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Selling On Amazon Vs Selling To Amazon
Which program you choose to use to sell on Amazon depends on your store, fulfillment abilities, ROI goals, and many other variables.
Vendors who sell to Amazon avoid some headache with logistics, but are limited with their scope and ability to market products. Selling on Amazon is an option that is more suited to sellers who would sell to Amazon but want to take advantage of more exposure and other benefits of the Amazon Marketplace.
The biggest difference between Amazon sellers and vendors is whos actually selling the product.
- Sellers list, price, and market their products themselves.
- Vendors sell their products to Amazon-employed buyers, who then list and resell the products to Amazon users.
Heres a breakdown of other considerations when youre selecting between Vendor Central and Seller Central.
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Sell Your Apple Watch For Top Dollar
The rules for selling your Apple Watch dovetail pretty closely with those for selling your iPhone. Indeed, you have the same basic options: sell it yourself or look at trade-in/buy-back services.
Apple’s trade-in program, for example, will give you up to $30 for an Apple Watch Series 1, up to $100 for an Apple Watch Series 3 and so on. Best Buy’s trade-in rates are a little higher on those two models: $50 and $70, respectively, but keep in mind it can vary depending on watch size, condition, features and so on.
You may do better selling the watch outright via Craigslist, Facebook Marketplace or eBay, where you can set your own price. My preference these days is to use Marketplace, as buyers are less anonymous than on Craigslist and you don’t have to pay eBay’s fairly substantial fees. Of course, you’re working with a smaller pool of buyers , so you might have a harder time actually making the sale.
A site like BuyBackWorld will pay you cash for your Apple Watch.
Somewhere in between the lowball offers of an Apple or Best Buy and the various hassles of Marketplace and eBay, you’ll find buy-back services like BuyBackWorld, and MaxBack. Using an Apple Watch Series 3 38mm GPS as my baseline, I requested quotes from all three. Their offers: $75, $75 and $56.80, respectively.
Your mileage may vary, of course, depending on the model, style and condition of your Apple Watch. To save time, consider using a comparison site like SellCell to get quotes from multiple buyers all at once.
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Chapter : How To Get Started With Amazon Marketplace
Establishing your Amazon Marketplace account is the first stage of creating a successful sales strategy for the platform. If you dont set your page up correctly, you can run into issues that can hurt your sales further down the line.
On the other hand, getting started the right way can help you lay a solid foundation that all but ensures future success. Lets take a look at the steps youll need to follow to get your account up and running!
Ads On Amazon Vs Google
Product listing advertisements convert three and a half times as well on Amazon as on Google, according to research by Merkle, largely because of the nature of each platform’s user base. Google searchers are more typically looking for general information, whereas Amazon users are more often looking to buy a product.
Unfortunately, this makes those few featured spots that much more valuable, and can kick off an expensive arms race between sellers to control the top spots.
“It’s almost becoming a requirement that they opt in to sponsored ads,” Sidecar’s Farrell says, “not just to try to help grow the revenue on the platform but also to protect the organic revenue that they’ve naturally gotten since they started running the marketplace.”
Amazon’s ad revenues topped $10.1 billion last year, more than double the year before, and eMarketer to grow more than 50% this year. To help Amazon sellers capitalize on that expansion, Sidecar recently rolled out an expanded set of AI-powered tools.
“We’re at a turning point right now, where it’s becoming more of a necessity to run sponsored ads on Amazon versus a nice-to-have,” Farrell says.
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Amazons Demand Side Platform
This category includes Amazon Managed Service and Enterprise Self Service Display Ads.
Amazon DSP also known as the gives you the ability to programmatically buy video and ad placements.
Programmatic ads use data to determine which digital advertising spaces youll buy and how much youll pay for them.
Advertisers are increasing investment in the Amazon DSP, which allows brands to use Amazon targeting capabilities in showing ads not only on Amazon owned-and-operated web properties but also those that it does not control.
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Key Strategy: Win The Buy Box
Everything on Amazon comes down to the “buy box,” the little yellow button that connects customers with purchases through Amazon’s proprietary algorithm. Staying ahead of the game there can be a significant ordeal for resellers, where the smallest difference in price or delivery speed can make all the difference in winning the sale for identical products.
“A big part of running a successful campaign or business on Amazon is winning the buy box and there’s a lot of things that go into winning the buy box,” Farrell says. “Pricing, shipping, reviews … all of those things need to be managed very effectively in order to get that prime position on Amazon and have success.”
Sellers using FBA are automatically qualified for inclusion in the buy-box algorithm, but qualifying is not the same thing as winning.
Know Your Personal Costs And Fees
When youre setting your prices, you need to understand the costs and fees associated with creating, selling, and distributing your product. Knowing how much it is going to cost you to create the product and get it in the hands of your customers gives you a baseline amount that you know you cant price the product under. This number can also be used to better understand your profit margins.
To find your personal costs and fees, first calculate your production costs. Then youll acquire as a seller. This includes your membership fees and taxes, as well as any additional costs you may pay for distribution, fulfillment, and shipping. Add up all these numbers to find your total investment.
At an absolute minimum, you never want your products sales price to go under this number. However, you also need to maintain a sizeable profit margin, so you can grow your business. On Amazon, most sellers try to price each item at about three times what it cost them to acquire it before Amazon takes its fees.
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How To Sell Jewelry On Amazon
For Amazon sellers, jewelry is broken into two categories: fashion jewelry and fine jewelry.
Fashion jewelry is defined as inexpensive items made from alloys plated with precious metals, often including crystal stones. Buyers usually have low emotional involvement in the purchase of fashion jewelry its more likely to be an impulse buy.
Fine jewelry refers to more expensive pieces made from solid precious metals and gemstones. Both online and off, these items are more often sold by established jewelers.
What Is The Watches & Jewelry Category On Amazon
On Amazon, watches and jewelry are listed under the broader category of Clothing, Shoes, Jewelry and Watches. From there, Amazon lists watches and jewelry based on gender.
Within the Womens Jewelry section, there are 10 subcategories:
The Mens Jewelry section also has 10 subcategories:
Within both the Womens and Mens Watches sections, there are 5 subcategories:
Within these categories, youll find a wide variety of pieces, from certified authentic designer watches and diamond engagement rings to piercing and costume jewelry.
In 2015, Amazon introduced their version of Etsy: Amazon Handmade, a section of the site that includes jewelry and watches among other categories of items crafted by Artisans.
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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.
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Chapter : How To Manage Customer Happiness As An Amazon Marketplace Seller
When you are an Amazon Marketplace seller, your connection with your customers is extremely important for getting repeat sales and referrals. Unfortunately, problems can arise no matter how conscientious you are. If you want to keep your customers happy, therefore, youll need to know how to handle those issues.
Proper customer service is crucial to any business. Lets take a look at a few common mishaps that may occur as an Amazon seller, and what you can do to stay on your shoppers good side!
Invest In Amazon Creative
You might think that companies selling on Amazon have no control over their own branding. After all, its Amazons webspaceyoure just a tenant, and so your brand looks like whatever Amazon wants you to look like. But really, nothing could be further from the truth.
Your brand identity can come through on Amazon with just as much power and uniqueness as anywhere else on the web. Amazon understands the power of a compelling brand story, and gives merchants the tools and space they need to tell those storiesyou just have to know how to do it properly.
You have the options to select from three Amazon creative options to help create brand equity on Amazon:
- A+ Content
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Ensure That Your Amazon Store Meets Shopify Requirements
Before you get started, its important to note that not all Shopify accounts will offer full integration. You can only create new product listings for Amazon within Shopify if youre in the Clothing and Accessories category. However, you can still link existing Amazon products to your Shopify account, to take advantage of its other benefits.
Other requirements include that you must list your products in U.S. dollars, and you must fulfill and ship your orders independent of the Fulfillment by Amazon program. However, there are no requirements about what type of Shopify plan you need to have.
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.
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Amazons Private Label Jewelry Brands
In the Jewelry category, Amazon currently has two private label brands:
In 2018, Amazon also applied for a trademark for For Keeps by Amazon. The filing notes that the trademark can be used for the online retail sales of jewelry its safe to assume Amazon has another jewelry private label coming soon.