Did you know? Amazon generates a staggering 50% of the online sales carried out in today’s eCommerce market. For an astute seller this should tell you one thing – you need to hop on the Amazon bandwagon fast!
Whether you’re just starting out in eCommerce or you already have an Amazon store and want to utilize it for greater revenue, this in-depth talk from Parthiv Shah will give you all the answers you’re looking for. To watch his full presentation, click below.
Parthiv Shah takes you through every aspect of Amazon selling including how to understand the global markets, online store set up tips, and deciphering the top consumer trends on Amazon today. Read on for some invaluable information you can use to set up a profitable Amazon eCommerce store.
Today, people are far more comfortable buying online than they ever were before. You can purchase anything from basic school supplies to more sensitive items like life insurance policies and financial transactions.
In fact, eCommerce is a $400+ billion online industry. Roughly $2 billion+ of that total can be accredited to small and medium-sized businesses…in a single day! Those are figures that a brick and mortar shop would never even dream of, but when you expand your marketplace options, great things start happening.
What is Global Selling?
One of the major benefits of selling on Amazon is the fact that it opens you up to global selling opportunities. What is global selling and how can it help your eCommerce site? In short, global selling is the ability to open your product offerings to the global marketplaces. You can sell your products not just in India, but all over the world.
Some of the biggest international markets include the US, Canada, Mexico, France, UK, Italy, Germany, Spain, India, Japan, Australia, and the UAE.
What are the Benefits of the Amazon Marketplace?
Selling globally expands your audience considerably and according to Shah, with an Amazon seller account, you can reach hundreds of millions of customers in just 12 countries. That’s a tremendous increase in sales revenue just by opening up your doors to a greater customer base.
Having a global audience offers you a wider customer base because you are not dependent on a specific season. By selling to a single geographic location, you’re tied to that area’s seasons, holidays, calendar dates, social, government, and political events. When you expand your audience to include other countries though, you vastly increase your seasonal options and vis a vis sales potential.
For example, if your entire customer body is situated in India, then you’ll have strong sales peaks in October around Diwali. If you expand your reach to the US audience, you can enjoy sales peaks during the local American holiday seasons as well including Valentines Day, Christmas, and more. Amazon sellers will see more customers converting through the entire sales funnel.
What’s more, research has shown that 66% of all searches start on Amazon. The obvious takeaway? Shoppers are turning to Amazon before they do anything else. Be where the crowds are and you’ll increase sales inevitably.
Managing Global Operations, No Problem with Amazon
A major issue that arises when Indian sellers start to consider the prospect of global selling is how they are going to manage such operations. International shipping, cross-border taxes, and mass orders make the entire endeavor seem impossible. Many Indian eCommerce stores kill the dream before they’ve even begun the process.
Shah runs through the entire order of operations and explains exactly how an Amazon seller can easily manage international operations. In a word, it all boils down to FBA. Fulfillment by Amazon is a program that offers sellers within the marketplace the opportunity to store, catalogue, organize, and ship their products from an Amazon warehouse. Among the many services provided via the FBA feature include:
- Storage facilities
- Peace of mind
Here’s how it works:
- A customer goes on Amazon and sees one of your products
- They order the product via your Amazon store
- Amazon takes one of these items from your inventory, packs it up, and ships it out to the customer
Everything is handled by Amazon and as you can imagine, there are many benefits to this program. For one thing, customers trust Amazon. The shipping quality and speed are all insured by Amazon, so you can give your customers the reliable service they deserve. This also means you gain credibility.
Also, your orders are fulfilled faster for better supply and demand. Finally, you can save tremendously on shipping charges. Shipping in bulk to the warehouse is more cost-efficient than shipping individual orders.
Understanding Consumer Trends on Amazon
Like every sales channel, Amazon has specific seasons where products flourish. Learn how to analyze these trends and predict upcoming ones.
Best Selling Items on Amazon Right Now
Want to get things off on the right foot? Here are a few items that are smoking hot on Amazon right now:
- Kids cars, toy carpets, collectible dolls, and anti-chafe balm
- Alexa TV remote, Echo Dot smart speaker, and Fujifilm INSTAX mini film
- Fujifilm Instax camera
- Donkey Kong Nintendo Switch and PlayStation Store gift cards
You also want to pay attention to timing when it comes to the Amazon trend for optimal revenue generation. Q1, Q2, and Q3 are slower compared to Q4, but Q2 is starting to increase in popularity. This is especially true for fashion (no surprise that Q2 is in the spring when fashion is at its height).
Gardening and environment industries also increase in Q2. So you’ll see an upsurge in the sales of items like biodegradable products, lawn furniture and anything environmentally-friendly.
Top Tips for Selling on Amazon
Here are a few tips from Shah and other industry experts to maximize your profits from Amazon and other global marketplace sales channels:
Pay Attention to Global Differences
With various global audiences comes various differences in culture and more. Pay attention to these differences because they’ll mean the difference between successful multi-channel sales and a flop. Notice global differences in color preferences, sizing charts, and seasons.
Create Selling Product Listings
Make sure you maximize your sales potential by providing attractive, productive, and smart product listings. Each product listing should have relevant keywords, informative and accurate product details and numerous product images.
Get Paid with the Right Payment Solution
With Payoneer’s cross-border flexible payment solution, sellers on Amazon can receive international payments to one consolidated account and access their funds from anywhere in the world. If you’re starting an Amazon business or already selling products on Amazon, consider a trusted payment provider that will enable you to expand your business.
Level Up Your Business with Amazon Global Selling
The world is a big place. Don’t limit your business to a single region. Get on an online marketplace and watch your online business go global.