loss leaders can assist in establishing a new brand or product that does not yet have any reviews on Amazon. Free Book Promotions are especially beneficial for self-publishers who use Amazon's Kindle Direct Publishing to draw attention to their books before they are actually sold.


Just be aware that this tactic can make them believe the product isn't worth the amount you want to charge afterwards. When attempting to distinguish anything based on luxury or quality, don't use it.


C. Attracting Purchasers to Your Seller Listing

Customers who are considering one of your products could also be interested in the other items you provide. In order for them to view the rest of your selection, you consequently want to direct them to your profile.


There are two primary ways in which offering something for a loss can draw attention to your profile:


1.   When they see your reduced pricing, they could click on the listing. Next, even if they decide not to purchase that specific item, they might want to check if you have any other items that they might find more appealing.

2.   After purchasing the item, they might come back to your business to look for matching accessories or other relevant products.

Above: A visitor can find your seller profile by clicking the link on a listing. The link at the top leads to the manufacturer's online store, while the link at the bottom refers to the seller's profile who has won the Buy Box.


Below: The goal of this manufacturer's storefront is to close more deals with customers who are considering any of their items.


Recommended: Amazon Manufacturer Part Number.


Keep in mind that this is only viable if you can generate revenue after attracting customers to your seller profile. Sell complementary mice, mouse pads, keyboards, flash drives, laptop cases, and so on for substantial profits, for instance, if you sell a computer at a loss.


This mostly benefits vendors of related or complimentary goods. It will be more difficult for sellers that provide a large range of unconnected products to be successful.


Apply Data-Driven Pricing

Too many vendors base their price decisions solely on gut feeling and subjective judgment. This frequently leads to prices that are either too high to sell at or too low to make the most money.


Given the millions of times a day that prices change on Amazon, it may be impossible for anyone to do the math quickly enough to determine the right price.


Remain with High-Grade Items

It's obvious that someone needs to make a sale of a cheaper product, and using loss-leaders can make it particularly appealing to do so. But using high-quality items alone typically yields far superior outcomes.


The cause of this? There is a greater chance that customers will be happy with their purchases. Less requests for returns and unfavorable evaluations result from this. For a thorough plan on how to increase your review count,


Reduction of return requests will help you minimize losses and free up more time for selling. You also have a far higher chance of making sales if you have a high Amazon seller rating. Bid farewell to inadequate leaders!


It's also important to note that Amazon's clientele isn't especially frugal. Serious bargain hunters reside on eBay, while average Amazon customers are far more concerned with the product's quality and their overall shopping experience.


Put Customer Service First to Get the Buy Box

The goal of the majority of effective Amazon selling tactics is the Buy Box, which is considered Amazon's Holy Grail. 90% of all Amazon sales are reportedly done through the Buy Box, and merchants who have won the Buy Box are frequently able to charge 20% more than their rivals. It's equally significant as having Google rank #1 for your website.


Amazon never discloses the precise number of winners of the Buy Box; instead, it uses a wide range of indicators. But the majority come down to this: give your clients the best service you can.



In the end, consider how you want the Amazon channel to complement your current business and select a strategy that suits your needs. It is more convenient to begin with one approach and add more afterward.


Think about the administrative tasks you can complete quickly and efficiently and the ones you would prefer to avoid. While there is no one correct response, bear in mind that most products that move from full-bring to fulfillment by Amazon see a bump in sales of 10%–20% and 40%–50% when they are sold directly to Amazon.

Read More:

Amazon FBA's Actual Power

How E-commerce Fashion Merchants May Lower Online Returns

Comprehensive Guide to Amazon OTT Advertising in 2023

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