- Cory Checketts
- On June 3, 2015
- 0 Comments
The Amazon and Me pre-show presentations of the Internet Retailer Conference and Exhibition in Chicago were a hit. I sat in on nine of the sessions; each session focused on an aspect of doing business better on Amazon. I won’t give you a recap of each session, instead I’ve prepared my 6 takeaways of the day–in no particular order. Enjoy.
The end game for Amazon–delivery of anything to anybody, anywhere, instantly.
- This was taken from Colin Sebastian’s presentation Examining Amazon: What All Retailers Need to Know to Compete Against or Cooperate with Amazon. What I liked most about Colin’s presentation was his focus on what he thinks the future of Amazon will be. With a large focus on technology, Amazon is ever-increasing its ability to get products to customers the quickest way possible. Stay caught up with what Amazon is doing so you can be ready for future changes and opportunities.
Understand the different pricing structures for your products and have a strategy when selecting one.
This was from James Thomson’s Pricing Strategies on Amazon presentation. He outlined three pricing structures and the challenges associated with each:
- 2-1: Competition based pricing: Look at your competitors and see how they price then make decisions. A challenge of this structure is that there is a good chance your competitors assumptions are different than yours–by looking to competitors too much you may be making the wrong pricing choices.
- 2-2: The cost based approach. How much does your product cost from the manufacturer, and what’s the markup? The idea behind this structure is that customers don’t care about your costs. At the end of the day you have to assume you’re efficiently running your business and mitigating sunk costs wherever you can.
- 2-3: Value based pricing. What do you think your product is worth to the customer? Is the customer prepared to pay whatever your price is for the product? What matters is what the customer thinks the product is actually worth. Customers are smart and they compare your product to others when shopping.
What is Amazon looking for? Amazon is looking for Amazon.
- This was from Nathan Franco’s part on Pricing Strategies on Amazon. What I liked most about this presentation was how Amazon is looking for merchants who offer a similar customer experience as it does.
- Just know Amazon works hard to create a perfect shopping experience for its customers and so should you.
- All marketplace sellers represent Amazon. Understand that Amazon wants to accept sellers who offer exceptional shopping experiences.
The Buy Box is king when it comes to selling on Amazon.
- This was from The Intricate Details of Fulfillment by Brendan McCarthy. I know, I’m not breaking any new ground with this point but it’s always good to remind ourselves of the Buy Box’s power, right? Brendan elaborated on why the Buy Box is king with how it can give you the edge over your competition. Shipping with FBA alleviates pressures and can reward you if customers have a good buying experience. When price is not an issue, FBA will get your product ranked higher.
Customer feedback is necessary for service received and not just getting product reviews.
- This was from Eric Tong’s presentation: Protecting Your Seller Reputation. He touched on a few points I felt were quite relevant to Seller Labs’s customers. For instance, how addressing customer feedback quickly can eliminate future Amazon A-Z claims (learn more about these claims with this great post). And how responding to all customer feedback within 24 hours can dramatically improve your online reputation. Think of you customer reviews as marketing.
You’re selling peanut butter but are you selling the jelly? What complementary items can you add?
- This was from Dale Majors’s presentation What’s Next: Five Strategies to Grow Your Existing Amazon Business. What I liked most about his presentation was how sellers can increase sales of an item just by pairing it with a complimentary item and bundling them together. Do you have any items that would go great together that you can make into a package deal to increase sales? Definately worth looking into.
That’s all I have for now. I’ll be sitting in sessions for the rest of day taking notes so I can bring you the best content from IRCE 2015, and help you on your Amazon selling adventure.