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Selling on Amazon in 2020

A Quick Guide

What are the current opportunities for sellers on Amazon? How can you rank higher in Amazon’s algorithms? And how can you stay on top of the competition around you? We’re answering all the different ways you should be selling on Amazon in 2020 below.

We know this space is noisy, so we’ll keep things simple!

Amazon Key Terms

If you aren’t already, get acquainted with the key services Amazon are offering sellers:

Amazon FBA
Amazon Associates
Amazon Shipping
Amazon Vendor Central
Amazon Seller Fulfilled Prime
Amazon Fulfilled by Merchant

Fulfilment by Amazon (FBA) provides storage, packaging, shipping and order tracking to all Amazon sellers.

After you’ve sent your products to an Amazon Fulfilment Centre, Amazon will take care of getting your orders send out across Europe – as well as dealing with any returns.Then, every two weeks, Amazon totals up all your sales, deducts your seller fees and deposits your profits directly into your bank account.

amazon fba

Amazon Associates is a free affiliate program provided by Amazon themselves. This allows you to sell any product on Amazon and earn commission from doing so. Once you’re set up, you can do a search inside of AA for products you want to promote.

When someone clicks your affiliate link, you make commission from any additional products purchased. The only downside – it only exists within a 24-hour window of time.

amazon affiliates

Amazon Prime Shipping packages are mostly shipped via UPS. In case of destinations not served by UPS, alternative couriers like FedEx/DHL are used in their place – particularly for weekend deliveries.

amazon shipping

Amazon Vendor Central is the portal used by Amazon and its manufacturers. If you’re selling through Vendor Central, you’re considered a first-party seller acting as supplier for Amazon. It’s worth noting that registration on Vendor Central is by invitation only.

This invitation will come directly from the Amazon retail team, typically through email. To be invited, you need to be attracting Amazon’s attention, we’ll give you some tips a little later on!

Amazon Seller Fulfilled Prime allows ‘qualified Amazon sellers’ to display the official Amazon Prime badge on any orders fulfilled in their own facilities or third party (3PL) providers.

All Amazon SFP sellers must to stick to Amazon Prime’s strict shipping standards. That includes buying labels via Amazon’s Buy Shipping Services, directing all customer service enquiries to Amazon, and offering Prime shipping benefits and delivery guarantees.

Fulfilled by Merchant is the opposite of Fulfilled Prime. This is when a seller on Amazon lists their products on Amazon but chooses to ship the products themselves. That means sellers are responsible for fulfilling their orders, and do not rely on Amazon for support.

This is a good option for Amazon sellers seeking more control over their picking, packing and shipping process.

Your Business vs. Amazon

When selling on Amazon, you’re not just up against the competition, you’re up against the platform.

Amazon has the data, you do not

Over the years, Amazon have made it clear that their customer data, is strictly their own. The gaps and loopholes some sellers use to contact customers are closing.

What does that mean for you? It makes all your efforts in capturing people outside of Amazon more important than ever.

You want to be more than an Amazon customer; you want to be your own brand – that means more strategy behind what you’re doing. That includes making sure you’re on the right marketplaces, alongside Amazon.

Amazon products against your own

The data Amazon keeps to themselves is powerful. It also gives Amazons Retail huge advantage when it comes to deciding what they should and should not sell. When it comes to sellers competing on the same product, it doesn’t take a genius to work out who’s going to get ranked higher.

The key takeaway? Selling on Amazon in 2020 is all about being creative. Do not compete with their offers – think of new ones! You can track these efforts in Amazon’s Brand Analytics under the Reports tab in Seller Central.

Amazon Algorithms in 2020

Amazon algorithms – how can you rank higher?

Amazon’s SEO is supposed to work in a similar way to a Google search engine. Typically, customers wont get as far as the third page. So, some things to consider:

  1. How well you deal with returns are factored into your seller authority.
  2. Seller feedback is more important than ever for 2020 – make sure you have a review strategy.
  3. Traffic on your page has a large impact on your authority. Consider getting your products reviewed by micro-influencers.
  4. Good inventory levels impact your authority, so make sure at the very least your best-sellers are well stocked.
  5. Click-through rate on your products improves ranking, make sure you’re investing in your photography.
  6. Avoid too many discounts and promotions – Amazon has started taking down listings that offer too many.
  7. Optimise your listings and use all fields available to you. The more information the better.
Amazon Algorithms

Increasing your Amazon sales

Competing in a saturated marketplace

With Amazon becoming increasingly saturated with retailers it’s
important to think about how your products are fitting in to the market. If you’re selling products that fall into a competitive niche, you should
start thinking about the following:

  • Am I solving a problem, for a specific group?
  • Can I be more innovative with my products?
  • Is there something else I could be selling?

If you’re releasing a new product, make sure you run campaigns
from traditional outlets (social media, PPC etc.) to drive initial traffic.

Our advice to you

For some our of customers, getting the most from Amazon is critical to their business. That’s why every year, we’re proud to sponsor and attend Amafest UK. Amafest is the perfect event for anyone selling on Amazon in 2020, or just thinking about it.

For those interested in more 1-2-1 consultancy on their Amazon account, we recommend talking to the lovely team at Online Seller UK.

How do we work with Amazon?

Our own integration allows you to connect your multi-channel business directly with your Amazon store. This enables data to pass back and forth between the two, syncing your inventory, orders, payments and shipping in one place.

OUR AMAZON INTEGRATION