Online product-based small businesses can be quite profitable when they use Amazon to provide a second channel for selling, in addition to selling direct to customers through a company website. In fact, it is smart to do so because, since Amazon in an open market place, anyone can sell your products there. If you don’t, someone else might do it!
Here are some tips to promote your product on Amazon and increase your chances of creating a profitable market through that platform.
- Price Properly
Getting the pricing right can be tricky. It has to be profitable for your business, despite the cost of selling on Amazon, yet still be competitive. The best way to find the right pricing model is to research incessantly. Find out what competing products are selling for, and if your product has to cost more, try to find the balance between the cost and the benefit. If you cannot compete with a lower price, you can price as low as possible and compete in other areas.
- Read Reviews
Amazon has changed its review policy recently, and incentivized reviews are no longer allowed. (This puts everyone on a level playing field since studies showed that incentivized reviews were notably higher than organic reviews.)
However, if you cannot offer incentives for reviews, the question becomes how to get customers to leave reviews. The answer is email follow up. Contact customers after purchases and ask for a review. Make it easy by including a link in the email.
This can help if your pricing is higher, as people are often willing to pay more for the same product with a higher review.
- Optimize the Listing
Amazon business listings must be optimized to get the most traffic. The first step in this process is to include a complete, descriptive title. After that, the description needs to be easy to read, with short bullet points and short paragraphs — if paragraphs are needed at all. Potential customers are much less likely to read a long, bulky text.
Small businesses on Amazon often thrive, and these tips can help. Biz2Credit can help you with any financing needs you may have along the way, as our network of lenders offers a broad range of small business loans for various situations. Visit Biz2Credit.com today for more information about small business financing, including commercial real estate loans, equipment loans, working capital and lines of credit.