Amazon Optimization

Discover if Selling on Amazon Works for Your Brand & Make Your First Sale Within 13 Days

This guide will allow you to quickly determine if selling on Amazon makes sense for your brand, and the steps to take to get up and selling on Amazon if everything looks right!

What You’ll Learn

  • How to Determine If There’s a Good Market For Your Products on Amazon While Maintaining Healthy Profit Margins
  • 3 Little Known Methods of Spying on Competitors to Learn the Market Demand for Your Products on Amazon
  • Step-by-Step Amazon Seller Account Setup Checklist & How to Avoid Major Delays
  • How to Ship Your Products Into Amazon FBA Warehouses From the Comfort of Your Home with No Minimum Order Quantity

Is Amazon the Right Sales Channel for Me?

Before learning anything about how to sell on Amazon, it’s important to make sure your brand is the right fit because not all products are good opportunities. It’s quite possible there’s not enough demand, too much competition, or there’s some restriction on your type of product (such as CBD or adult products).

Amazon is NOT For You If:

  • You are selling anything on the Amazon restricted items list such as drug related items, CDB, or alcoholic beverages
  • You do not possess the required certifications to sell your type of product in the United States such as FDA or various labeling requirements. Amazon strictly enforces these regulations.
  • Your products do not have enough demand (we will show you how to check this later in this guide)
  • Your products are too competitive for your resources & budget (we will cover this later

Other than that, it’s safe to assume there are hundreds of thousand if not multi millions of customers already buying products similar to yours on Amazon’s worldwide marketplaces, and all you have to do is get your product in front of them.

Amazon Is Growing Exponentially While Retail Is In Emergency Mode

Just to give you an idea of where retail is headed right now. Here are some quick stats on Amazon’s response to the COVID-19 outbreak. Many brands that relied on retailers for 90%+ of their sales are scrambling to get onto Amazon where the sales are massively increasing.

What happened to the Amazon stock price after COVID outbreak.
  • Amazon is hiring 100,000 new employees to deal with increased demand
  • Potentially 100s of millions of people making their first ecommerce purchase during quarantine
  • $72.49 billion expected Q1 revenue, $334.14 billion annual expected
  • Resilient to pandemic situations
  • Food products are considered “essential” by Amazon

Amazon Vs. Traditional Retail Channels

amazon vs retail kenji roi

Selling on Amazon is fundamentally different than traditional retail. It’s important to understand the key differences and misconceptions surrounding selling on Amazon to see if it’s right for your brand.

In a nutshell, Amazon FBA automates the entire selling & shipping process for you. You set up your product pages, send inventory into Amazon FBA warehouses, then Amazon takes care of shipping to customers when they buy, handles returns, and gets your product in front of their shoppers on search results pages.

Pros Of Amazon Vs. Traditional Retail

  • Largest customer base in the world with credit card on file & annual subscription for Amazon Prime which guarantees 2 day shipping. This is Amazon’s biggest advantage & the reason no one is effectively competing with them for the top ecommerce marketplace.
  • FBA handles all shipping so all you need to do is send inventory to FBA warehouses & Amazon ships to customers & handles returns
  • Platform is already built: set up an account, upload product images and descriptions, then send inventory into FBA warehouses. 100% self serve.

Potential Downsides of Selling on Amazon

It wouldn’t be honest to say Amazon is all sunshine & rainbows as it comes with unique risks & challenges.

  • Some product categories are highly competitive (like health supplements).
  • Your Amazon account can get suspended for violations or even suspected violations of policies.
  • You are reliant on a single platform (Amazon) that can change it’s rules or revoke your selling privileges.

There are horror stories of brands who get accounts suspended and lose their ability to sell after building up a large income on Amazon, but as long as you aren’t violating their policies by getting incentivized reviews or infringing trademarks, it’s very likely your account will be reinstated.

Honest Self Assessment, Is My Brand Right for Selling on Amazon?

In this section I’ll explain step by step how to determine if your brand has potential for strong sales on Amazon. The topics we’ll cover are:

  1. Is there enough demand for my products on Amazon?
  2. Are my products too competitive on Amazon for me to compete?
  3. Do my margins make sense for selling on Amazon?

If you check off all 3 boxes then you can proceed to the last part of this guide which is how to get your products up and selling!

Is there enough demand for my products on Amazon?

Amazon doesn’t release official sales numbers of products on their platform, but there’s many 3rd party software tools that use a mixture of real data & estimates to give you a good idea.

By using the chrome extension Jungle Scout, I can see estimated sales volume on any Amazon search results page. What we want to see here is at least 3-4 sellers doing good sale volume, but not massive volume as those products are more difficult to compete on.

How to See Amazon Sales Volume For Similar Products

  1. Download the Jungle Scout chrome extension (or a similar one, there are many)
  2. Search for your main keyword phrase on Amazon. Try to use the broadest phrase you can that’s specific enough that most of the search results are that product. If your product is “unsalted chocolate covered cashews” try searching for “chocolate cashews.”
  3. Open up Jungle Scout chrome extension on the search results page. Click the Jungle Scout icon in the upper right menu of Google Chrome to open it on the page.
  4. See the estimated sales data as it populates from the search results. You should now be looking at estimated sales volume & many other hidden metrics for every product on the page.
See estimated sales of competitors using Jungle Scout chrome extension

We can use this data for many things, but for now the goal is to simply verify there’s enough demand for your products on Amazon to make it worth it.

There’s no right answer, if your competitor’s are all making $2000 per month revenue & that’s enough for you, do it! But if you need $20,000 per month to bother, better to know before you go through the whole process to save the trouble.

Will My Profit Margins Work on Amazon?

This is a potential deal breaker. If the search results for your product on Amazon is flooded with brands selling basically the same item but for half your price, you will not be able to compete.

Amazon is a comparison shopping engine and shoppers are bombarded with similar products on literally every page, including your actual product listings. If you can’t show that your products are somehow better, shoppers default to the lowest price.

Fees for Selling on Amazon

  • These fees the underlying costs of selling on Amazon you must factor into your equations.
  • $39 per month Pro Seller account. This is the basic cost of keeping your Amazon Seller Account up.
  • 15% referral fee on every item sold. This is Amazon’s fee for using their platform to sell. It can vary a bit but in general this is great value considering how much it would cost to use Facebook Ads to sell your product instead. Consider this a marketing expense for your right to access Amazon’s loyal shoppers.
  • Amazon Fulfillment Fees (shipping from Amazon FBA warehouses to customers): This is typically about 15% of revenue + or – depending on package weight and size. Calculate your fulfillment fees here.

All in you should expect Amazon’s costs to run you about 30% of sale price. When compared to a typical wholesale model of selling to retailers at 50% of sale price, that’s a good deal!

Steps to Get Set Up Selling on Amazon

Step 1: Sign up for an Amazon Seller account

You’ll need a professional seller’s account to sell your products on Amazon which requires you to submit official documents & ID proving you’re a legitimate business. Amazon has severe issues with fake accounts and people opening multiple accounts (against their terms of service) so they ask for documents that can be difficult to procure.

Under NO circumstances should you submit false documents of any kind as this will get you an immediate account suspension before you even start. They are always changing the requirements but you’ll likely need a government issued ID of the registered business owner, a piece of mail that matches the business address with the business name on it.

Step 2: Create your product listings

The more optimized your listings are on Amazon, the higher your conversion rates, the higher your rankings, the higher your sales. It’s all about presenting your product in a way that clearly shows the product benefits in an appealing way while giving Amazon’s keyword ranking algorithm what is needs.

Essential Pieces of Optimized Product Listings

These are required for all products selling on Amazon, your images & description, ideally packed with relevant keywords your customers are searching for.

High quality Amazon product photography & infographics

This is the single most important piece of your Amazon listing that affects your conversion rate (percentage of viewers that buy). Many shoppers use the photos alone when deciding to buy and Visuals are Processed 60,000 x Faster in the Brain Than Text.

If you’re looking for someone to create your photos for Amazon, reach out to us here.

The goal of Amazon photos should be that a customer can scroll your photos and know EVERYTHING they need to know to make that buying decision without reading any text.

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About EagleView Consulting

EagleView Consulting is a full-service consulting agency that helps brands, retailers, and manufacturers launch, grow, and scale on Amazon. We create beautiful brands and help Amazon Sellers to dominate on the Marketplace.

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