Is The Amazon Game Too Competitive To Start?
By Freedom Shark | June 6, 2018 | Amazon
For the past ten years, there is no doubt that Amazon is one of the best eCommerce platforms with the largest number of active consumers worldwide. Statistics also show that Amazon has an eCommerce market share of 40% in 2017 proving the world that they are the top and number one choice for online shoppers. With these figures, there is no doubt that there is also an increase in the number of entrepreneurs who are thinking of selling on Amazon. And due to the large population of online shoppers enjoying the services and products available on Amazon, more merchants opt to sell their products on this platform. At the same time, more sellers also enjoy the growing and incredible selling opportunity on Amazon.
The increasing popularity of Amazon also means a rising number of merchants and consumers. But does it mean the Amazon market is already saturated? And for those who are still planning to venture on this platform, is it too late?
According to Jeffrey P. Bezos, founder, and CEO of Amazon, in his letter to shareowners, half of the items sold on the Amazon platform for the year 2017 were supplied by third-party sellers. This also includes small and medium-sized businesses (SMBs). Part of these is 300,000 US-based SMBs who started selling on Amazon last 2017.
Looking for non-competitive products to sell
With the influx of merchants and Amazon sellers, looking for a product to sell has become more intrinsic and challenging. Unlike before, where competition is still low, finding a product is easy. One great example is water bottles. Before, water bottles are easy to sell targeting sports and health enthusiasts, students, office workers, and literally everyone who wants to carry a bottle of liquid that fits their bag. But today, the game has changed, and product research comes into play.
This scenario doesn’t mean that it’s too late to start selling on Amazon. Products with unique selling opportunity are just harder to find. It’s like mining gold in the forest. Once you find it, you’ll definitely enjoy the profits.
But how do you look for these products? The most popular methods of finding a product to sell are spending time sifting through products listed on Amazon or by simply using a product finder. This will allow you to discover different products from different markets that have good sales, low reviews, and has big growth potential.
Product finders are of great advantage when uncovering the best product markets. Typically, you can opt to filter the Amazon catalog or customize your research based on the products, target market, categories, brands, number of sales, ratings, or reviews. You can also look at the average revenues of the product, average price, and average monthly sales if you want to compute your potential ROI.
New sellers venturing on the Amazon platform may start by looking for products priced at $15-$30 with about 1000 average monthly sales, and less than 100-300 reviews. But remember that your best product depends on how much you can invest and the profitability you desire.
A survey conducted by Kenshoo also shows that Amazon is now becoming a key player in product discovery and consumer product journey. In fact, while 82% turn into Google and 72% into Amazon, most consumers use Amazon first, ahead of any other online product discovery sites. Then report shows the emerging dominance of Amazon in terms of product discovery and research.
Surviving the competition
Outsmarting and out-marketing your competitors on Amazon is the best way to survive the growing competition and you must do this from the very start. Once your products arrive at the Amazon warehouses, the first step is to have a strong and compelling Amazon SEO (search engine optimization) listing to attract customers to buy or make a purchase. Next is to have photos of the product that would clearly define and display your product. This would increase the value and desirability of your product. And lastly, strong promotion strategy is essential to gain your initial ranking.
Once you market your products effectively, you can as well improve your keyword optimization and eventually earn keyword ranking in search. This will allow you to build a strong sales history that will position you at par with your competitors and from new sellers. And together with a good ranking, you are more likely to sell more products. Moreover, since you will be receiving more reviews, this will be your additional advantage against new sellers.
A good Amazon SEO and keyword optimization are critical in selling and promoting your products. For this reason, finding your unique or winning product is just as important as promoting and marketing them. If you fail in these areas, your target customers won’t be able to find your products. And if you have a product photo that is not appealing to consumers, it will just be additional trash that gives eyesore to online shoppers.
There is no perfect day or time to start selling on Amazon. As long as there are consumers out there looking for unique products to make their lives better and more convenient, there are also more products waiting to be launched.
You have to strategize to identify these winning products that are yet to unfold in the market. Once you find them, focus on your marketing strategy which includes your Amazon SEO listing, product catalog with appropriate and desirable photos, and product promotions that will eventually increase your ranking.