Selling on Amazon but don’t know how to compete with your competitors? Let us show you the best practices you can follow right now to get ready for the competition on Amazon and maximize your sales.
Amazon can be considered the most dominant online store existing today with net sales to close to 470 billion U.S. dollars annually. Therefore, you should know that you are selling your products on the most dominant marketplace globally!
Online stores outside of Amazon have to face the reality that they compete with Amazon. There is a big competition in the commerce area, and every online retailer knows how to take action and make their best moves possible.
In this blog post, we will guide you through best practices to crush your competition on Amazon.
Let’s dive in!
- Get Product Reviews to Build Trust & Credibility
Having reviews of your products can help your store be more trustworthy and increase its credibility. If you have received reviews before, it encourages new customers to leave their own experiences from your store!
In case you don’t know, Amazon rolled out the Request a Review button in 2019. It’s a way to ask your customers for reviews outside the traditional way of asking. You can find it on the Amazon Seller Central page. It can help you to increase the rate of your reviews
Quick Tip: Ask for product reviews from your customers. You can insert a note in the package or send an email to your customers after the shipment has arrived. - Set Dynamic Pricing for Maximum Profit
Whether you sell on your website or Amazon, you need to adjust your pricing strategy. This is because online shoppers are very price-sensitive. They look for the best deal depending on how they value the product or service. Therefore, find smart pricing strategies, experiment with pricing and then offer a price that will get you the maximum profit.
Pricing is one of the most important factors for winning the Amazon Buy Box. And applying dynamic pricing can lead you to success. This is because Amazon is a very price-sensitive marketplace and takes attention to your pricing. Thanks to a dynamic pricing strategy you will be tracking frequent price changes that can help you to stay ahead of the competition.
Quick Tip: You can use competitor price tracking tool and set dynamic pricing rules for your products or services. You can get instant notifications when your competitor changes price and you can take action if necessary! - Use Social Media to Increase Engagement
Social media is a great way to market your products. With the growing number of social media users globally, you can get closer to increasing your customer base. Be active on your social media, you can make some giveaways on special days on the retail calendar and announce them on social media!
Consider it as an opportunity for a higher number of sales and to build brand awareness. You can have a better chance to engage with your customers and build long-term relationships.
Quick Tip: You can get in touch with social media influencers that can market your brand. It can be a great opportunity to reach your target customers. Influencers can take videos while applying or using your products and lead potential buyers to your store. - Keep Track of Your Inventory and Price Accordingly
Inventory tracking is a must-do act for online retailers. But from time to time when your calendar is very tight your team might not be able to follow it regularly. And then you will end up with no sales.
Create a strategic plan to track your inventory levels with your team. Make a schedule and ensure that your team is always following the stock levels of your products!
Quick Tip: You can use automated tools to track your competitors’ stock. You will be notified when your competitors are out of stock and you are the only seller selling that product. You can set a higher price than usual and maximize your profits! - Optimize Your Listing for the Search Engine to Rank Higher
Having a higher ranking will help you increase your number of sales and more traffic to your store. Amazon sellers should always look for ways to increase their listings to get the most traffic.
Amazon’s product search algorithm works differently than Google’s search engine. After your target customer searches for your products, Amazon rolls out relevant results from their catalog and then they rank products according to relevancy.
Quick Tip: One of the major ranking factors is sales rank and customer reviews. Consider improving your store rating by asking for feedback from your customers and getting more reviews. - Upload High-Quality Images for More Traffic
Smartphone users found product images and photos to be “very” and “extremely” influential in their online purchasing decision. That’s why you need to make sure your images have high quality and look attractive to your target customers. While uploading product images, make sure they look professional and show the real value of your products. This will benefit for a stronger brand image and increase the trustworthiness of your store.
Amazon sellers have to follow image guidelines to ensure their product listings are not suppressed. If a customer decides to buy after clicking on your product, you will increase your conversion rate. Eventually, your images can get more traffic to your rate and get the opportunity for a higher number of sales.
Quick Tip: Track your competitors’ stores on Amazon and other websites. Compare your images with competitors’ images. Then, make sure you have high-quality images that engage conversion and lead you to get more traffic.
Takeaways
Standing out from the competition on Amazon requires some of your effort. By following the actions we have explained above, you can compete with the right tools and strategic moves! Don’t forget that Amazon is a very price-sensitive marketplace, so you need to have smart pricing strategies to get the maximum profit.
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