It is no question that Amazon has taken over the land of ecommerce. From what started out as a single product retailer to one that transformed to selling millions of products, Amazon is definitely an industry leader. But has this marketplace started taking away from their sellers?
Implement Unique and Product Specific Keywords
With millions of products being sold on Amazon, retailers should do everything they can to make sure that their items appear as much as possible in consumer searches. When choosing keywords, retailers do not need to include the product title, model, or brand, since Amazon automatically pulls up products that are registered as a Nike shoe or an Apple iPhone charger. Instead, make your keywords descriptive and precise, illustrating specific aspects of your product. When it comes to books, retailers should be creative with their genres, for example, instead of putting science fiction, try science fiction dystopian psychological thriller.
Seeing that items usually have more than one name, sellers should A/B test their keywords. It’s better safe than sorry and one should always cover all the bases. So when trying to sell that Giants hat, be sure to put everything from hat to cap to lid.
A Little Value Goes A Long Way
In order to justify a premium price, retailers should present consumers with added value, which will also keep them coming back. One of the key ways to do this is to offer extraordinary customer service. Offering quick and detailed responses to consumer questions or concerns demonstrates to the consumer that they’re a priority. Retailers could also offer various types of shipping methods. Catering to a customer’s shipping needs is an essential factor, especially if they need the item in under 48 hours and no other retailer offers same day shipping, besides you.
Use Dynamic Pricing to Price Efficiently
Seeing that Amazon changes its prices more than 2.5 million times a day, retailers will need to step up their game and change prices in order to stay competitive. Implementing a dynamic pricing strategy will allow retailers to monitor the prices within the market and reprice just as often. They are also able to test various price levels, observing the changes in demand at every price, demonstrating price elasticities. More importantly, dynamic pricing helps retailers maximize profits by capitalizing on demand fluctuations. For instance, when products are flying off the shelves, retailers can increase their prices in order to make more profit per unit. On the other hand, if there is an item whose inventory is undesirably high, retailers can mark down prices in order to increase sales velocity.
What are other strategies that retailers can implement to stand out in the Amazon marketplace? Discuss below!
Contributing Editor: Amanda Lin