- Background color
- Background image
- Border Color
- Font Type
- Font Size
I’ve just read a really interesting article about Amazon private label pricing on Web Retailer. It dismisses the private label myth that taking a generic product and branding it, equals success. Other factors play a major role including price. Three private label experts Will Tjernlund, Greg Mercer and Bernie Thompson give their advice of how you should price your private label products.
How to Price Private Label Products on Amazon
Here’s a summary of the main points covered:
- You should have at least a rough idea of your costs and price you need to sell your product for to make a decent return BEFORE you buy your stock.
- Find the market price for your product. Will used eBay auctions to help him decide what price to set on Amazon.
- Include all costs. Amazon fees differ from country to country. You might also need to factor in PPC costs. Think about whether the cost will change with product variations for different countries.
- When setting the initial price, Will generates a liquidation price and a ceiling price, similar to setting your min and max price in RepricerExpress.
- Consider differentiating your product from competitor products by offering alternative uses or donating a percentage to charity.
- “Customers are far more likely to buy the established products with more reviews, higher search ranking and ultimately, a better reputation.”
- The most popular strategy is setting your initial price below the market price which should result in increased sales and product visibility. With time, you can then increase your prices.
- Use the 999 trick to see the sales rate of competitors. Add 999 units to your cart, Amazon will update to show the current stock level. You can repeat this activity at different time points (24 hours etc) to track how many they sold over a period of time.
- Greg Mercer says don’t just set your initial price and forget. Test your prices with A/B testing.
- Know your competition and what you are competing on.
- Greg reveals that a “quality product with five-star reviews can sell at 20-30% more than low-rated competition.”
Private Label Repricing with RepricerExpress
Even if you have little or no competition on your product listing at the moment, this might not always be the case.
Using RepricerExpress’ powerful Automations features, you can base your pricing on other criteria than your competitors’ prices.
You can automatically move your products to different rules based on your settings and triggers.
For example, you can move products based on:
- Stock Quantity – How much stock you have.
- Stock Age – How long the product has been first listed or how long it has been restocked.
- Sales Rank – Your products sales rank.
- FBA Long Term Storage Fees – When storage fees are due [these can be detected up to six weeks before fees are due on 15 February and 15 August].
- Sales – What sales you have.
- Orders – The volume of orders you sell.
- Best Sellers – If a product is a best seller you may wish to move it to a special rule.
- FBA/MFN– Whether they are FBA or MFN products.
If you would like help or more information on any of these features, just contact support via email or Live Chat.
Interested in seeing what an automated repricing tool can do for your sales on Amazon?
Get your free 15-day trial today.
*Originally published here
If you’re hot on the social media scene and like making money, then theAmazon Influencer Program is something you should be paying attention to. It’s an initiative where influencers can get commission on products that are sold.
For sellers, the Amazon Influencer Program allows for cost-efficient marketing while reaching potential customers you know may be interested in your product.
Instead of throwing money at broad Amazon marketing strategies, sellers can take a more focused approach by working with the right influencers on platforms such as Instagram.
Let’s take a look at how it works!
How the Amazon Influencer Program Works
It’s pretty similar to how Amazon Affiliate works — users can build links and shopping ads, and then integrate them onto their own websites or blogs.
When people click on that link and buy a product, the affiliate gets a commission on the product, the amount of which depends on what type of product was sold.
Anyone can sign up and get started, which is the biggest differentiation between that and Amazon’s Influencer Program.
With Amazon’s Influencer Program, people have to apply be “using the social media account in which they’ll have the most influence on their followers”.
There’s no guarantee they’ll get into the program. If you don’t qualify right away, Amazon encourage you to come back in the future as the eligibility requirements may change over time.
They have to meet certain criteria for acceptance, some of which includes:
- Have a large following. There’s no set-in-stone number, as Amazon says it’s looking for influencers that range across a spectrum of tiers and categories.
- How much they engage with fans with posts, and how many/which social media platforms they engage on. Again, there are no hard-and-fast numbers, but rather that Amazon wants to see you have a noticeable presence and that you make it a commitment.
- Your content is of a high standard. Amazon’s looking for influencers who post quality material, and not just trolling comments to get a reaction out of people.
- Lastly, they also want to see that there’s relevance for themselves. Amazon needs to see that the influencer chosen will also benefit themselves, as it’s a two-way street.
If/when you get in, Amazon will give you a unique URL you can pass onto shoppers — it’ll be nice and easy for shoppers to remember and find it. Once they click on it, they’ll be taken to a page of products selected by the influencer based on their recommendation. This is another key difference from the Affiliate program, as the affiliates have to work with Amazon when it comes to product selection, while influencers retain total autonomy.
When shoppers are browsing the influencer’s page, they’ll see the range of products with thumbnail images, along with their prices, Prime statuses, and a little description of each. What’s neat about this is the influencer can curate a product lineup based on their own knowledge and experience, much like a clothing store rolls out certain outfits at different times of the year, like for the start of the school year or for Christmas.
This could also be an interesting and potentially great way for influencers to roll out more sales and move more products, as they get to decide what’s shown, and when. For instance, if you have a bunch of stock that’s been slow to move, you can feature that on your page and tie them together with a certain theme. This helps to cut down on the distraction of other products (whether from your own inventory or from a competitor when the buyer is browsing Amazon in general) by focusing the interest solely on yourself and your inventory.
- The Amazon Influencer Program allows you to get your own page on Amazon with an exclusive vanity URL to showcase the products you recommend to your followers. Promote your URL, make it easier for your followers to shop your recommendations and earn money on qualifying purchases while doing it!
- Influencers across any category can participate in this program. Currently you must have a YouTube, Instagram, Twitter or Facebook account to qualify. While we look at the number of followers and other engagement metrics of your social media presence, we also look at the type of content you post and the relevancy it has for Amazon customers.
- The Amazon Influencer Program is an extension to the existing online Associates program for social media influencers. With the Influencer Program, you get your own page on Amazon with a URL to showcase the products you recommend to your followers. This gives you an additional way to direct traffic to Amazon, which is especially useful where hyperlinking isn’t possible (e.g. Instagram captions or video content).
It was only a few years ago that Amazon introduced Seller Fulfilled Prime (SFP) as a way of allowing sellers to put the Amazon Prime badge on orders they fulfilled from their own warehouse or storage centre. RepricerExpress has nine reasons why you should be giving this a closer look.
1. You’ll Be Able to Reach Prime Members
By having access to the Prime membership base, you open yourself to the potential of much higher sales. Check out these stats from Forbes about Prime vs non-Prime buyers:
- 46% of Prime subscribers make weekly purchases, versus only 13% of non-Prime members.
- More than half (51%) of US households will be subscribed to Prime this year, an increase from the 45% last year.
- Prime buyers tend to spend up to 4.6 times more than their non-Prime counterparts.
2. Displaying the Prime Badge Puts You in the Running for a Buy Box
It’s not impossible to win the Buy Box without Prime, but it’s incredibly difficult. You’ll have to make sure all your metrics are just about perfect and have the most competitive pricing (which can put your profit margin at risk). So why not make it easier on yourself? Fulfilment by Amazon (FBA) is typically the easiest way to go but having that Prime badge with SFP is also a pretty good route.
3. There’s Time to Get Things Right
You don’t have to hit the ground running because Amazon will give you a trial period to master SFP. You’ll have up to 90 days to fulfil 200 orders, and then you’ll be automatically enrolled in SFP. If you’re already good at selling, then getting those 200 orders will be a piece of cake. And if you’re new, then 3 months is ample time to get things right.
Plus, if you don’t manage to get it done within the 90 days, that’s okay! Your trial period resets itself and you get another shot.
4. No Fees Make It Low-Risk and High-Reward
When you sign up for the trial period, you don’t have to pay any fees. That’s a huge weight off your shoulders, knowing that you can operate as you normally would. The guidelines are pretty relaxed as well:
- Ship Prime trial orders on the same day, provided the order is placed by your cut-off time.
- Have an on-time shipment rate of at least 99%.
- Have a cancellation rate of less than 1%.
- Use of Buy Shipping Services for at least 99% of orders.
With FBA, you’re beholden to Amazon’s fee schedule. But with SFP, you’re free to go with whatever shipping company can save you the most money. Even better, you won’t have to worry about Amazon’s long-term storage fees.
6. Your Inventory Can Be in One Place
If you store items yourself or with a local company, then you can cut out the middle step of having to send stock to one of Amazon’s fulfilment centres. Not only will you save shipping costs (especially on large or heavy items), but you can also keep your inventory exactly where you want without being forced to split some to Amazon.
7. Returns Will Be a Lot Easier
One of the toughest parts about handling returns with FBA is correctly linking specific items to specific returns. It might sound like an easy enough thing to do, but there’s been a lot of fraud with it. However, if you’re in charge of handling returns, then you can implement your own system for staying on top of it.
8. You Can Sell FBA-Ineligible Items with the Prime Badge
Some items are ineligible for FBA, but if you sell them on your own, then you can bypass those restrictions, provided you still comply with the country’s regulations on what can be sold and shipped.
9. You Can Mix and Match SFP and FBM
If you’ve got some items that sell better with FBM, you can keep fulfilling that way and use SFP for other items (like heavy, fragile, seasonal, or high-value items). By combining fulfilment methods, you can maximise your competitive edge and increase your chances of a Buy Box that much more.
Reading this should put you in a try-anything spirit, so give SFP a shot. And since you’re already in that mindset, you should give RepricerExpress a try, too. While we don’t (yet) have the wish-making powers of a genie in a lamp, we’re pretty close. But you’ll have to see it to believe it, so sign up now and get started with the first 15 days free.
*Originally published here
If you’re at all familiar with Americans and their holiday-shopping tendencies, you”ll know that Black Friday (the day after American Thanksgiving) falls on November 23 this year. But there’s Black Friday, and then there’s Black Friday for Amazon sellers. Didn’t know there was a difference? Then read on to see what six need-to-know tips FeedbackExpress has for you.
1. Start Early to Capitalise for Amazon Black Friday
If you wait until even mid-November to start marketing to shoppers, you’re too late. You’ll need to prepare your inventory and marketing strategies so that you can hit ‘go’ in September/October. What most people know as Black Friday is actually Black November for Amazon merchants. Know how stores (both online and brick-and-mortar) start their Christmas advertising earlier and earlier? The same goes for Black Friday and you don’t want to be the black sheep that gets left behind. This way, you’ll be able to attract more shoppers, capitalise on more sales, and increase brand awareness.
2. But Don’t Put All Your Eggs into One Basket
Sure, Black Friday — and its corresponding cousin, Cyber Monday, represent two of the biggest shopping days on the Amazon seller’s calendar. But if you focus 99% of your energy on those two days, you’ll be missing out on valuable selling opportunities elsewhere.
Think of shopper psychology for a second. Buyers are conditioned to think two main ideas about holidays and shopping:
- A sale prior to a holiday usually means that when the actual holiday hits, the discounts will be even bigger because the merchant will want to keep up with their competitors. So, they’ll be more inclined to bookmark your site and come back to it in a couple of weeks, and getting customers to return is no easy feat.
- There will always be last-minute shoppers who will run into decreased inventory. To avoid that, smart shoppers visit ahead of time — but they’ll want some incentive to buy earlier.
3. Have Enough Stock to See You Through the Whole Holiday Season
One of the worst fates an Amazon merchant can suffer is running out of inventory before the holidays are over (see: last-minute holiday shoppers). Most Amazon sellers don’t deal in fresh goods, like groceries, so stock up on enough inventory to last you until January is half-over.
4. Set Yourself Apart with Free Shipping
Holiday selling is a cut-throat business and you need every advantage you can to distinguish yourself from the crowd. Haven’t offered free shipping before? Make it a main selling feature to lure more consumers over to your page. Already had it in place? Bundle, up-sell and/or cross-sell to increase your sales even more. (P.S. Strategic bundling is one of the best ways you can land a Buy Box).
5. Jump on the Trending Bandwagon
Each year, there’s a toy, or a few things, that are particularly popular and sell out like hotcakes. You don’t necessarily have to make it the backbone of your line, but you should look into stocking it. Devote an hour or two of your day toward sourcing trending products and bring them in. Not only will you make shoppers happy, but once they’re on your page to purchase it, odds are much higher they’ll stay there to buy other things.
6. Become the Shopper
Think Black Friday is only good for you to make money selling things? Not so much! It can also be a time for you to buy items and load up your inventory cheaply so you can turn around and sell those products at a later date for a higher price.
Mmm, we love Black Friday because it’s like having an electronic fish reader tell you where all the hotspots are. But don’t go at it alone — use all the tools available to maximise your situation. By using FeedbackExpress, you can build on the other areas of business to solidify your selling for top long-term gain. The next two months are a goldmine to bolster your reviews, especially when you click here to get the first 30 days free.
*Originally published here
You may think you know all about repricing software, but as our name suggests, RepricerExpress probably has a thing or two you don’t know about. It’s not just the one-size-fits-all concept most people think of, as you can actually customise it to work exactly how you want.
Here’s how it works.
You Can Do it Automatically or Manually
The whole idea of repricing software is for it to do everything for you, right? Well, not exactly and not always. While it’s true you can set it up so it carries out your commands when certain conditions are met, you can also step in and override the settings if your gut is giving you that feeling.
The most common idea of manually repricing is for you to change the price on an item each item, but you can still do that with repricing software in place. We just recommend that you use that approach (manual repricing) for special occasions and leave the rest up to the software so you don’t deal with too heavy a load and/or risk making mistakes.
Repricing Takes Both Items and Sellers into Account
Probably the most common notion of how a repricing software works is that it looks at just the other prices for the same product you’re selling.
However, a repricing software programme — a good repricing software programme — will also look at the sellers you’ve specified so you can compete most aggressively. You want to compete like-with-like as much as possible, and narrowing down the criteria of who your competition is is a staple of a good repricer.
For example, you probably don’t want to compete with local sellers if you’re selling globally, or the other way around. Shipping costs will play a role in how much you charge for an item, and can have an adverse effect on your competitiveness and success.
Shortening Your Journey to the Buy Box
The Buy Box is every Amazon seller’s brass ring. It’s a way to cut down on the buying time and process, reach more sellers, and compound the selling success you have. Nobody’s really 100% sure of the algorithm behind obtaining a Buy Box (except the Wizard of Amazon), but there are a couple of well-hypothesised factors, like shipping time and seller rating, that are good areas to focus on.
Knowing When to Price Up or Down
The first instinct to reprice is to go lower, stand out from the crowd, and attract more buyers and sales.
However, that’s only one strategy, and not always a sure-fire one of long-term sustainability. There are plenty of conditions in which it would make more sense to reprice up, like if supply for a product outstrips demand. Then, you can price your item higher because you’ve got the upper hand, and make more profits that way.
Know how on eBay you can set things to bid incrementally until your max bid is reached? You can do the same sort of idea on Amazon, where you create a rule that lowers the price until you’ve reached your min value. That way, you avoid a race to the bottom and cutting too deeply into your profit margin.
Related reading: Amazon Repricing Strategies Every Seller Needs to Know
You Probably Can’t Increase Sales as Much on Your Own
Do a quick search for something generic, bland and widely used on Amazon, like socks or undershirts. Instead of finding individual buyers, you’re far likelier to find actual brands and stores, like Fruit of the Loom. Yes, big companies are using Amazon as a way to sell their products, which should tell you a whole lot. You can bet they don’t employ people whose sole job it is to change prices up and down online, but rather invest in repricing software to do it for them.
Of course, there are instances when using a repricing software may not be a necessity for you, like if you’re a casual seller, or selling rare or just a few items. But for most Amazon sellers, repricing software is a must. It just gives you so much time to focus on other things. It also takes a huge portion of human error out of the equation, which could end up costing you dearly.
Stay Ahead of Your Competition
Alright, so maybe you’re convinced that you need to start using RepricerExpress to get a leg up on your competition. But if you still haven’t made your mind up, how about this? We’re giving you the first 15 days totally free when you sign up now. Go on, it can’t hurt to at least try us out.
*A version of this post first appeared on the RepricerExpress blog
A lot of being a top seller comes from preparation and attitude. Top sellers learn best practices and cement them into habits until it’s all second nature. If you want to play with the big boys, then FeedbackExpress has seven tips and tricks you can employ to become highly effective at the game.
Habit 1: Write the Route YOU Need to Take to Success
Think back to the last time you gave someone directions. Did you tell them the fastest route? Or the easiest one? Wherever you’re going, there’s usually more than one way of getting there. Compound that by the fact that each person needs different things to arrive at their destination, and there are plenty of routes to success. What yours will look like depends on your personality, work style, ambition, skills, limitations, resources and more. And when you’re writing your route to success, remember to factor in detours so you don’t get discouraged when your path doesn’t travel in a straight line.
Habit 2: Learn How to Delegate Tasks to the Right People
Being at the head of things, you might be tempted to have a hand in every cookie jar. After all, you know the most and that’s what got you there, right?
The best leaders surround themselves with experts in various areas, people who are extremely good at specific things that allow you to focus on what you’re good at so you don’t get distracted by trying to do it all. Break down your workload into discrete units and identify what you absolutely need to do (i.e. building relationships with suppliers and manufacturers, hiring and firing, etc.) and what can be done by others.
Habit 3: Apply the Pareto Principle to Your Products
In a nutshell, the Pareto Principle means that 80% of effects can be derived from 20% of the available causes. Translate that to selling on Amazon and it means that you should be looking at making 80% of your profits from 20% of your products. This 20% should demand most of your attention when it comes to sourcing them, making sure they’re in stock, writing great product descriptions for them, and generally making sure they keep comprising 80% of your profits.
If you’re not sure which products these are, look at your sales history from the last six months (or 12, if you sell seasonal items) and make a list of what sells, from greatest to least. Then, put these items at the top of your to-do list and factor in an extra 25% lead time for them to make sure they keep pulling in 80% of profits.
Habit 4: Never Forget About the Suppliers
Suppliers are like eyebrows: the good ones blend into the background and generally go unnoticed, but you immediately pay attention if they’re bad or not there. But keeping close tabs on the supply chain is tedious and time-consuming, so top sellers either delegate the work to someone else on the team or go with a third-party whose sole job it is to take care of that. You’ll definitely want to be the one to contact suppliers and form good relationships with them, but taking care of the details is something you can pass on elsewhere.
Habit 5: Make Negotiating an Ongoing Process
If you’ve ever purchased auto insurance, a cell phone plan, furniture, or something from Craigslist/Kijiji, you know that prices can be haggled over. Highly effective sellers, however, realise that negotiating is an ongoing process and doesn’t stop once the initial price has been set. They know it’s something that can be continually revisited and renegotiated based on factors like history, performance, market prices and terms of the contract. At periodic times (like at the half-year or year mark), reach out to your manufacturers/suppliers and see what things you can renegotiate.
Habit 6: Keep Your Inventory Nicely Balanced
Running out of stock is one of the worst things that can happen to a seller. Having too much stock isn’t nearly as bad, but it’s not great either. The trick is to find that sweet spot in the middle where you’ve got enough times to handle surges, but not so much that you’re paying excess storage fees. It’s an admittedly boring thing to care about, but so vital to running a successful business. Using inventory management software makes this part so much easier than doing it all by hand, so it’s worth investing in a good one.
Habit 7: Make a Budget and Be Firm About It
It doesn’t matter how much money you’ve got coming in if you either spend it all or grossly mismanage it. There’s just no excuse for not having a budget that makes sense — and sticking to it. There can sometimes be an air of stuffiness and not having fun when it comes to budgets, but the best budgets allow for fun. The key is making sure the cash is evenly spread out and necessities are taken care of. If you’re not good at this, hire someone who is so you can ensure every last dollar is being spent as efficiently as possible.
Another habit that highly effective Amazon sellers take advantage of is working hard at gathering reviews. Because a review is often the make-or-break factor when it comes to buyers deciding on a purchase, having many (great) reviews is crucial. Using FeedbackExpress simplifies that process and makes it easy to stay on top of getting reviews, but you can only enjoy the perks if you use it. Sign up today and start things off with a 30-day free trial.
Selling online is almost always going to be price-driven because you will almost always have competitors. You can offer free gifts, you can offer great customer service, free delivery and returns and more but it’s essential that you also remain competitive on price — especially on Amazon.
To price competitively on Amazon, you have two options — manual repricing or automated using an Amazon repricer. The choice is yours and will be dependent on how many products you are selling and how much time you wish to dedicate to this vital area of your online business.
For those sellers choosing to go down the automated path, we’ve compiled a list of the leading Amazon repricers on the market right now.
When it comes to Amazon repricers — they are not all equal.
There can be major differences in costs, repricing speeds, customer support, user interfaces, what marketplace they support and more. Some will offer greater customisation opportunities in terms of who you want to compete with or not. Also, some Amazon repricers will not be available to users from certain countries.
For those new to repricing, you might find it useful to try out a few different repricers (many offer a free trial) and see which one works best for your business based on your needs and budgets.
What works for one business, might not work for yours.
Things to Consider When Choosing an Amazon Repricer
Here are some things to consider when choosing an Amazon repricer.
- What marketplaces does the repricer work on?
- How much does it cost each month?
- Are you tied to a long-term contract?
- How quickly are your listings repriced?
- Do you have to pay extra for continuous repricing?
- Will you pay commission on your sales to your repricing software provider?
- What flexibility and control does the repricer offer?
- Can you choose who you want to compete with and how?
- Is there a free trial? Do you need a credit card to avail of this?
Amazon Repricing Software Comparison (Top 8)
RepricerExpress offers continuous repricing across all its plans at no extra cost and helps you “win more Buy Box without constant attention”. This Amazon repricer is trusted by thousands of sellers.
With RepricerExpress you can choose to include/exclude sellers based on seller rating, dispatch time and more. Using pricing rules, you can decide how you want to reprice against your competition.
No long-term contracts, cancel at any time.
Free Trial: 15 days, no credit card required.
Pricing: 2,500 SKUs, $55 per month; 5,000 SKUs, $79 per month; 10,000 SKUs, $99 per month; 25,000 SKUs, $159 per month; 50,000 SKUs, $249 per month; 50,000+ SKUs, contact the RepricerExpress team.
Visit RepricerExpress' website
Appeagle states that it “empowers Amazon sellers with strategic automated repricing and critical insight”.
No credit card is required and there are no long-term contracts.
Free Trial: 14 days
Pricing: 250 SKUs, $100 per month; 5,000 SKUs, $100 per month; 10,000 SKUs, $100 per month.
Feedvisor is an Amazon algorithmic repricer designed to increase your Amazon revenues and profits. It describes itself as “award-winning algorithmic repricing and revenue intelligence solutions”.
Free Trial: No
Pricing: Not specified
BQool’s Amazon repricer tool is called Repricing Central. It states it is an “affordable repricer for all business levels”.
Repricing speed is every 15 minutes for 1,000, 5,000 and 15,000 SKU plans and every 5 minutes for sellers on the 10,000 SKU plan.
Free Trial: 14 days
Pricing: 1,000 SKUs, $25 per month; 5,000 SKUs, $50 per month; 7,500 SKUs, $75 per month, 10,000 SKUs, $100 per month.
ChannelMax describes its Amazon repricing tool as the “only repricer based on algorithms and sales velocity”.
Free Trial: 30 days
Pricing: 2,500 SKUs, $49.99 per month; 5,000 SKUs, $74.99 per month; 10,000 SKUs, $74.98 per month; 25,000 SKUs, $99.99 per month; 50,000 SKUs, $120.99 per month. Prices based on real-time repricing and more than one marketplace.
RepriceIt states you can “reprice your Amazon.com inventory the way you want it, when you want it.”
Free Trial: 30 days
Pricing: 1-500 SKUs, $9.95, 501-2,000 SKUs, $16.95, 2,001-5,000 SKUs, $24,95, 5,001-10,00 SKUs, $29.95, 10,001-20,000 SKUs, $39.95, 20,001-50,000 SKUs, $59.95, 50,001-100,000 SKUs, $79.95.
7. Seller Dynamics
Seller Dynamics is another Amazon repricer. It states it is “the only complete solution for ambitious marketplace sellers”.
You can choose from three different plans, some of which will take a percentage of gross sales.
Free Trial: 30 days
Pricing: 2,000 SKUs, $60 per month, Standard $25 per month plus 1.49% of gross sales.
Sellery is an Amazon repricer which states on its site that it can help “maximize your sales, profits, and Buy Box ownership”.
Free Trial: 14 days
Pricing: 1% of your gross monthly sales, with a minimum charge of $50 per month and a maximum charge of $2000 per month.
We hope we’ve given you a good guide to help you choose the right Amazon repricer for your business. Whenever an Amazon repricer is used correctly, you’re highly likely to win the Buy Box more often as well as increased sales and profits. It really is an essential tool for most serious Amazon sellers.
Whatever Amazon repricer you decide on is your call. We believe RepricerExpress’ Amazon repricing software is the best on the market for sellers on Amazon and eBay who wish to reprice in real-time. Try it free for 15 days, no credit card required.
*A version of this post first appeared on the RepricerExpress website
We’re excited to announce that RepricerExpress, the leading Amazon and eBay repricing solution is now available in the Amazon Marketplace Appstore, directly accessible in Seller Central.
The Marketplace Appstore is a one-stop-shop where the small and medium-sized businesses that sell on Amazon can more easily discover quality applications to help them automate, manage and grow their business. Accessible from Seller Central, the Marketplace Appstore features applications created by Amazon and external developers and covers a range of functionalities across the selling lifecycle.
Brendan Doherty, CEO of RepricerExpress said,
“At RepricerExpress, we’re excited to be featured in the Automated Pricing category. We hope the new platform will help sellers quickly identify the integrated tools they need to support their selling needs on Amazon.”
You can now find RepricerExpress in the Automated Pricing category on the Amazon Marketplace Appstore.
RepricerExpress is the Amazon and eBay repricing solution that’s super easy to set up and use. Sell more and keep your listings competitive 24/7 without constant attention. RepricerExpress offers Amazon FBA and Featured Sellers the flexibility to compete for spots in the Buy Box and More Buying Choices Box. Our super-fast repricing allows all sellers to aim for higher positions in the Offer Listings pages, ensuring more buyers see your products. eBay repricing can either be based on your competitors’ listings (with various filtering options) or formula-based using your Amazon prices.
See what real RepricerExpress customers are saying about our software on Web Retailer.
*A version of this post first appeared on the RepricerExpress blog
Most sellers know that Black Friday and Cyber Monday are two of the biggest selling days of the year, but how about Amazon Prime Day? In 2017, it was the largest single sales day in Amazon’s history. Amazon has confirmed that Amazon Prime Day 2018 will start at noon on Monday 16 July with deals continuing into Tuesday 17 July.
Now, is a good time to get prepared and reprice some of your inventory. With an increase in traffic (consumers) on Amazon Prime Day and the days preceding it, this is a great opportunity for you to grab some sales so be sure you reprice your items competitively to maximise your profits.
What is Amazon Prime Day?
Amazon Prime Day is a one-day shopping event exclusively for Amazon’s Prime members. It’s a great day for Prime members to save money on a wide range of goods including electronic goods.
If you’re not a Prime member, you may be eligible for a free 30-day trial allowing you to access the Prime Day deals and get one-day delivery plus enjoy other benefits including Prime Video, Prime Music and Prime Reading. If you don’t wish to continue with your subscription, you’ll need to cancel otherwise you’ll be charged £7.99 per month at the end of your trial period.
Try and Minimise Your Competition
Okay, yeah, admittedly this is a bit of a broad first step to talk about. Minimise your competition to gain better sales? Sure, obviously, but how? Let’s explore some of the ways you can kick ass.
Step 1: Start Bundling Your Products
Your goal on this Prime Day is to move as much inventory as possible, and one of the best ways you can do it is by tossing a bunch of items together and selling it in one go (and it’d save on individual costs associated with selling single items, too). Bonus pro tip: create a unique ASIN for the bundled package as opposed to selling it like a multi-pack.
Another bonus pro tip: comb through your inventory to find old or slow-moving inventory items, then discount it to make it even more attractive.
Related: How to Create Amazon Bundles
Step 2: Use Seller Fulfilled Prime to Help You Out
If you run a brick-and-mortar store, you’d hire extra hands to help out with the Christmas rush, no? Then think of investing in Amazon Seller Fulfilled Prime as the online equivalent. It was just last year that Amazon rolled out Prime privileges to sellers who did this, so definitely take advantage of it for Amazon Prime Day.
Well, you want to be able to offer the ‘Prime’ option to buyers on Amazon Prime Day, for starters. Second, on such an important day, you don’t want to leave anything to chance and using FBA is a guarantee that things will be shipped on time and customer support will be in place. And lastly, sellers who have their own sites and use Amazon fulfilment get to avoid extra tax dings on their entire business.
Hey, if it ends up that you really don’t like it, you can always opt out after it, but at least give it a trial run before Amazon Prime Day hits and see how it works for you.
Step 3: Avoid Specials Found in Other Places
One of the best ways to top your competitors is to avoid selling the same things they are, as you’re just adding unnecessary wars to wage. Say you’re thinking of moving a six-month-old supply of tablets and Walmart is featuring their same brand on sale the same day as Amazon Prime Day? Why would you risk buyers being divided by the attention? No, skip those items if other stores/merchants are featuring the same or similar products.
Step 4: Obligatory Repricing Advice
You know us well enough by now to know that not only should you be repricing mandatorily, but really paying close attention to it on Amazon Prime Day. This is one of a handful of days during the year where you want to:
- a) Make as many sales as possible;
- b) Bring extra attention to your store/brand/name/whatever;
- c) Cement relationships with buyers for the long-term.
Step 5: Utilise Advanced Stats and Metrics
This could really be a post unto itself, but to keep things short and simple:
- Look into Sponsored Products and how they can benefit you on Amazon Prime Day.
- Perfect your marketing and advertising strategies.
- Consider splashing out a bit more money on the above two (cost-per-click and general money towards driving up traffic).
- Make an AMS campaign specifically for Amazon Prime Day.
Get ready for Amazon Prime Day 2018
Please pardon us if we sound like a broken record about the whole repricing thing, but it’s just that important to us that you get as razor sharp of an edge as possible. And with Amazon Prime Day just around the figurative corner, you should get started as soon as possible, which is why we’re covering the first 15 days for free for you. All you have to do is sign up in the time it takes to make your bed.
Buyers don’t usually differentiate between seller feedback and product reviews. They’re usually more focused on getting a great product and getting it fast. But the difference does matter, and this post will show you why. Even if you’re selling and not buying. Especially when you’re selling.
Telling the Difference Between Feedback and Reviews
To the untrained ear, feedback and reviews sound like the same thing. After all, it’s a buyer telling you what they thought of the product, right?
Reviews consist of the following:
- What a buyer thought of the product
- An opinion that helps future buyers decide if the quality of the product is for them
- It appears as a score out of five stars
- Affects the buyer’s odds of winning a Buy Box, as well as can possibly cause their account to be suspended or expelled (if it’s continually bad)
- Are shown on the product’s detail page on Amazon
- How good (or bad) the product’s packaging and how fast (or slow) the shipping was
- What the work quality was like
- If they found you professional-acting and providing good customer support
- And if they would buy from you in the future
Can Feedback and Reviews Be Removed?
In a nutshell, yes, feedback and reviews can be removed. But it’s a little more complicated than that.
If a buyer has left negative feedback, it’s in your best interest to try and get that changed (or removed) so it doesn’t affect your overall score. There are very specific criteria you have to meet if you want the feedback removed. The feedback has to contain one of the following:
- Promotional content. For example, a buyer can’t promote their own business or products on your review.
- Obscene or abusive language. Buyers are not allowed to write things like calling you names or denigrating you.
- Personal information. Buyers can include their names, but that’s where it ends. They can’t write anything more detailed than that about themselves or you, or else it’s grounds for removal.
- Product reviews. When it comes to feedback, it has to be about you, the seller, and not the actual product. If they want to talk about the product, they have to do so in the product review.
Test Yourself to See If You Know the Difference
We’ll give you a bunch of sentences and you pick if it’s feedback or a review.
- It arrived faster than expected.
- There was no bubble wrap inside and the product broke.
- The description said new but I noticed some scratches on the back of the product.
- The seller responded to my questions right away and was really informative — fantastic customer service.
- The product’s battery died after a month.
- It came in a different colour than was listed online.
- I ordered through FBA but it took over a week to arrive.
- I would totally buy from them again.
- I loved the packaging it came in.
Feedback is numbers 1, 2, 4, 7 and 8.
Reviews are numbers 3, 5, 6 and 9.
If, after reading this, you decide that feedback and reviews are not your strong suit or something you want to deal with, there’s an answer for you: FeedbackExpress. We’ll take care of just about everything for you, from monitoring the reviews/feedback you get to sending out messages to buyers after their purchase to maximise your chances of receiving feedback and reviews. But it only works when you sign up. And when you register today, you kick things off with the first 30 days totally free.
We might be a little biased, but hear us out: there are real, tangible benefits to using an Amazon repricer, especially if you’re at all interesting in increasing your profits and chances of winning a Buy Box.
What is Amazon Repricing?
Amazon repricing is the changing of product prices on the Amazon marketplace. Prices are changed frequently based on competition and other factors such as Buy Box ownership.
For each listing, there will usually be multiple sellers all competing for the sale. Those sellers who aren’t priced competitively are unlikely to get a sale or win the Buy Box. But, with so many sellers and products manually checking prices becomes time-consuming.
By using an Amazon repricer, pricing competitively 24/7 is made easy. When deciding on your pricing strategy and how you want to compete and with you, you’ll want to consider fulfilment type, seller feedback and feedback score.
Automating the prices of your Amazon products is the key to increasing sales and profits. It’s a no-brainer if you have more than a handful of SKUs and will help you stay ahead of your competition.
Here are seven benefits of using an Amazon repricer tool.
1. You Can Compete Without Emotion
You see emotions entering buying and selling all the time: a stock dips and people get worried, so they sell before they think it can drop any lower. But people who approach it without emotion know to buy low and sell high.
A good Amazon repricer works the same way by making buying and selling an objective, not emotional, process. You might feel angry or frustrated when a competitor undercuts you and ‘steals’ your sale, but a repricer doesn’t care. It uses rules or an algorithm to keep check with your competitors and safeguard you from potentially risky or dangerous decisions.
2. You Can React Right Away in Real Time
When you manually reprice products, your reaction time is too slow. And what about if you’re on a much-needed vacation? Do you really want to interrupt your book time on the beach to pull out your computer and reprice items? Skip all that with a repricer and let it do the work for you, in real time.
3. You Can Reprice As Often As Necessary
Prices change really fast on Amazon, sometimes as quickly as several times an hour. If you had to dedicate man hours to meet that need, you’d critically neglect other areas of your business and everything would suffer overall as a result. But with a repricer, you can focus your attention elsewhere and let the rules or algorithm do it for you — and rest easy knowing you haven’t missed a single price fluctuation.
4. You Can Make More Money for Less Money Spent on Labour
Whatever your ratio of labour hours to revenue is, you want to try and minimize the amount spent on repricing as much as possible. Simply put, it’s a huge waste of time, labour, and money to manually reprice dozens or hundreds of products when a piece of software (that doesn’t need to be paid a salary or benefits) can do it for you.
5. You Can Minimise Your Margin of Error
The neat thing about software is it does exactly what you tell it to, nothing more and nothing less. It won’t slip up because it stayed up too late the night before, its mind won’t wander because it’s hungry, and it won’t ‘not see’ its work because of an argument with its spouse.
But a person could, and it’s almost a given that they will. There’s a chance you could put a wizard of a human in charge of repricing and be fairly certain they won’t make a mistake, but the odds are even greater when you put a repricer to the task.
6. You Can Automatically Take Multiple Factors Into Account
Quick, think of every factor you need to make the smartest repricing choice right now. Stuck? It can be tough to think outside the box when you’re put on the spot, but a repricer won’t face the same challenges. It’ll take all the factors it needs to into account, and apply them when needed.
7. You Can Adapt to All Your Competitors
Like any good seller, you’ve done your research on who your competitors are. But can you keep track of how each product applies to each seller, and vice versa? In doing so, are you possibly omitting products or sellers that closely match you without being right on the button? A repricer won’t do that, as it can use advanced similarity matching to give you even more of an edge.
Free for 15 Days
If you’re still not convinced an Amazon repricer is for you, here’s one more reason: you can start repricing in real-time with a free 15-day trial.
Related: 10 Reasons to Stop Manual Amazon Repricing Immediately
What is Private Labelling?
Private labelling is a pretty simple concept. You sell your own inventory and use your own packaging, but the items you’re selling are made by someone else. For example, the supermarket Tesco have private label goods in their Tesco Value and Tesco Finest ranges.
What’s really cool about private labelling is that you get a great product to sell, but don’t have to deal with all the fuss that goes along with brand name marketing costs.
It’s a lot more expensive to sell branded goods than your own brand and with the introduction on Amazon Brand Gating in September 2016, a lot more hassle. By selling your own brand with fewer costs, that translates into greater profits for you!
White labelling is different. A white label brand is a generic product is created by a manufacturer and distributed to multiple providers for rebranding.
How to Do Private Labelling on Amazon Right
It seems like a quick and easy way to boost your profits, no? And it is — as long as you follow these simple rules first.
1. Be Patient
You’re creating a brand, and not just selling it, so the dividends are going to take a bit of time to reveal themselves.
It’s like buying stocks and bonds versus opening a lemonade stand: there’s more money in the former, but it’ll take some time and patience before you get to the big payday.
2. You’ll Need Capital
Along with patience and time, the other big ingredient you’ll need is money. It can take quite a bit of cash to buy products to convert into your own label, along with all the learning and knowledge you’ll have to acquire in the meantime.
The best bet is to find a private investor, but barring that, be prepared to put in the financial time to make it work.
3. Understand How Selling an Asset Works
Back in the old days of Amazon, you became a pro by selling under the Amazon umbrella. Things are going to change now, as your customer base will change, too.
But before you can advertise a full product line, you have to test the items first and a super efficient way of doing that is with Amazon Sponsored Ads.
Every smart private labeller-retailer will tell you that a test drive is one of the most important parts of the process, especially when it comes to risk management.
4. Invest and Reinvest
The last important lesson successful private labeller-retailers will tell you is that in order for your brand to grow, it needs a steady diet of revenue.
It may be tempting to sink that cash into another aspect of your business, but ask yourself what’s more important: going out for a business lunch, or helping your ecommerce business grow?
Seller Tip: The Amazon Private Label Checklist is a handy resource that can help sellers analyse the numbers and see if they should proceed, before investing a significant amount of time and money into a product.
Identifying Profitable Products for Private Label on Amazon
Finding items for private label on Amazon can be broken down into three factors.
1. Find Items with the Highest Demand
Low sales rank and highly-ranked keywords are the two things you need.
2. Narrow Down to Items That Don’t Have a Lot of Competition
Why go up against more sellers than necessary? Narrow your focus down to the items that either contain few reviews (not many people have bought them) and/or have a low listing quality.
3. Finish Off with This Last Checklist
Once you’ve arrived at this step, there’s just a final small check-list to go through.
Look for items that are fairly light and durable (i.e. won’t break when shipped), can be used across the seasons, aren’t strongly identified with any one or two brands, and have a price that runs between a movie ticket and pair of shoes.
Related: 5 Useful Ways Private Label Sellers Can Get Amazon Product Reviews
Use the Right Formula to Find Private Label Items
Finding the items that’ll net you the most profit under a private label is a two-step process. Again, for simplicity’s sake, we’ve broken things down into just three steps.
1. Research the Right Product Ideas
We recommend using two methods of research to settle on product ideas.
Firstly, use the data that’s already out there, because why wouldn’t you want to capitalise on the work that others have already done? But you’ll also want to balance that out with your own subjective knowledge (aka your gut feeling) and business acumen.
2. Figure out if it Has a Ready Home
We’re going to borrow on some of the concepts in the first step here by telling you to look at how much competition that item has, how in-demand it is, how much profit it’ll bring in (revenue vs. cost), and if it’s affordable/light/durable/non-seasonal.
3. Confirm Your Earlier Work
If you approach this part like a science experiment in that the first two steps were your hypothesis and this part is where you set out to prove it (or prove another theory by incidentally finding new products for private label).
This is also the time where you’ll be crunching serious numbers, so don’t skimp on any work. If you’re not the numbers-and-figures type of person, find someone who is.
The end goal should be to come up with detailed sales estimates that are as accurate as possible, but ones that also identify in advance what the potential improvements can/could/should be (before they happen or before someone else, like a buyer with a negative review, points them out for you).
Related: 5 Useful Ways Private Label Sellers Can Get More Amazon Product Reviews
Selling online, you don’t have the luxury of months or even years of research before you launch. You need to be able to make a decision quickly before your competitors make it for you, so sometimes it’s easy to ask yourself questions and make your choice from there. If you’re wondering if you’re on the right path to finding the right product to source for selling on Amazon, RepricerExpress has got the guide for you.
1. On a Scale of 1-10, How Well Do You Understand the Product?
If tying up your shoelaces is a 10 on the familiarity scale and black hole thermal radiation is a 1, rank how well you know the product you’re sourcing. The better you understand a product, the better you’ll be able to sell it to your buyers. After all, you’ll need to be able to write amazing product descriptions and answer questions buyers might have.
2. How Much Does the Product Cost?
We’ve mentioned in other blog posts that cost is a big contributing factor when it comes to sourcing the right product, and the magic range is between $12-50. Less than $10 and your buyers might see your products as cheap (not inexpensive), and more than $50 and you’ll lose a lot of buyers looking for an affordable deal.
3. How Popular are the Keywords?
If a product doesn’t have many keywords, that tends to mean not many people search for it. Think of it like trying to find a camping spot. The more detailed the directions, the easier it’ll be to find it before sundown.
When it comes to sourcing products for Amazon specifically, here’s what you should be looking for:
- Top 3 keywords have about 100,000 searches per month.
- A close ratio of searches and search results. This means that the searched keywords lead to relevant products.
It’s pretty tough to sell a product without any reviews, but it’s even tougher selling an item when there are tons of reviews. If you’re interested in a product and it has a low number of reviews, this means it’ll be easier for you to climb to the top — this also means the slate is wider open to amass more 5-star reviews.
5. What Kind of Selling Strategy Suits You?
High Sales: You’ll need a bigger investment at the outset to handle a high volume of sales. You’ll also want to invest in things like FBA to handle purchases and shipping, repricing and feedback software so you can focus on writing product descriptions and choosing advertising campaigns, and the ‘it’ factor that sets you apart from the competition.
Average Sales: You’ll have lower sales, but also more time and flexibility to focus on what you want. You’ll be able to offer customised options, like personal greeting cards in packages or crafting your own brand logo.
6. What’s the Rank and LQS/Rating?
There’s no sense in overcomplicating this one, as it’s as simple as this:
- Low ranking = good. Look for an item closer to the top than the bottom.
- Low LQS = good. Listing Quality Score is on a scale from 1-to-10 and the closer to 10, the better the product. This means you’re looking at a product with a good title, good and hi-res images, good number of reviews, good Best Seller Rank (BSR) score, good number of bullet points, answered customer questions, and good variation of text elements of different lengths.
Ideally, the best product to source is one that will sell consistently throughout the year. Seasonal products can be exciting because of the crazy holiday rush, but it can also feel pretty empty once the holiday’s over. Remember the fable about the tortoise and the hare? Yup, that’s right — slow and steady wins the race.
We’ve designed this guide so you can source products for Amazon as efficiently as possible. It’s important not to waste any time so you can get to the next most important part: pricing products more aggressively than your competitors. But instead of doing that manually and risking making mistakes, hop on board the RepricerExpress train and get to the next stop in record time. Bonus: when you sign up now, you start the journey with the first 15 days absolutely free.
According to a consumer review survey by BrightLocal:
- 91% of consumers regularly or occasionally read online reviews.
- 84% of people trust online reviews as much as a personal recommendation. [Tweet this quote]
Buyers on Amazon can leave feedback in two ways: for the seller and for the product, known as seller feedback and product reviews. Seller feedback is where the buyer rates your seller performance (shipping, response time etc.) whilst product reviews should be solely focused on the product itself.
It’s important sellers understand the difference between the two as it’s useful when appealing to Amazon to remove bad feedback. This blog will focus on product reviews but if you want to learn more about seller feedback, check out this article on WebRetailer.
Why Product Reviews Matter
When you search for a product on Amazon, you’ll notice a number of gold stars and a number indicating how many product reviews it has received. In this case, 2,316.
Here’s an example of a product review for a slow cooker.
Product reviews affect buying decisions and your product visibility (search ranking). If you’re a private label seller (selling your own branded products) or you sell bundles on Amazon, you should be focused on gathering 4 and 5-star reviews for your products. The more product reviews you receive, the better your product visibility will be.
Since product reviews strongly influence conversion rates, it’s vital for all sellers (especially private label sellers) to understand how to get them and how to deal with negative product reviews.
How to Get More Product Reviews
We get so many emails these days that it’s easy for feedback request emails to be ignored or missed by the buyer.
When you send an email, you should customise your content and add value. Also, you don’t want to bombard your customers with too many emails or you could end up irritating them and in extreme cases, in hot water with Amazon.
In addition to the content of your email and the number of emails, when you send your product review request is also important. Depending on the product you sell, a product review could be sent as soon as the product is delivered, 2-3 days after delivery or weeks after for products that need a longer testing period such as a skincare cream.
Here are seven quick tips to help you get more product reviews.
- Personalise your emails and include a logo.
- Add value by giving tips on how to use the product.
- Be polite and professional at all times.
- Ask open-ended questions such as “how did you find?”.
- Don’t offer incentives! (Amazon banned incentivised reviews in October 2016. However, you are allowed/encouraged to ask customers to leave product reviews.)
- Include a link to the product review page to make it easier for buyers to comment directly. Don’t include links to external sites!
- Remind buyers that you’re happy to address any concerns they may have.
All sellers will face negative product reviews on Amazon at some stage—how you respond is crucial for the success of your products and business.
So, what do you do when you get that inevitable negative product review?
If a customer has taken the time out of their day to write a negative review, it’s safe to assume they’re unhappy about something. So, respond in a timely manner (within 24 hours) even if it’s just to acknowledge the complaint and inform them that you’re looking into the matter. This will show the customer that you care about customer service and increase your reputation in their minds.
It’s important to delve into the negative product review to find out exactly what happened.
- Was the product damaged?
- Were there parts missing?
- Was the product not as described?
If there was a misunderstanding about the product, this is a good opportunity for you to give your side of the story. When communicating with the customer, empathise and show that you are interested in helping to resolve their issue. Also, you might want to consider responding publicly to the comment to demonstrate that you value customer service and product quality. However, when you’re responding, try not to come across as defensive.
When you communicate with customers (whether manually or using automated software) you should abide by Amazon’s guidelines, otherwise, you could run the risk of an account suspension. The two main mistakes sellers make are offering incentives (no longer allowed since October 2016) and including links in their messaging. The only link you are permitted to include is a link for a customer to leave a review for a purchase.
Can bad reviews be good for your business?
Well, in a way they can as long as the majority of reviews remain positive. For example, a bad review could help you improve your product or your listings. If you receive a number of bad product reviews highlighting the same issue, then you should take action to eradicate that issue with your product, making it better for future buyers.
Also, a study undertaken by Reevoo revealed 95% of customers suspect fake or censored reviews when bad scores aren’t present. So, a bad review could actually be beneficial by making your business appear more credible.
How to Avoid Negative Product Reviews on Amazon
Despite the positives that negative feedback can bring it’s advisable to prevent it happening if you can.
So, here are six quick tips to help you avoid negative product reviews.
- Provide accurate and detailed product descriptions.
- Include images of the product from different angles.
- Consider using images with a 360-degree view or video for higher value items.
- Evaluate the reasons for why negative product reviews are left.
- Check the product matches the order before you ship.
- Try to give some context for the size of the product—many negative product reviews relate to the product being much smaller than anticipated.
Amazon doesn’t make a habit of removing negative product reviews, and for sellers, it’s a much better approach to listen to the feedback and improve their product.
However, there are some circumstances Amazon will remove a product review. For example, if the product review is seller feedback and contains nothing about the product itself. Amazon will also consider removing a review if it contains unsuitable content, abhorrent speech, violent content or promotes illegitimate conduct.
If you find a comment which you think may warrant removal, click on the “Report abuse” link then enter the reason why you find the content inappropriate. You can also contact Seller Support for any reviews which infringe on Amazon’s guidelines.
Other possible reasons for removal include:
- A product manufacturer posts a review of their own product, posing as an unbiased buyer.
- A product seller posts a review of their competitor’s product, posing as an unbiased buyer.
- A buyer, unhappy with their purchase, posts multiple negative reviews for the same product.
- A buyer posts a review in exchange for a financial reward or other compensation.
- A family member of the product creator posts a 5-star review to help boost sales.
More than ever, shoppers are doing their research before purchasing, even low-cost items. Coupled with the fact that competition on Amazon is very strong—this makes gathering positive product reviews a must for all private label sellers.
Product review software like FeedbackExpress makes the process of gathering reviews so much easier through automation. You can customise templates written by professional copywriters proven to increase customer engagement.
Many sellers are taking advantage of the FREE 30-day trial and seeing the benefits it can bring to their Amazon business. After 30 days, you can then decide if the software is worth the investment.
Got any questions? Get in touch via Live Chat or email [email protected].
*A version of this article first appeared on the FeedbackExpress blog
Amazon and Alibaba, the two big giants of the ecommerce industry are competing against each other to win the crown for the leader of the global ecommerce market. Amazon laid the cornerstone in 1995 as an online bookstore whereas Alibaba started off its venture in 1999, nearly five years after Amazon’s founding. Now that both the companies have established a strong brand presence in their home territories, there is tough competition between these two tech giants as they are looking for new markets to expand in.
By raising an IPO value of $21.8 billion by the end of 2014, Alibaba has grown on to become one of the largest and most valuable ecommerce companies in the world. In fact, on the first day of trading, Alibaba eclipsed both Amazon and eBay.
The two ecommerce titans have many features in common. A major portion of Amazon’s revenue comes from electronic products and merchandise and digital media content (including Amazon Prime, an annual fee-based subscription that streams video content and other trending digital services).
On the other hand, Alibaba operates on a number of ecommerce sites aimed at different types of sellers. Alibaba’s Taobao is one of Alibaba group’s most profitable marketplaces and is responsible for more than 80% of Alibaba’s sales. Even though the mode of operation of both companies looks similar at first glance, they are quite different.
Alibaba isn’t involved in direct sales and does not own any warehouses like Amazon. They simply help small businesses and branded manufacturers reach consumers. Amazon operates on a managed online platform that looks similar to a traditional store but stays online. It exercises control over customer experience.
Alibaba looks profitable, but the company is facing strong barriers in finding new customers and adapting to new economies. Amazon has already recognised the fact that to compete with Alibaba in China, they need to invest a huge amount of money and has pivoted away from China to focus on other prominent regions.
The infographic below compiled by Ecommerce Platforms depicts the growth track of these two ecommerce giants.
Increase your Amazon Sales and Profits!
There’s never been a better time to start using a repricer on Amazon. Sign up today using the promo code REX10 and you’ll get 15 days free plus 10% off your first month’s bill.
*This article first appeared on the RepricerExpress website
Page 1 of 11