Amazon Australia opened it’s door to Australia’s in late 2017 and provides an amazing opportunity to grow and scale an eCommerce business with your own branded products.
This article and Podcast about How to Sell on Amazon Australia is designed to give you all the information, steps and processes to start selling through Fulfilment by Amazon (FBA) (i.e. sell your products on Amazon.com.au)
Based on our last 5 years experience selling on Amazon USA, UK, Canada and now Australia, we are expert Amazon optimisation consultants and sharing our lessons and success steps to help you grow your Amazon business
The article is broken down into:
1. How to sign up and get your Amazom.com.au seller central account
2. How to determine the fees and costs when selling on Amazon Australia
3. How to determine your selling price using the Amazon FBA profitability calculator
4. How to create your first listing
5. How to send your products into Amazon Australia Dandenong’s warehouse (via Manage fba shipments) including barcoding all necessary requirements
6. Why the imagery you use on your products is a key factor in determining your customer conversion rates.
7. The Magic Combo – The key ingredients of Reviews and Raving Fans
8. Product Innovation – The need to keep improving and delighting
9. How to operationalise and manage your Amazon Australia seller central account and what key metrics you need to run your FBA business
Step 1: How to sign up and get your Amazom.com.au sellercentral account
The first step to start selling on Amazon Australia is getting an account setup. Follow this link to sign up that should only take a few minutes
Step 2: How to determine the fees and costs when selling on Amazon Australia
Amazon Australia doesn’t offer individual (no monthly subscription fees) account, rather charge a flat monthly fee of $49.95.
The fee’s can ne found here
The fee’s per category range from 8 – 12%, plus you also need to factor in the size of the product you sell, which affects Amazon’s pricing.
This will give you a ballpark cost and the FBA profit calculator in step 3, which show you precisely how much you will make per sale, and also allow you to determine the optimal selling price.
|Categories||Referral Fee Percentages|
|Baby Products (excluding Baby Apparel)||9%|
|Camera and Photo||8%|
|Clothing & Accessories||12%|
|Health & Personal Care (including Personal Care Appliances)||9%|
|Luggage & Travel Accessories||12%|
|Mobile Phone Devices||8%|
|Shoes, Handbags & Sunglasses||12%|
|Software & Computer/Video Games||12%|
|Tools & Home Improvement||9%|
|Toys & Games||9%|
|Video & DVD||12%|
Step 3: How to determine your selling price using the Amazon FBA profitability calculator
One of the key steps when selling on Amazon, is to ensure your profit margins are sufficient to ensure long term success.
The principle we apply is to achieve a minimum of 25- 35% margin for every sale, that takes into considerations the fulfillment and picking fees from Amazon.
This means that usually you need to sell products for at least $15, depending on the size and weight of your product.
Amazon Australia does yet offer small and light which reduces the fee’s when selling lower priced and sized items.
The ballpark FBA fees Amazon will charge, dependent on the size and weight of your product can be found here:
The fastest and easiest way to determine the profitability is using the below calculator. You just need to complete the below, assuming you are selling as FBA
• Find a similar based product to yours in terms of weight and size, enter the UPC, EAN, ISBN of ASIN.
• Enter your sale price
• Cost price of your product
• Cost to ship your goods to Amazon
Then at the bottom of the page it will show your profitability.
If you are selling lower priced items that sell for under $10, you may need to bundle 2 of them together to get the price above $15.
The below picture shows the outcome of using the calculator for a Toy product that will achieve a 33.6% margin.
If your margins are under 25%, then we recommend bundling more products together to achieve a higher margins, increasing the sale price or looking at ways to reduce the cost or shipping to Amazon
Step 4: How to create your first listing
When adding your first products, we suggest you manually upload products individually to ensure its done correctly.The below 2 video’s are form seller central USA, and the same principles apply when uploading a product to Amazon Australia (amazon.com.au). If your product is brand new to Amazon (i.e. not a reseller of an existing product on Amazon, then check out the video below
If you are going to sell an existing product on Amazon.com.au, then the below video works best
Step 5: How to send your products into Amazon Australia Dandenong’s warehouse (via Manage fba shipments) including barcoding all necessary requirements
When you created your first listing, you need a barcode so Amazon can track your codes when they arrive. Either you can add the barcode yourself to the product or Amazon can do it when it receives the goods for around 20 cents per unit received.It’s a very simple process to ship goods to Amazon and only requires
1. Ship from address
2. Barcode (you apply to your product or Amazon applies to each unit received)
3. Shipment label on carton
4. Courier to pick up from your house, or you can directly drop off at Amazon’s warehouse in Dandenong
The easiest way to explain is via the below video
Step 6: Why the imagery you use on your products is a key factor in determining your customer conversion rates.
This may sound obvious but we need to cover it off. To be a successful seller you need to have a brand. The reason you need it is:
• Brand has real equity value
• You can charge a premium price
• Easier to generate complimentary sales via “Frequently bought together”
• Amazon loves brands and provides you with extensive product protection
• A Brand allows more advertising and branding opportunities on Amazon
Now if you are a brand owner, you MUST register for Brand Registry. This will allow you to develop an even better listing and use a whole bunch of different imagery. (Plus Amazon will give your brand a lot more protection)
If you see a listing like the below where you scroll down and there is cool imagery and description, this is a seller who has registered for brand registry. It’s really simple to register for, so make sure you do it today (and if you need some help, drop me a line at email@example.com)
Example of Brand Registry that appears as you scroll down the page
The Magic Triangle – Images
This may sound obvious, though at an absolute minimum all your photo’s must be taken by a professional photographer and also have a graphic designer touch them up.
One of the first recommendations we make is to overhaul the imagery used.
Our findings are that imagery can impact your conversion rate by up to 15%!!!! Having photo’s that tell a story will make an incredible difference.
AND 15% increase in conversion is huge. It means taking a listings doing $1 million per annum and adding $150,000 worth of sales just through adding amazing imagery.
So what is the story you need to tell?
The main image needs to adhere to Amazon rules on being on white background and just the product itself. However, your remaining photo’s need to tell a story about your product. We recommend
• Bundle image with discount for multiple purchases.
This is the right hook (boxng jargon) in terms of power as will increase your order size (people more likely to buy 2 or more), plus Amazon loves it as boosts your unit session % which often boosts your listing up the rankings. Check out the below example
Example of Brand Registry that appears as you scroll down the page
• Lifestyle of using the product
The image associates positive emotional feelings of using the product so the customer can see the potential benefit now. This applies to almost any product category
• Product benefits
Showing your product and highlighting the benefits is an easy visual way of showing a customer how much they will benefit from using the product. Think of the key pain points and pleasure the customer will get when they use your product and add these to the image
• 5 Star review
This type of image inserts a quote from an actual Amazon customer who wrote something terrific about your product. You then find a stock photo of your ideal customer (e.g. if your target customer is a 35 – 50 year old healthy women, then find a stock photo, add the customer quote and 5 star)
Step 7: The Magic Combo – Reviews and Raving Fans
Did you know how powerful customer reviews are for converting people from just browsing your product to becoming a buying customers???
Basically if your product dips under a 4 star review, then you are going to suffer a huge drop off in sales.
Buyers expect a 4+ star review and without this rating, you are really going to struggle to convert sales.
A strategy to combat is a three-prong approach (and before we get into this, if your product has faults or issues, then you must get them fixed as you won’t have a successful business if you have an inferior product).
Amazon just makes it so easy to show off your product faults through reviews and questions, that you have to get these sorted out.
So the three prong approach is
• Email sequencing
• Product inserts
• Customer support
Emailing sequencing is the first cornerstone to get great reviews. We use a 2-step process where we:
1. Build rapport and offer value
2. Ask for honest feedback
The first email is sent once a customer has ordered and provides some great value to the user such as including some FAQ’s, adding an awesome user guide or video about how to get the most out of the product.
Then the second email is sent about 7 days after a customer’s product has arrived to ensure we address any of their concerns if they are not happy about any aspect of the purchase and if they love the product, ask for an honest review.
This strategy mitigates issues of disappointed customers who can leave a 1,2 or 3-star review, plus boosts the opportunity to get 5-star reviews
Product inserts a powerful way to give a great first impression when a customer opens their product. It also servers as an opportunity to stop any issues from surfacing and being left as negative reviews on Amazon.
We have developed an excellent customer insert we use for all our client’s products (that we tailor) and happy to share with you. Just drop me a note at firstname.lastname@example.org
Now the last strategy is re-active that occurs if a poor review has been left on your product listing. The tool you use for your auto email sequencing should also have a monitoring feature to alert you to any 1, 2 or 3-star reviews.
If you receive one of these, we recommend you immediately reply to the negative product review and try resolve it as best possible. The reason for this is
a. It shows other potential customers who read the negative reviews that you care and provide a more balance view of the issue
b. If the customer loves your response, that may update their review to turn it into a positive
This step should be included into your operations as customer reviews is another outlet for potential customers to form a positive view of your product and increase conversion rates
Step 8: Product Innovation – The need to keep improving and delighting
Amazon is an amazing tool for product feedback to find out what your customer’s love and don’t like with your product.
Each quarter we recommend reviewing all your 1, 2 and 3 star reviews and look for common themes in terms of what people don’t like.
For example, if you sell steak knives, there might be a common theme that the handles becomes loose after a lot of use or the handle grip could be improved.
Once you have these common themes, then you can take them to your manufacturer and improve them to make your product even better and reduce the possibility of future negative reviews.
Step 9: How to operationalise and manage your Amazon Australia seller central account and what key metrics you need to run your FBA business
You maybe accountable for your businesses Amazon sales, but not responsible for the daily operations and customer support.
So how do you manage or monitor the performance of the team that runs your Amazon business?
Easy… it’s just two metrics you need to monitor
1. Sessions – visitors to your listing
2. Unit Session % – conversion (how many people buy)
This makes is to easy to manager as you can diagnose your sales performance by instantly telling if you have a traffic issue (i.e. less people visiting your listing) or a conversion issue (i.e. people visiting your listing but not buying). The outcome of these two metrics will be your sales.
So, for example, say your conversion rate stays at 25% but your sessions drop by 20% from 1000 to 800, then you know your listing is still converting, but less people are visiting your listing. The means you need to implement a strategy to drive more traffic such as through Amazon Ads or social media traffic.
Having this framework, makes it easy to monitor your Amazon business and determine what strategies are needed to maintain and increase sales
START GROWING YOUR AMAZON BUSINESS BY TODAY
We love helping businesses succeed on Amazon
If you would love a FREE, 1 on 1 Sales Strategy and Implementation session, where Coach AMZ gives you Concrete Strategies to grow your Amazon sales, then:
Email email@example.com to setup a phone call to start growing your Amazon business Today
Remember to bring your pen and paper as the team will:
• Review your listing for immediate improvements to increase sales
• Determine if your competition is stealing your money
• Set out a plan for continued sales growth month on month
• Map out the steps for long term Amazon sales dominance
****** Full Podcast Transcription below *******
Hey guys welcome to another episode of Coach AMZ where we discuss all things Amazon here in Australia and around the world. So, today’s episode is mainly tailored towards Australian listeners because we only get more inquiries about how we sell on Amazon had our business on Amazon in Australia and how do we take advantage on that.
So, guys if you’re an Australian based company or you’re overseas US, UK, European company and you want to start selling in Australia, then this episode works through the knots and bolts of what or the steps you need to start selling on Amazon.com and learn How to Sell on Amazon Australia. You know we went through this process about two months ago to make sure it all worked understand the ins and outs and some differences in functionality between Australia and for example the US one. Here you will get all Amazon Seller Consulting Services that you are looking for.
But the great thing is that Amazon ramp up the functionality and more and more people are going to Amazon.com.au as it increases its range. So, the first thing I do before selling on Amazon Australia is to go to the categories and make sure the listings the categories are available. So, this is time of writing is in June 2018. Moreover, Amazon Product Listing Optimization is significant for attracting and engaging more customers.
At the moment probably about half maybe two thirds of the categories are opened up, I’m sure by the end of the year they’ll all be opened up but just before we do it the purpose of this one is to make sure that the categories you want to sell in is available. So, there’s a link in the show notes about how to click on that to make sure that the category is available. So even if you’re not in there.
This podcast really goes through all the ins and outs of selling on Australia and how to do it. Assuming your categories are up and running on Amazon.com.au, then the first thing you want to do is to sign up for an account. Amazon Australia only has the standard paid account at the moment is not offering the free one like they do in some other countries and it’s about 60 bucks a month to get started.
You need to go on there again, I’ll provide a link for that and sign up for an account. It’s really basic to get started the process takes under five minutes yet set up and once you do that then you’ve got access to your account and start selling. I also a put in a video on how to do that as well.
It is easier to show you the ins and outs of the account but in terms of setting up the count it’s very easy. If you already sold on Amazon before the listings are almost identical to the other platforms. That’s really easy assuming your private label, use your own product then you need your own barcode or you ask Amazon to print that one for you. Optimize your Amazon product listing in the appropriate way.
Make sure you get your barcode on there and then you go through the creating a product listing really easy. There’s a few things you do need such as the UPC barcode that’s a minimum a product title you need your SKU you make up whatever you want.
For example, if you sell steak knives it could be steak knives half and one or if you’ve got a more formal system use that then you need a product title and imagery. And then the bare bones to get your listing up. I wouldn’t recommend that’s what you do but if you just want to go through the process setting up a listing there’s only a few things you need to do you need that barcode a title the SKU some imagery and your way in set up on that but you do.
There’s some videos that I’ll share and actually how to go through in further detail and share those with you see you know all the ins and outs of actually setting up a listing but I’ll go through that at the end in terms of what makes a great listing. This is just a quick run through of all the things that you need.
Once you’ve got your listings put up there you can create an FBA shipment order. What that means is “Fulfillment By Amazon” so you get your product and if it’s at your home or at your warehouse, you package it up and you send into Amazon. I’ll include a video on how to do that. Our Amazon FBA Expert services will guide you everything you need to know about boosting your business.
We always recommend that if you are in Amazon you have to send the FBA path. The reason being Amazon makes a commission of between 12 and 14 percent are things in Australia for each sale they do for an order they send out. So naturally they going to put those listings much higher up the order.
Then if it’s just a listing that you feel from your own warehouse then they do that is they control the customer experience then it will be sent out on time they can track it. It is more profitable for them.
You need to do FBA if you’re serious about selling on Amazon. To do that you create a shipment order, it’s really simple to do that. You will get all Amazon FBA services you require, There’ll be videos, well but basically up to manage you manage your shipments you go through you create the order you have to put your From address, where it’s been picked up from, Amazon will give you the delivery address and then all you need to go through is put in the details box so if it’s one box you put in the size of the box then you put through the information such as the weight as well. That’s basically and the quantity.
Once you put the MasterCard and the size, weight dimensions how many units from that box that’s all you need. What happens Amazon creates fulfillment a shipment order and then you go through and print out the shipping label. What then happens is you organize a courier or Australia Post or someone else to come and pick that order up.
So, you put that sticker that you print out on the box or tape it on and then your courier come to your warehouse or go to Australia Post drop it off and you’ll get delivered to Amazon. What happens then is that Amazon receives it about three or four days later they say yes, we received it and then you’re listing has stock so you can actually go through look at the listing online and your products available.
So, I’d actually start on Amazon terms, the basics it is really easy it started where you need to set up the account, it takes less than five minutes. Set up your listing which is very easy there’s only a few things you need and then create a shipment. I print out the label that Amazon will give you and have someone send it to Amazon.
People have asked, can I actually deliver it myself? I would recommend that Amazon doesn’t like dealing with individuals.It is much easier to put in a courier if it’s not to be one doesn’t cost much and send it in. When you are done those three steps then your product is appearing on Amazon Australia and can be shipped out or in Australia. So that’s fantastic news.
It’s really an easy process to do but in terms of what makes it a success on Amazon that’s what we’re doing today. There’s a whole number of steps that you need to go through in terms of making it a winner. We will get through those in order. So, Amazon Seller Consulting Services will assist you in the whole process
Now, so when you see your product listing up there the first thing you need to do is determine what people are searching for. What are the keywords people used to search for this product?
There’s a couple of ways to go about it.
The easiest one is with your product ask three or four people who aren’t experts, but if you want to buy this product how would you search for? What would you type in and probably give you half a dozen and majority could be similar to what you think about what you already know.
But there may be someone you hadn’t thought of so maybe it’s like a skip rope someone calls a jump rope, skip rope but give it to three or four people. If you want to buy this product on Amazon what do you actually type to find it? and that gives you a baseline of what keywords you should start with.
Then I’d go to a tool called merchantwords.com. That’s a paid service for the user. And that’s for the US market says identical to Australia. But we actually give you an idea of the volume in terms of what people are searching for in the US.
It gives your priority order because the U.S. audience always recommend that I would actually go to seeing as simple as Google and type in the same key words and will actually give you the drop down of other suggested words as well. So that gives you an idea. And if you scroll to the end of the page of Google it gives you a whole bunch of other ideas of what you could use.
So now you’ve got a baseline of probably 10 words that you think that people could search for your product. I’d go to Amazon.com in the US and then type these words in and there, where in the search bar and the words it appears at the top of the search bar are the most popular ones. So, to take those words those 10 we think we want search for find out which ones are the at the top and then put them in your order of priority in terms of keywords.
Now, the first thing you do for your product listing is find the best keywords once you got those best keywords, put them in your title but also some benefits you can’t use things such as awesome. Best you can’t use that type of stuff but you want something very simple very powerful so summary that they go.
Yep I know exactly what that is and its so side benefit with it. I want to put that in the title. Then you do your product descriptions and all those key words that you found weave with your product description on the listing and you want to tell a story about it. You just know you don’t spam it. You see some listings from five years ago there’s this spam,spam tell that because it’s like x xx keyword and it doesn’t read well.
It has to be read well, but also tell a story about how that product helps your customer. So, you have to know what your target customer looks like, like who’s the type of customer that represents 80 percent of your customer base. Who are they and then how do you target your listing to address their needs and have benefits that address the problems they want to solve for your product. So, engaging more and more customer, Amazon Product Listing Optimization plays a crucial role.
So, you weed that through the product listing and then in the back end there’s a few other places we put new keywords and product description as well. Amazon Australia does have brand registry so I would recommend that but I’ll say that for a separate episode because you need a trademark product and some other steps you have to walk through. So for your listing now you know up your title a product script and so you got the right keywords. The second bit is you need to run through the imagery.
For the imagery you need to go to a professional photographer that’s a minimum and you have to have a great shot for your first one. Amazon want your very first shot to be your product on a white background but all the other images you add color background images lifestyle shots or all different things that you can use to get it great. Optimize the product images as per Amazon rules.
We actually put together a guide for you guys. It will actually show you the seven steps you need to go through to get this great listing and we put a whole section on imagery and that’s one of most important things we find for conversions so people there’s old phrase people buy with their eyes.
When people scan down on the product price obviously they look at reviews, but they also look at your image and the image have to be very crisp professional and when they click into it you need to build those in use products. If you’re selling steak knives the actual product being used and some lifestyle photos some people maybe around the kitchen having fun and have to relate to your target audience.
Think about who is your target customer who’s that sort of person that represents 80 percent customer base and to reflect that target audience in imagery. You really need to go deep and think about who you’re selling to?What their needs are? What their problems are?And how you solve them, then represent that in your listing and your imagery. So, then that will get you probably 80 percent the way they’re assuming your product is fantastic.
Assuming you had an awesome listing great imagery some other fancy things we can do but I’ll save that for an offline session. What you need then to do is make sure we got some reviews because even Amazon Australia’s quite new people expect reviews to see that it’s going it’s a good product. I recently found this where I bought a yoga mat off Amazon called that a year and there weren’t any reviews as any eight there and I thought Oh! okay eight is not many but they’re mainly good. I purchase it and the product came and it was terrible.
The holding case was ripped and ask for a refund straightaway.Because I couldn’t even use it, I wanted it for the bag and the bag was ripped so I couldn’t use it and that was interesting because I would expect that on a nothing and that people at eBay, within eBay where there not that same level of quality and reviews. But I would expect that on Amazon, especially the US where reviews have hundreds if not thousands. But we’ve got eight reviews, I sort of hesitate before buying because they had so little review, it makes me question whether you want to buy that.
We would recommend at a minimum you have it 10 to 15 reviews that you’ll need to organize. The product has that credibility straight away and then as your reviews come in we will just get stronger and stronger. You need that as well to make sure you’ve got less that sort of 10 to 15 reviews under that 10 people sort of question it zero views it makes it very hard.
Part of that at the moment is with your process once it’s on then it’s selling you need to have an email follow up to encourage reviews. To do that you want to come across e-mail when it’s sent out Amazon or a dispatch one, but I always recommend a few days after being ordered.We send out an e-mail saying look guys it’s been few days, it was fantastic. Hope you love it. If there’s any issues at all please contact us directly or through Amazon. We want to fix it up straight away, your satisfaction and happiness is our number one priority.
The reason you do that is to stop the negative reviews because it’s easy to get the five-star ones, it’s harder to stop the negative ones. All you can do is do as much as you can even if it means refunding them or maybe sending an additional one for free to stop any negative reviews and encourage more five-star reviews,you need to put in a system where you have emails going out after customers ordered that encourage five-star reviews.
But some mechanism that stops negative reviews coming in and there’s a way to do that alone in addition to that you need to monitor your listing, in terms that if a negative review does come in so you can’t stop it. Reply to them and through the customer reviews, it shows that you care and that you’re willing to help because people do read some of the reviews. If it shows that maybe they’re giving reviews that it’s not fair that if you respond to it through the review platform that you are an honest company that great products and people will see past that.
It is important and part of that email is to be informed, you don’t send a corporate you don’t come across as too personal that it’s your business you care about, your customer and you want to help them out. So, once you put that in a place you really have the foundations for a great product on Amazon Australia.
The real key thing is the setting up the listings, sending it to Amazon Australia’s quite easy. The videos walk you through that and some stuff that anyone on your team can, maybe if you have an operations person or an admin person they can set that up. But the real key bit where you need your skills is how do you make your listing fantastic. Here, you will get guidance of Amazon Listing Optimization to optimize your product listings in the best way.
How do you think about? who your target customer is. How do you get to the top of page on Amazon in terms of your sales? Because once you get to the top of Amazon in terms of your sales it’s amazing the scale that they can deliver. And once Amazon Australia opens up all the categories and by Christmas time once everyone starts it period they probably put in a lot more purchasing on Amazon.com.au will make a massive difference and the other reason it’s really important to move to Amazon now is that last week Amazon.com announced the US that all stopped shipping to Australia due to GST issues.
It means a lot of people were shopping at Amazon.com. Well now think about okay, how do we sell or how do we buy Amazon Australia. It also means that some of the sellers in the US will now think about moving to Australia as well.
So, it’s a great time to get in on Amazon Australia because of its an early period now and if you look at the reviews, I mean I’m the top seller. Amazon really rewards you and keeps you at the top and as long as your stocks kept in place and as long as your reviews stay high and low refunds then you remain at the top of Amazon and get great sales that’s a fantastic opportunity getting sad is quite easy.
Then the boxes, made the fulfillment orders the labels. Well that’s easy stuff, you just really need to focus on time of getting awesome imagery. Awesome product listings and a review system that encourages five reviews.
So, I hope that’s been helpful. Today if you’ll look at a business in selling on Amazon Australia we’re helping a number of businesses that moment we get some really good results and helping them do that so feel free to reach out to us at firstname.lastname@example.org they all come through to me directly. We even do services we can go through and do a review of your products or what you want to launch on Amazon or put together strategy to help that and all Amazon Seller Consulting Services that you really need in the whole process.
So, Guys! Hope that’s been of help remember to take action. Amazon’s great platform and love seeing you guys succeed and, in the end, if this podcast if it helps you guys look got to really appreciate you go crossing and give an honest review on iTunes where have you listen to time from.
So really helps us and I appreciate.
Have a great day.
To the best successes.