A lot many people make money by selling their products on Amazon. Because one would like to escape the unemployment benefit, without idea, no contacts, nor even the network after competitors checked out. What do we do? Do not know, let’s open an online shop. We sell something and become rich. Working out a good amazon business strategy goes a long way. If you are wondering how to increase amazon sales, this article will give you the best ideas and can help you make a good amazon strategic plan.
Can you really get rich with an online shop overnight?
Surely not, here should be asked the question, if one with an online shop over night money can make? The more likely, questionable is now whether this money goes to life, whether it also after foundation grant or entrance fee assures the existence. And it does not just include mobile phones and cigarettes or a car. No, the existence of this is rent, insurance, at least a health insurance (about 300 EUR monthly), food, clothing and the one or the other reserve. In our experience, this is about 1,000, – EUR profit per month, which the founder needs to generate in the long term.
What does the conversion rate look like of an online shop?
1,000 visitors generate approximately 5 orders at an average order rate (conversion rate) of perhaps 0.5%. We expect an order cancellation (order cancellation, return, wrong address, do not pay, do not want to order, know of nothing more, etc.) of about 20%. If an average purchase order turnover of 50 EUR and a profit margin of perhaps 20%, a gross profit per order of approx. 8.33 EUR (50 EUR = 120% and 20% profit is thus 8.33 EUR). At 4 orders of 33.32 EUR per day. Sounds great. The whole time 31 days, would be 1.032,92 EUR. But we still have to pay for the shop, the advertising for the visitors, packaging, shipping and money for the private things of life we also need. Phew, it looks zappenduster. Hopefully one will turn on the light again. So, it does not work. As you can see, we do not get very far in our example calculation even with 1,000 visitors. Only for the info, for Google Adwords you pay for 1,000 visitors and a click price of minimum 5 cent proud 50 EUR – per day of course.
Where to get these many visitors?
The 6 most important ways to get visitors
Text ads with Google AdWords , pay per click – costly, time-saving, efficient. Amazon marketing service can also help.
SEO (search engine optimization , payment by effort or success – time and / or costly, efficient, possibly risky.
Own activity in foreign forums, blogs and communities in order to promote their own shop, more in store marketing – time consuming, cost minimal.
Advertising in third-party newsletters – costly, time-saving, possibly overloading of visitors for shop.
Start a blog to write about a specific topic on a regular basis, so as to excite the attention of the target audience – time consuming, efficiently.
Banner advertising in commercial networks, agencies or on certain pages with your target group – costly, risky, not necessarily successful.
The 10 most important steps before deciding to make money with an online shop
Watching competition – who is there, how much is sold, at what prices, how long is sold?
How many pages and text ads are the most important keyword of your store on Google ?
Can I still sell the product in 5 years or is it a trend product or a hype?
At what Opens internal link in current Window price can I get my goods or I can make this yourself?
Am I still able to compete with a profit margin and my overhead cost?
How do I get visitors to my shop?
How long can I bridge a financial thirst?
Which alternatives do I have to start-up with the Online shop?
How efficient or risk-prone are these alternatives in contrast to the Online shop?
Do I have support or do I know consultants in terms of PHP programming, graphics and search engine optimization or online marketing in general?
You have to be able to answer all questions exactly and have a concept in this regard. It is only worthwhile to think about the project and to consult consultants.
Lets take an example of an e-commerce store selling dog accessories
Here, the Google search results for dog accessories.
In the first 10 search results alone 9 onlineshops with matching domain names. Without seeing the sides, the dog accessories are sold. The oldest shop have been selling since 1999 (good 10 years) – so are old hares in the shop. We have not tested prices, but with the abundance of competitors, we are expecting a real price competition.
Pages: 237.000 and text ads currently about 71 (as of 05/04/09) – so that the word is Hundezubehör heavily advertised. By the way, this can be checked with the Google AdWords free keyword tool.
Dog accessories can always be sold, it is not a trend or a fashion show.
The founder should check this in advance by means of cost estimates. In the case of self-production, the unit price of the production should be determined.
This is the result of No. 4 and the overhead costs to be calculated plus profit margin. In this case, a consultant might be consulted or consulted.
There are several variants for this: a) One is also to switch AdWords advertising in addition to the already existing 71 ads, very questionable whether this still brings. B) search engine optimization to get to the top of the TOP 3 on Google, even more difficult than a) or c) advertising on other sites for his shop, very expensive. In the long term, perhaps a separate community, a forum or a blog on the subject would bingen, but is very time-consuming and certainly within the foundation grant not to cope.
The keyword “dog accessories” should include a period of at least 2 to 3 years.
Individually, eg the self-made dog leashes etc on markets or in the circle of his hobbies sell, to club members etc.
This alternative is less risk-prone and capital-intensive. You can sell immediately and do not have to start the shop first.
In this case you should at least have someone who is familiar with SEO or online marketing. Also a company consultant who carries out the calculations in advance is very appropriate here.
How to Soar Your Amazon Sales With Liquidation Inventory?
For Amazon sellers the opportunities of sourcing the products are quite a lot. One of the most successful models is liquidation. The reason is that there are several products that are liquidated for a number of reasons like customer returns, shelf or warehouser pulls. Those products could be procured at a very little price. This is the fundamental way supply chain works, that is passing products from top of the chain back to distribution centres and the warehouses instead of the stores.
The primary reason behind liquidation business being so lucrative is the steep MSRP discount. You can get products with MSRP discounts upto 90%.
The important points to consider for good amazon conversion rate are:
Choosing Manifested products
Manifest is a document that provides details of the product with information like ASIN number, product pricing, description and condition. So buying manifested products is necessary as otherwise you wouldn’t clearly know what products you are buying.
Checking Product Condition
It’s very important to know the condition of the products. The condition that was stated in the manifest should tally with the product you get. The liquidators get products from customer returns and shelf pulls. These products could be brand new with just the packaging damaged or the product could have scratches. This results in the products being not sellable on amazon. Hence the products should be physically checked to ensure that a damaged ASIN doesn’t get through. If the same is not done, it can result in a low performing account and can lead to customer returns or complains.
The classifications of the liquidated products are:
Planning for the expenses
The additional fees and shipping costs must be taken into account. If you fail to consider all the expenses, then the profit would be miscalculated. The starting price of the industry’s MSRP, that’s mostly 90% off, is the general industry standard and not true value of the product. The true value of the product is taken to the lowest price at which a consumer can find the product.
Specialization in a specific category
if you are new to the field of liquidation business, it’s best to focus on a particular product category. At the beginning, specializing increases the chances of a larger ROI.
With specialisation gain expertise in that domain, have a grip over several aspects like the timeframes of seasonal demand, the sales rank competition’s prices and the customer reviews.
Finding a nice product – lets take ‘Smoke’ as an example!
Smokers have become increasingly difficult today. Years ago you could still smoke almost everywhere, today it is forbidden in many places, starting from restaurants and even pubs to railway stations etc. To do so comes the costs. A box of cigarettes costs about 5, – € depending on the content.
The alternative to this is today seen more and more frequently the electronic cigarette.
What can we do with it?
The Google search for electronic cigarette brings me just over 400,000 results. This is not much but first no matter. Because these are just results for this searchphrase Here I look at the first 20 -30 results. Among the results I find Amazon pages, and many other genuine onlineshops, and some magazine pages with reports on smoking.
What I do not find or hardly find, niche websites or sites use the appropriate partner programs. This is already positive.
This means we first found something that could be worth it. Now, however, not everyone interested in electronic cigarettes is looking for exactly this term, but each one describes his search somewhat differently. Here we must be able to look into the heads of the people, but we can not.
But here help Google further specifically said Google Adwords or better the Google Keyword Planner a Here I am now seeking simply for ideas for new keywords and give electronic cigarette.
As a result, there is a list you can even download. In this list, we now find several important values.
2900 people search in Google per month with the term and even 74,000 use the e cigarette as a search term. To this end, we see that the first term would cost 0.44 € and the second would be 0.69. This means that someone who wants to book the advertising should pay at least this amount. This is again a clue for the revenue we could get through Adsense.
From this list one can now search the best terms and then search specifically to see if there is much congruence, which is not really the case. Afterwards, I take a look at Amazon just to see if there are enough products there. Here I pay attention not only to the quantity of the products but also to the prices. Because Amazon pays between 3 -12%. A further view is always synonymous to the evaluations of the products. These are mostly true customer opinions that tell a lot about the product. Here, of course, there should be as many and good reviews as possible.
All this is also the case, which means that one could safely use electronic cigarettes as a good niche product if it were a niche. Because this is not really the case.
A real niche is, so to speak, also the smallest part of an entire, and electronic cigarettes are quite wide. There is a huge selection of liquids, lots of different vaporizers and the battery carriers.
As I said the term is still quite usable. In addition to this, the smoking bans will soon become more severe, so sooner or later many will decide whether they can only smoke at home, completely stop or use e-cigarettes. The above kept in mind can build a good amazon marketing strategy.
- View our Seller guide to Amazon SEO (Search Engine Optimization)
Co-Founder At SellerApp
Senior IT executive with over 13 years of product development and global consulting experience in large-scale, complex systems and deep technology delivery and management.