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Increase your online sales with Amazon

 Business Opportunities > Internet
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Ad expires: 21 days
Price: $2.99

The Amazon marketplace gives online retailers big and small the opportunity to sell to millions of potential customers, significantly increase sales, and acquire loyal shoppers.

Competition on Amazon can be fierce. By some estimates, Amazon receives nearly 90 million unique visitors each month. Those visitors collectively spend more than $80,000 a minute all day, every day. And, according to Amazon, new marketplace sellers often see a 50-percent increase in overall revenue, when they sell on Amazon in earnest.

As with any retail channel, there are things that sellers can do to improve their chance of success. What follows are five tips aimed at helping online retailers sell more on Amazon.

1. Be Ready to Compete on Price

On the Amazon marketplace the key differentiator separating one merchant from another is price. This is a fact of doing business on Amazon, and is not necessarily an obstacle to profitability. Rather price competition should inform which products a retailer chooses to promote in the marketplace. Only list products with a sufficient margin to be competitively priced on Amazon and still offer a reasonable rate of return given inventory, order handling, and overhead expenses.

It is also a good idea to remember that selling on Amazon is a form of advertising. Promoting a product on Amazon does not, as an example, require a merchant to buy pay-per-click ads.

Imagine that a retailer is selling “Widget X” on its site for $10.00. That retailer is also buying PPC ads on Google and Bing at a cost of about 10 cents per click. On average, 5 percent of the PPC clickthroughs convert, meaning that PPC advertising costs the retailer about $2.00 per sale. After the PPC advertising, therefore, the retailer is really getting $8.00 for each “Widget X.”

Now imagine that this same retailer offers “Widget X” on Amazon for $9.25. There are no advertising expenses, and in a worst case, the retailer must pay a 99-cent listing fee. Thus the seller makes at least $8.26 for selling “Widget X,” and could be making much more if it has more sales volume.

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