The only thing constant about selling on Amazon is the constant requirement to adjust your strategies.
The Amazon marketplace is always changing—there are more competitors, changes to the interface, updated Terms of Service, even a new holiday. This means FBA sellers need to consistently evaluate their specific competitors in addition to the marketplace itself. If sellers don’t look at the data and adapt their strategies accordingly, they face closing their digital doors.
To help FBA sellers like you thrive, our experts have put together a list of four tips on how to be competitive in the Amazon marketplace.
Don’t Get Comfortable
One of the worst things an FBA seller can do is become complacent. Complacency leads to stagnation, and stagnation leads to decline.
There are three words every FBA seller must keep top of mind:
- Research your available options—Amazon offers FBA sellers a lot of features you might not even be aware of.
- You won’t know how your business can be better if you don’t test new tactics. Try different product descriptions or photos.
- Learn from your mistakes and your victories so you can make better decisions in the future, based on what worked and what didn’t.
Analyze Your Data
Look at every item in your catalog as having its own competition, customer dynamics and price fluidity. Analyze each product at the SKU level to identify and eliminate unprofitable merchandise and champion what’s doing well.
As you review details about product performance, keep a watchful eye on trends to anticipate market developments. While it’s important to focus on existing products, you must also become proficient at looking into the future for new opportunities.
Stay Informed of Amazon News
There are a ton of blogs and additional resources FBA sellers can use to stay on top of the latest Amazon updates, and you should subscribe to at least a handful.
In addition, make sure to keep an eye on any changes to the following:
- Amazon’s A9 Search Algorithm
- Terms of Service
- Available beta programs
Invest in Third-Party Software
The Amazon Seller Central Campaign Manager has a lot of limitations and doesn’t give FBA sellers complete visibility into profitability or inventory. Third-party software can prevent reputation-damaging (and profit draining) stockouts as well as help you stay ahead of your competition with repricing tools.
When it comes to Amazon selling, patience is a virtue. Don’t attempt to measure growth on a week-to-week basis—think quarterly or annually. The goal is to achieve consistent and sustainable growth, not rapid and unpredictable surges. Focus on the big picture and don’t let small spikes in performance steer major decisions. Above all else, position yourself to be flexible and adaptable. It’s the only way to co-exist with frequent change.
Interested in even more ways to be competitive? Register for our free webinar, How to Use Amazon to Grow Your Ecommerce Brand, to hear expert tips from Teikametrics CEO and former Amazon seller, Alasdair McLean-Foreman as well as BigCommerce CEO, Brent Bellm.