What Is An Amazon Coupon
The last option for helping your business earn conversions through Amazon is coupons. These are just like coupons people get from ad circulars in the newspaper.
Amazon coupons are visible to all people. You can see them in search results, on product detail pages, and other places. Just like coupons from the circular, you clip these coupons to apply them to your order.
The only restriction with these coupons is that you cannot save coupons for a later date. Once you clip them, you must use them. The coupons will remain eligible until they expire, but you will have to re-clip them if you dont use them immediately.
When you offer coupons to your audience, it comes at a cost to your business. Sellers are charged $0.60 every time a coupon is redeemed. You will need to factor this cost into account when trying to sell your products.
What types of coupons can I offer?
There are two types of coupons you can offer to your audience.
Link coupons require your audience to click on a specific link to get a discount. When you click on the link, the discount gets added to your shopping cart if you have eligible items.
These coupons tend to be general and apply to all products in your store. These are coupons like $10 Off Your Order or $5 Off When You Spend $30. People can buy whatever they want as long as it reaches the requirements for the coupon.
These coupons are only valid for a limited time. All coupons are limited to one coupon per customer.
How To Become Prime Eligible If You Are On Seller Central
If your brand is on Seller Central, you have two options for becoming Prime eligible. The first, and most common is a program called . FBA is one of the most robust fulfillment networks in the world. When your brand is a part of FBA, you send your product into Amazons fulfillment network. When a customer orders the product, it will be an Amazon warehouse worker that picks, packs and ships your product to the customer and provides customer service relating to fulfillment. FBA helps companies scale by managing inventory and fulfillment for them, and by offering free two-day shipping in a cost-effective manner for all parties. Once you are on FBA, your products will automatically be eligible for Amazon Prime.
If you do not want to utilize FBA and would rather have total control over your delivery process, there is another, less popular option through Seller Central called Seller Fulfilled Prime but only 7% of sellers use it, and it currently has a waitlist. SFP is the program that allows you to ship from your own warehouse. Sellers can still receive the Prime logo under SFP as long as they continue to meet the same stringent criteria that is set for FBA . SFP is a great option for customers whose products require cold-chain shipping control or contain hazardous or very fragile material . However, it is becoming harder and harder to be accepted into SFP and therefore less commonly used by sellers.
Predicting The Top Spot
Being an Amazon brand or exclusive influenced ranking more than star ratings or reviews.
When we analyzed star ratings and number of reviews, neither could predict much better than a coin toss which product Amazon placed first in search results.
Amazon told Congress in 2019 that its search results do not take into account whether a product is an Amazon-owned brand.
Sellers say it doesnt seem that way to them. Gomez said Amazons brands have unfair advantages that make it harder for small merchants like him to compete on its open marketplace. Who bears the cost are those entrepreneurs and small businesses that dont have the means to fight.
The Markup found Amazon placed its Happy Belly Cinnamon Crunch cereal, with four stars and 1,010 reviews, in the number one spot ahead of cereals with better and more reviews including Capn Crunch , Honey Bunches of Oats , and Honey Nut Cheerios . A vacuum cleaner from Amazons exclusive Noisz brand was placed on top, ahead of models from Bissell, Eureka, and Hoover with higher ratings and more reviews. And the Amazon-exclusive Concept 3sneaker from Skechers placed number one, four spots ahead of a similar but not exclusive to Amazon Skechers sneaker with the same star rating but 77 times more reviews.
A former Amazon employee told The Markup that the company used to give its new house brand products an unearned place at the top of search rankings when they first launched. He said the practice has since stopped.
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% Of Echo Owners Have Purchased A Product Via Alexa
Since its release in 2015, more than 50 million Amazon Echos have been sold. But while Alexa, Echos voice-operated assistant, allows users to make purchases, check the current status of their Amazon orders and suggest products using nothing but their voice, very few consumers are actually making purchases this way.
Just 2%, or around 1 million, of Echo owners have actually made an Amazon purchase through their smart speaker.
It seems that while Alexas voice-activated functionality undoubtedly simplifies the shopping process, consumers still like to see products and view their shopping carts before following through with a purchase.
How Amazon Stores Your Inventory
We store inventory either in bulk or in individual “pickable” locations. Media products are stored on library-type shelving in vertical, spine out positions with loose stacking to avoid “shelf wear.” Specialty items like food or high-value goods may be placed in specific secure or climate-controlled areas of the fulfillment center as appropriate. .
If inventory is damaged or misplaced while in Amazon’s control , we will purchase the inventory from you.
Once your inventory is received at a fulfillment center or receive center, it is available for sale. Reconciliation of shipped inventory may take up to 21 days. You can track the status of your shipment in the Shipping Queue with the status cycling through In Transit, Delivered, Checked-In, Receiving and finally Closed. During the Receiving process, your item barcodes are individually scanned and entered into the tracking system, the dimensions and weight are captured for storage and fulfillment purposes.
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Ways In Which Amazon Uses Big Data For Monitoring
Amazon is a leader in collecting, storing, processing and analyzing personal information from every customer as a means of determining how customers are spending their money. The company uses predictive analytics for targeted marketing which helps them in increasing customer satisfaction and get loyalty in return. Lets have a look at how they do it?
All You Need To Know About Amazon’s Private Label Brands
Its a scenario every retail shopper is familiar with: you find the name-brand product that youve been looking for when, to your delight, you find an almost identical store-brand product on the same aisle for a fraction of the price. If you arent particularly attached to the name-brand item, or if the products price is the most important consideration in your purchasing decision, you may choose to buy the store-brand product.
Store brand products, or private label products, are those manufactured by a third party and sold under a retailers name. Typically, these products are sold alongside their name-brand counterparts for a lower price. Some of the most familiar private label brands include Walmarts Great Value brand, Targets Mainstays brand, and Costcos Kirkland Signature brand. Grocery store brands are among the most recognizable private labels, but department stores also make a significant number of sales on their own private brand clothing.
While private label brands arent new by any meansretailers have created private label products since the mid-19th centurytheyre uncharted territory on online retailers and marketplaces like Amazon. This unfamiliarity makes it difficult for consumers to recognize private labels online and even more difficult for brands to compete with the low prices.
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More Than 50% Of All Amazon Sales Come From Third
Third-party sellers continue to flock to Amazon, a trend that has seen upward growth for several years and does not seem to be slowing down anytime soon.
In fact, the percentage of third-party sellers on Amazon has been increasing steadily over the past 5 years, rising from 40% in 2013 to 53% at the end of 2018.
This is great news for Amazon, which brought in more than $9.3 billion in revenue from third-party sellers in the first quarter of 2018 alone thanks to FBA, commissions and other seller service fees. But what does this mean for sellers?
It means that more and more sellers are operating on Amazon as direct-to-consumer businesses, instead of handing the reins over to Amazon as first-party sellers.
This offers sellers greater control and ownership over their business but takes a toll as they struggle with poor seller service, a lack of customer data and an ever-changing marketplace.
Prime Power: How Amazon Squeezes The Businesses Behind Its Store
Twenty years ago, Amazon opened its storefront to anyone who wanted to sell something. Then it began demanding more out of them.
By Karen Weise
SEATTLE For tens of millions of Americans, it is so routine that they dont think twice.
They want something a whisk, diapers, that dog toy and they turn to Amazon. They type the products name into Amazons website or app, scan the first few options and click buy. In a day or two, the purchase appears on their doorstep.
Amazon has transformed the small miracle of each delivery into an expectation of modern life. No car, no shopping list no planning required.
But to make it all work, Amazon runs a machine that squeezes ever more money out of the hundreds of thousands of companies, from tiny start-ups to giant brands, that put the everything into Amazons Everything Store.
In more than 60 interviews, current and former Amazon employees, sellers, suppliers and consultants detailed how Amazon dictates the rules for those businesses, sometimes changing those rules with little warning. Many spoke on the condition of anonymity, for fear of retaliation by Amazon.
Amazon punishes the businesses if their items are available for even a penny less elsewhere. It pushes them to use the companys warehouses. And it compels them to buy ads on the site to make sure people see their products.
A few months later, Amazon gave Tumi an ultimatum: Stop selling through the middleman, or do not sell to the retailers 150 million customers at all.
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Share Listings On Social Media
The average person spends nearly two hours per day on social media platforms. Given this popularity, sharing your Amazon listings on social media through your business accounts is a powerful way of getting your products in front of more buyers.
Since your followers expect to receive value from your posts, its best to avoid creating posts on your account that are basically ads for your listings. Instead, its better to share your listing in more subtle ways that are still helpful to your followers. Here are a few ideas:
- Use a social media promo code. Merchants with a Professional Selling account on Amazon can create a promotion link to share through social media about a discount theyre offering on the listing. Unlike a traditional ad, sharing a promo code gives users value by helping them save money. For more details on setting up this promo code, check out this guide.
- Posting an informative, helpful blog post or video that includes a link to your Amazon listing, such as a How-to video or list post, is a great way to indirectly promote your products through social media.
- Host a contest or giveaway. Announce through your social media accounts that any user who posts your Amazon listing in their bio will be entered for a chance to win a prize. This reward will motivate users to share your listing and spread the word about your Amazon products.
Whats The Difference Between These Amazon Deals
Amazon offers many opportunities for you to offer discounts and deals for your audience. Each of these options has something unique to offer to your business. So, how do these deals differ?
Lightning Deals involve marketing your product in a specific category. Your product appears specifically in the Lightning Deals category. People will find your product in that category or if they search specifically for your product.
With Lightning Deals, the discounted price is already marked. Your audience doesnt have to apply any codes to get the discount.
Promotions and coupons, on the other hand, require that you input a code to get the discount. There is no special deal on the product itself, so you must add the code to get a discounted price.
Between promotions and coupons, the biggest difference is what they target. Promotions focus on discounted shipping, obtaining free items, or getting a percentage off your purchase. Coupons, on the other hand, focus on taking set money amount off and require inputting codes to get the discount.
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Maintain Strong Shipping Performance
Shipping, at first, might seem totally unrelated to promoting your products. But on Amazon, your shipping performance is a key factor in your listings visibility.
Amazon wants to keep shoppers happy, so they discourage poor shipping practices by making shipping a factor in winning the Buy Box and ranking high on Amazons search rankings. With consistent shipping issues, youre less likely to win the Box or to rank high in search.
Instead of hurting your visibility, use these tips to maintain a strong shipping performance on Amazon:
- Regularly check your shipping performance metrics. In , you can monitor several key shipping performance metricson-time delivery rate, valid tracking rateto ensure that youre consistently offering great shipping and pleasing customers.
- Use Amazon FBA. By signing up for , sellers no longer have to worry about providing great shipping as the marketplace handles fulfilling your orders. If there are any complaints about your shipping from buyers, the marketplace will remove the rating since they are responsible for shipping issues.
- Use inventory management software. Adopting an inventory management program, like Sellbrite, keeps you on track so you can avoid understocking and being unable to complete orders. Sellbrite monitors when your stock is low across channels so you always know when to reorder.
Amazon Fba Vs Fbm: What Should You Choose
One of the first decisions you need to make is whether to let Amazon handle fulfillment of your products or to handle your order fulfillment in house .
Essentially, you have three official options for fulfilling Amazon orders:
You can use FBA for some products and FBM for others but lets break these down to understand each better.
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How Fast Do Amazon Sellers Get Paid
Speaking of payouts, its important to know that the Amazon marketplace pays its sellers every two weeks. Some older grandfathered seller accounts and high-volume sellers are on a faster payout schedule, but the average individual or small business Amazon seller is stuck with a 14-day payout.
However, Amazon holds funds from each sale for seven days after a product is received to account for any unexpected charges. So its possible you will not get your total funds every 14 days.
Even then, you dont actually receive your money in 14 days. Once Amazon releases a payout, the transfer time between Amazon and your bank account can add three to five more days until funds are deposited. Because of this, youll usually wait about 12 days to receive your money after a sale is made and the item shipped.
How to Get Amazon Payouts Faster
If Amazon is your main source of sales, this wait time can seriously affect your ability to grow. It can slow stock purchases, cause inventory shortages, and make it hard to stay on top of your bills. While you cant change Amazons payout schedule, there is a way to get payments daily using a service called Payability.
Payability is a factoring service that connects to your Amazon Pro Seller account, tracks your daily Amazon sales, and direct-deposits funds daily based on your Amazon sales. You can even choose between having funds deposited into your bank account or onto a prepaid MasterCard.
Amazons Most Popular Categories
When selling on Amazon, or any other platform, its important to know where and what consumers are buying. You wouldnt want to set up shop at a flea market and realize youre in the wrong parking lot, right?
The same goes for Amazon and e-commerce. If you create a product in a niche or category that very few people shop in, youre going to have some trouble. In this article, well look at the most popular categories to sell in as a third-party seller.
According to Jungle Scouts 2021 , these are the top categories**, including percentage of sellers who have products listed in them.
Top 10 categories
**Sellers could select multiple categories.
Looking at those categories, its important to ask yourself: Are these categories too competitive? The last thing you want to do is jump into an oversaturated market with little to no chance of landing on page one of Amazons search results.
But, while these broad categories may be very popular and oversaturated, Ill explain how you can dig deeper into various subcategories to find better product opportunities later on.
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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.