In April 2019 Feedvisor surveyed 800+ US Amazon marketplace merchants about their businesses.
They asked about their sales volume, profit margin, business model (including use of FBA and private labelling), their concerns about selling on Amazon, how they source and promote products, and the software they use.
This all seems fairly nuanced. How can sellers turn this into an opportunity?
The results of the survey serve as a useful guide for market participants.
The developing nature of Amazon may shift merchants’ focus with the rise of new trends, tools and services.
However, sellers must remain agile to adjust their strategy according to Amazon’s movements.
This way they will be more efficient in identifying a room for improvement and uncovering new ways to scale.
Let’s get started with the most interesting insights…
62% of Sellers Have Private Label Products in Their Catalogs
Over a fourth of respondents have Amazon catalogs that are 100% private label and more than 33% expressed that private label items make up 60% or a greater amount of their inventory.
For sellers, private labels offer immense profit potential. Because they have unique ASINs and therefore always win the Buy Box, while their counterparts have competitive ASINs and are not guaranteed the Buy Box.
Ratings and Reviews Are Critical to Success on Amazon
Through product reviews and seller account ratings, merchants can get bits of knowledge into consumer satisfaction on how their order was packaged and delivered, just as their impression of the whole experience from beginning to end. Do they wish the thing was accessible in an alternate color? Or similar.
Monitoring product reviews and seller feedback can help sellers stay apprised of potential product improvements and consumer trends, inform their SKU-specific analyses, enable them to benchmark against the competition, and provide a strong understanding of their overall seller reputation.
Here at Bindwise we’re helping merchants to automate seller feedback monitoring process to drive higher seller reputation.
This year (2019), over one-third (36%) of sellers cited “Amazon taking away my seller privileges” as their greatest concern with selling on the platform.
Adhering to Amazon’s precise rules and best practices to avoid account suspension is a significant part of a seller’s responsibility with selling on Amazon to create and instil an excellent buying experience for the customer.
Half (49%) of Amazon merchants sell almost exclusively on Amazon, which accounts for 80–100% of their total e-commerce revenue.
Sellers have a presence on eBay and Walmart, but Amazon is the priority.
Despite the fact that these marketplaces do not play as instrumental of a role as Amazon in sellers’ overall e-commerce strategies, their presence demonstrates how sellers are diversifying their revenue streams and providing consumers with an array of products across curated marketplace destinations.
Although Amazon is the dominant marketplace, more than half of sellers are on eBay and over one-third (35%) are on Walmart.
Amazon Pay-Per-Click Is Sellers’ Advertising Channel of Choice
How sellers promote their products?
When asked what aspects of their business they want to improve over the next year, more than half (51%) cited strategic advertising.
However, in addition to advertising, sellers are focusing on other critical aspects of their business, demonstrating how closely intertwined key areas of the operation truly are.
A close runner-up to advertising is ratings and reviews, with nearly half of sellers (49%) focusing on improving customer feedback over the next year. Other top responses include inventory management (45%) and product content (45%).
An expanding number of merchants are utilizing cloud-based software like Bindwise to execute on tasks such as protecting against counterfeits, aligning their listings with Amazon regulations, monitoring negative feedback, and shipping product on time — revealing how they are becoming more adept and taking matters into their own hands to prevent suspension.