Mar 20, 2018
5 Tips for Selling Private Labels on Amazon
Using Amazon to sell private label products can be a great way to open up new markets and reach new customers. With the vast amount of competition out there, it is easy for your product to get overlooked. These tips will help increase your sales and get your products recognized.
1. Competitive Research
Competition on Amazon can come from all over the world and it can be pretty intense. Competitors may be a small business or multinational company. It is important to be aware of what each of them is doing to reach their customers.
A lot of this will come down to how unique your product is. Amazon shoppers are thrifty. An increasing number of shoppers search for products on the basis of price and nothing else. If you are unable to offer your product at a price below the competition, try to show why your product is better. Try not to price your product too far from the competition.
If your product offers unique solutions do your best to highlight these features. Offer customers unique benefits and make your product stand out from the crowd.
2. High-Quality Photos
One of the most important aspects of the product description is the photographs. Customers are unable to handle your product before buying it. High-quality images of the product allow the customers to see the product before they buy it.
Be sure to use images taken with good light and of the highest quality you can make them. Poor images reflect on the quality of your business and likely will do more harm than good. Make sure they are appropriate and display the advantages your product has. If your product has many different aspects, don’t be afraid to include a lot of photos.
3. Encourage Reviews
Online surveys found that customer reviews are an important factor in online sales. 84% of customers said that they “trust online reviews as much as a personal recommendation.” Encouraging positive customer reviews is vital to selling your products on Amazon.
On Amazon, customer ratings are one of the search filters so it is important to keep this as high as possible. Customer feedback is important as well. New customers see feedback posted by others. If there is an issue that isn’t getting resolved it could scare off business.
Follow up on customer issues and resolve them as best you can. Communicate with customers and invite them to share their experience. The best way to get positive reviews is to make sure that customers have a positive experience.
4. Competitive Pricing
As mentioned earlier, pricing is a key factor when selling products on Amazon. Customers often make their decision to buy based on the price of the product plus shipping costs. This is why you price your product in line with your competitions.
Do competitive research and find out exactly what your others are charging. If your product is different than what your competition has, there may be room to charge a higher price. It is better to offer this added value to your customers at the same price as competitors and get more sales.
Some sellers on Amazon try offering your product at a cost lower than the competition. If the margins allow for you to be the lowest cost option, this can increase your business but be careful. Low-cost products can send a signal that your product is of low quality.
Pro Tip: Manage your Amazon data effectively to stay on top of your best performing products, inventory, customer info, and everything that goes into your store. This will allow you to keep you prices at the right level to maximize ROI of each line.
Our friend Dave McDaniel over at ManageByStats, a suite of software tools for Amazon sellers, had this to say, “Using the right tools is as important to selling on Amazon as it is for any other business. If you haven’t already, consider taking advantage of software that can help you be more efficient and grow your Amazon business. I’m with MBS, so of course I would encourage you to give us a look, but there are resources out there that can help. If you’re going to scale you need the right tools to do that effectively.”
5. Detailed Descriptions
Use vivid details in your product description. Let the customer know exactly what they can expect to gain from purchasing your product. It is important to leave no doubt in their mind that they have made the right decision.
Photos and descriptions an opportunity for the customer to interact with your product. Let the customer know what they can expect and then deliver on those expectations. Customers that know what to expect, leave better customer reviews. This will lead to increased sales.