Our client’s case study, in which he suffered a crushing loss after launching 17 products, is all the evidence you need to know that our Amazon account management service is worth every penny.
Selling on Amazon seems like a straightforward, long road, but the reality is that the grass is always greener on the other side. First, there are “complexities” that Amazon poses to third-party sellers, and then there are “challenges” that you yourself experience in the intense competition of the Amazon world. I’m going to explain it all, and after that, you will have a great idea about why you should have Amazon’s account management service.
Let’s first discuss the big, very big complexity of the Amazon entrepreneur world.
Understand the big complexity of selling on Amazon
In the Amazon world, you have to think of “Amazon” as your rival and enemy and stay aware of them. If you don’t, you will fall into the category of “Why do 95% of Amazon sellers fail”? If you make even a small misstep in the direction Amazon is heading, you can kiss your bank account goodbye.
Come this way.
- If your product is successful, Amazon may release a similar but slightly modified version of it under the “Amazon choice” label.
- Amazon has a lower price than the original third-party seller on that particular product.
- And then Amazon seeks to prove its special position in the market for that particular product.
So, how can you overcome this complexity?
- Stay and confront Big Brother in an Oppressive setting; or
- Reduce your reachable market by half because your customers’ switching costs will rise and your own customer acquisition costs will increase as well.
The first choice is obviously the most challenging to carry out. It’s like going through hell to triumph over Amazon. For this reason, I recommend focusing on point 2. However, in point 2, you will encounter the challenges that we will detail in the subsequent sections.
The challenges you are going to face
Following the second option means you are willing to enter the Amazon market despite any challenges you may face. So let’s quickly talk about challenges.
Challenge No. 01
If you launch the wrong products to sell on Amazon, you could lose money right away. It could be because the product is not desirable to the target market, or that the market is saturated, or that the price is too high, or maybe you couldn’t differentiate your product well.
If you get off on the wrong foot at the beginning, you may find yourself months later with no money and/or going mad.
Challenge No. 02
You may have made the right product selection. You’ve made it through the initial snag. Well done. But now you can lose money because you have to deal with a supplier from the pits of hell.
They insisted on a nonstandard method of payment, and now you have no other choice. What if the product was manufactured incorrectly and your logo is on the reverse side, or if there is some other problem? If they disappear, you’re in a bit of a trap.
Challenge No. 03
Oh, you didn’t know that the extra weight of your bubble-wrapped, battery-packed item would increase your shipping costs? This is the next challenge.
When it comes to shipping and maintaining huge amounts of inventory, even more people lose money than at any other point in the process.
Challenge No. 04
When you finally figure out shipping, you may discover that your revenue wasn’t as high as you had anticipated. You are unable to charge too much for your product since no one will buy it, and you’ll have to lower your prices as well to compete.
Poor revenue calculation is another thing that can put an end to your Amazon business.
Similarly, your profits will be wiped out if you engage in a pricing war from which the only escape is a price decrease.
Challenge No. 05
You’re up against fat cat billionaires who can crush you in a heartbeat, or else ten thousand more sellers started offering the same product at the very same time you did.
Now fast forward to the future, despite your best efforts to sell best products on Amazon, your conversion rate remains terrible. The sales just aren’t there. Marketing on Amazon is really costly. You are missing out on potential customers because of poorly optimized product listings. …and so on.
Signs that indicate the need for professional Amazon account management service
We have now covered a few challenges. Let us elaborate and explain how our account management service is the optimal answer to the issue at hand.
Time constraints and limited internal resources
Caretaking tasks in the Amazon business are practically endless. Things like manufacturing, marketing, and so on fall under this umbrella. Obviously, you need to devote considerable effort to each task. Even more specifically, you can think about the above-mentioned Amazon challenges for every specific task.
Do you think you’ll have enough time to properly plan each step to combat each coming challenge in the Amazon business journey?
But we have time for this because we have already dealt with such challenges a million times, and that’s why,
The Amazon account management service at eComFist gives the solution to the above challenges in the following way. Let us summarize it.
Our Unique solutions within your limited time and limited resources
Solution No. 01 – We differentiate you no matter what
If you are a startup, we would prefer to differentiate you and your product because failing to do so would force you to enter a price war and ultimately perish in the muck. We create the unique identity of your brand and the reason behind your products.
We help you stand out from the crowd and adhere to realistic pricing.
We put our prices to the test, but we don’t feel compelled to cut them just because our rival has done so. No matter how much cheaper the next guy is, we prefer to build a quality brand that people are willing to pay for.
Solution No. 02 – We deal with a supplier like a pro
Managing or locating reliable suppliers is the next challenge. It’s not always weird. It’s just that you haven’t learned the skills of working together, forming lasting relationships with suppliers, and anticipating where conflicts could pop up.
In order to overcome this hurdle, our account management service uses the following strategy.
- First, we have worked with suppliers for a long time and developed genuine relationships with them.
- Second, we are devoted to following the standard of conduct. We are the buyer, and we are always in the right when we make a purchase; so, no matter how sweet the supplier talks, we require complete transparency from him. From the use of verifiable photos, testing, and product inspection to the use of secure payment methods, we need just be wary and have good judgment.
Solution No. 03 – Our strategies cut the cost of shipping
We try to keep your brand away from products that are too big and heavy to ship successfully.
We’d like to provide you with a lightweight, easily shipped, and affordably priced product. One package may hold 500 silicon spatulas. Estimate the number of boxes required to transport 500 mattresses. What about a lampshade for 500 lamps? How about five hundred toasters? Do you get what it means now?
Simply put, we prefer to select a product that won’t subject you to the excess pain of a shipment bill that makes you feel like
“Ah, I won’t expect that huge shipping bill.”
Solution No. 04 – We Keep tabs on inventory levels efficiently
For startups and new launches, we suggest starting with a small order size. If you buy a thousand of your products, you may have an inventory overflow problem if sales of fancy products A, B, or C are slow. You must have sales.
Therefore, we recommend starting with no more than 300 items. However, for large brands, we employ a variety of software to centralize stock, establish par levels and reorder points, track and update stock in accordance with regulations, put into place a FIFO system, monitor key performance indicators, and so on.
There’s really only one rule that we stick to. Start slowly, make wise decisions, and live to fight another day.
All of these are solutions that we offer while considering your limited budget and limited internal resources.
Rapid sales growth
It is possible to have low conversion rates even if there is a large demand for your product, it is highly ranked, and everything else goes well.
If your pages don’t convert well, visitors will simply move on to a different page.
Even if your landing page converts at an impressive rate of 30%, you will still lose 70% of visitors to forgetfulness.
If losing 70% is acceptable (the average conversion rate is 5%, which means that most people are losing 95%), then shouldn’t you do all in your power to enhance the conversion rate by even a small amount?
Mostly Amazon sellers lose money because they do everything perfectly, but their landing page only converts at 5%, and they don’t realize this is bad.
Doubling your sales is what happens when your conversion rate goes from 5% to 10%. In addition to the further costs for PPC advertising. What you display on your listing page has the potential to increase sales by a factor of two. That’s a tremendous development.
Solution No. 05 – optimizing listings and advertising strategies
1-Manage the costly Amazon advertising
Keywords are everything in Amazon’s advertising business. Sellers believe the cost of this game is high. Yes, but what counts more than anything else is experience and creativity. At eComFist, for instance, we, too, have tried and found success with low-volume keywords. Bidding is quite low for these low-volume keywords. Thus, after running only a few PPC campaigns, our product listings have achieved first-page organic rankings for nearly all of their target keywords.
And it had a notable impact on the rate of conversion.
Let’s take an example.
In the picture above, there are three products listed and the left mirror wall is making the most There are three products seen above, and the largest percentage of sales are coming from the left mirror wall product. And once we checked its PPC campaigns and the keywords on which the listings get listed, the results were robust – it is practically ranked on every keyword that is not even included in the other competitors’ listings.
You can see the results of our PPC advertising keyword research below.
It’s true that the low price and more carefully crafted optimized listings contribute to the greater success of this mirror wall product. Yes, we agree with you. These factors also play a role. However, one cannot ignore its powerful product advertisement strategy.
Now, let’s check how much listing optimization is a contributing factor in the success of mirror wall conversion rates.
2-Enhanced conversion rate = Optimize your product listings
Conversion rate also get enhanced by optimized listings – crafted product title, compelling product description, high-quality images, suitable price and special offering, detailed product attributes, good ratings and reviews etc.
A complete review of all product listings for the above three products revealed that the left mirror wall converts better than its 8.3 and 8.6 scored competitors. A 7.5 is not a great score, but it’s also not terrible. Accordingly, the strong conversion rate of this mirror wall product may be attributed to the exclusive offer and PPC advertising strategy.
Increasing competitive landscape and algorithm changes
Competition is a major problem today.
The Law of Supply and Demand. So, you know the deal.
Solution No. 06 – Applying supply and demand rule
Our account management service analyzes the product market’s competitiveness through the lens of the supply and demand rule.
- As competition (alternative supply) helps to feed the market, indicating strong demand, it is often viewed favorably.
- It’s possible that there isn’t much of a market for it since there isn’t much competition, and launching products with no competition at all can cause huge risks.
Another issue arises if there is an abundance of supply but insufficient demand. You’re either in an oversaturated market or have landed in an industry dominated by a small group of fat cats.
To solve this problem, we find solutions in two ways.
Problem: The Market is Oversaturated
Solution: We’ll set you apart from the competition by bringing your brand into the spotlight and expanding into untapped markets through cross-promotion and other means.
Problem: Presence of Fat Cats
Solution: Our approach to the market is unique in that we zero in on sub-niches rather than the broad market at large. The bigwigs agree, this is HUGE; with that settled, we can move on to picking the low-hanging fruit (high demand products but less saturated) without drawing the big cats’ attention.
We also devote a lot of time in our training to discussing how to avoid these issues altogether by making wise product selections at the outset.
Brand protection and counterfeit issues
Amazon has a major problem with product counterfeiting. To combat fraud in 2022, Amazon spent $1.2 billion and employed 15,000 people. However, this remains a major issue.
It’s possible that you won’t realize that your products are being counterfeited unless you actively look for them, and in the meantime, crooks are making a huge profit on your trademark reputation.
Solution No. 07 – detecting counterfeit issue in client’s product
However, if you employ Amazon’s account management service, they will handle everything for you.
Here’s a real-world scenario we encountered.
A client once contacted us about selling his Jeffy puppet on Amazon. As soon as we see the product, we know the client doesn’t have trademark rights to it. We were not prepared to launch the product because doing so would lead to counterfeits. We tried to explain to the client why the product is failing, but he just wouldn’t listen to us.
We realize that the sellers’ lack of awareness about counterfeiting is a common cause of the issue at hand.
Business Expansion and scaling challenges
Expanding the various launches and scaling the entire Amazon business is a totally different experience from launching a single product. When Amazon businesses expand, new challenges arise in areas such as supply chain management, inventory management, brand and reputation management, and so on.
Sellers alone themselves can’t possibly keep up with managing product listings while attending to customer inquiries.
Solution No. 08 – scaling Amazon business
The solution is straightforward: hire individuals who believe and act as you do. Because obviously, you can’t handle it all alone.The workforce must be valuable and able to work in a dynamic setting.
You may also hire a reputable full-service Amazon brand accelerator to handle the scaling of your business on your behalf, giving the advantage of their extensive experience with cutting-edge software and tools.
Choosing the right Amazon account management service
How do you go about selecting an account management service that will actually help you out in the long run? Because, after all, why need to pay for a service if it’s as handy as a chocolate teapot? So, let’s avoid any ‘meh’ moments
1-Assess their expertise and experience
Look for a service company that has managed Amazon accounts in the past. Their knowledge of how to use the platform and get results is extremely important.
2-Are their services customized to your business’s needs?
Every business is different, so it’s important to find a service that offers custom options to meet your needs. Whether it’s inventory management, advertising, or protecting your business, make sure the service provider can meet your needs.
3-Transparency and communication
A good partnership needs open and honest communication. Choose an account management service that keeps you updated on strategies, success, and key metrics and creates an environment where people can work together.
4-Pricing structure and return on investment (ROI)
Examine the pricing policies provided by various services and assess the potential return on investment. Even though cost is important, you should focus on value and tangible outcomes that help your business grow.
We have already written about how to choose the best Amazon consultant. You will find additional useful information there.
Leverage the power of account management service at eComFist
Now, we’ve talked about everything, from the big questions about the Amazon business to the difficult issues that come after getting into it. They can be anything from choosing the right product to problems with the weight of the product, from difficulties with conversion and sales to issues with optimization and promoting, and sometimes even difficulties with counterfeiting and growing the brand.
Just because you hear about all of the above issues doesn’t mean you should be scared and stop thinking about selling on Amazon or quit your Amazon business. Let’s say you’re taking a medicine that has side effects. You won’t stop taking the medicine, but you might look for ways to lessen the side effects. The same is true for Amazon.
With Amazon, you have a platform and an audience that already trusts you. It’s much easier to sell on Amazon than to try to build trust and traffic on your own, which is much harder and more difficult.