Mastering Amazon: A Guide for Small Businesses to Excel in E-Commerce

Business success means more than just having a terrific product. It's also about reaching out to as many customers as possible, as they're the lifeblood of any brand. One great way to do so is by being online, especially on Amazon.

Did you know that Amazon Shopping is the second most downloaded mobile app in the world? Also, 56% of American consumers start their online searches directly on Amazon. These figures show that the online marketplace is great for reaching customers and driving your business forward.

Let's explore how you can start selling on Amazon—from the services you can avail of to navigating the platform's algorithm.

Facts About Selling on Amazon

Amazon is a powerful tool for any business today—and the numbers don't lie. Here are some statistics you should know.

- In 2022, American sellers on Amazon made an average of over $230,000 in sales and sold over 4.1 billion items to customers worldwide. (Amazon)

- Sellers and advertisers using Amazon Ads' Sponsored Products spent 13% to 79% less per click than other options. (Amazon)

- The "beauty and personal care" and "home and kitchen" categories are the most profitable for Amazon sellers globally. Following closely behind are clothing, shoes, and jewelry, accounting for 27% of sellers. (Statista)

- The most popular category for small and medium-sized businesses on Amazon was "home and kitchen," with 35% listing products in that category for sale. (Statista)

- In 2022, 64% of merchants used Amazon's Fulfilled-by-Amazon (FBA) model for order fulfillment. Additionally, 22% combined FBA with handling orders, including storage, shipping, and customer service. (Statista)

- 20% of brands on Amazon in the United States sold exclusively as first-party (1P), while 6% sold only as third-party (3P). Meanwhile, 74% of brands on Amazon used a combination of both 1P and 3P sales. (Statista)

- Over 60% of Amazon sales come from independent sellers, many of them small and medium-sized businesses. (Amazon)

- Selling on Amazon has created around 1.5 million jobs in the U.S. These jobs include managing, operating, and supporting sellers' efforts. (Amazon)

Amazon Services and Programs for Sellers

Besides listing your products on the marketplace, Amazon lets you avail of the following services to improve your operations and spend more time growing your business. 

- Fulfillment by Amazon (FBA)

You can save on warehouse and fulfillment costs as Amazon can do it for you through FBA. When customers place orders, Amazon picks, packs, and ships the products on your behalf. It can also handle customer service and returns.

- Amazon Ads

This service allows you to promote your products through various ad formats across the platform, including search results, product pages, and more.

- Amazon Business

You no longer need to get several suppliers for business supplies and services. With Amazon Business, you can get everything you need to run your brand in one platform.

For instance, it allows you to buy resources in bulk. It also serves as a one-stop shop for office supplies like paper, cleaning materials, and productivity tools like laptops and headphones.

- Strategic Account Services

As your business grows, you'll need someone to oversee your daily operations and streamline time-consuming tasks. An Amazon account strategist can do these things for you.

This service offers personalized support and guidance regarding account management, strategic planning, and assistance with growing sales and improving performance.

- Sponsored Brands

This advertising option lets you promote your brand and products within Amazon using custom creatives and headline banners. It increases brand visibility, drives traffic to your product listings, and ultimately boosts sales.

- Brand Registry

Brand Registry helps protect your intellectual property and control your product listings on Amazon. It provides tools to manage your brand presence and report violations.

- Customer Service by Amazon

Your brand of customer service can impact your business. If you're a small business with little to no ability handling customer inquiries, you can avail of Amazon's customer support. The platform can handle inquiries, returns, and other customer service tasks, ensuring a positive shopping experience for buyers.

- Amazon Lending

For financial needs, you can turn to Amazon Lending. It offers loans to help you grow your business. These loans take into account your performance and sales history on Amazon.

- Amazon Global Logistics

Are you planning to expand abroad? Amazon Global Logistics offers shipping and logistics solutions so you can manage and fulfill international orders. It enables you to reach customers worldwide and expand your market reach.

- Merch Collab

This program allows creators and influencers to collaborate with you in creating and selling custom merchandise on Amazon. It enables creators to monetize their influence and expand their reach through e-commerce.

Increasing Visibility with Amazon's A10 Algorithm

Amazon A10 is the latest version of the marketplace's proprietary search engine. It uses artificial intelligence (AI) and natural language processing to decide which products appear first when you search for something on Amazon. 

It considers the following factors when ranking products:

- Front-end and backend keywords

- Customer reviews

- Sales velocity

- Conversion rates

- Seller's authority

- Click-through rates

How to Build a Strong Brand Presence and Improve Your Visibility on Amazon

Despite Amazon being a useful platform for selling products, it's also a saturated marketplace. Hence, you need to stand out. Follow these tips to attract customers and rank first in search results.

1. Build a consistent brand

You wouldn't want to enter a crowded market looking like everyone else. You need a distinct brand identity that sets you apart from competitors. Before establishing your Amazon storefront, ensure you have a recognizable logo, color palette, and voice.

See to it that these branding elements are consistent in your product listings and other customer-facing pages so you can build trust and loyalty among shoppers.

2. Address customer concerns promptly

A 2023 study found that 50% of customers are less likely to support a business that takes longer to respond than expected. Another group also said they would pay an average of 19% more for "always immediate service." These findings show the importance of quick customer service.

When you promptly attend to customers, you can gain positive reviews and boost brand credibility. In effect, your search ranking improves.

3. Optimize your product listings

Similar to offline shopping, customers are more likely to buy if you present your products well. Hence, when selling on Amazon, you should optimize your product listings to instantly attract customers to your online store.

You can start by using high-quality images to showcase your products effectively. Then, provide detailed product descriptions and clear pricing so customers can make informed purchasing decisions.

4. Conduct keyword research

Another way to make your product listings more visible is to use the right keywords. It means finding out which words or phrases people often use when searching for products similar to yours on Amazon.

With suitable keywords in your product titles, descriptions, and other branding materials, your product is more likely to appear when customers search for those terms.

5. Use Amazon Ads

If you have a budget, consider investing in Amazon Ads to increase your product's visibility. It can drive more traffic to your product pages, increase sales, and improve your search rankings on the platform.

6. Analyze your performance

When selling on Amazon, it helps to keep an eye on how your brand is doing. This means checking out what's working well and fixing what's not.

Some key metrics you can analyze are sales velocity, customer reviews, and product rankings. These indicators can tell you a lot about how well your strategies are working and how healthy your business is. Then, you can make smart choices to improve your products and boost your success on Amazon.

7. Enlist the help of an Amazon agency

Selling on Amazon can be overwhelming, especially if you're a small business using the platform for the first time. To speed up the process, consider working with an Amazon agency. They have the knowledge and tools needed to boost your business in the online marketplace.

However, don't just hire the first agency you see. Research and select a reputable one that specializes in e-commerce and Amazon services. Communicate your brand vision, goals, and expectations clearly to ensure alignment and effective collaboration.

8. Monitor products and guard against counterfeits

Building an online presence can make you more visible to customers but also put you closer to brands that might copy your products. Hence, you should regularly monitor your product listings to ensure accuracy and authenticity and maintain customer trust.

You can utilize Amazon's Brand Registry and Transparency programs to protect your reputation and intellectual property rights. Proactively acting against unauthorized sellers helps maintain your brand's integrity and fosters a positive customer shopping experience.

Win on Amazon

Part of online business success requires establishing a strong presence on Amazon, one of the leading global shopping platforms. Use the tips above to boost your performance and be a top seller.

From analyzing key metrics to refining product offerings, every step counts toward achieving growth and staying competitive in the digital marketplace. Don't miss out on the opportunity to thrive on Amazon—implementing these strategies can lead to long-term success.