Launching on Amazon.com: A Beginner's Guide for International Brands to Succeed in the US Market

Authors - Betsy McGinn, CEO/Founder McGinn eComm, Jeannie Stamberger, CEO/Founder The AmaZone & Meghann Urewicz, Managing Director The AmaZone

We launch and work with many international brands on their Amazon.com business, so we see the vast opportunity and the many steps that brands must take in order to make this dream a successful retail reality. 

There is no doubt that launching on Amazon.com is a streamlined path to nationwide product distribution and consumer reach. It eliminates the need to secure a distributor, hire a broker, and pitch to a category manager at a specific time of the year to acquire placement. There’s no 6-month wait to get on the shelf once accepted or the limitation of shelf space itself where a brand may only get 2 or 3 SKUs placed at a given time. And there is no crossing your fingers and saying your prayers that you will have enough weekly sales to remain on that shelf by the next review period.

That said, there is never an easy path to market but there are distinct advantages that international brands have by launching on Amazon.com as their first-choice channel for the US market. Above, we mentioned a few but there are other advantages like no slotting and, most importantly, the ability to manage your Amazon business using Seller Central (Fulfillment by Amazon or Fulfillment by Merchant models) and use the given tools to maintain brand control in its competitive marketplace rife with 3rd party sellers.

That said, there are best practices that are essential for a successful Amazon.com launch, and while we are not able to dig into every single one of them, we’ll highlight a few that are especially crucial for new US Brands: 

• Understand US Regulatory Requirements for your products and category. This is probably the most important first step and requires research and expertise. While we are not regulatory experts, we place utmost priority on referring our clients to those who are prior to a launch.

• Understand Amazon’s Seller Code of Conduct – We encounter situations where brands may inadvertently violate Amazon’s Seller Code of Conduct and suddenly their Amazon journey comes to an end with a suspended account. Know the rules – from limitations on communicating with customers, posting claims that skirt regulatory boundaries, to restrictions on promoting your own website – so you don’t encounter sometimes irreversible consequences.

• Have your product warehoused and available in the US – In recent years, Amazon instituted inventory limits and continues to increase monthly storage charges, for the efficiency of their operation and to clearly convey to brands that Amazon is not a US warehouse. Even if Amazon is your only sales channel in the US, brands require a separate warehouse that ships products into Amazon’s Fulfillment Centers (FCs) as needed. From a practical standpoint, it was never an optimal solution to ship directly to Amazon Fulfillment Centers from overseas locations, as the likelihood of gaps in inventory and resulting out-of-stocks is one of the biggest barriers to growing an Amazon business. 

• Expect to Spend Money on marketing and advertising – Sadly, no matter how cool your brand is, there are no Unicorn Brands on Amazon. Success for innovative brands is hard won and the result of doing things right – from great content to right-sized budgets for on-platform advertising and promotional activities. It’s an “always on” strategy since your goals for an eCommerce endeavor are continual acquisition, conversion and repeat purchasing.

• You Will Likely Need Help – Amazon is a complicated beast. Getting the help you need to “get it right” at launch and assure continued growth is pivotal to success. While still in the launch stage, it rarely makes sense to hire internal company expertise, so working with a well-qualified agency or independent contract may be the best money spent on your US journey.

• Know your Competition – There is nothing wrong with learning from and modeling best practices of your competitors on Amazon. But be sure to know what those best practices are and who truly are your competitors on Amazon. It may be surprising since they are often not the same brands we classify as competitors in Brick-and-Mortar retail but rather young, creative brands taking the digital native path to market.

We love the opportunity that Amazon affords international brands and believe in its viability as a first stop for US market entry. It’s just a little more complicated for international brands. Making the right moves, in the beginning, will serve your long-term success!

Top 7 Mistakes Amazon Sellers Make and How to Avoid Them for Long-Term Success

Co-authored by Jen Garza and Chat GPT

Amazon has become a major player in the world of e-commerce, and sellers on the platform have access to a vast audience of potential customers. However, success on Amazon is not guaranteed, and there are many common mistakes that sellers can make that can significantly hinder their chances of success. In this article, we will discuss the most common mistakes that Amazon sellers make, and how to avoid them.

• Poor product listings

One of the most common mistakes that Amazon sellers make is creating poor product listings. This can include things like low-quality product images, incomplete product descriptions, and inaccurate pricing information. These mistakes can significantly reduce the chances of a product being seen and purchased by potential customers. To avoid this mistake, sellers should invest time and resources into creating high-quality product listings that accurately reflect their products.

• Ignoring customer feedback

  Amazon sellers who ignore customer feedback are setting themselves up for failure. Customer feedback can provide valuable insights into what customers like and don't like about a product, and can help sellers make necessary changes and improvements. Ignoring this feedback can lead to a decrease in sales and a loss of trust among customers.

• Failing to optimize for SEO

  Search engine optimization (SEO) is crucial for success on Amazon. Sellers who fail to optimize their product listings for SEO are missing out on a significant amount of potential traffic and sales. To avoid this mistake, sellers should research and use relevant keywords in their product listings, and ensure that their listings are properly formatted for search engines.

• Not monitoring inventory levels

  Another common mistake that Amazon sellers make is not monitoring their inventory levels closely enough. Running out of stock can result in a loss of sales and a decrease in the seller's ranking on Amazon. On the other hand, having too much inventory can tie up valuable resources and lead to financial losses. Sellers should regularly monitor their inventory levels and adjust their stock levels accordingly.

• Poor customer service

  Customer service is critical for success on Amazon. Sellers who provide poor customer service can quickly gain a negative reputation, which can significantly reduce sales and damage their brand. To avoid this mistake, sellers should prioritize customer service and ensure that they are responsive to customer inquiries and complaints.

• Inaccurate product descriptions

  Inaccurate product descriptions can lead to a loss of trust among customers and an increase in returns and negative feedback. To avoid this mistake, sellers should ensure that their product descriptions accurately reflect the features and benefits of their products.

• Failing to differentiate from competitors

  With so many sellers on Amazon, it can be challenging to stand out from the competition. Sellers who fail to differentiate themselves from their competitors are less likely to succeed on the platform. To avoid this mistake, sellers should research their competitors and find ways to differentiate their products and brand.

In short, Amazon is a vast and competitive marketplace. Sellers who are serious about long-term success should invest the time and resources into these areas of focus to ensure they are keeping up with the competition. If that seems too daunting, consider hiring Amazon consulting services to help navigate.

Understanding Amazon's Fees: A Guide for Sellers to Maximize Profit Margin

Co-authored by Jen Garza and Chat GPT

Selling on Amazon is a great way to reach a wide customer base and increase your sales. However, it’s important to understand the fees involved with selling on Amazon to ensure you make a profit. In this article, we will discuss the various fees that come with selling on Amazon.

1. Referral fees - The first fee you will encounter when selling on Amazon is the referral fee. This fee is a percentage of the sale price and varies based on the category of the item sold. The referral fee ranges from 6% to 45% and is deducted from the sale price when the item is sold.

   For example, if you sell a product for $100 in a category with a 15% referral fee, you will pay $15 to Amazon as a referral fee.

2. Fulfillment fees - Amazon offers two fulfillment options: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). If you choose FBA, Amazon will handle the storage, packing, and shipping of your products, while FBM means you will handle these tasks yourself.

   Fulfillment fees are charged when you use FBA. These fees vary depending on the size and weight of your product. For example, a small standard-size item may cost $2.50 to fulfill, while a large oversize item may cost over $100 to fulfill.

3. Storage fees - If you use FBA, you will also incur storage fees. These fees are charged monthly based on the amount of space your products take up in Amazon’s warehouses. The fees vary based on the time of year and the size and type of your products.

4. Subscription fees - If you want to sell on Amazon, you’ll need to choose between two types of accounts: Individual and Professional. Individual accounts are free to set up, but you’ll pay $0.99 per item sold, while Professional accounts cost $39.99 per month.

   If you plan on selling more than 40 items per month, it’s usually more cost-effective to choose a Professional account.

5. Shipping fees - If you opt for FBM (Fulfillment by Merchant) rather than FBA, you’ll need to ship your products to your customers. Amazon offers two shipping options: Amazon’s Buy Shipping and self-fulfilled shipping.

   If you use Amazon’s Buy Shipping, you’ll pay a fee for the shipping label, which varies based on the weight of your item and the shipping method you choose.

   If you choose self-fulfilled shipping, you’ll need to calculate your own shipping costs and charge your customers accordingly.

6. Refund fees - If you refund a customer order, Amazon will refund you the amount of the referral fee you paid for the items, minus a refund administration fee. This fee varies by category but is typically the lesser of $5.00 or 20% of the refunded amount.

It’s crucial for a seller to understand the fee structure on Amazon in order to determine the most successful fulfillment method and ensure products are priced correctly. By factoring in these fees, you can determine your true profit margin and make informed decisions about your pricing strategy. As always, be sure to consult with an Amazon account management agency if you need help with this process.

The first step in making a great first impression on Amazon: High-quality listing images

Co-authored by Jen Garza and Chat GPT

When it comes to selling products on Amazon, one of the most critical aspects is creating an appealing listing image. The image is the first thing that potential customers will see, and it can make or break a sale. A high-quality image can entice customers to click through to your listing and potentially make a purchase, while a low-quality image can turn them away. Therefore, it is crucial to create listing images that are visually appealing, informative, and optimized for search engines. Here are some tips for creating appealing listing images on Amazon:

1. Use High-Quality Images: The quality of your image is essential, and it is the first thing that customers will notice. Use high-resolution images that are clear and show the product in detail. If possible, take pictures from different angles to give customers a complete view of the product. Remember, the quality of your image can impact your product's perceived value and increase the likelihood of a sale.

2. Use Professional Photography: If you're not confident in your photography skills, consider hiring a professional photographer. Professional photographers have the necessary equipment, knowledge, and experience to capture high-quality images that can make your products stand out.

3. Use White Backgrounds: Amazon requires that all listing images have a white background, so make sure your images meet this requirement. A white background can help your product stand out, and it also makes it easier for customers to see the details of the product.

4. Include Multiple Images: Including multiple images of your product can help customers get a better sense of what they are buying. Show the product from different angles and in different lighting conditions. You can also include images that show the product in use or being worn by a model.

5. Optimize Image Titles: When uploading your images to Amazon, make sure to optimize the image titles and text. Use relevant keywords that describe the product, as this can help your images show up in search results.

6. Follow Amazon's Image Guidelines: Amazon has strict guidelines for listing images, so make sure to follow them. For example, the image must be in focus, have realistic color, and not contain watermarks, borders, or text.

7. Use Infographics: Infographics can be a great way to showcase the features and benefits of your product in a visually appealing way. Use clear and concise language to describe your product and its unique features.

8. Use Lifestyle Images: Lifestyle images show your product in a real-life setting and can help customers visualize how the product might fit into their lives. For example, if you're selling a kitchen gadget, you could include an image of the gadget being used in a kitchen.

9. Test Different Images: Don't be afraid to test different images to see which ones perform best. Try different backgrounds, angles, and lighting conditions to see which images get the most clicks and sales.

10. Get Help: Everyone has their strengths. If your talents do not include photo editing, then consider hiring a full service Amazon agency to help create an appealing image plan.

Creating appealing listing images on Amazon isn’t just recommended, it’s crucial for the success of your product. By using the above tips, you can create listing images that are visually appealing, informative, and optimized for search engines. Remember, your listing images are your product's first impression, so make them count.

Boost Your Amazon Sales with These Effective Strategies for Increasing Positive Reviews

Co-authored by Jen Garza and Chat GPT

As an Amazon seller, positive reviews are crucial to the success of your business. Positive reviews can boost your visibility on Amazon's search results, increase your conversion rates, and help build customer loyalty. However, getting positive reviews can be a challenge, especially for new sellers. In this article, we will explore some effective strategies to increase positive reviews on Amazon.

1. Provide high-quality products and exceptional customer service

   The first and most important step to increasing positive reviews on Amazon is to provide high-quality products and exceptional customer service. When customers receive a product that meets or exceeds their expectations, they are more likely to leave a positive review. On the other hand, if they have a negative experience with your product or customer service, they are more likely to leave a negative review.

2. Follow up with customers after a purchase

   Following up with customers after a purchase is a great way to show them that you care about their experience with your product. Amazon has strict guidelines about communicating with customers, but they do allow sellers to send one personalized email asking them to leave a review and thanking them for their purchase. You can also include a link to your product page on Amazon to make it easy for them to leave a review. (Be sure to review Amazon’s Communication Guidelines to ensure emails are in compliance).  Or, instead of a personalized email, use the “Request a Review” button on the Order Detail page to send Amazon’s Official Product Review Request to the customer. 

3. Optimize your product listing

   Optimizing your product listing can help increase the number of positive reviews you receive. Make sure your product description is accurate and provides all the necessary information about your product. Include high-quality images that showcase your product in the best possible light. Also, make sure your pricing is competitive and your shipping and return policies are clear.

4. Use Amazon Vine

   Amazon Vine is a program that allows sellers to provide free or discounted products to Amazon's most trusted reviewers in exchange for an honest review. This can help increase the number of positive reviews you receive and build your reputation on Amazon. However, keep in mind that Amazon Vine is only available to certain sellers and requires a fee.

It’s clear that increasing positive reviews on Amazon is essential for the success of your business. Take these steps to create a positive customer experience, increase sales, and build your reputation on Amazon. Contact an Amazon consulting agency to make sure you’re on the right track!

Selling on Amazon: Weighing the Pros and Cons for Your Brand's Success

TL;DR: Brand presence on Amazon is a crucial part of a brand launch… but it’s just that, a part. To make Amazon work for you the funnel has to start with awareness outside Amazon (paid social media, PR, etc), and include grassroots engagement (organic social, email reminders/ promotions, etc) to feed conversion on Amazon when you launch. And when you’re ready to list on Amazon, make sure you’re ready to commit ample time and money to set yourself up for success. When in doubt, hire out!

As CPG Marketing and Amazon consultants working with a wide array of Brands, we often get asked the question: Should we launch on Amazon? Does Amazon need to be part (or all) of our strategy? Clients may be looking to either launch their product for the first time or use Amazon as a platform to break into the US market. While Amazon is a no-brainer for 200 million prime shoppers, Brooke Shapiro suggests looking at how Amazon fits into the larger marketing plan so that expectations and goals are in line. 

Over the past decade or so, customers have exceedingly come to expect that the products they love will be available on Amazon. But what does that mean for new Brands (or Brands new to the US market)? It means that Amazon should absolutely be part of your strategy when it comes to growing your brand presence. But here’s the caveat, there’s a lot to consider before diving in. Here are a few factors to bear in mind:

1. You Need Resources (and not just $$). Amazon is not simply a financial investment. It also requires a substantial commitment of time and resources, and many Brands fail to realize this when first jumping into the platform. Before you even start selling, you will need high-quality, compelling content, social evidence/reviews, a plan for logistics, profit analysis, and a strategy that will allow you to truly stand out amongst the tough competition on Amazon. We must emphasize - this isn’t a fallback strategy. You can’t simply throw up a listing and start making money. Nor is it a cheap or free option - while you can set up an account for next to nothing, the path to potential success requires a well-reasoned strategy and a deep understanding of the complex Amazon landscape. Amazon is notorious for fee structures that leave many businesses blind to how much money they’re making (or losing). It’s crucial to understand that financial component, first and foremost.  Once the finance strategy is in place, the real fun begins -  listing your products. Complications are a given when you are dealing with product upload files that have over 200 columns of data to fill out, category/product gating, brand registry, and more. Not to mention, if the listings are set up incorrectly in the beginning, you may have to deal with long-term problems and potentially have to start over.  You can either spend countless hours banging your head against a wall in frustration, often creating more problems that you are solving, or you can hire an expert to bypass the headache and help you carry the load. Once on Amazon, you can shift your focus to advertising spend, gaining visibility, and growing sales. As you can see, Amazon isn’t a “list it and sales will come” engine anymore. 

2. Lack of 1st party data or communication with your customers. The traditional marketing funnel goes out the window when it comes to Amazon’s strict communication guidelines. Amazon does not provide access to first-party data to identify who is buying your product (e.g. customer names, addresses, etc). You aren’t able to send customers follow-up emails (such as reminders to reorder or cross-sell other products), engage with them on social, or use their demographics to target similar audiences. It’s best to jump in knowing that Amazon is a customer-centric environment that limits communication between buyers and sellers. 

3. Brand Education and Discovery. Unlike brick-and-mortar sales, Amazon shoppers can’t discover your products by simply wandering down the aisles of their favorite store. They need to know about you to search for you. And while advertising can help expand your visibility, there isn’t built-in functionality to target your like-minded customers. This results in an inevitable challenge for new, innovative, or nice products launching on Amazon - not to mention that if Amazon doesn’t see sales momentum in the first few months that your listings are live, the algorithm makes it very hard to ever change that trend. This means that it’s crucial to launch strategically - with well-stocked FBA inventory, aggressive ad budgets, and off-Amazon strategies to let your customers know where they can find you.

What does this mean for you? Well, it doesn’t mean you should abandon Amazon as a pipe dream. Instead, you’ll just need to adopt a strategy that includes expert Amazon guidance like the team at The AmaZone and diversify your sales channels and marketing by working with a strategy expert like Brooke Shapiro.

If you’re looking for a more DIY approach, just be aware that social media, influencer marketing, and other channels to educate shoppers on your Brand will be necessary to achieve success on (and off) Amazon.

All this is to say that Amazon is a great channel within your holistic marketing funnel. But, to make Amazon work for you the funnel should start with awareness outside Amazon (paid social media, PR, etc), and include grassroots engagement (organic social, email reminders/ promotions, etc) to feed conversion at the level of Amazon or your website when you launch. 

Full-Service Amazon Consulting: The Comprehensive Solution for Sellers on the Platform

Co-authored by Meghann Urewicz and Chat GPT

Amazon has become a household name in the world of eCommerce, with millions of sellers vying for a share of the online retail giant’s massive customer base. As more and more businesses turn to Amazon to reach new customers, the competition for visibility and sales on the platform has become increasingly intense. To succeed on Amazon, sellers need more than just a basic understanding of the platform’s mechanics. They need a comprehensive strategy that takes into account everything from product listings and advertising to inventory management and customer service. That’s where full-service Amazon consulting comes in.

Full-service Amazon consulting provides a one-stop shop for sellers looking to optimize their presence on the platform. Rather than piecing together individual services from different providers, full-service consulting provides a complete suite of services that can be tailored to the specific needs of each seller. Here are just a few reasons why full-service Amazon consulting is a better option than ala carte services.

Comprehensive Strategy

One of the biggest advantages of full-service Amazon consulting is the ability to develop a comprehensive strategy that takes into account every aspect of a seller’s business on the platform. Rather than focusing on a single service, such as advertising or listing optimization, full-service consulting looks at the bigger picture and develops a holistic approach that considers everything from product selection to customer feedback. This approach ensures that sellers are able to optimize every aspect of their presence on Amazon, resulting in higher visibility, more sales, and better ROI.

Expertise

Amazon is a complex platform with many moving parts, and it can be difficult for sellers to stay on top of the latest trends and best practices. Full-service Amazon consulting provides access to a team of experts who have extensive experience working with the platform and a deep understanding of its mechanics. These experts can help sellers navigate the complexities of Amazon and develop strategies that are tailored to their unique needs and goals.

Streamlined Process

Working with multiple service providers can be time-consuming and inefficient. With full-service Amazon consulting, sellers have a single point of contact for all of their needs. This streamlined process saves time and reduces the risk of miscommunication or misunderstandings between different providers.

Cost Savings

While it may seem like piecing together individual services from different providers would be more cost effective than full-service consulting, in reality, the opposite is often true. By bundling services together, full-service consulting providers are able to offer more competitive pricing than individual providers. Additionally, because full-service consulting providers have a deep understanding of Amazon and the needs of sellers on the platform, they are able to provide more targeted and effective services, resulting in better ROI for sellers.

Long-Term Partnership

Finally, a full service Amazon agency provides sellers with a long-term partnership that can evolve and adapt as their business grows and changes. Rather than working with different providers as their needs change, sellers can rely on a single provider to provide ongoing support and guidance. This long-term partnership ensures that sellers are able to stay ahead of the competition and continue to succeed on Amazon for years to come.

It’s easy to see that full-service just makes more sense for sellers looking to achieve long-term success on Amazon. With its cost-effective, comprehensive, and streamlined benefits, the holistic approach to strategy development is the way to go for optimizing their presence on Amazon.

The Ultimate Guide to Amazon Buy Box: Why It's Crucial for Sellers to Win and How to Optimize for Success

Co-authored by Jen Garza and Chat GPT

If you’re in the world of Amazon, you’ve likely heard the term “Buy Box.”  What does it even mean? Well, the Buy Box is the section on an Amazon product detail page that displays the buying options for a particular item, along with seller information, price and shipping options.

The Amazon Buy Box is a feature on Amazon's website that displays the "Add to Cart" button and pricing information for products sold by third-party sellers. The Buy Box is an essential feature for sellers because it allows them to increase their sales and visibility on Amazon's marketplace.

When multiple sellers offer the same product, Amazon selects a single seller to feature in the Buy Box. The seller featured in the Buy Box receives the majority of sales for that product, which can result in increased revenue and visibility for the seller.

Amazon determines which seller is featured in the Buy Box based on a variety of factors, including price, availability, shipping options, and seller metrics such as feedback rating and order defect rate. Amazon aims to select the seller that provides the best overall customer experience, which can result in increased sales for the seller and a better shopping experience for Amazon customers.

The Buy Box is particularly important for third-party sellers on Amazon because it allows them to compete with Amazon's own products, which are typically featured in the Buy Box by default. By winning the Buy Box, third-party sellers can increase their visibility and sales, even if they are offering the same products as Amazon.

To win the Buy Box, sellers must focus on providing a great customer experience. This includes offering competitive pricing, fast and reliable shipping options, and excellent customer service. Sellers must also maintain high seller metrics, such as a low order defect rate and a high feedback rating, to be considered for the Buy Box.

Sellers can use a variety of strategies to increase their chances of winning the Buy Box, including using Fulfillment by Amazon (FBA) to provide fast and reliable shipping, offering competitive pricing, and ensuring that their product listings are complete and accurate.

In addition to the benefits for sellers, the Buy Box is also important for Amazon customers. By featuring the best seller in the Buy Box, Amazon ensures that customers receive the best possible shopping experience. Customers can purchase products quickly and easily, without having to sort through multiple listings from different sellers.

Overall, the Amazon Buy Box is a critical feature for third-party sellers on Amazon. By winning the Buy Box, sellers can increase their sales and visibility, even when competing with Amazon's own products. To win the Buy Box, sellers must focus on providing a great customer experience, including competitive pricing, fast and reliable shipping, and excellent customer service. By doing so, sellers can increase their chances of winning the Buy Box and growing their business on Amazon's marketplace.

Boost Your Sales on Amazon: A Guide to the Most Common Types of Promotions and Their Fees

Co-authored by Jen Garza and Ghat GPT

Amazon offers several types of promotions for sellers to help increase sales and promote their products. Here are some of the most common types of promotions available on Amazon and their associated fees:

1. Percentage off/BOGO: These promotions allow sellers to offer a percentage discount on their products, and may or may not require the customer to enter a promo code at checkout. There are no fees associated with creating a percentage off promotion.

2. Buy one, get one: Similar to the Percentage off, but this promotion allows sellers to offer a free product when customers purchase a specific product. There are no fees associated with creating a BOGO.

3. Social Media Promo Code: This option allows sellers to create a promo code for a discount on products, and also generates a unique marketing link to share with customers through social media, emails, or influencer marketing. There are no fees associated. 

4. Coupons: Coupons allow sellers to offer a discount on their products that customers can clip and redeem at checkout. There is no fee to create a coupon, but sellers are charged $0.60 per redemption.

5. Prime Exclusive Discount: The Prime Exclusive allows sellers to offer a discount on Prime-eligible items, available to Prime members. Discounted listings show a discounted price with the regular price crossed out. There are no fees associated.

6. Lightning deals: Lightning deals are limited-time promotions that offer a significant discount on a specific product. The fee for a Lightning Deal is typically $150 per product per deal, but may be higher ($300-$500) during sale events like Prime Day or Cyber Week.

Overall, it’s a great idea to test out Amazon’s several discount options and see what your audience responds to. It's worth noting that fees may be subject to change and may vary depending on the seller's account status and other factors. Sellers should consult an Amazon Marketing Agency, such as The AmaZone for guidance and the most up-to-date information on fees and promotions.

Protect Your Brand with Amazon Brand Registry: Benefits & Tools

Co-authored by Jen Garza and Chat GPT

Amazon Brand Registry is a program designed to help sellers protect their brand on Amazon. Here are some of the benefits of enrolling in Amazon Brand Registry:

• Protect your brand: Once you enroll in Amazon Brand Registry, Amazon will protect your brand by preventing other sellers from using your brand name or logo without your permission.

• Enhanced product detail pages: You'll have the ability to create enhanced product detail pages with your brand's logo, product images, and descriptions.

• Better control over your listings: With Brand Registry, you'll have more control over your product listings, including the ability to add and edit product descriptions, images, and titles.

• Access to Amazon's tools and services: As a member of Brand Registry, you'll have access to Amazon's suite of tools and services to help you manage your brand and listings, including Amazon Brand Analytics, Amazon Brand Dashboard, and Amazon Brand Stores.

• Increased credibility with customers: When customers see the Amazon Brand Registry badge on your product listings, they will know that your brand is registered with Amazon and that you are a legitimate seller.

Without a doubt, Amazon Brand Registry is a critical step for Brand owners to help protect their brand from third-party sellers and take full advantage of Amazon's tools and services. Check it out!

Amazon FBA vs. FBM: Which is Right for Your Business? Pros and Cons to Consider

Co-authored by Jen Garza and ChatGPT

Amazon FBA (Fulfillment by Amazon) and FBM (Fulfillment by Merchant) are two popular methods for selling products on Amazon. There’s no “right way,” each method has its own advantages and disadvantages, and it’s up to the seller to decide which approach works best for them.

Pros of Amazon FBA:

• Convenience: Amazon FBA takes care of the entire fulfillment process, including packing, shipping, and handling returns. This frees up the seller to focus on other aspects of their business.

• Prime Eligibility: Products that are fulfilled by Amazon are eligible for Amazon Prime, which can increase sales and visibility.

• Increased Sales: Amazon FBA can increase sales due to the increased visibility of Prime eligible products and the convenience of Amazon's fulfillment process.

• Customer Service: Amazon handles all customer service inquiries, which can save sellers time and resources.

Cons of Amazon FBA:

• Cost: FBA fees can be higher than FBM fees, and additional fees can be incurred for long-term storage and removal of inventory.

• Limited Control: Amazon has strict rules for FBA inventory, and sellers may have limited control over the shipping and handling process.

• Inventory Management: Sellers need to send their inventory to Amazon, which can make inventory management more difficult.

Pros of FBM:

• Cost: FBM can be more cost-effective than FBA, as there are no fulfillment fees.

• Control: Sellers have more control over the shipping and handling process, as they are responsible for it.

• Inventory Management: Inventory can be stored and managed by the seller, which can make inventory management more efficient.

Cons of FBM:

• Time-consuming: FBM can be more time-consuming than FBA, as the seller is responsible for packing and shipping orders.

• Prime Eligibility: FBM products are not eligible for Amazon Prime, which can limit visibility and sales.

• Customer Service: The seller is responsible for handling all customer service inquiries, which can be time-consuming and potentially costly.

Overall, the choice between Amazon FBA and FBM depends on the seller's specific business needs, goals, and preferences. FBA may be more suitable for sellers who prioritize convenience and increased sales, while FBM may be a better choice for those who prioritize cost-effectiveness and control over the shipping and handling process.

Maximizing Your Sales: The Ultimate Guide to Optimizing Your Amazon Listings

Co-authored by Jen Garza and Chat-GPT

Amazon is the world’s largest e-commerce platform, with millions of active sellers and billions of customers worldwide. If you’re an Amazon seller, it’s critical to optimize your product listings if you want to stand out from the competition. In this blog post, we’ll discuss the top optimization tips for increasing product visibility, conversion rate, and ultimately, revenue.

Research and Optimize Your Keywords

The first step in Amazon listing optimization is to identify relevant keywords that customers use to search for your products. You can use Amazon’s Keyword Research Tool, third-party tools like Helium 10, or Google Keyword Planner to find the best keywords for your product. Once you have a list of keywords, integrate them into your title, bullet points, and product description. Just be careful that your keyword usage is natural and not spammy, as Amazon’s algorithm may penalize your listing for keyword stuffing.

Write a Compelling Product Title

It’s the first thing customers see when they search for your product. Therefore, the Product Title should be clear, concise, and relevant to your target audience. Include your primary keyword in the title, along with other vital information such as brand name, product features, and size. Limit your title to 200 characters, as longer titles may get truncated on mobile devices.

Optimize Your Bullet Points

Bullet points are a great way to highlight your product’s features and benefits to customers. They are also a key ranking factor in Amazon’s algorithm. Use short, punchy sentences that are easy to read and understand. Include your secondary keywords in your bullet points and use them to address common customer concerns or pain points.

Enhance Your Product Images

Your product images are the visual representation of your product, and they play a critical role in driving conversions. Use high-quality images that showcase your product from different angles and highlight its unique features. Use white background images for your primary image, and lifestyle images for your secondary images to give customers a better idea of how your product looks and works in real life.

Provide Accurate Product Information

Your product description is an opportunity to provide detailed information about your product, including its features, benefits, and specifications. Be as descriptive as possible, but avoid exaggerating or making false claims. Provide accurate measurements, material information, and care instructions to help customers make an informed purchase decision.

Encourage Customer Reviews and Feedback

Customer reviews and feedback are essential to building trust and credibility on Amazon. Encourage your customers to leave reviews by sending a follow-up email after purchase or by adding a request for a review in your product packaging. Respond to customer feedback, both positive and negative, and use it to improve your product and customer service.

Keep in mind, Amazon listing optimization is a continuous process, not a “set and forget” approach. Amazon’s algorithm is always changing, so ongoing monitoring will help you stay up-to-date with the latest trends. Or, you can use an Amazon consulting agency to do it for you!

Launching on Amazon FBA Seller Central: Steps to Becoming an Amazon Seller

Co-authored by Jen Garza and Chat-GPT

If you're looking to sell products online, Amazon is one of the best platforms to get started with. With over 2.5 million active sellers, Amazon provides a massive audience to sell your products to. In this blog post, we'll walk you through the essential steps to get set up in Amazon Seller Central.

Step 1: Create Your Amazon Seller Account

The first thing you need to do is create your Amazon seller account. To do this, go to the Amazon Seller Central website and click on the "Register Now" button. Follow the prompts to create your account, providing all necessary information such as your business name, address, phone number, and tax information.

Step 2: Choose Your Selling Plan

Amazon offers two selling plans: Individual and Professional. The Individual plan charges a fee per item sold, while the Professional plan charges a monthly subscription fee but offers more features and benefits. Choose the plan that suits your needs and budget.

Step 3: List Your Products

Now that you have your seller account set up, it's time to list your products. To do this, click on the "Inventory" tab in Seller Central and then click on "Add a Product." Follow the prompts to provide all the necessary information about your product, including its name, description, images, and pricing.

Step 4: Set Up Fulfillment Options

Amazon offers two fulfillment options: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). FBA means that Amazon will store, pack, and ship your products, while FBM means you handle all of these tasks yourself. Choose the fulfillment option that works best for you.

Step 5: Optimize Your Listings for SEO

To increase the visibility of your products on Amazon, you need to optimize your product listings for search engines. This involves using relevant keywords in your product titles and descriptions, as well as providing high-quality images and detailed product information.

Step 6: Monitor Your Performance

Once your products are listed, you need to monitor your performance to see how well they're selling. Use the "Performance" tab in Seller Central to track your orders, inventory, and customer feedback. Use this information to make adjustments to your listings and improve your sales.

Step 7: Advertise Your Products

Finally, consider using Amazon's advertising tools to promote your products. Amazon offers several advertising options, including Sponsored Products, Sponsored Brands, and Sponsored Display. These ads can help increase your product visibility and drive more sales.

In conclusion, selling on Amazon can be a lucrative business opportunity. By following these steps, you can get started with selling on Amazon Seller Central and take advantage of the massive audience that Amazon offers. Remember to optimize your listings for SEO, monitor your performance, and advertise your products to increase your chances of success. Good luck!

Does a CPG Brand need a presence on Amazon? Yes, and here’s why:

Co-authors Jen Garza and Chat-GPT

Consumer packaged goods (CPG) companies are facing a rapidly changing landscape in the digital age. With the rise of online shopping, more and more consumers are turning to e-commerce platforms like Amazon to purchase everyday items. If you’re a CPG company, here are just a few reasons why you should consider selling on Amazon:

1. Reach a wider audience - Amazon has over 300 million active users worldwide. That’s a massive audience for CPG companies looking to reach new customers. By selling on Amazon, you can tap into this vast pool of potential customers and expand your reach beyond traditional brick-and-mortar retail channels.

2. Access to valuable data and analytics - Amazon provides detailed data and analytics on customer behavior, preferences, and shopping habits. This information can be incredibly valuable for CPG companies looking to optimize their marketing and sales strategies. By analyzing this data, you can gain insights into customer demographics, purchase patterns, and product trends, which can help you make informed decisions about product development, pricing, and advertising.

3. Leverage Amazon’s advertising tools - Amazon offers a range of advertising tools and programs that can help CPG companies increase their visibility and drive sales. Sponsored Products, Sponsored Brands, and Sponsored Display ads are all effective ways to reach Amazon shoppers and promote your products. Additionally, Amazon offers tools like Amazon Stores and Amazon Brand Registry, which allow CPG companies to create custom storefronts and protect their brand identity on the platform.

4. Streamline your supply chain - Selling on Amazon can also help CPG companies streamline their supply chain and reduce costs. By using Amazon’s Fulfilled by Amazon (FBA) program, you can store your inventory in Amazon’s fulfillment centers, and they will manage the shipping and handling of your products. This can free up valuable resources for CPG companies, allowing them to focus on product development and marketing rather than logistics.

5. Increase brand visibility and awareness - Finally, selling on Amazon can help increase brand visibility and awareness for CPG companies. By listing your products on Amazon, you can increase the number of touchpoints with potential customers and create opportunities for new customer acquisition. Additionally, Amazon offers a variety of tools and programs that can help CPG companies build brand loyalty and drive repeat business, such as Amazon Subscribe & Save and Amazon Fresh.

In conclusion, selling on Amazon can be a game-changer for CPG companies looking to grow their business and reach new customers. By leveraging Amazon’s vast audience, valuable data and analytics, advertising tools, and supply chain services, CPG companies can streamline their operations, increase their visibility and awareness, and drive sales on the world’s largest online marketplace.

Investing in Success - Why an Amazon Agency Is Best for Scaling Your Brand

Co-authored by Meghann Urewicz and Chat-GPT

In the world of online retail, Amazon is king. With over 2.5 million active sellers on the platform, it can be tough to stand out from the crowd. That’s where Amazon agencies come in - these specialized agencies can help grow your brand and increase sales on Amazon in a variety of ways.

Here are just a few reasons why Amazon agencies are the best choice for growing your brand on the platform:

1. They know the ins and outs of Amazon’s algorithms

   Amazon’s search algorithm is complex and constantly changing. An experienced Amazon agency will have a deep understanding of how the algorithm works and what factors impact your product’s search ranking. By optimizing your listings for relevant keywords and staying on top of the latest algorithm updates, they can help ensure your products are visible to shoppers and appear at the top of search results.

2. They can help you navigate Amazon’s policies and rules

   Amazon has strict policies around product listings, customer reviews, and more. Violating these policies can result in account suspension or even a ban from the platform. Amazon agencies have a thorough understanding of these policies and can help ensure your listings are compliant. They can also help you respond to customer reviews and handle any customer service issues that may arise, helping you maintain a positive reputation on the platform.

3. They can provide valuable insights and analytics

   Amazon agencies have access to a wealth of data and analytics beyond what you see in your Seller Central platform that can help inform your Amazon strategy. They can track your sales, monitor your competitors, and provide insights into customer behavior and preferences. This data can be used to optimize your listings, adjust your pricing strategy, and inform product development decisions.

4. They can help you optimize your listings for conversion

   Optimizing your Amazon product listings for conversion is key to increasing sales. Amazon agencies can help ensure your listings are engaging and persuasive, with high-quality product images, compelling product descriptions, and effective calls-to-action. By making these optimizations, they can help improve your conversion rate and drive more sales for your brand.

5. They can help you expand your presence on Amazon

   Amazon offers a variety of advertising options and tools that can help you expand your presence on the platform. Amazon agencies can help you navigate these options and develop an advertising strategy that aligns with your goals and budget. They can also help you take advantage of other Amazon programs, such as Amazon Prime and Amazon Fresh, to reach more customers and drive more sales.

In conclusion, Amazon agencies are a valuable resource for any brand looking to grow its presence on the platform. By leveraging their expertise in Amazon’s algorithms, policies, and advertising tools, they can help you increase sales, improve your listings, and expand your presence on the platform. If you’re serious about growing your brand on Amazon, partnering with an experienced Amazon agency is the way to go.

Expert Advice: Tips for Selecting the Right Amazon Consultant for Your Business

Authors - Jeannie Stamberger, CEO/Founder The AmaZone & Betsy McGinn, CEO/Founder McGinn eComm

Selling on Amazon FBA requires more hands-on work than traditional retail channels. When CPG companies consider getting help for their Amazon sales channel, there is a wealth of Amazon consultants to choose from. Here we break down different common types of firms, fee structures, and the minimum services you should be getting from your Amazon consultant. Armed with this information, hopefully, you can find the help you need, with the right fit and budget.

• Types of consultants. Amazon consultants come in all shapes and sizes. Some firms like betsy@mcginnecomm.com specialize in helping brands map their strategy and get all essentials in place to successfully launch or optimize their eCommerce business, which covers everything from packaging to pricing and promotion strategies to align with all of a brand’s other sales channels. She believes this is the most important work a brand can do so they do not have to walk back mistakes that cost brands time and money. This approach also prevents potentially wasted money on an Amazon Brand Management Agency, prior to being prepared to provide their partner with everything they need to successfully manage their brand on a day-to-day basis.

Brand Management Agencies, those that manage your day-to-day business on Amazon, like The AmaZone, function like an arm of your company, managing everything from troubleshooting to PPC Advertising and ongoing advisory. There is a wide range of Brand Management firms – in regard to cost, focus, and areas of expertise. 

For example, The AmaZone best serves medium to large firms, who typically need unique services when they scale. Other firms are best suited for start-ups that need to pioneer on the platform. Some firms focus on specific aspects of selling on Amazon, such as Amazon advertising; these PPC firms can manage the complex task of optimizing your ad spend and sales goals within the continuously changing Amazon advertising programs and landscape. While PPC is vital to success on Amazon, it is most effective when managed in conjunction with all components of your account – such as listing optimization, inventory management, and the often-needed troubleshooting. It doesn’t make sense to have a great PPC partner when they are not positioned to help track down that lost inventory you shipped in so that you actually have product to sell against your advertising. 

There are firms that just focus strictly on Amazon, like The AmaZone, and others that combine the management of Amazon with other eComm sales channels, like Walmart.com and your own DTC platform. There are others that provide an even wider range of marketing services like social media, social media Ads, and influencer marketing. This is where you may need to exercise a bit of extra caution since there can be widely varying Amazon expertise levels in a one-stop shop. Just know that there is a wide range of types, service offerings, and prices to match your needs.

Here is what to look for:

• Fee structures and terms. We see all sorts of structures - some we think are fair and some, not so much. There are those using retainer OR commission; retainer AND commission, retainer plus a fee on the amount of ad spend, and many other variations. Our take is that we are a bit like lawyers - you want to invest in good services upfront because there is a lot of work to get started on Amazon, so commission isn’t an adequate incentive to ensure expert onboarding. We also commonly see misaligned incentives when management fees increase as ad spend does. At The AmaZone, we prefer to fold all management fees into the original fee structure so brands are not being penalized for increasing ad spend that will ultimately result in the overall growth of the account. As service terms go, we have seen everything from annual contracts to month-to-month contracts, but most are somewhere in between. For example, at The AmaZone we have a 60-day out clause which we think provides a good compromise.

• Services. We think at the very minimum you should have the following services provided by your agency or in-house to make your business run smoothly. 

• Account Management. Your agency should provide a competent and stable account manager who knows the ins and outs of your Amazon business. The number one complaint we get from new clients is that their previous agency did not assign them a strong point of contact that could answer day-to-day questions and solve commonly occurring problems. This is the bare minimum you should expect from your agency partner.

• Profitability Metrics. Your new agency or consultant should be working with you upfront to help you understand your potential profits on Amazon. We see many clients who don’t realize that they are losing money on each sale. Loss leaders can be a part of a larger strategy but complete clarity on the bottom line is crucial. 

• Optimized Listings. Listings must be correctly set up with best-in-class optimization. We highly recommend working with professional Amazon consulting services for set-up. Last we looked, one Amazon product file had 210 columns of information to fill out and the required information was not obvious due to the opaque Amazon language.

• Inventory Management. The greatest risk to your Amazon business is running out of stock. An out-of-stock on Amazon negatively impacts the search algorithms, meaning you drop like a stone in product ranking, and recouping relevance in search can take 90-120 days. Help with managing your inventory can be your most valuable resource. 

• Routine Reporting. Reporting is the key to understanding your business and making informed decisions. Data must be clear and user-friendly. Reporting should be on a consistent basis, likely monthly, and include the following metrics: Total sales, Ad Spend, ACoS, CAC, LTV, inventory status, and recommendations to improve your Amazon business.

Selling on Amazon FBA requires more hands-on work than traditional retail channels. Having an experienced agency partner that is well-aligned with your Brand and your company can make all the difference in the world to your success on Amazon.

Don’t Have Vendor Central FOMO

This is the second article of the series “Launching & Scaling on Amazon” by Betsy McGinn and Jeannie Stamberger.  Betsy McGinn (founder of McGinn eComm) scaled Seventh Generation eCommerce from $0 to millions and now prepares major Brands for success on Amazon Jeannie Stamberger runs The AmaZone, an Amazon Brand Management Agency that has facilitated over $100M+ in Amazon sales. We pull on our extensive backgrounds preparing, launching and scaling sales on Amazon, to bring you tactical tips and tricks to sell on Amazon. It is primarily for Food and Beverage Brands and the US marketplace (Amazon.com), but most tips apply to other CPG Brands.

We sometimes work with Brands who view selling on Amazon through the Vendor Central (VC) model, as a panacea and a sign that they have “made it” and life in the Amazon ecosystem is going to be easier to manage.

To be clear, both models have their merits. Vendor Central is a traditional retail model where Brands simply sell to Amazon like they would any other retailer. This works for Brands that struggle to adapt to Amazon’s Seller Central 3rd party platform even with the convenience of Amazon’s fulfillment component through Fulfillment by Amazon (FBA).

Having worked extensively with both models, we can confidently say we have seen it all and would like to provide some perspective on the struggles and successes for Brands. For starters, we work mostly with Brands that use the FBA model and now nearly 60% of product sold on Amazon is through FBA. Over the years, we have even transitioned Brands from VC to FBA as the frustrations of VC have driven them from this selling model. And here’s some reasons why:

1. VC Spending Rates: Amazon Vendor contracts include three variable rates: freight, marketing co-op and damages. These rates vary wildly across contracts but typically add up to around 30%, and are renegotiated every year for higher spending rates. Amazon rate negotiations can kill a business as we have seen massive profit drops as Amazon changed freight rates from a percent to the Brand paying for all freight, but requiring shipping on Amazon’s schedule. Don’t let the term “marketing coop” fool you – all specific marketing activities are additional pay to play.

2. Amazon Sets the Retail Prices: Pricing may be higher or lower than the suggested retail price and can change moment to moment as Amazon price matches the market. Sometimes this price mapping is flawed and wreaks havoc with a brand’s carefully crafted pricing strategy. Additionally, the brand will be asked to compensate Amazon for the delta created by pricing matching, regardless of current contracts and other promotional spending. In FBA, the Seller sets the retail price of products with the goal of a fair price to consumers and a profitable business for the Seller.

3. Purchase Order Chaos: For growing food and beverage Brands to thrive it is essential to strategically scale production, balance expiration dates, product demand, and manufacturer scale/production schedules. VC challenges every one of these notions with inconsistent pace and size of purchase orders. Additionally, Brands are typically asked to ship to a massive number of Amazon Fulfillment Centers (FC) that are ever changing. One client was shipping to 32 FCs with changes every week.

4. Price Increases: Or Not! Amazon is notoriously known for refusing price increases from Brands, even as ingredients, transportation, and general costs of doing business skyrocket. If after weeks and sometimes months of negotiations new pricing is accepted, the increase is typically capped at 5%. 

5. Cost of Marketing: VC Brands are required to spend additional marketing funds on a variety of programs from site sponsorships to special discount programs, in addition to pay-per-click advertising on the Amazon platform that most Brands understand is essential for success. 

For these reasons, Vendor Central is typically reserved for the largest CPG companies with deep pockets and the clout to negotiate when needed. So, if you manage to wrangle an invitation to become a Vendor to Amazon, approach the opportunity with eyes and wallet wide open.

HUMAN vs AI…ChatGPT

Last week Betsy McGinn Amazon and eCommerce Expert and I started a newsletter with solid information on launching and scaling on #amazon. Now, we have deep experience, and are pretty proud of sharing tactics based on data and experience. We like to think we offer information worth your time instead of generalized fluff. So, for kicks, we decided to test ourselves by putting the same prompts into ChatGPT and seeing what popped out (article).

Read it, and comment on what bad advice you find or just the drivel. I particularly got a kick out of it suggesting the Vendor Express program... which is long dead...

As far as we can tell, AI hasn’t replaced us yet…or has it????

Thanks to Joe Hobbs for the ChatGPT prompts!

ChatGPT Prompts (February 6, 2023):

Pretend you run an Amazon brand Management Agency. Create a LinkedIn article based on the below titles. The short title is the header, and each numbered sentence should be a different topic and 3 paragraphs. 

Short title: Listicle for New to Amazon Food Brands

1. Market size doesn’t matter.

2. Second-to-market is the sweet spot in a category.

3. For optimum visibility, it’s best to have both brick-and-mortar and Amazon presence.

4. Being profitable on Amazon takes some know-how. 

5. Know which Amazon selling model is right for you. 

ChatGPT Result (February 6, 2023):

"Listicle for New to Amazon Food Brands: Maximizing Your Success on the E-commerce Giant"

1. Market size doesn’t matter:

When it comes to establishing your brand on Amazon, it can be tempting to focus on the size of the market. However, it's important to remember that market size doesn't dictate your success. The e-commerce giant is home to a diverse range of products, from niche to mainstream, and there's room for brands of all sizes.

What matters most is having a unique and well-differentiated offering, a strong value proposition, and a focused go-to-market strategy. This can help you stand out in a crowded marketplace and capture the attention of your target audience. By focusing on these key elements, you can establish a strong presence on Amazon, regardless of the size of the market.

Another important factor to consider is the quality of your product. A well-made, high-quality product that meets the needs of your target audience can go a long way in establishing your brand on Amazon. This, combined with a strong brand image, can help you gain traction and build a loyal customer base on the platform.

1. Second-to-market is the sweet spot in a category:

Being the first to market in a particular category can be challenging, especially when it comes to food brands. However, being the second or third to market in a category can be a sweet spot.

You can learn from the pioneers in the category, identify gaps in the market, and differentiate your offering to capture a share of the market. For example, if the first-to-market brand is focused on natural, organic ingredients, you could differentiate your brand by offering gluten-free or vegan options. This can help you carve out a niche in the market and establish your brand as a leader in your category.

Another advantage of being second-to-market is that you have the opportunity to learn from the mistakes of the pioneers. This can help you avoid common pitfalls and streamline your go-to-market strategy, leading to a smoother and more successful launch on Amazon. Additionally, with a successful first-to-market brand, you have the advantage of an established customer base in the category, making it easier to reach your target audience.

1. For optimum visibility, it’s best to have both brick-and-mortar and Amazon presence:

Having a brick-and-mortar presence can be an asset when it comes to establishing your brand on Amazon. It not only helps you build a local following but also provides a platform for customer feedback and product testing. This can be invaluable in fine-tuning your product offerings and ensuring that you're meeting the needs of your target audience.

Having both a brick-and-mortar and Amazon presence can help maximize your brand's visibility and increase your reach to a broader audience. By having a physical presence, you can create a personal connection with your customers and build a loyal following. This can help drive traffic to your Amazon store and increase sales, helping you establish your brand on the platform.

Additionally, having a brick-and-mortar presence can help build credibility and trust with your target audience. This is especially important in the food industry, where consumers are concerned about the quality and safety of their food. By having a physical store, you can demonstrate your commitment to quality and safety, helping you build a strong reputation and establish trust with your customers.

1. Being profitable on Amazon takes some know-how:

Making a profit on Amazon can be a challenge for new food brands, especially with the increased competition. However, with the right knowledge and strategies, it ispossible to achieve profitability on the e-commerce giant.

One key factor to consider is your pricing strategy. You want to set a price that is competitive in the market but also allows you to make a profit. This can be a delicate balance, as you don't want to price yourself out of the market, but you also don't want to undervalue your product. To determine the right pricing strategy, it's important to conduct market research and understand the pricing of similar products in your category.

Another important factor is to understand Amazon's fees and charges. These can include referral fees, storage fees, and fulfillment fees, among others. By understanding these fees, you can ensure that you're pricing your product correctly and that you're not losing money on the platform.

Optimizing your product listings is also crucial in achieving profitability on Amazon. This includes having clear and concise product descriptions, high-quality images, and keywords that accurately describe your product. These elements can help improve your product's visibility and increase sales, which can ultimately drive profitability for your brand.

1. Know which Amazon selling model is right for you:

There are several selling models available on Amazon, including the Vendor model, the Seller model, and the Vendor Express model. Each model has its own unique set of benefits and challenges, so it's important to understand which model is right for your brand.

The Vendor model allows you to sell your product directly to Amazon, who then takes care of storage, fulfillment, and customer service. This model is ideal for larger brands with a established supply chain and a significant volume of product to sell.

The Seller model, on the other hand, allows you to sell your product directly to the customer, with Amazon acting as a facilitator. This model is ideal for smaller brands with a lower volume of product and a more hands-on approach to customer service.

The Vendor Express model is a hybrid of the Vendor and Seller models, offering the benefits of both. With this model, you can sell your product directly to the customer, but Amazon also provides fulfillment and customer service support. This model is ideal for brands that want to take advantage of Amazon's fulfillment network but also maintain a level of control over their customer service.

Conclusion:

In conclusion, understanding the right selling model for your brand is crucial in maximizing your success on Amazon. By carefully considering the benefits and challenges of each model, you can make an informed decision that aligns with your brand's goals and objectives.

Top 3 Considerations For Selling Your Food or Beverage Brand On Amazon

This is the first article of the series “Launching & Scaling on Amazon” by Betsy McGinn and Jeannie Stamberger, primarily geared for Food and Beverage Brands in the US marketplace (Amazon.com) - but most tips apply to other CPG Brands..  Betsy McGinn (founder of McGinn eComm) scaled Seventh Generation eCommerce from $0 to millions and now prepares major Brands for success on Amazon. Jeannie Stamberger runs The AmaZone, an Amazon Brand Management Agency that has facilitated over $100M+ in Amazon sales. We pull on our extensive backgrounds preparing, launching and scaling sales on Amazon, to bring you tactical tips and tricks to sell on Amazon.

1. Contrary to popular belief, size doesn’t matter.

Unlike retail markets, Amazon has endless shelf space and untapped opportunity! 

Knowing the existing market size for your product is a traditional strategic tool for making retail placement decisions, but Betsy McGinn of McGinn eComm (https://www.mcginnecomm.com/) preaches that metric and mindset doesn’t apply to the Amazon ecosystem.  Amazon has endless shelf space and no category is mature online. When you get into a retail store, you’re trying to squeeze into a set of 45,000 products (<4,000 for Costco), and landing on the shelf involves either kicking someone else out, or replacing one of your own products. But not on Amazon. Looking at the dollar value of sales for the existing sellers in your market on Amazon tells you what’s happening now, not what’s possible. Many brands use Amazon as a way to sell their entire product line which they are unable to do in retail stores. They list “longtail” products that may not be widely distributed on the retail shelf, but fill a consumer need and gain instant national distribution just by being available on Amazon. 

2. Second-to-market is the sweet spot in a category.

Brand-new and competitive categories have greater hurdles. It may seem counter-intuitive because of Amazon’s revolutionary reputation, but highly innovative products face challenges on Amazon. Average customers might not be searching for new brands that don’t fit in a standard category. As the largest search engine in the world, shopping on Amazon is a search term driven experience so highly innovative products may not fit the mold for the terms consumers are using to search for their desired products. This means cool new products can have a hard time getting found on Amazon: people don’t know how to look for them, especially if they’ve started out with Amazon as the only selling channel. If this is your category, we recommend building your community of followers (grassroots efforts, influencers, social media) first so you have enough pull for Amazon to start showing you to potential customers on the Amazon platform. 

On the other hand, highly competitive, saturated categories may be even more challenging. Yes, you have an established volume of target customers. But the increased competition can make finding newly launched listings a challenge. On-platform advertising can help curb this problem, but it’s important to note that in competitive categories, you can expect to pay high CPC (cost per click) rates to outbid the multiple brands competing for the same space. This is how brands can be driven to compete on price and become profit negative. And as we know, in the grocery category, profit margins are already the leanest of most any category. If you have questions about where your Brand falls, reach out to us!

3. For optimum visibility, it’s best to have both brick-and-mortar and Amazon presence.

If your brand is on Amazon, it helps your brick and mortar sales. Your customers will expect you to be on Amazon. It validates their purchase, and in fact, it indicates that you’ve “made it” as a brand.

Amazon is a great place to get instant national distribution, immediate customer feedback on your product, and to use it as a marketing tool and for long term sales success. But because it’s highly competitive, it can be tricky to grow quickly as your primary sales channel without some coinciding brick and mortar or grassroots presence.
Amazon’s competitive search driven advertising makes it tricky to get visibility for new products. Even though only a small percentage of searches on Amazon begin with a brand name, products and brands with a history on Amazon are challenging to eclipse in search. This is why many brands use Amazon as not just a selling platform, but also proof of concept on products, and as a vehicle for getting immediate feedback from customers on products through reviews – something you just can’t get from a retail store. 

The bottom line is that while selling on Amazon has become more complex over the years, if you put in the essential pre-work and come to the marketplace prepared, it provides your brand a fantastic opportunity. There is just no other platform that provides instant national distribution, a limitless retail shelf, a built-in consumer panel, 148 million loyal “Prime” shoppers, a robust marketing platform and the freedom to manage your brand’s destiny.