Amazon basics: what to know before you decide to sell (2)
Miguel Nicolás
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We are going to tell you in detail what you should know before deciding to sell on Amazon. Let's start with the basics that are important to know before you start.
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In a previous part of this series we talked about the advantages and disadvantages of selling on Amazon. We recommend that you start by reading that article because it will clarify some interesting concepts.Having clarified the convenience or not of selling on Amazon, let's get into more practical matters. Throughout this post we will evaluate how it works and how to get the most out of our strategy.
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Amazon basics in 5 concepts
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Of course, Amazon strategy has an important depth, but what we intend to do is to consolidate some critical concepts that will work as a key to move forward later on your own.
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#1 - Marketplace
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If there is one thing that essentially characterizes Amazon, it is that it is a marketplace sales model. It is not the only option, far from it, but it is the most important in its category.This type of platform has the peculiarity of working as an umbrella for the sale of third-party products within a single space.third party products for sale within a single space. In the case of Amazon, in addition to offering its logistics and management capabilities as a service to its sellers, it also has its own brands, which compete directly with the rest of the sellers.Specifically, Amazon has several marketplaces differentiated by geographical area. We can choose which one or ones we want to sell in.
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#2 – Vendor and Seller
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Basically, they are the two main figures among Amazon sellers.The main difference is that Sellers are usually considered as "retailers" who sell directly to the end customer, while the so-called Vendors are wholesalers or manufacturers who sell directly to Amazon as a supplier.Generally, it is usual to always start as a Seller, creating an account directly on its Seller Central platform. To become a Vendor you can learn more here.
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#3 – Fulfillment
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This is something basic in Amazon and very relevant in almost all aspects, since it absolutely conditions your way of selling.There are two different ways or formats of selling depending on who sells the products and who is in charge of the logistics:
- FBA (fulfillment by Amazon): are products sold and shipped by Amazon. We only make them available to the platform by sending them to their logistics centers.
- FBM (fulfillment by merchant): in this case are products that are sold through Amazon, but all management, storage and shipping is assumed by the seller and not by the marketplace.
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As you can imagine, Amazon tends to prefer FBA products for two obvious reasons: it has greater control over the customer experience and, incidentally, its margin is higher because of what it charges in services.
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#4 - Listing
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As a concept it is simple to understand: it is a list or feed of products with their corresponding descriptions, images and prices (similar to that of Google Shopping).It is not enough to prepare the document: if we want to achieve optimal performance, it is necessary to cover and take care of a series of basics:
- Title: try to make it descriptive, no matter how long it is, but include keywords.
- Description: unlike SEO for Google, the description is important for both the user and the algorithm.
- Bullet points: are those points that highlight the most important differential values and advantages of each product.
- Photos: high quality, please. At least 1000x1000 pixels.
Although it is not exactly in your hands, it is important that you do everything you can to get positive reviews. Customer reviews are essential to sell on Amazon. -
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5 – Buy Box
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A really important concept of Amazon itself. As you know, in this marketplace there can be numerous sellers for the same product or ASIN.All of them will bid for a place on a single page, i.e. there is no landing page for each seller.Getting the Buy Box is the easiest option to convert. Keep in mind that you will be the seller associated with the buy button, so gaining that position is vital. There are no tricks to get it. Only a competitive price and a high valuation as a seller.It is difficult to summarize in just 5 points something as vast as Amazon's strategy, but this is a good starting point to understand how it works, at least in the most essential part, one of the most used sales channels in the world as a complement to eCommerce itself.
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Do you have any questions about Amazon Basic? As you probably do, we remind you that we are always available to give you a hand.
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Images | Unsplash.