With 2019 at a close, it’s a good time to look back into the impact Amazon had on SMBs. Below is a summary of Amazon’s 2019 Impact on SMB Report.
SMBs continue to choose Amazon to sell their goods over other marketplaces, increasing Amazon’s market share and providing consumers with more choices. Year over year, more and more SMBs choose to sell on Amazon:
2016: 600,000 SMBs
2017: 900,000 SMBs
2018: 1,600,000 SMBs
In 2018, SMBs accounted for over $160 billion in sales, accounting for more than half of Amazon’s overall sales. For 2018, these SMBs had significant sales:
More than 200,000 SMBs had sales of over $100,000
More than 50,000 SMBs had sales of over $500,000
More than 25,000 SMBs had sales of over $1,000,000
More than one billion dollars was loaned to SMBs to help support their Amazon stores.
But what does all of this mean for sellers? Amazon’s report includes these benefits:
US-based sellers had on average $90,000 in sales
US-based sellers more than doubled their export sales using FBA
This large growth in both Amazon’s distribution centers, fast delivery, and SMBs choosing Amazon over other platforms means that SMBs now sell on average 4,000 items per minute!
The most popular categories for SMBs are:
Health & Personal Care
The top ten states with the fastest-growing SMBs are:
Amazon has also grown in other ways. Amazon delivery vans have likely become more and more common on the streets. And people keep in touch with Amazon-related news may recall Amazon’s Delivery Service Partner program, which advertised $100,000 earnings when it first launched.
Other areas of growth include Amazon Web Services (AWS), Kindle Direct Publishing, and Alexa development.
Amazon is still growing, and it seems like a new distribution center is being built every month. What this expansion shows is Amazon’s plan to reduce delivery times and continue to grow its share of the online market sales.
Your ecommerce storefront up and running, and sales are starting to come in. You’re now likely wondering what the next step should be. It would be a mistake to sit by and hope business picks up. You have to be proactive!
To give you a few ideas for what you can do next, we’ve brought together a few great tips to improve your sales.
Actively Seek Out New Business
Take steps to draw in new customers. Don’t expect them to just happen upon your website without you putting any effort in!
Whether you set up a referral program to gain some free marketing from your current customers or establish and maintain a presence on social media, there are many ways to get new customers.
Here are some other ways you can increase sales:
Advertise on social media platforms like Instagram, Facebook, or Pinterest using shoppable ads
Send emails to your current customers regarding sales or new products
Provide content like videos or articles to describe or demonstrate your products
Advertise using PPC
Offer Incentives To Buy More
Another great way to improve your ecommerce business is to sell to your loyal customers.
Giving your current customers incentives for placing larger or more frequent orders can be a great way to increase profits, with no cost or little effort spent on your part!
One great way of doing this is by offering discounts on products where production costs are low. You may be able to increase production, reduce costs, and still maintain the same profit margin even after discounts!
You can set up a customer loyalty program to reward your best customers. Offer them free products, services or discounts after they’ve purchased a certain amount.
There is a reason you find many businesses these days offering rewards programs: they work!
Avoid Lost Sales and Abandoned Shopping Carts
A common problem many ecommerce businesses face is customers leaving their site without completing their order.
In fact, between 60 and 70 percent of visitors do just that! This results in a large loss of potential revenue.
Identify what is causing customers to change their minds. Typically, customers will abandon their shopping carts due to additional fees such as shipping costs or taxes, which is a sign that your price is not competitive.
They may seek out alternative marketplaces. If they find it cheaper elsewhere, they are going to end up buying from your competition!
There are several techniques you can employ to take these missed opportunities and turn them into sales. One of the most effective methods is by sending follow up emails.
Most ecommerce platforms offer this feature, and by setting up a steady trickle of follow up emails, you may entice your would-be customer into placing their order!
To make the most of this strategy, here are a few tips:
Send out a reminder to the customer, showing them what was left in their shopping cart
Be attention grabbing! Create enticing headlines and copy, as well as photos, to draw them back to your product
Upgrade Your Website’s Content
Take a look at your product descriptions and ad copy to find ways to improve. Try adding some great videos or photos to your product listings to make them more appealing.
Look at your website from a consumer’s perspective. Use visually stunning images, invest in professional product photographs, and avoid stock images that look cobbled together from free clip art.
Take this opportunity to do a little SEO optimization. Identify and add new keywords and meta tags to your pages, pictures, and articles.
Proofread and revise your content. Give relevant information and avoid being too wordy, as blocks of text turn away customers.
Increase Your Prices, Within Reason
Your customers might not like it, but increasing the prices on some of your products by a small amount is another great way to increase sales.
If you currently offer free shipping, consider charging for it, or increase the minimum amount for free shipping.
Many people associate quality with the price: the higher the price, the better the perceived quality. Many brands rely on this perception when determining a price.
The opposite is true. If you see a brand name product sold at low prices, you’ll question its authenticity.
But you don’t want to increase your price so much that it’s beyond your customer’s range, nor do you want to charge so much that you drive your customers away.
Coming up with the right price can be difficult, but with a little trial and error, you’ll be able to find the right price.
Offer Occasional Discounts and Price Drops
Everyone loves a bargain! Offering your customers discount codes or advertising price drops are some great ways to draw attention to your website!
However, you’ll want to avoid offering too steep of a discount, as this can end up scaring customers away. Constant sales may give your customers the impression that your product is cheap.
Worse, they’ll see your sale price as the new “normal” price, making it more difficult to complete sales in the future.
By offering up single-use promo codes or short-term sales on your most popular products, customers who were on the fence about buying may be pushed over the edge, resulting in increased sales!
Temporary sales are another great way to take the more frugal shoppers amongst your customers. They’ll then be advocates for your brand.
Bargain hunters love finding a good deal and are more likely to share their findings with their friends via social media, resulting in some free advertising for your business.
Diversify Your Offerings
Even if you’ve been successful by focusing on one channel, branching out into other potential channels is in your best interest. By adding additional options to your product line, exporting or importing your own products, or establishing yourself as an expert in your chosen field, you’ll open up new avenues for profit!
Many sellers may rely on one marketplace like Amazon, but when their account is suspended, their sales may completely stop while they’re frantically trying to correct the issue. In the meantime, they still have expenses.
By diversifying, merchants can reduce the impact of one marketplace having an issue while they work to resolve problems.
Offer Upgraded Items and Complementary Products
After finding products that your customers enjoy, don’t sit by and let them do all the heavy lifting! Upselling, or enticing your customers into buying upgraded items or complementary products, is a great way to grow your business.
Offering your customers a larger variety of products to choose from will increase the likelihood of them buying from your storefront, and a larger catalog will make your products appear all the more attractive.
Growing Your Business Doesn’t Have to be Difficult
Whether you’ve been running your ecommerce business for days or years, you’ll likely be looking for ways to grow your business. After reading through this article, you should have some better ideas on what techniques you can employ to accomplish this task.
Whether you end up acting on a few, or all, of these great tips, you’ll likely find that your sales start to pick up once you’ve started being more proactive about the growth of your business!
Check out this list of must-have eBay tools, apps, and websites to maximize your time when you flip or resell items!
There are a lot of inefficiencies when it comes to flipping or reselling. Many sellers perform tasks manually and waste precious minutes throughout the day when they can automate or streamline certain processes. All those few minutes add up, sometimes to more than one hour!
That’s one extra hour to relax, source even more products, or even list and sell more! By streamlining your processes, you’ll be more competitive, increase your revenues, or just relax with your newfound time.
Save time from having to search, filter by sold and current listings, and estimating what the average selling price for your item is on eBay. Instead, type in the item on Checkaflip to get the average current and sold price for items on eBay.
Filter by new and used and get a better idea of how many of the listings have sold to estimate demand and likelihood of a sale.
Most sellers probably already have this app. But for those of you who don’t, download this app now! eBay’s app makes listing items very easy. You can simply scan the barcode of an item and snap a few pictures to get your item listed.
Ever wonder why some listings sell better than others? It’s because titles, descriptions, and images are better optimized than other listings. Use Title Builder to look up Hot, Popular, and Searched keywords on eBay to optimize your listing titles and get those sales!
If you’ve been around eBay long enough, you’ll recognize this site. Type in a keyword or a product you want to search for, and this website gives you search results for spelling mistakes made by careless sellers.
These unoptimized listings allow you to purchase products at a very low price for resale at the market rate.
Want to know what your total profit is after an item sells? Use this calculator to give you a fairly accurate estimate of your eBay and PayPal fees. Enter your Cost of Goods to get your net profit for the sale.
See if you can get cheaper rates through Pirate Ship to save on shipping fees!
Also try FitShipper if you want to see packaging dimensions and rates.
Use one or more of these apps today to streamline your workflow for eBay! Veteran sellers will recognize at least one or more of these useful services. If you’re new, don’t waste any more time or money by doing things manually.
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