How to be profitable as an Amazon Seller?

How to be profitable as an Amazon Seller?

Finding the right product to sell on Amazon

Since the marketplace is very popular with consumers, it attracts a large amount of sellers representing strong competition. It is important to follow a few rules to differentiate yourself and choose the right product to market, leading you to profitability on Amazon.

First of all, you have 3 possibilities to sell on Amazon:

  1. Sell ​​the product of a well-known brand, which supplies you directly by sending you part of its stock;
  2. Selling a white label product, with a less well-perceived value among consumers, making it more difficult to sell;
  3. Sell ​​your own products.

Finding and exploiting a market niche

Due to the generalist nature of the marketplace, it is difficult to find a product that is not already for sale on Amazon. Most of the product categories offered on the platform are saturated with many sellers, regardless of their size.

Find your place

The goal is to succeed in making a place for you among the hundreds of millions of referenced products, offered by thousands of competitors.

For this, it is necessary to carry out an analysis of each of the categories and subcategories of products present on Amazon and to see which are the competitors. Thanks to this, you will have a more global and precise vision of the market as well as the trends, allowing you to identify the products with the most potential for you.

Google Trends is a good trend analysis tool for finding a product to sell on Amazon. Indeed, the search engine tool allows you to follow the evolution of the interest of a product over different periods according to the searches carried out by Internet users on Google. In addition to this, you will be able to observe potential seasonalities.

Find a high-demand product

A product with high consumer demand will allow you to reach profitability faster as an Amazon Seller. You don't have to search for hours for the best items to offer, since the platform brings together all the best sellers, classified by category, called the " Amazon best sellers" 

These rankings are updated every hour. They are very good indicators and allow you to filter products and sort them by sales potential.

In addition, this tool helps you understand your marketing targets and their demands (helping you establish personas and establish an offer, in particular). This also allows you to find out about the prices charged by other Amazon sellers, who may have already achieved the objective you are pursuing: profitability on the marketplace.

A premium tool is also available if you want to study the market in detail to sell on Amazon: called Amzshark. This tool allows you to track the sales of your products as well as those of your competitors. In addition, there is a feature allowing you to find new product niches on which you could position yourself.

Depending on the keywords you use in the tool, you can track the positioning of your products on Amazon's search engine results pages. This gives you the opportunity to optimize the referencing of your product sheets by using the right keywords. Free for the first month, the tool is then available at $99 per month.

Find your pricing

As mentioned earlier, the Amazon marketplace is a very competitive platform, attracting a large amount of sellers. This implies that you must adopt an appropriate pricing strategy, such as alignment with those applied by other merchants who have decided to sell on Amazon, while anticipating the arrival of new entrants.

Distribution on Amazon involves many costs, among which you will find the sales commission system mentioned above, on each product sold. Therefore, if you want to be profitable on the marketplace, a too low price is not the most suitable strategy. It is recommended to offer a product whose selling price can reach twice its purchase price.

To calculate the potential revenue of a product and the profit margin, Amazon has implemented a revenue calculator. This tool allows you to test different pricings for a product already present on the platform. In addition, the calculator automatically takes shipping costs into account.


Find an easy-to-ship product

For its sellers, Amazon has set up a comprehensive logistics service called Amazon FBA or Fulfillment by Amazon. This service allows you to fully delegate deliveries and after-sales service to the marketplace. This is where ARRIVAGE team can help you to shift your stock easily. 

This service saves time and money on management and storage costs. Also, the products you sell are eligible for Prime delivery. Thus, these appear more favorable on product listings on Amazon, with a mention of this service optimizing your conversion rate thanks to free delivery in 24 hours.

How to generate traffic to your Amazon profile?

Optimizing organic traffic acquisition on Amazon gives you a real competitive advantage. Generating more traffic offers the possibility of boosting its sales on the platform, thanks to the optimization of the visibility of its seller profile in the search results.

In addition to this, it allows you to build trust with users and get additional chances to sell on Amazon.

Create a complete product sheet

The content of product sheets on Amazon is one of the main elements that you must optimize in an organic SEO logic. To do this, you must in particular look at the semantic content of your pages and work on the keywords that your buyers are likely to search for on search engines.

The choice of the keywords put forward and the title of the product sheet will then be made according to the relevance and the volume of searches. In this logic, it is necessary to provide the most complete description possible of the product, using lists of bullet points in the description, providing information on the size of the product, its weight, the colors available, etc.

The user must have a precise overview without even having clicked on the product. For example, below is one of the best-selling products in the High-Tech category. The product sheet is particularly detailed, in addition to providing photos explaining the operation and installation of the product. In addition to providing a lot of information, it is an Amazon product sheet, so it can serve as a reference for creating your own pages.

As on your own E-commerce site, the quality of the images published on the product sheet is important for selling on Amazon. The goal is to offer an eye-catching and more qualitative visual than those of your competitors. This is particularly the case for the ready-to-wear and fashion industry in general, where the photos of the products worn create real added value to optimize its conversion rate. Seeing the product in its context of use makes it much more attractive and concretizes its existence.

All of this is intended to give confidence to the potential buyer by providing them with as much detail and information as possible about the product. The best showcase for an item sold online is its product sheet. Customer reviews are paramount because consumers need social proof and read reviews extensively before making a purchase. Positive feedback is, plus potential customers, synonymous with reliability and quality. This also influences Amazon's algorithm, which takes several data into account, like other search engines:

  • The title of the page;
  • The recurrence of keywords and the semantic field;
  • The description of the product;
  • Reviews posted by customers (user-generated content).

As we can observe, customer reviews have a great influence on the act of purchase among visitors.

Amazon Stores

The platform ensures that Amazon Sellers are autonomous thanks to the proposal of multiple tools. These make it possible in particular to stimulate consumer loyalty as well as to develop brand equity.

Amazon Stores is a feature offered by the marketplace, allowing brands to design their own multi-page catalog. The objective is then to present and highlight their products. It is possible to :

  • Capitalize on the different sources of traffic acquisition, whether internal or external to Amazon;
  • Boost your company's sales and visits to your Amazon Seller profile by improving your ranking in search results;
  • Promote new products through remarketing tools;
  • Create a personalized shop thanks to different building models;

To measure the impact of this store typology, the platform recently deployed the Amazon Store Insights tool. The latter thus gives an overview of the daily performance and efficiency of the Store. In addition to that, this tool helps to understand how customers interact with your catalog. Finally, external traffic can be analyzed in order to obtain information on the effectiveness of advertising campaigns.

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