How to Be A Successful Amazon Seller

Diversifying your sales channels by selling on Amazon is a smart way to reach potential customers and take advantage of the benefits of selling on such a popular eCommerce marketplace. Learn more.

By:
Michael Manzione
-
eCommerce Fulfillment
Outsourcing

eCommerce is increasingly becoming the cornerstone of modern retail. One major issue that many online businesses face is a rigid eCommerce structure. In other words, over-relying on a singular channel to sell and distribute their goods and services. Putting all your efforts in one sales channel can either end up a success story or barely getting by, which is where the diversification strategy comes into play. This refers to using other sources, other than your eCommerce store, to sell and distribute your products.

There are many online selling platforms and marketplaces where you can list your products to potential customers, and one of them is Amazon. With over 300 million active users, there are a lot of potential customers to reach. As people search for products just like yours, you'll pop up in the results, and at the very least, you'll have brand exposure. With such a vast market, you're bound to make sales. Once people discover you on Amazon and are satisfied with your products and customer service, many will connect directly to you and begin purchasing from your online store as well.

The Basic of Selling on Amazon

Each online marketplace has a different shopping persona that you must understand to be successful. Amazon shoppers, for instance, like low prices but are willing to pay more for convenient delivery.

For those who are not yet selling on Amazon, now is the time to get started. To sign up for a seller account on Amazon, you'll need to provide the following information:

•    Your business' legal name, contact information, and location

•    Your phone number

•    Email address

•    A credit card

•    Tax ID information, including your social security number or business's Federal Tax ID number

•    State tax ID information for the states that you have tax nexus

The level of competition on Amazon for certain categories or product lines can be pretty high, which is why your listings should be easy to find and stand out from the competition. Let's say you sell iPhone cases. A compelling title would be 'Protective iPhone case fits iPhone 12 series, water-resistant, shock-resistant, multiple colors'. This will show up in multiple searches given the many keywords and gives customers plenty of information right away.

Benefits of Diversifying Sales Channels With Amazon

The upsides to eCommerce channel diversification are vast. The benefits of selling on Amazon include:

  • Increased reach. If you're selling in one place, you're only targeting one part of your potential market. But when you sell on multiple channels, you are reaching more people who, potentially, may not have come across your products organically. A larger customer base is critical for the long-term stability, safety, and profitability of a company.
  • Protection from volatility. It's not uncommon for eCommerce stores to experience sales volatility. Selling across multiple sales channels is one of the most powerful ways to protect your business, as changes to one channel only affect part of your sales and revenue.
  • Collect useful data. One of the perks of eCommerce is being able to access and store customer data. And, with multiple selling platforms, you're able to collect even more consumer data, which allows you to create better marketing campaigns and make better business decisions.
  • Order fulfillment and shipping options. Lastly, with eCommerce, businesses can either take care of order fulfillment and shipping in-house or engage a third-party logistics provider (3PL) to help them deliver their Amazon orders and those on their website to customers.

What is Third-Party Fulfillment?

Third-party logistics (3PL) fulfillment involves engaging an eCommerce fulfillment company to store and manage merchandise, pick and pack orders, kitting services, subscription box fulfillment, and handle the logistics of shipping orders to customers on your behalf. The key to understanding this outsourced fulfillment solution is that the seller buys inventory in bulk and contracts a third-party eCommerce fulfillment warehouse to handle everything related to order fulfillment.

One major sign that working with a 3PL is right for you is when your business is growing faster than your operations can scale. As your business expands, it can be hard to keep up with the growing order volumes. Managing logistics in-house will eventually mean more warehouse space, inventory management, packing, shipping, staff labor, etc. The time and money spent on fulfilling orders yourself might be better spent on other essential business operations like developing new products, marketing, and growing customer base. 3PL experts have the necessary experience, resources, and geographic footprint to drive more efficient and affordable order fulfillment.

About Rakuten Super Logistics— Where Proactive Delivery Management Comes As Standard

Rakuten Super Logistics is a leading logistics solution powered by a nationwide network of eCommerce fulfillment warehouses. Our SmartFill fulfillment management platform integrates seamlessly with Amazon to automatically fulfill orders as soon as they are placed online. We strive to achieve fast and accurate 1-2 day delivery to your customers wherever they are. The best part is, you can monitor your Amazon inventory levels in our warehouses in real-time and update when necessary. Request a quote today for simple, fast, and affordable Amazon order fulfillment.

Request a Quote

Rakuten Super Logistics is a leading eCommerce order fulfillment company that provides the scalability, flexibility, and cost savings retailers demand.

Related Articles
Share This

Stay up to date on the latest ecommerce news and announcements