An Introduction To Magento And Its Benefits
Magento is an open-source e-commerce platform that enables individuals from all over the world to develop their own online stores. Through its open-source system, Magento users can select from thousands of completely customizable options, helping them create websites that are entirely their own.
One of the biggest benefits of Magento is its flexibility. With so many different choices, online sellers can completely customize their stores to appeal directly to their target audiences. The open-source platform also ensures that you can keep your store up to date, and find support when you need it.
Integrating your Magento website with your Amazon Marketplace account enables you to keep everything in one place. When you can view your inventory, track sales, and monitor the products youre selling from one dashboard, you can operate more efficiently and ensure that youre reaching maximum sales.
Amazon Has Stiff Competition
Compared to Walmart with a few thousands of sellers, Amazon hosts as many as 2 million merchants from all over the globe, still reigning supreme in online shopping. Therefore, sellers have to be more creative to stand the competition on Amazon either through building your reputation with messaging optimization or just by offering melt-your-face customer service.
If you need ANY assistance edging out your Amazon competitors the legit way, our solution advisors from Seller Labs are here to have your back. Fee free to schedule a 20-minute demo with them.
A Shopping Experience Beyond Compare
In the fast-paced world of ecommerce, the way consumers shop online is always changing. Just think about how different online shopping is now than it was when Amazon launched back in 1994 or even how different things are now than they were 10 years ago.
As consumers online shopping behaviors continue to change and new technology is introduced, lets take a look at how customers are shopping on Amazon and ultimately making their purchasing decisions.
Also Check: Apply To Deliver For Amazon
How Many Private Brand Products Do Amazon Sell
Amazon currently offers approximately 158,000 private brand products across 45 brands in the Amazon store in addition to some private brand products sold by Amazon Fresh, its online grocery store available in select metro areas.
Amazon offers private brand products in highly competitive categories and Amazons total sales are small as compared to national and other branded and generic products in Amazons store, lagging far behind the percentage of sales that rival private brand retailers have achieved. Across Amazons business lines, the percentage of sales in Amazons stores that its private brand products account for are in the low single digits in North America.
Top Ten Powerful Statistics For Amazon Sellers In 2021
Ryan Faist, Channel KeyFebruary 8, 2022
There is no denying that online shopping is on the rise. Consulting firm McKinsey & Company concluded that e-commerce experienced ten years of growth in just three months during the peak of the pandemic. Leading this shift in how consumers shop is none other than Amazon. Over the past few years, the retail giant has expanded in just about every way imaginable with no signs of slowing down. To highlight Amazons role in the future of e-commerce, weve compiled the ten most powerful statistics that Amazon sellers need to know in 2021.
You May Like: Amazon Cloud Drive For Desktop
How Many Products Does Amazon Carry
Like everything else about Amazon, its product count is massive even if you dont count the enormous contributions of the 185,000+ sellers on the Marketplace. Amazon sells more than 12 million products, not including books, media, wine and services. When Amazon Marketplace sellers are factored in, the total product count balloons to more than 353 million.
According to this infographic from 360pi, some of Amazons most impressive assortments are in categories that traditionally have been the bread and butter for department stores and big box retailers, including:
- Clothing, shoes and jewelry
- Tools and home improvement and
- Home and kitchen . This is a particularly strong category for Amazon Marketplace: 60% of the Top 10 sellers primarily focus on this category.
I How The Walmart Marketplace Differs From Amazon
We all know Amazon is the most visited shopping website in the US. But how many of us know that Walmart is ranked number two?
The Walmart Marketplace is still pretty new to eCommerce. Several years ago, it acquired an eCommerce start-up Jet.com for $3 billion in cash, as well as Shoes.com, Moosejaw.com, and a few other online retailers. And there remains much to be seen about what Walmart does with its eCommerce platforms moving forward.
Also, with more than 100 million unique visitors a month and 207% growth in its eCommerce customer base between 2017 and 2019, its safe to say that selling on Walmart might be a good option for eCommerce sellers in 2021.
Even though Walmart cant yet beat Amazon in the size of its customer base, it already surpasses this behemoth marketplace in online grocery share.
Don’t Miss: Does Amazon Locker Cost Money
Who Is This Guide For
Everyone involved with managing an e-commerce website or has a product to sell. This includes both other retailers and brands selling direct to consumers on Amazon. This guide is aimed at helping these roles:
- Amazon marketplace Account Managers
- Retailers selling directly to Amazon marketplaces
- Retailers selling via Amazon
Sell On Amazon Marketplace
Becoming an Amazon Marketplace seller is a great choice for any merchant who is looking for a semi-passive income or the possibility of limitless earnings. To make it a success, youll need to figure out which selling approach is the most profitable for the products. Furthermore, youd better plan your budget appropriately to avoid profit imbalance. If youre ready to start selling on Amazon Marketplace, lets keep on reading.
Don’t Miss: Read Kindle Files On Pc
Walmart Has A Steep Barrier To Entry
Walmarts barrier to entry is extremely high. This is the most obvious difference between the two platforms, and this is why launching a Walmart store may be a bit problematic for small sellers.
Walmart marketplace sellers should be a good fit for this platform, i.e., have an order defect rate below 2% and on-time shipment rate above 99%. They also have to provide correct tracking info for shipments at least 99% of the time. In other words, you should have impeccable seller feedback to start selling on Walmart.
The Importance Of Maintaining Happy Customers
Your online reputation will influence the number of sales you get from your Amazon store. When a customer is unhappy with your products or your customer service, theyre likely to leave poor reviews and comments explaining their experience. Considering the vast number of Amazon Sellers who are pushing similar products, a few bad reviews could seriously hurt your business.
Maintaining happy customers can not only encourage past customers to buy from you again, but can also help you attract new buyers. With the right strategy, you can keep your customers happy and grow your Amazon Marketplace account.
Read Also: Amazon Drivers Hours
Not Responding Promptly To Customer Inquiries
Its common for potential customers to have questions or concerns about your products. Whether theyre interested in learning more about the product or have a specific request, your customer service responsibilities begin the moment they send you an inquiry. Amazon is popular among shoppers largely because it offers so many different options in one place. If you dont answer customer inquiries quickly, theyre likely to move on to a similar seller.
There are also if you dont respond to inquiries fast enough. Amazon gives sellers 24 hours to provide a response, including on holidays and weekends. If the question is not answered within this time frame, Amazon will be notified. Once youve missed too many inquiries, your account will be suspended.
You will be notified of new inquiries through your primary email. Therefore, you may want to schedule time at least once a day to check your inbox, making it a habit so you never miss crucial messages.
The Reseller: Exclusive Sourcing Relationships
If the seller has negotiated exclusive sourcing relationships from specific brands with decent control of their distribution, preventing any number of unauthorized or gray-market sellers from also selling on Amazon, then this seller is likely to do well as it doesnt have to compete with other sellers for the buy box.
While the principle of an exclusive sourcing relationship makes a lot of sense for sellers, few brands understand the dynamics of the Amazon marketplace well enough to be willing to limit who can sell on Amazon.
This lack of understanding can potentially result in less product sold to retailers in the short-term and is one of the risks of .
Such sellers typically have to agree to represent the brands well on Amazon, by way of improving listing content, ensuring MAP/MSRP prices are in place, and keeping inventory levels adequately stocked for the Amazon customer demand.
With the advent of the FBA program, it is becoming easier for brands to go direct-to-consumer with their own seller accounts on Amazon, cutting out resellers altogether.
For brands that are willing to handle some day-to-day operational responsibilities , they can make retail margins by selling direct-to-consumers on Amazon, rather than securing only wholesale margins selling to retailers/resellers that will, in turn, sell on Amazon.
Don’t Miss: Amazon Loker
Amazons Share Of The Us Ecommerce Market Is 45%
itself has an inventory of about 12 million items across all its categories and services. But if you go broader and look at all the items that Marketplace sellers list, that number expands to about 350 million. Its a lot of competition, yes, but its also a lot of visibility and sales.
According to Statista, Amazon was responsible for 45% of US ecommerce spending in 2019 a figure which is expected to rise to 47% in 2020.
How To Sell On Amazon In 202: Ten Secrets Of Successful Sellers
Amazon is the worlds largest online marketplace and a leader in online sales. So, when people want to start online businesses, they consider this platform first. It is certain that anyone can start an AMZ business, but to be successful, you must learn how to sell on Amazon.
This giant eCommerce platform has over 300 million customers, over 2 million sellers, and a 50% stake in the eCommerce market. And thats why selling there is a great business venture. Here are some interesting statistics:
Building a profitable Amz business is not impossible so long as you are armed with the right information. When business owners lack this knowledge, they find it difficult to expand their businesses. In this guide, we will not only show you how to sell on Amazon. But we will also share ten secrets of successful Amz business owners.
Recommended Reading: Does Amazon Prime Include Cloud Storage
Forgetting To Include Sales Tax
When it comes to selling online, sales tax can be confusing. Each state has unique sales tax laws, so you need to know who youre selling to and whether or not sales tax is applicable for that buyer. If you forget to collect sales tax from a customer, youll need to pay for it out of your own pocket.
Forgetting to include sales tax can become expensive quickly. If you sell too many products without collecting sales tax from your customers, you may be in for a rude awakening when the bill is due. Fortunately, Amazon can help you collect sales tax, although they do charge for the service. Outsourcing this task can eliminate some of the pressure on you, and ensure that you never overextend yourself.
To begin collecting sales tax through Amazon, youll want to fill out your Tax Settings as soon as possible. Begin by logging into your Amazon Seller Central account, then clicking on Settings. Next, select Tax Settings, and then choose View/Edit Your Tax Collection. From there, you can fill out your information and begin collecting sales tax automatically.
Chapter : Optimizing Your Amazon Marketplace Account Part 1
Selling on Amazon gives you the opportunity to reach millions of shoppers worldwide. However, since Amazon is the largest retailer in the world, youre going to have some competition. Regardless of the industry youre in and what products youre selling, you must properly optimize your product pages if you want to improve your chances of getting a sale.
Keyword research is an important part of optimizing your account. Lets take a look at how you can find the right keywords to get more eyes on your products!
You May Like: Direct Ship Freebies
Underhanded Tactics Evil Amazon Sellers Are Using To Cheat And Get Ahead
In just the past few years, Amazon has become such a cutthroat marketplace that unscrupulous sellers have been purposely trying to sabotage their competitors. As a result, most sellers are hush hush about their products and never talk about their winners in public.
In fact Amazon is so competitive today that if you have a product that is even mildly successful, you will eventually get piggybacked by multiple sellers if you havent been already.
Heres a sampling of some of the insidious activities that are happening on the platform right now.
The tactics mentioned below are evil and highly unethical. And the fact that people are using these strategies really makes me angry.
But you should be aware of whats happening out there in case it happens to you.
Pinpointing Your Amazon Seller Search
Whether youre a shopper looking for a seller, or a business trying to connect with Amazon businesses, these 3 proven methods are great tools to find what youre looking for.
Right now, the Sellgo Seller Database and Seller Map are released for beta! You can use and try out our new powerful tools for $1.99! Head over to Sellgo.com and start locating any seller on Amazon now!
You May Like: Amazon Cloud Drive Download To Computer
How Does Using Fba Impact Search Results
Selling partners who choose FBA enjoy high-quality fulfillment services that customers want, including fulfillment and delivery speed, Prime eligibility, and seller performance. The featured offer is based on factors affecting customer experience, and FBA generally provides a better and more reliable experience for Amazons customers than fulfillment through other means accordingly, that difference may be reflected in the offer that is featured.
% Of Sellers Also Sell On Other Platforms Outside Of Amazon
No seller can overlook the incredible opportunity Amazon provides to reach a massive audience. For this reason, many sellers feel that an Amazon presence is crucial to the growth and prosperity of their business.
But it is not the only opportunity.
In fact, upwards of 80% of sellers look to other online platforms, including their own websites, to conduct ecommerce business.
The operational struggles for third-party sellers, as mentioned above, definitely account for part of the reason sellers are hesitant to limit their business solely to Amazon. But another, maybe even more important, factor is competition.
Yes, from other sellers, but also from Amazon itself.
As Amazon continues to launch more and more of its own private-label brands, third-party sellers are becoming increasingly concerned about competition from Amazon and more likely to seek out other ecommerce channels.
It is important to note that these sellers are not abandoning the platform they are simply less likely to put all their eggs into one Amazon basket.
Don’t Miss: How To Cancel Amazon Account Online
The Cons Of Selling On Amazon
Even if no one can contest the numerous advantages of selling your inventory on Amazon, it’s not all roses and there are many things to consider before taking the leap. Things like high competition, high selling fees, and order management will have an impact on your strategy and pricing and therefore need to be considered carefully.
Number Of Sellers On Amazon
Amazon has 9.7 million sellers worldwide, of which 1.9 million are actively selling on the marketplace .
The number of sellers on Amazon is growing. In fact, every year, more than a million new sellers join Amazon. In the first quarter of 2021 alone, as many as 283,000 sellers signed up to sell on the marketplace. Should this pace continue, Amazon can expect to have 1.4 million new sellers this year.
The majority of these new sellers have signed up to sell on Amazon.com. This is followed by Amazon.in, host to 10.2 percent of new Amazon sellers.
Seller competition on Amazon is fierce. Despite the large number of sellers on Amazon, a big portion of its total sales is generated by only a tiny fraction of its sellers. Fewer than one in ten active Amazon sellers were able to generate over $100,000 in annual sales, and just one percent of them hit the $1 million sales mark.
Don’t Miss: Can I Use Apple Card On Amazon
Alexa Isnt Quite The Instant Buying Tool Yet
Although some 50 million have been sold since they were released in 2015, theyre not yet being widely used for purchases. Users ask Alexa questions and check on order statuses, but only about 2% of them use Alexa for making new purchases. It shows that users still highly value seeing products and reading about them before purchasing them.