Good Morning, and welcome to your weekly digest of Amazon news with SellerBites. Here to catch you up are the latest pieces you should know to stay updated:
You may have noticed that Amazon brands are spawning fast, and they're earning the spot on the best-sellers list pretty quickly too. So is it because these new products are the latest and greatest in that category - the hottest trend of its kind? Not quite...
The reason for the rate at which new Amazon brands are making the best-sellers list is probably not what you think. It seems to do less with its actual popularity and more to do with a rotation of new items. For example, according to Marketplace Pulse, the headphone category on Amazon, 1,800 different products from 666 brands were in the top 100 best sellers in the last two years - nearly three products/brands per day.
In the last couple of years, very few brands have held the spot for best-sellers in the headphone category (Apple, Samsung, Sony, Soundcore, Tozo). Instead, the vast majority consists of revolving brands with generic names that hold the spot for five or fewer days - raising the question of what a brand on Amazon is.
It's not new news that Amazon brands have skyrocketed due to many factors ignited by the Covid-19 pandemic. Still, the numbers presented by U.S Patent and Trademark Office (USPTO) are astounding:
As of June 17, 2021:
Being USPTO registered is an asset because it allows you to become Brand Registered on Amazon. This opens up a slew of features and marketing opportunities for a brand to have advantages over other listings on Amazon (which is a big deal). But with so many products/sellers becoming a brand, this changes what it means on Amazon and how easy it is these days. The hard part is becoming a brand with a lasting impact and a strong name to back itself up with.
Recently, Amazon promoted its payment service called Amazon Pay. A solution to help small business owners simplify the transaction process on their website with data already collected on Amazon's platform.
"Amazon Pay is a digital payment solution that helps small business owners reach Amazon customers with minimal hassle by letting them use the payment information that's already saved in their Amazon accounts."
Activate the Amazon Customer: The Amazon brand is a proven winner of customer trust, and that trust halo extends to Amazon Pay. With 91% of Amazon Pay customers saying they would use Amazon Pay again, this is your opportunity to leverage Amazon's expanded network to help build customer engagement and loyalty.
Offer a fast & easy check-out: Reduce friction by using info already stored on Amazon account, making check-out a process that can be completed in minimal clicks.
Lead the way in connected commerce: With the adoption of voice across all stages of the customer journey, Amazon Pay is helping businesses adapt to the expectations of today's connected shoppers through Alexa – available on hundreds of millions of Alexa-enabled devices.
Help improve sales: Providing your customers with a trusted, convenient experience and one familiar login to identify themselves can help increase conversions & lower cart abandonments.
The benefits of this program for customers shopping online are obvious, but some sellers with their existing e-commerce sites are skeptical. The fear is that the implementation of Amazon Pay will ultimately lead to their demise in the long run. But, on the other hand, others believe it's a godsend, primarily due to the trending, easy-click style of shopping these days. What are your thoughts?
Inventory management is an integral part of your Amazon business. It is at the core of your operations and is critical to having a smooth channel for your products. You never want too much or too little inventory - the key is balance, and to achieve that, you need to know what factors influence having the perfect balance of storage at Amazon.
Knowing how to manage inventory well on Amazon is an artform. This is because there are so many things to consider. For example, too little inventory could result in going out of stock too fast and losing your place in organic rankings; on the other hand, having too much inventory could lead to increased storage fees and tied-up capital.
How to Manage Inventory on Amazon in 2021
1. Keep a Close Relationship with your Supplier: Your supplier manages your product from the very start up until the product is ready for you. Having a good relationship gives you a better chance to communicate any issues throughout the supply chain and possibly result in preferred treatment!
2. Maintain 60 Days of Supply: Do this to cover expected sales volume and avoid going out of stock. Then, go even further by analyzing your sales data and monitoring your sell-through rate.
3. Reduce Excess Inventory: If you're finding that you've overestimated your sales volume and your quantities are too high, reduce them with these methods: Run promotions, raise keywords bids, create a removal order or donate inventory.
4. Plan for the Unexpected: Anticipate possible mishaps and be prepared. The unexpected could happen that could result in delays throughout the supply chain.
5. Lower Demand: When stock is low, decrease the demand for your product temporarily until back in stock again to deter people from buying from you too quickly and depleting your inventory. You can do this by pausing campaigns or even raising your prices.
6. Use Inventory Management Software: Having third-party software is a great way to better understand and manage your inventory without having to dig around too much on seller central reports. An inventory manager will better forecast your inventory needs and help you plan accordingly.
Being proactive and having a plan of action is a great way to stay ahead of your competitors and be prepared for inventory in the long run.