The Amazon Marketplace is one of the most well-known marketing channels for online retailers. In 2018, advertisers invested over $10 billion on Amazon, putting Amazon into the top three for the first time.

Today, Amazon is rapidly maturing all aspects of its business, including content, inventory, search advertising, display, targeting, video, and reporting. It can be overwhelming if you’re just starting out on the platform.

We’re here to break it down. Keep reading for a step-by-step list covering how to sell on Amazon.

 

1. How to Set Up Your Amazon Seller Account

 

Step 1. Decide Between the Professional or Individual Seller Plan

When choosing an Amazon Selling Plan, consider the products you want to list. Both Individual and Professional Sellers can list products in more than 20 categories. Another 10 categories are available only to Professional Sellers who apply for permission and meet requirements. Here are the major differences between the Professional Amazon Seller plan vs. the Individual Seller Plan:

Individual Plan: Best if you’re planning on seller fewer than 40 items per month. There’s no monthly subscription fee, but your selling fees are $0.99 per item in addition to referral fees and variable closing fees. (We cover those selling fees later if you want to jump ahead.)

Professional Plan: Most established brands will start here – that is, unless you’re selling fewer than 40 items per month. The monthly subscription fee is $39.99 and there are also referral fees and variable closing fees (but no fees per item).

 

Step 2. Create Your Amazon Seller Account

For this next step, you will need:

  • A credit card that can be charged internationally
  • Banking information (including routing and account numbers)
  • Tax identification information

Visit the “Sell on Amazon” page and scroll to the very bottom to begin your registration process.

Tips for setting up your Amazon Seller Central account login:

  • Keep your personal and business emails separate. Consider using a separate email for your business versus the one already linked to your personal Amazon Prime account.
  • If you don’t have a business email set up yet, consider creating one via Gmail before you log in to Seller Central.
  • Keep in mind every Seller Central account you open will require a unique email.

 

Step 3. Follow Amazon Prompts

Once you’ve decided on a login, Amazon will prompt you to fill out several additional steps, including:

  • Seller Agreement / Information: You will need your business name & address, mobile or telephone number, chargeable credit card & valid bank account, and your tax information.
  • Billing / Deposit: This is where you will decide on your professional seller plan and fees.
  • Tax Information: Here you will select whether you’re a sole proprietor or a business. The major difference? Sole proprietors/individuals use their Social Security Number instead of an Employer Identification Number as their tax identification number.
  • Product Information: Amazon will ask you a variety of questions about your products including UPC codes, if you manufacture your products, and how many products you would like to list on the marketplace. Note that Amazon is already cross-checking UPC codes assigned to different ASINs on their marketplace against the GS1 database. This means any seller without authentic GS1 UPC codes are at risk of getting their listings removed if Amazon decides to go down that route.

Once you complete these steps you will be officially welcomed to use your Seller Central dashboard which includes a variety of tabs for managing inventory, pricing, orders, advertising, reports, and performance. Don’t forget to list your products and fill out the “About Seller” to let the Marketplace know about your business. You can also include your company logo, FAQs and your privacy policy listed there.

 

Selling on Amazon as a Vendor vs. Third-Party (3P) Seller

Let’s get familiar with the two different types of seller accounts available:

  1. Amazon Vendors
  2. Amazon Third Party (3P) Sellers

We’ll go through these options in detail next – and which option is better for you.

 

What is Amazon Vendor Central?

Amazon Vendor Central is an invite-only program for manufacturers and distributors. Amazon Vendor Central grants Amazon ownership of your inventory, which they will then market and sell to shoppers on Amazon.com.

How it works: Merchants or manufacturers sell their inventory to Amazon at wholesale rates. Once they have sent the items to Amazon, the seller’s work is done. Amazon pays for the inventory directly to the seller and maintains ownership of the products. Amazon sells those products on the Marketplace (as Amazon) – choosing their own price and shipping options.

 

Benefits of using Amazon Vendor Central

With the Vendor option, you’re selling to Amazon, and not on Amazon. This option virtually eliminates direct seller work including marketing, advertising, and even pricing.

Other benefits of Selling to Amazon include:

  • Avoid the hassle of handling pricing, shipping and other logistics for product sales
  • Amazon makes bulk purchases, which is great for inventory forecasting
  • Display and detail page functionality only available to Amazon (e.g.: Subscribe and Save program)
  • Access to inventory projection tools not available in Seller Central

 

What is Amazon Seller Central?

Amazon Seller Central is the interface Third Party sellers use to get list and sell products directly to Amazon’s customers.

You’ll list, price, and market your products yourself, and you’ll use the Seller Central dashboard to organize and monitor inventory, pricing, advertising, reports, and more.

How it Works: Brands use Seller Central to list their products on the Amazon Marketplace and sell items as a third party seller. Keep in mind, sellers are responsible for listings, advertising, and everything that comes with selling on an online marketplace.

Selling through Amazon Central is generally more work than selling through Amazon Vendor Central, but it also comes with greater levels of control around shipping, prices, and fulfillment – not to mention the potential for higher margins.

Today, more than half of total sales on Amazon come from 3P sellers using Seller Central. In the fourth quarter of 2019, 53% of paid units were sold by third-party sellers.

 

Benefits of using Amazon Seller Central

  • Increase Exposure – Leverage millions of unique monthly visitors to get more people to your online store.
  • Leverage Marketplace Benefits- Amazon’s Marketplace is a shopping destination that is known for reliability, ease of online shopping and selection. Listing on the Marketplace will allow you to capitalize on that branding.
  • Find New Customers- The Amazon Marketplace is huge. You’ll gain exposure to new and varied shoppers through the Marketplace- many of which would never encounter your online store otherwise.
  • Increase Sales- Shoppers on Amazon have come to the Marketplace with the explicit intent to purchase, or at the very least are looking to browse. Online search, advertising and other forms of online exposure do not guarantee that same bottom of the funnel-audience. Bottom Line- people on Amazon are more likely to buy.

 

Selling on Amazon vs. Selling to Amazon

Which program you choose to use to sell on Amazon depends on your store, fulfillment abilities, ROI goals, and many other variables.

Vendors who sell to Amazon avoid some headache with logistics, but are limited with their scope and ability to market products. Selling on Amazon is an option that is more suited to sellers who would sell to Amazon but want to take advantage of more exposure and other benefits of the Amazon Marketplace.

The biggest difference between Amazon sellers and vendors is who’s actually selling the product.

  • Sellers list, price, and market their products themselves.
  • Vendors sell their products to Amazon-employed buyers, who then list and resell the products to Amazon users.

Here’s a breakdown of other considerations when you’re selecting between Vendor Central and Seller Central.

 

Amazon Vendor Central vs. Seller Central: Summing It Up

 

Access

  • Vendor Central: Invite only
  • Seller Central: Open to any seller

Pricing

  • Vendor Central: Amazon controls
  • Seller Central: Seller controls

Marketing

  • Vendor Central: Access to Amazon marketing services and A+ content
  • Seller Central: Access to Enhanced Brand Content

Sales

  • Vendor Central: Sell to Amazon
  • Seller Central: Sell directly to Amazon customers

Logistics

  • Vendor Central: Adhere to Amazon’s logistics process
  • Seller Central: Sellers control their own logistics or use FBA

Messaging

  • Vendor Central: Amazon handles messaging and returns
  • Seller Central: Sellers handle messaging and returns

Analytics

  • Vendor Central: No analytics to view
  • Seller Central: Robust analytics to improve sales and marketing efforts

Fees

  • Vendor Central: $39.99 flat rate per month for unlimited sales
  • Seller Central: Traditional Amazon seller fees

Though technically you can’t outright choose to become an Amazon Vendor, it’s important to study up on these pros and cons in the event you’re offered an invite to the platform.

Both Vendor Central and Seller Central come with very unique advantages, so the right one for you will depend on your resources as a merchant, the level of control you want and the fees you’re willing to pay.

 

How Much Does Amazon Charge to Sell

 

Overall Cost for Selling on Amazon

The cost to sell on Amazon depends on which selling plan you choose.

As we mentioned earlier, Amazon sellers can choose between a Professional or Individual selling plan. Individual sellers pay $0.99 for each item sold on Amazon, in addition to variable closing fees ranging from $0.45 to $1.35. Professional sellers pay variable closing fees and referral fee percentages ranging from 6% to 25% (an average of 13%). Professional sellers also pay $39.99 per month but are exempt from the $0.99 per item fee.

professional amazon selling plan vs individual

Referral fees and variable closing fees are subtracted from the overall sale (including selling price, shipping and other charges such as gift wrap).

Note: Merchants who pay a monthly subscription fee of $39.99 to be a Pro Merchant Subscriber DO NOT have to pay the Amazon Marketplace $0.99 per item fee (good for merchants selling well over 40 products a month). If you sell more than 40 products a month then the Professional Seller Program is a no-brainer.

Amazon seller fees for a professional seller include:

  • A monthly subscription fee of $39.99
  • Referral fees on each item sold (varies by category – see full list below)
  • Variable closing fees (varies by category – see full list below)

Amazon seller fees for an individual seller include:

  • No monthly subscription fee
  • USD$ 0.99 fee for each item sold
  • Variable closing fees (varies by category – see full list below)

Other fees, such as shipping and gift wrap, are paid for by the customer. Here’s an example of those Amazon selling fees in action:

referral fees and variable fees for amazon

 

What is an Amazon Referral Fee?

The Amazon Marketplace Referral Fee is essentially a percentage of your total item price (and gift wrap charges if applicable) that Amazon collects based on its CPA model.

For example, if you sell an automotive accessory on the marketplace for $85.99, Amazon will keep $10.32 (12%) of that revenue as referral fees.

 

What is an Amazon Variable Closing Fee?

The Amazon Marketplace variable closing fees are fixed for media products and vary for non-media products. These fees pertain to the shipping details of your sold product.

Amazon Seller Fees for a Sold Book [Example]:

Now that you know about the structure of Amazon’s seller fees, let’s look at an Amazon fee example. Imagine you’re a book merchant who just sold Harry Potter and the Sorcerer’s Stone for $15.99. Suppose the customer paid $3.99 for shipping and NO gift wrapping. Assuming that you’re not a Pro Merchant subscriber, here’s how Amazon will deposit your revenue:

amazon selling fees example

Don’t let these fees scare you.

Amazon is a major source of traffic for online retailers and is competitive with other marketplace rates. Being aware of and understanding the Amazon selling fee structure is the first step on your way to managing a Marketplace campaign effectively.

(Psst – Use our Amazon Seller Fee calculator to determine just how much you’ll pay to sell on Amazon.)

 

Amazon Shipping and Fulfillment Options

Before we talk about shipping and fulfillment options, let’s briefly discuss UPC codes. In short: If you don’t have UPC codes, get them.

There is only one legitimate producer of UPC codes that exists globally: GS1.

GS1 (Global Standard 1) is a non-profit organization that has set the global standard for supply chain barcoding.

There are more than 100 GS1 organizations around the world – GS1 US is the organization that serves US businesses. GS1 issues unique prefixes to brand owners so that they can create their own unique barcodes containing the prefix number given to them by GS1.

 

Amazon FBA vs. FBM: What Should You Choose?

One of the first decisions you need to make is whether to let Amazon handle fulfillment of your products or to handle your order fulfillment in house (or by a service).

Essentially, you have three official options for fulfilling Amazon orders:

  1. Fulfillment by Amazon (FBA)
  2. Fulfillment by Merchant (FBM)
  3. Seller Fulfilled Prime (SFP)

You can use FBA for some products and FBM for others but let’s break these down to understand each better.

 

What is Fulfillment by Amazon (FBA)?

Fulfillment by Amazon (FBA) is a program where Amazon stores, packs, ships, and handles customer service for the products you sell on Amazon. FBA gives you the ability to sell products on Amazon Prime.

FBA is a fulfillment option that sellers can choose for any or all of their products. Sellers vary on the number of products they choose to fulfill (if any) using FBA, depending on their margins, product category, and related seller variables.

Fulfillment by Amazon is a good option for merchants who are looking to increase shipping time and reduce time and money allotted to fulfillment.

 

FBA Pros and Cons

Less Business Operations: FBA eliminates fulfillment shipping efforts for sellers. Instead of handling warehouse management & packaging (handling shipping, picking) and those associated fees, retailers can pass off those task to Amazon

Amazon Prime: Amazon Prime customers purchase more, and more frequently than traditional Amazon shoppers.

  • Using FBA increases product discoverability as FBA products feature Prime shipping, and appear for Prime filtered searches.
  • Prime users and purchasers increase seasonally, and can add a boost around the holiday. Subscription services climbed more than 50% year after year in the last 3 quarters.
  • Conversions are more likely on detail pages that are prime eligible, which can increase sales for products you sell using FBA.

Customer Service & Returns: Amazon handles customer service and returns with FBA orders, which is a perk for sellers who aren’t customer service specialists.

Shipping Speed: For online shoppers, FBA means quicker shipping rates, Amazon Prime eligible shipping, as well as 24/7 Customer Service and delivery tracking through Amazon. FBA products are shipped from Amazon, so they process faster and ship faster than products sent directly from the retailer. Amazon emphasizes customer service, so shoppers can rely on helpful assistance.

Buy Box Share: FBA impacts key factors in Buy Box share variables including shipping and seller rating. FBA is a good way to boost your chances of getting a share of the Buy Box for products where shipping or other Buy Box eligibility requirements might be hard to achieve. We’ll talk more about the Buy Box later.

Amazon Branding: FBA is fulfilled by Amazon. Amazon has worked hard to curate a brand around customer service and ease of online shopping. FBA aligns your store with that branding and lends that reputation to your store.

Now for the biggest con (for most sellers) to FBA: the cost.

 

Amazon FBA Cost

Amazon seller fees result in a charge of a percent of total sale profits. In addition to those fees, FBA charges fees based on:

  • Item weight
  • Handling fees
  • Pick & pack
  • Storage costs (sq ft.)

For some sellers, FBA seems like an expensive option, but keep in mind FBA encompasses fees for all of fulfillment- costs including warehousing and shipping. Use Amazon’s Revenue Calculator to scope out whether your products will be profitable using FBA.

Amazon Fulfillment impacts your margin for individual products, which arguably limits profitability. However, with the increase of total sale volume and exposure, FBA is likely a good investment for your online store. For example, you may make less money overall on a particular product such as a water bottle, but you are likely to sell more waterbottles overall for a larger holistic profit.

Remember you’re not forced to use the FBA option for all of your products, so take the time to calculate which products are profitable to fulfill with FBA. FBA may not be an option for your store depending on the competition surrounding your products, what products you sell, where your business is located, your margins, and other related variables.

 

What is Amazon Fulfillment by Merchant (FBM)?

Amazon Fulfilled by Merchant (FBM) makes you responsible for picking, packing, and shipping the products you sell on the Amazon Marketplace. FBM does not give you the option to list products as “Prime”.

 

FBM Pros and Cons

While you’ll avoid some of the fees that come with FBA, you’ll be required to abide by all of Amazon seller rules (i.e. replying to customer support issues within 24 hours, provide tracking info, and ship within your stated time frame). Not easy, but doable if you already have the right infrastructure in place to handle all of the above.

Unfortunately, With FBM you will not have access to selling via Amazon Prime (unless you’re selling with Seller Fulfilled Prime – see below), which in turn will lead to less sales than a comparable FBA offering.

(Psst – If you’re going the FBM route for any of your products, you’ll need our checklist for shipping successfully with FBM.)

 

What is Seller Fulfilled Prime (SFP)?

The Seller Fulfilled Prime (SFP) option is a hybrid Amazon fulfillment option that gives you the ability to store, pack, and ship your own products while allowing your products to be listed as “Prime”.

Basically, Seller Fulfilled Prime is the best of both worlds if you have a solid fulfillment strategy. You would manage your products and listings the same way you would with FBM but you’ll get access to Prime customers.

However, you do need to qualify for SFP. And it’s not easy.

You’ll need to go through a trial period that involves a minimum of 300 orders. During the trial period, you’ll need to satisfy all of Amazon’s requirements.

This includes a cancellation rate of less than 1%, an on-time shipment rating of at least 99%, and use Buy Shipping Services for a minimum of 95% of the orders.

 

Tackle Your Amazon Operations

Amazon operations management may not be the sexiest part of running a business, but it is vital to driving the profitability of your business and advertising campaigns.

Demand forecasting, purchase order and inventory management, chargeback prevention, and more are all critical to your success as a first-party Vendor on the Marketplace.

 

Why Does Inventory Management Matter on Amazon?

You can be doing all of the right things on Amazon to get people to your listings, but if you aren’t in stock, you’ll lose 100% of your potential sales.

Effective inventory management is more important than ever, especially if you’re an Amazon seller. In the past year, Amazon has introduced monthly long term storage fees for slow-moving inventory, increased FBA fees, and launched the new Inventory Performance Index (IPI) metric.

There have also been improvements to the basic inventory management features available in Seller Central. What these changes have in common is a mission to help Amazon merchants manage their inventory more effectively.

Are you struggling with managing your inventory properly? Do you keep running out early or having trouble fulfilling orders properly?
.
Here are the best Amazon inventory management tools that can help

 

How Your Operations Impact the Buy Box

First off, what is the Buy Box?

The “Buy Box” is a section on the right side of an Amazon product detail page where customers can add a product to their cart or make an instant purchase. Amazon generates over $150 billion in sales every year. Of those conversions, over 90% occur using Amazon’s Buy Box.

amazon buybox cold brew

If you sell on Amazon and want to increase sales online, winning the Buy Box is pivotal. Retailers featured on Amazon’s Buy Box for product pages sell more products.

Start by getting a solid understanding of what the Buy Box is and how it functions on Amazon.

 

Set Up and Optimize Your Product Listings on Amazon

Any qualified seller can list their products on the marketplace.

What most sellers don’t know is how to make a winning Amazon SEO strategy by cracking the Amazon A9 algorithm.

Let’s get into the basics.

Your product listings on Amazon will be composed of all of these elements:

  • Titles
  • Bullets
  • Descriptions
  • Product images

Product Title

Amazon product titles must meet the following qualifications for character length (make sure you check your category-specific upload template for confirmation):

General characters: 80-250
Right rail ads: 30-33
Mobile: 55-63

What to include in Amazon product titles:

  • Capitalize the first letter of each word
  • Spell out measure words such as Ounce, Inch, and Pound
  • All numbers should be numerals
  • Ampersands should not be used in titles unless part of a brand name; spell out and lowercase “and”
  • If the size is not a relevant detail, do not list it in the title
  • If the product does not come in multiple colors, the color should not be noted in the title

What not to include in product titles:

  • Price and quantity
  • All caps
  • Seller information
  • Promotional messages such as “Sale”
  • Suggestive commentary such as “Best Seller”
  • Symbols ($, !, ?)

Amazon Bullet Points Guidelines

The Amazon product detail page bullet points aka “Key Product Features” section is located under the “Descriptions” tab. Product features are the second most important factor in surfacing your products. Amazon shoppers rely pretty heavily on bullet points to gather product information. The more descriptive the bullet points for your product pages, the more you will sell on Amazon.

What to include in bullet points:

  • Highlight the top five features that you want your customers to consider, such as dimensions, warranty information or age appropriateness.
  • Begin each bullet point with a capital letter
  • Write in fragments and do not include ending punctuation
  • Write all numbers as numerals
  • Separate phrases in one bullet with semicolons
  • Spell out measurements, such as quart, inch, or feet

What not to include in bullet points:

  • Do not write vague statements; be as specific as possible with product features and attributes
  • Do not enter company-specific information; this section is for product features only
  • Do not include promotional and pricing information
  • Do not include shipping or company information. Amazon policy prohibits including the seller, company, or shipping information

Amazon Product Descriptions (HTML, Images, and More)

Product descriptions are typically a few paragraphs long, and they may require some light HTML. If you’re selling products in a category that Amazon regulates, make sure you read all requirements before your listing gets taken down for using the wrong terms.

Every product detail page should also describe the major product features, such as size, style, and what the product can be used for. Amazon encourages sellers to include accurate dimensions, care instructions, and warranty information and use correct grammar, punctuation, and complete sentences.

Amazon Product Description Guidelines

What not to include in product descriptions:

  • Seller name
  • E-mail address
  • Website URL
  • Company-specific information
  • Details about another product that you sell
  • Promotional language such as “SALE” or “free shipping”

How to Add Product Images to Amazon Product Descriptions

According to Amazon, advertisers should choose images that are clear, easy to understand, information-rich, and attractively presented. Images must accurately represent the product and show only the product that’s for sale, with minimal or no propping.

Amazon Product Image Guidelines

What to include in your product image:

  • Accurately represent the product
  • Main images must have a pure white background
  • The product must fill 85% or more of the image & images should be 1,000 pixels or larger in either height or width.
  • The smallest your file can be is 500 pixels on the longest side.
  • Consistently sized images are strongly recommended.
  • The product must have a good depth of field meaning the image is completely in focus.
  • The product must be clearly visible in the image (e.g., if on a model, s/he should not be sitting).

What not to include in product images:

  • No Illustrations (main images must show the actual product, not a graphic or illustration).
  • Images must NOT show excluded accessories, props that may confuse the customer.
  • Text that is not part of the product, including but not limited to or logos/watermarks/inset images are not permitted.
  • The product must not be on a mannequin or pictured in packaging.
  • The image must not contain nudity.

 

Invest in Amazon Creative

You might think that companies selling on Amazon have no control over their own branding. After all, it’s Amazon’s webspace–you’re just a tenant, and so your brand looks like whatever Amazon wants you to look like. But really, nothing could be further from the truth.

Your brand identity can come through on Amazon with just as much power and uniqueness as anywhere else on the web. Amazon understands the power of a compelling brand story, and gives merchants the tools and space they need to tell those stories–you just have to know how to do it properly.

You have the options to select from three Amazon creative options to help create brand equity on Amazon:

  • A+ Content
  • Enhanced Brand Content (EBC)
  • Amazon Stores

 

A+ Content

Amazon A+ content is available for first-party (1P) vendors on Amazon and features high-quality images, video, and more. In short, A+ content better conveys the value of the product through the use of multimedia.

Below is an example of A+ content detail page:

jack black A+ content amazon

How to Set Up A+ Content on Amazon

1. Log into Vendor Central and hover over the “Merchandising” Menu then select “A+ Detail Pages”

2. Next, select your A+ detail page package:

  • “Self Service” Module
  • “Amazon Builds For You” Module

Pro Tip: The fees for each package can vary depending on the time of year. The cart price will depend on the type of module a vendor selects. We recommend working with an Amazon agency that understands A+ Content creation and guidelines.

 

Enhanced Brand Content (EBC)

Enhanced Brand Content allows Brand Registered Sellers to showcase the unique value proposition of their products through enhanced images and text placements. Adding EBC to your product detail pages may result in higher conversion rates, increased traffic, and increased sales when used effectively.

Here’s an example of EBC:

How to Set Up Enhanced Brand Content

“Modular Templates” for Enhanced Brand Content look very similar to templates in A+ Content with a number of added benefits for sellers.

You can create EBC content using one of five pre-built templates or by selecting the customer template and using individual modules to create the style you desire (shown in image A below).

The EBC modules are:

  • Rose
  • Tulip
  • Orchid
  • Sunflower
  • Lilly
  • Custom

 

Amazon Stores

“Amazon Stores” is a free self-service product that allows brand owners to design and create multi-page stores to showcase their brands, products and value proposition on Amazon.

 

How to Set Up Amazon Stores

A question we get pretty often from Sellers is: “Why should I hire an Amazon agency to create my Amazon Store?”

When you work with a reputable agency, you’ll have access to a dedicated project manager as well as an in-house design team to collaborate and share ideas with. It can be difficult to know where to start and how to navigate Amazon Stores on your own.

Here are some of the benefits of working with Tinuiti on creating Amazon Stores:

  • Understanding of how Amazon works and the type of content that resonates with the Marketplace.
  • Knowledge about Store requirements. Knowing what those restrictions and policies are in advance saves you an enormous amount of time on revisions.
  • Stores best practices. It’s also super beneficial to work with an Amazon agency that’s already familiar with Amazon’s available layouts.
  • Avoid wasting time on re-submissions. We know which qualifications allow you to move faster through the creation and submission process.

 

How to Give Your Amazon Creative a Boost

Amazon branding is crucial for building your brand equity, building a connection with shoppers, and establishing trust. The good news is that there are more tools than ever at your disposal to build your branding on Amazon.

Here are a few ways to start the process of optimizing your creative on Amazon:

  • Work with an agency to transfer your brand equity to Amazon using A+ Content, EBC, and Stores.
  • Analyze Amazon customer reviews to understand what trigger words customers are searching for (and include them in your creative).
  • Pull your advertising search term report to understand what words consumers are searching for when they purchase your products.
  • Create comprehensive detail pages, images, and copy. By pairing attractive content and imagery, you’ll be able to more effectively communicate why consumers should buy your product.

More resources on Amazon Creative:

Now let’s get into the game-changer: Amazon advertising.

 

Start Advertising on Amazon

Once upon a time, a solid organic strategy was enough for sellers to find success on Amazon, but the tides have turned. Enter: Amazon Ads.

Amazon ads break down into roughly two categories:

  1. Amazon Sponsored Ads (PCC ads)
  2. Amazon Demand Side Platform Ads (DSP ads)

 

amazon ads breakdown

 

Amazon Sponsored Ads

The PPC side of Amazon advertising includes Sponsored Display, Sponsored Products, and Sponsored Brands ads. You can click into each of the links below to get access to full blog posts about each.

Sponsored Display Ads

Sponsored Display is a “self-service advertising solution that helps you grow your business by reaching relevant audiences both on and off Amazon.” In other words, Sponsored Display allows Amazon sellers to retarget Amazon shoppers.

Amazon Sponsored Display is available to professional sellers enrolled in the Amazon Brand Registry, vendors, and agencies with clients who sell on Amazon. Your products must fall under Amazon’s eligible categories to advertise.

Sponsored Products

Amazon Sponsored Products are pay-per-click ads based on keywords (and product targeting) that drive traffic to a desired product detail page within the Amazon platform.

These search ads are Amazon’s flagship ad format and are a key investment for brands across all categories for driving awareness and conversions on Amazon’s marketplace.

Sponsored Brands Ads

Sponsored Brands Ads (formerly Headline Search Ads) are one of Amazon’s flagship ad products that allow advertisers to feature brand creative and messaging to engage people at the beginning of their shopping journey.

Amazon has expanded the functionality of Sponsored Brands to include new targeting options, placements, as well as dynamic optimizations for ASINs that are displayed within the ad itself.

amazon sponsored brands ads for wireless earbuds

Amazon’s Demand Side Platform (DSP)

This category includes Amazon Managed Service and Enterprise Self Service Display Ads.

DSP

Amazon DSP — also known as the Amazon’s Demand-Side Platform — gives you the ability to programmatically buy video and ad placements.

Programmatic ads use data to determine which digital advertising spaces you’ll buy and how much you’ll pay for them.

Advertisers are increasing investment in the Amazon DSP, which allows brands to use Amazon targeting capabilities in showing ads not only on Amazon owned-and-operated web properties but also those that it does not control.

 

Measure Success with Amazon Attribution

Amazon Attribution is a measurement solution that gives Amazon sellers access to sales impact analyses across media channels off Amazon including search, display, social, video channels and email.

Amazon Attribution allows advertisers and brands to uncover the insights needed to optimize their media campaigns and grow product sales.

 

How to Sign Up for Amazon Attribution

To gain access to Amazon Attribution, you must work directly with an Amazon agency that has access to the beta program. You must also fit the following requirements:

  • A US Amazon vendor with active vendor code(s) or a US Amazon seller brand owner (brand registered) – UK and EU expansion is coming soon!
  • Advertising in channels outside of Amazon

 

Amazon Attribution allows reporting of both orders and revenue for traffic originating off of Amazon. It can measure traffic brought directly to Amazon, as well as traffic to a site, which later converts on Amazon.

Amazon Attribution can measure traffic from nearly any source (including impressions for rich media and Paid Social channels such as Facebook / Instagram). Through the creation of orders and line items, brands can create unique tracking templates, and performance can be measured to any desired level of granularity.

 

Enroll in the Amazon Brand Registry

 

What is the Amazon Brand Registry?

The Amazon Brand Registry gives brand owners access to proprietary text, image search, predictive automation, and reporting tools designed to protect their registered trademarks and create an accurate and trusted experience for customers.

The Amazon Brand Registry also allows brands to search for content using images, keywords, or a list of ASINs in bulk and report suspected violations through a simple, guided workflow.

Let’s talk about why this is important for sellers.

While selling on Amazon, you may experience counterfeit issues or situations where your product content is changed by a third party seller.

The Amazon Brand Registry provides a necessary set of tools (including the new Transparency by Amazon service and Project Zero program) that may help sellers avoid these issues.

Here’s how Amazon’s Brand Registry works, how to enroll, and other brand protection programs that you can use to prevent third-party sellers from counterfeiting your products on the marketplace.

amazon brand registry

 

How to Apply for the Amazon Brand Registry

To be a member of the Amazon Brand Registry you must:

  • Step 1. Review eligibility requirements. Brands must have a registered and active text or image-based trademark.
  • Step 2. Sign into Amazon Brand Registry. Brand Registry application must be submitted by the trademark owner. If you are an authorized agent, please have the trademark owner enroll the brand first, and add your account as an additional user. If you meet the eligibility requirements, sign in using your existing Seller or Vendor Central credentials. Or, if you don’t yet have an Amazon account, create one for free.
  • Step 3. Enroll your brand. Once you sign in, you will need to enroll your brand(s). After Amazon has verified the information you submit during enrollment, you will be able to access Brand Registry’s features to help protect your brand.

More resources on the Amazon Brand Registry:

 

Explore an International Amazon Strategy

In the beginning stages, most Amazon sellers will experience a combination of both excitement and fear when it comes to selling products internationally.

Common concerns like credit-card fraud and shipping delays may seem overwhelming at first, but with the right guidance, sellers can avoid common mistakes and simplify their global expansion process.

The decision to go global is often driven by a combination of many factors, some financial and others marketing, merchandising or operations related. It can be lucrative for some sellers, and not for others – research carefully.

More resources on selling on Amazon internationally:

 

Is Selling on Amazon Worth It?

At this point, you might be wondering if it’s worth it to sell products on Amazon.

The good news is with the right products, sophisticated marketing tactics, tools, and seller support – brands selling on Amazon can absolutely be successful. Although the competition for almost every category on the marketplace is fierce, there are still plenty of opportunities for brands to thrive.

To be a successful Amazon seller, you should:

  • Research potential niches before deciding on the products you want to sell.
  • Understand pricing, costs, and fees. This can include manufacturing costs, shipping, packaging, selling fees, and more.
  • Ensure your business operations including inventory management and forecasting are in good shape.
  • Acquire expert knowledge of marketing, branding, and advertising. We recommend partnering with an Amazon agency that specializes in Amazon advertising.
  • Leverage cross channel promotions. Thanks to recent tools like Amazon Attribution, brands can measure the impact of their marketing efforts across multiple platforms and channels.
  • Avoid complacency. Brands who rest on their laurels will be crushed by emerging competitors.

 

And most importantly, be prepared for whatever Amazon throws your way. Changes can (and do) happen every single day. Looking for a partner to help you navigate these challenges? Read more about what it takes to find the right Amazon agency

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