Increasing Amazon Sales with Strategic Sourcing
With over 100 billion dollars in sales in 2015, 180 million monthly visitors, and 20% year over year growth there are plenty of opportunities for savy new sellers to break into the popular marketplace. This is especially true given that third party sellers took nearly a 50% share of all items sold on the platform. If you're looking to increase your Amazon sales volume then developing a strategy for sourcing and purchasing by the Amazon Standard Identification Number, or ASIN, is essencial to capitalizing on advantageous niches and turning a handsome profit. Assessing each ASIN strategically can provide Amazon sellers with more insight about which products to pursue and which to avoid trying to sell on the website.
Evaluating the ASIN
It's worth noting that as the ASIN matures, its amazon product ranking increases, and its conversion rate improves it is more likely to be listed at the top of the first page of Amazon. There are several key factors to consider when evaluating each ASIN, including the sales rank, product reviews, FBA inclusion, pricing history, the competition and its current placement under the Amazon search function. Conducting this due diligence beforehand can put you in a better position to expand into new markets if you've gathered the appropriate data.
An ASIN that has a higher ranking or none at all, which means it gets fewer sales, may represent a ripe opportunity for promising sales because strong competition is less likely. Using sponsored products and adjusting keywords appropriately can be effective at improving traffic directed to these types of ASINs. If the ASIN does not appear on the first few pages, the opportunity to encounter less competition could be available.
ASINs, Customers and Competitors
Looking over customer reviews can help provide insight about which ASINs are well-received by buyers and which may result in more trouble than they are worth. The number of competing sellers can also provide valuable insight about how appealing different ASINs really are. Products with over 100 sellers may still be advantageous if there is enough demand for the number of sellers, or if there is enough elasticity in the pricing to allow for adequate competition.
ASINs, FBA Offerings and Pricing History
An ASIN without a Fulfillment by Amazon offering, or FBA, could be a strong sales opportunity or it could be a warning to avoid investing in it at all. According to Amazon, some products may be considered too hazardous to be a part of the FBA program. Similarly, ASINs with a heavily fluctuating pricing history may be in an overly competitive market and too unstable to be worth any investment.
Once the ASIN has been properly evaluated, it's time to consider sourcing and the potential profit margin. Buying large quantities of units at a discounted rate is the simple, straight-forward strategy for achieving successful sales on Amazon. Targeting wholesalers, manufacturers and liquidators are a wise place to start. Take the time to learn about niche products that are your strength, but also be open to researching ASINs of products that appear to have potential for a favorable return on investment. Many of the successful sellers on Amazon understand how to strategically assess ASINS and never stop product sourcing.