Why Selling on Amazon is Crucial

Amazon is a platform that businesses should use for two reasons.

Reason 1: Many potential customers who already know about the company and its products search for them on Amazon. If a business is not on Amazon, it risks losing customers. This might be because customers do not search further on Google, they have Amazon Prime and want to utilize it, or they simply prefer to shop on Amazon.

Reason 2: By being on Amazon, many new customers can find the company's products. For this to happen, customers need to see the products in some way, either through advertisements or by the products appearing high in search results.

How to Address Reason 1: Existing Customers on Amazon

Reason 1 is easy to solve. Upload the products, write a good title, a good product description, and add some pictures. Done (in principle).

Overcoming the Challenge of Reason 2: Attracting New Customers

Reason 2, which companies are more commonly interested in, is a bit harder. Advertising is easy and good ROI is within reach, but this is not unique to Amazon and is not where the big potential profit lies. Appearing high in search results is less simple. It requires the product page to be optimized for Amazon's search engine and the product to sell well.

Boosting Sales to Improve Search Rankings

When Amazon's algorithms see that the product sells well, it moves up in the search results.

But how should the product or products sell well before they appear high in the search results? Catch-22? Somehow, you must first sell the product to appear higher in the search results and thereby start selling more.

It is often not possible to be ROI positive from the beginning, and it sometimes requires taking a loss to then achieve a greater profit.

Strategies to Drive Sales on Amazon

Use social media, advertisements, email (however you reach out to customers), and direct them to Amazon to sell the products. When they sell, the products start appearing higher in the search results, which generates more sales.

Advertising or reaching out to customers in this way costs money. But if reason 2 is the battle the company wants to win, then this is an investment that needs to be made.