Amazon is the biggest marketplace in the world: in 2019 it sold products for over approx. 280 billion dollars. Amazon is still growing and gaining more and more in market shares across the world. Almost 50% of all product searches in the US and correspondingly approx. 30% in Germany happen on Amazon. This means that you as an e-commerce business have a great potential to increase your sales and attain new markets. We offer help to you, who is new to Amazon, as well as you, who is already selling on the platform.
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"There are many factors to consider if you want to be successful on Amazon. With a thorough market analysis and strategy development we will help you to get started and achieve success on Amazon."
- THERESE CASSERLöV, DIGITAL MARKETING SPECIALIST
WHO CAN SELL ON AMAZON?
It is possible for both, commerce and brand owners to sell on Amazon. Generally speaking, it is easier to obtain success on Amazon if you are a brand owner. Brand owners have an opportunity to register their trademark and through this approach gain other advantages, such as the option to build your own Amazon Brand Store (your own website on Amazon to promote their trademark). As a commerce you will likely be selling a lot of the same products as many other suppliers, which means a greater competition. No matter what type of company you own and what kind of products you sell, we recommend a thorough market analysis before you consider selling on Amazon. We will help you analyze and assess your potential on the platform.
HOW DO YOU SELL ON AMAZON?
It’s possible to sell in two different ways on Amazon – either by letting Amazon deal with stock and logistics, which is called FBA (Fulfillment by Amazon), or by you, as a company, being responsible for the logistics and sending the products directly to the consumer. which is called FBM (Fulfillment by Merchant). There are some advantages and disadvantages with both approaches, but FBA is usually recommended in most cases, because Amazon offers competitive prices and handles returns as well as costumer service. With this approach you can focus on growing your business. Furthermore, the products that are handled via FBA often have mopre conversions. That’s because of the Amazon’s algorithm which chooses to rank these products the highest, both, organically and through paid advertisement.
No matter which solution fits you best, you have to register an account before you can start selling. We can help you through the account registration, which often can be a difficult and time consuming process.
HOW TO BE SUCCESFUL ON AMAZON
There are many parameters/factors to consider, if you want to achieve success on Amazon. First and foremost, it is about having a product with potential. This is what our market analysis shows.
Secondly it is important to work with SEO, PPC and reviews. Read more about this and how we can help you below.
To put it briefly, it is about using the correct keywords for your products, so the customers can find, what they are searching for. This is something to take into consideration when you list your products on Amazon. With a thorough keyword analysis, we will ensure to make SEO optimized product pages.
PAID ADVERTISING (AMAZON PPC)
Just as Google, Amazon also has a campaign tool where you can market your products and ensure that you are visible on relevant searches. The creation of the correct Campaign type, which ensures you a good ACoS (Advertising Cost of Sale), demands a great knowledge of how Amazon PPC works. Based on your business model we can help you set up and optimize your cost-effective campaigns that will increase your sales.
By having many good reviews you increase the conversion rate and produce better results, both, organic and through advertising. To obtain many reviews is not easy and takes time. We will help you prepare a strategy for that.
WHICH MARKETPLACES CAN I SELL ON?
It is completely up to you which marketplace you want to sell your product on. Our customers usually want to focus on the European market. When you set up a seller account in one of the European countries, you also get access to sell your products on other marketplaces.
Amazon marketplaces that exist today:
- Europe (Germany, Spain, Italy, France, UK and Sweden)
- America (United States, Canada. Brazil and Mexico)
- Asia – The Pacific Ocean (Japan, India, Australia and Singapore)
- The Middle East (The United Arabic Emirates & Turkey)
WHAT DOES IT COST?
The cost of selling on Amazon varies depending on what type of product you sell and whether you are selling via FBM or FBA. The costs can be sorted into the following categories:
Amazon always takes a percentage of your sale calculated from your sales price. The fee is usually between 10-15% but can vary depending on the category. This is a fee you have to pay no matter whether you’re using FBM or FBA.
If you choose FBA, you will be paying for stock control, which is comprised of dispatch fee and storage costs. The dispatch fee varies from the size of the products and which market(s), you sell on. Storage costs is calculated by volume.
Paid advertising, which increases your sales, should be considered as an expense.
There are also other costs, such as return costs (if you are using FBA). In addition to that, your seller account also costs approx. 400DKK/month (a professional account).