With Amazon’s soft launch last November a lot of Australian business owner are asking whether their business should sell on Amazon. The answer is in the below 2 questions
- Are you a brand owner or are you a distributor or reseller?
- Are you willing to send in your products to Amazon?
Brand owners own the product and are not reselling other companies products. For example they are not reselling Nike, Apple products etc.
If your answer is YES to being a brand owner then you should definitely sell on Amazon. The reason for this is because Amazon loves brands and goes out of their way to help brand owners sell on Amazon. If you are a reseller you can still sell on Amazon but you have to compete to win the buybox.
Being a brand owner, Amazon will give you a whole bunch of tools to help your sales and marketing such as Campaign Manager and Brand registry.
Back in 2013 I sold both my own website and on Amazon.The end result was when I launched on Amazon, I was selling x5 more units every day, then my own site.
Google loves Amazon and quickly turned up at the top of page 1, outranking my own website that had a video with over 250,000 youtube views!!!
RE-SELLER OR DISTRIBUTOR
Re-sellers or distributors are companies reselling products from a large brand. Examples are being a re-seller of a high profile TV brand such as LG or Sony.
If you are the biggest reseller in that industry by all means you can have a successful Amazon store, but I only recommend this if you are indeed the biggest reseller. The reason with this is because being the biggest reseller gives you higher chances to win the buy box for this product.
FBA or FBM (yes – I’m talking about it again)
Amazon really encourages businesses to use FBA rather than FBM, as Amazon can own the customer experience by using it’s own distribution and customer service network.
I’ve made prior podcasts about FBA and really encourage you to definitely go down the FBA, rather than FBM path
OUTLINE OF THE EPISODE
[01:32] – Brand Owner
[04:55] – Re-seller or Distributor
[06:00] – FBA or FBM
If you want to sell your products on Amazon Australia and seeking some help in getting started, then I would love to help out. Please reach out to me so that I can organize an Amazon Selling Strategy Session
Listen to Our Podcast and make your Amazon Sales Shine
****** Full Podcast Transcription below *******
We talk all things, Amazon speaking with Amazon FBA Expert from around the world to help you grow and build your Amazon business with the Amazon Seller Consulting Services . We bring you all the information and tools provided by Amazon Seller Consulting Services to help you sell on Amazon bring your business to life from here in Australia and internationally.
Today’s a really exciting article because I get to look at the aspect in How to Sell on Amazon Australia now where Amazon’s opened up as a soft launch and a lot of businesses are asking Should I sell on Amazon? I’ve been finding this question coming a lot more since the end of November and there’s two questions I ask straight away about whether your business should sell on Amazon.
The first one is the clear indicator. So, the question I always ask each business is are you a brand owner or are you distribute or reseller? A brand owner means you actually own the brand. It could be your own line of sporting goods it could be your own line of clothing but you’re the actual brand owner you’re not selling someone else’s brand. And the second question I ask is Are you willing to send your product to Amazon to store them their warehouse? sees their Amazon Listing Optimization Service could Fulfillment by Amazon whereas if you just list a product on Amazon Eastern your own warehouses fulfillment by merchant.
So, there are two questions I ask every business when they say should we sell on Amazon. The first one is if you are your brand owner, if you are the brand owner you own your own brand so you’re not reselling someone else’s so you’re not reselling Nike’s you’re not reselling Apple products but you have your own brand then the answer is a resounding yes. You should definitely sell on Amazon with the help of their Amazon Seller Consulting Services.
The reason I say that is Amazon really likes brands like the private label you can sell on Amazon if you’re a reseller or distributor but then you compete in the Buy Box and I go through that later and you feel the biggest sell or the biggest distributor then that’s, find us on Amazon. But if you’re not I’ll give the reasons why things have to look out for you.
If you are your own brand and you have opportunities on Amazon then definitely take it in the show notes I’ll send you a link for the How to Sell on Amazon Australia, and also the US the two markets have a lot of experience selling in. We are also selling in U.K. and in Canada but they are the secondary ones.
What I’d say about being a brand owner is that Amazon gives you a lot of tools with their Amazon Listing Optimization Service to promote your own brand if you’re the brand owner. You have things like brand registry. Could do even more detailed listings and images and short videos and you can also have other great tools such as brand protection for the easy Amazon Product Listing Optimization.
So, if you are the brand owner you can go into Amazon create your own listing and open up as a new sales channel. From my experience about four years ago with one product I did a test selling through my standalone website vs. one on Amazon through Amazon FBA Expert very similar price actually Amazon as any slightly cheaper but they do offer prime.
The difference was an increase in times five to times 10 when I moved it on Amazon availing Amazon Seller Consulting Services. And the reason I put that down is basically Amazon, the search engines love Amazon. If you have a product and you’re listing on Amazon through Amazon Listing Optimization Service then you’re going to be picked up so much easier in Google than a standalone one.
I don’t know the underlying nuts and bolts or the Google algorithm which they change all the time. But, I do know if you’re a product on Amazon it can be found so much easier if you know Amazon Product Listing Optimization. So, if you are the brand owner I would say jump at the opportunity to get on Amazon.
When you do get on there really understand a couple of things you got to have great photos and that’s talked to in another article. You need a really good listing and back end key words and I have a separate article coming up about how to know what key words they are because that’s when the key secrets.
When you first launched to get a good listing, you need to know what people are searching for on Amazon. You say you appear top and then your customer reviews any images is what makes them convert. So, if you’re a business owner you have some products then I’d say definitely move to the Amazon channel. It’s an amazing opportunity. They do the fulfillment they do the sales they do the tracking they look after everything through their one and only Amazon Seller Consulting Services and it can really bump your sales.
Then the only down side is you don’t get to have that personal connection with your customer so you don’t get to build your e-mail list. Now some smart ways and get around that by having some inserts and other ways to get them to your list. Now Amazon doesn’t let you do that electronically but I’m sure if you have any in the way provide some amazing information that compliment your product then there’s opportunities there to gain the person’s e-mail address.
But Amazon specifically does not allow you to capture the customer’s e-mail address through electronic communications through their system. So that’s one of the downsides. But look guys overall the upside is massive if you have a business with their own brand. Definitely look into getting onto Amazon through Amazon Seller Consulting Services.
It’s an amazing option. So, if you’re the second category of a business owner you may be a distributor or a reseller. In that case you’re one of many people who sell a brand. So, you may be a reseller or a distributor. For example, a certain type of door plumbing, of plumbing products maybe not existing product but you’re the biggest person on that market.
Now, there is definitely opportunity on Amazon. If you’re a distributor reseller but I only recommend that if you’re the biggest in the industry the reason why, to win the buyer box is a whole bunch of characteristics you need to go through and it’s not always the lowest price but that does help.
So, if you’re a distributor retailer a wink and the nuts and bolts of it today but if you’re the biggest in the game they’ll definitely look at Amazon Seller Consulting Services for selling on Amazon or if you’re the first to market in that space if you get in their first build up the reviews build up the sales. If you’re a distributor it makes it harder for the next person to come in.
If you are a retailer I’d ask you to reach out to me so I can go into more details about how to help it to make a perfect Amazon Product Listing Optimization. But if you are the biggest guy on that marketplace is definitely an awesome opportunity to avail the Amazon Seller Consulting Services.
The second point about businesses moving onto Amazon is a FBA Fulfillment by Amazon or fulfillment by merchant. The difference is fulfillment by Amazon is where the product actually stored in Amazon’s warehouse fulfillment by merchant is where you still sell a product but you just have a listing on Amazon and I’ve talked about this at length in the past.
Basically, if you go on Amazon you do it properly. Use Fulfillment by Amazon by Amazon FBA Expert. They really push up the ranks in terms of your product seen pushing customers to your product rather than fulfillment by merchant. And the reason being is that Amazon makes more money and they own the customer process when it’s Fulfillment by Amazon, if it’s fulfillment by merchant they don’t get the commission as high.
And also, they don’t, they can’t ensure that the customer has a great experience, they can’t ensure that the products sent out that same day or next day because the seller may have the warehouse and it’s a weekend and they won’t send it to Tuesday or Wednesday. So, if you go to Amazon a highly recommend is Fulfillment by Amazon by Amazon FBA Expert.
There are some other opportunities provided by Amazon Seller Consulting Services you may not have thought of with Amazon you actually you maybe think, well get my own warehouse. I’ve got a part time fulfillment lady or man they come in 4 hours the morning 4 hours in the afternoon or every second day. The Dispatch orders.
Well one thing you want to consider is what do you actually look at Amazon as a storage and fulfillment house. Their storage fees are very low. If the standard size and they pick and pack is quite low as well they won’t be charging the commission but they will charge you pack fee which if you do the sums it may be cheaper than having your own warehouse and stuff dispatch in the products.
So, the way that works is used to fulfill three normal websites. But when you send your products into Amazon what is effective with Amazon Seller Consulting Services ,to be stored rather than your own warehouse and what you can do you can integrate your own web site to Amazon for dispatching or each day when an order comes in. You just log into Amazon select the customer details type them in hit send and the order will be sent out from Amazon.
Now this is a really good opportunity if you are a company with a smaller niche. If you’re a small company not set up for scale where you actually think they’ll be really good, if I got rid of having to have my own storage space and employ people dispatch it or you just maybe your mum and dad business and actually dispatching yourself every day.
I’d highly recommend looking to the fees and the costs of what cost to store on Amazon and let them dispatch it compared to what you’re paying at the moment. I know some companies are actually moved onto Amazon mainly for their cheaper storage into the dispatchment cost rather than having to have their own warehouse and see the products themselves.
An example of this with a business moving online is one of my partners in the US we worked with a company that’s in the vitamin business that’s very competitive but also on massive market. If you look some of these products they’re doing 100-200 thousand dollars a month per SKU.
So just one product range doing 100 to 200000 a month and this company does about, I won’t say their name, but they do about seven or eight million US a year. So, they’re a decent size company and a competitor who is much smaller than them were selling online on Amazon and they got us in to do a bit of research because they were selling on Amazon with Amazon Seller Consulting Services but they’re only doing a couple hundred thousand a year where they’re in about 8 million through their other channels and they’re saying everyone says Amazon is a great business why aren’t we succeeding online.
So, they gave us the details when the competitor products and we did an account audit and that’s what I recommend when you’re working with a business do an account audit before you say let’s sell on Amazon actually look at what’s already being sold on there and you can actually estimate what competitors are doing already. So, before you even start selling your products online you can actually go in using some smart tools and techniques offered at Amazon Seller Consulting Services and find out what the competitors are selling.
So, we did an account other for this product, for competitor’s product and we’re selling about 1.2 million US a year online. And these guys were flabbergasted they say these guys are way smaller than us when we are doing 200k on Amazon.
Why are these guys doing 1.2? And basically, their listing was terrible. They had no promotion no follow up sequence photos were bad no keyword resets were a really easy one to turn around without much effort. The reason I’m telling you this is they actually also looked at the costs of storing these products in their own warehouse and she found out it would be cheaper to move their products from their own warehouse for this SKU and moved on to Amazon for better Amazon Product Listing Optimization.
So I go with these guys is within 12 months is to get it from 200 K to seven figures to 1 million to be competing with the competitor products actually move the stock from their own warehouse to having it all stored on Amazon. And that’s the opportunity Amazon provides with their Amazon Seller Consulting Services if you’re a brand owner it can really provide huge scale of increasing sales once, one SKU or one product can actually go from 100 to 200000 a month which is an amazing amount especially when Amazon will do the fulfillment, the customer service the tracking.
Or you need to do is get the product in the warehouse make sure your listing is awesome. Your follow up sequence is awesome. The keyword research done well and you push people to the Amazon listing so that’s a couple of views on should my business.
Go to Amazon now on a recap on this one. The first question is being you private label. Do you own the brand? If the answer is yes, a hundred percent move on Amazon the opportunity to expand and scale your product from five to six to seven figures is unbelievable.
If you are a brand owner then you could be a distributor reseller. If you are the biggest in the industry now I’d say definitely get on there. There’s a huge opportunity for that. If you’re there if you’re not the biggest but you’re the first one there and him build up the reviews quickly.
You have stock in there and there’s also opportunity and the second point is what you are going to be I highly recommend you to the Amazon FBA Expert. We have the product stored in Amazon. They really promote it and the cost can be very comparable or even lower than having your own warehouse.
So, if you’re a business owner in Australia and want to know How to Sell on Amazon Australia or in the US we’d love to help you. I’m always open to a conversation about how we can help businesses grow and succeed on Amazon regarding to which you are here with Amazon Seller Consulting Services.
And if you’ve got these questions in mind please drop me a note. Visit the website my details are there and I’d love to help you out.
So guys, my name is Peter. I hope I helped you out today. Remember take action each day.
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