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AmazonBasics 101: What You Need to Know

how does amazonbasics impact amazon seller
May 9, 2024 6 mins to read

Did you know that Amazon, with its 300 million active users, has its line of products under the AmazonBasics brand?

 From chargers to kitchen gadgets, AmazonBasics covers a lot. 

Now, imagine you’re a seller entering this vast marketplace. 

How do you navigate the competition, especially with Amazon’s products in the mix? 

That’s what this guide is all about – helping you understand AmazonBasics and discover strategies to succeed as a seller. 

So, let’s dive in!

A Quick Peek Into The Article, 

  1. What is AmazonBasics?
  2. How does AmazonBasics impact Amazon Seller?
  3. Is it advisable for private label sellers to exit Amazon because of AmazonBasics?
  4. 5 Ways to Compete against AmazonBasics
    • Focus on niche products
    • Provide high-quality product
    • Market your product
    • Master Your Listing Optimization
    • Unique Branding
  5. Conclusion

What is AmazonBasics?

AmazonBasics is a private-label product line owned by Amazon, offering a diverse range of everyday consumer goods. 

These products have various categories, including electronics, home and kitchen essentials, office supplies, and more. 

AmazonBasics competes with established brands and also influences the dynamics of the Amazon marketplace for third-party sellers with affordable alternatives. The brand focuses on simplicity and competitive pricing, making it a notable presence in the e-commerce landscape.

How does AmazonBasics impact Amazon Seller?

AmazonBasics can have a significant impact on third-party sellers on the Amazon marketplace. 

Here are several ways in which AmazonBasics can impact sellers:

Increased Competition:

AmazonBasics products can intensify competition in various categories since they are competitively priced and backed by the platform. You may find it challenging to compete with Amazon’s products.

Buyer Trust:

Some consumers may prefer AmazonBasics products due to the trust associated with the Amazon brand. This trust could potentially divert customers away from third-party sellers.

Price Pressure:

The competitive pricing of AmazonBasics items may force third-party sellers to reconsider their pricing strategies. You may need to adjust your prices to remain competitive or differentiate your products in terms of quality or features.

Visibility Challenges:

Amazon often promotes its products prominently on the platform. This preferential treatment can make it harder for third-party sellers to gain visibility and attract potential customers.

But other than all these impacts, the worst scenario is when Amazon leverages data from sellers like you to design its products.

By analyzing data such as consumer preferences, purchasing patterns, and market trends from 3P sellers, Amazon develops its proprietary merchandise. This practice has been a source of both innovation and controversy within the e-commerce industry.

While AmazonBasics provides opportunities for customers to access affordable, reliable products, third-party sellers need to navigate increased competition and consider strategic adjustments to maintain a strong presence in the marketplace.

Should Private Label Sellers Exit Amazon Because of AmazonBasics?

The competition is high for private label sellers, with AmazonBasics in the picture, there are still several factors through which you can succeed.

Succeed Among Big Players

Don’t see Amazon as an unbeatable giant. Just like Allbirds and Atoms did in the sneaker world, small brands can make a name for themselves even in crowded markets. You can be successful alongside the big names.

Moreover, AmazonBasics isn’t invincible. If you have a great product, promote it well, and provide excellent service, you can still shine in the market.

Easily Beat AmazonBasics

Even though AmazonBasics is Amazon’s brand, it’s not always the top seller. Many other brands consistently outperform AmazonBasics. This means there’s plenty of room for private-label sellers to do exceptionally well in their areas.

Opportunities for Sellers

Amazon is constantly welcoming new sellers—around 76,769 just in the US. Many sellers are doing great on the platform. Even though AmazonBasics is around, third-party sellers have contributed 24% of Amazon’s total revenue, representing an 18% year-over-year increase. This translates to billions of dollars flowing through their shops.

5 Ways to Compete against AmazonBasics

Let’s explore five ways to compete against AmazonBasics for the success of your private-label brand.

Focus on Niche Products

Instead of competing directly with AmazonBasics in broad categories, identify and specialize in niche products. Conduct market research to understand what customers in that niche are looking for but may not find readily available. A simple method is by using SellerApp’s Product Intelligence. This tool can help you pinpoint gaps in the market and understand the high-potential products that customers are seeking. 

By targeting a niche, you reduce direct competition and can cater to a more specific audience. 

Provide High-Quality Products

Emphasize quality over quantity. Ensure your products are well-made, durable, and meet or exceed industry standards. Positive customer experiences and reviews can significantly impact your success. Satisfied customers are more likely to become repeat buyers and recommend your products to others. By delivering high-quality items, you build trust and credibility, setting your brand apart from generic or lower-quality alternatives.

Market Your Product

Develop a comprehensive marketing strategy to increase your product’s visibility. Utilize various channels, including social media, email marketing, and influencer partnerships, to create awareness. Highlight the unique aspects of your product and how it addresses specific customer needs. Effective marketing not only attracts potential customers but also establishes a distinctive brand identity. Consider running targeted promotions or exclusive deals to entice customers and encourage trial purchases.

Master Your Listing Optimization

Optimize your product listings on Amazon with the help of SellerApp’s Listing Quality feature to boost visibility and appeal. Strategically incorporate keywords into your product title, description, and bullet points to improve search ranking, using SellerApp’s data-driven insights to identify the most effective keywords for your niche. Enhance the visual appeal of your listing by utilizing high-quality images that showcase your product from various angles, engaging potential customers. 

Moreover, foster positive reviews by delivering excellent customer service, and promptly addressing any issues. With SellerApp’s Listing Quality, you can ensure that your product listings are finely tuned to attract attention in relevant searches, increasing the likelihood of capturing the interest of potential customers in the highly competitive Amazon marketplace.

Unique Branding

Build a strong and memorable brand identity. Develop a unique brand story, logo, and visual elements that set your products apart. Create a consistent brand voice across all communication channels, fostering a connection with your target audience. Branding goes beyond just the product it’s about creating an emotional bond with customers. Consider packaging design, unboxing experiences, and any additional touches that enhance the overall brand perception. A distinctive brand identity can foster loyalty and make your products more memorable in a competitive market.

Conclusion

Success involves focusing on your unique niche, providing top-notch products, smart marketing, optimizing your product listings, and building a memorable brand. Follow these tips, and you’ll be well on your way to thriving in the world of AmazonBasics and making your mark in the competitive online market.

Additional read:

Benefits of these Amazon add-on products

What is Amazon Product Localization?

How to Join Amazon’s Small Business Academy

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4 Comments on “AmazonBasics 101: What You Need to Know”

  1. Tanner
    January 9, 2024

    Well done!! exactly what I was looking for.

    1. Clare Thomas
      March 6, 2024

      Glad you liked it.

  2. Ranmingten
    January 9, 2024

    Enjoyed reading this, very good stuff, thank you.

    1. Clare Thomas
      March 6, 2024

      Thanks for reading.

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