I am currently selling on Amazon but not efficiently, what can I do?
Amazon is the largest online marketplace in the world, which has most of the market share in online retail. So, if you are an Amazon Seller and you are selling items that have demand, you WILL generate revenues. If you know what you are doing, you WILL, without question, generate significant revenues.
There are many reasons why you may be under performing. The answer requires some analysis to answer the following questions:
- What is the market size on your listings? In other words, if every one of your listings received all the available orders placed on Amazon, how many pieces would you sell per month?
- What is your Buy Box percentage? In other words, how many hours in a day are you able to stay in the Buy Box? This means if the market size is 24 pcs in a day and you are in the Buy Box only 10% of the time, you will receive 2 or 3 orders per day.
- Is your replenishment optimized? In other words, do you have your items in stock continuously or are you out of stock often on high performing items?
These three (3) questions will give you some idea about the reason for under performance. Once you know where the problem is, you can bring in the right solution. However, it is usually a combination of all three and the right answer requires the use of analytics and automation of your pricing and replenishment by using algorithms.
Selling large quantities on Amazon is not an easy proposition but when you get it right, you enjoy steady stream of revenues.
About the Author:
Nick Uresin is the Founder and CEO of ArgoMetrix, a New York based software and consulting company established in 2013. Nick is an Entrepreneur, Electronics, Communications and Computer Science Engineer, who has a passion for problem solving with technology. Nick built an online retail company with annual revenues of over $10 million. He developed his vision to organize the knowledge and technology he developed to become a large Amazon Seller and provide it as a service to manufacturers and sellers of consumer products. Let's get social! Follow us and get ArgoMetrix's latest updates on Twitter, Facebook or LinkedIn.