7 Reasons Why Your Amazon Shop is Failing
Amazon is an E-commerce power house and when you are not doing well on Amazon, you always believe that YOU are the problem because Amazon has so many buyers, you have to ask yourself “Why aren’t I getting enough sales"?”
I have found that there are 7 major culprits, for why an Amazon shop isn’t performing.
1. There Isn’t a Large Demand For Your Product
The biggest issue I see if sellers selling products that don’t have a large demand OR the demand and expectations for sales is completely off. Imagine selling clothes for pet rats - probably not a very high demand product line, and wondering why you aren’t making 10k a month. In this example the expectations to the demand of this type of product is way off. Select products that have the demand that matches the revenue you want to make.
You need to research what type of products within your market are actually in high demand and sell with the price point you are wanting.
Start off my using the search bar in Amazon; if you start typing your product type and plenty of phrases auto populate, then thats good news. If you type other phrases that are relevant to your product type, and plenty of keyword phrases auto populate, then even better news! But if you type something in and barely anything auto populates and you are struggling to find the auto suggest feature giving you plenty of options - I would rethink that product line (or at least diversify so you aren’t just relying on that ONE type of product).
Remember the rat clothes example? Well if you wanted to make 10k a month, and rat clothes only give you 1k a month, you need to come up with other product types that will make up for that revenue difference.
There are many more ways to check on the demand of a product type AND check if it is selling; get my Amazon webinar for specific training videos on how to do this.
2. You Don’t Have a Variety of Listings + You Don’t Have Many Listings At All
So we just discussed the demand for product types and I mentioned that its ok to have a lower demand product, just as long as you compensate by having multiple lines of product with different demand types.
So this other common reason why people “fail” is because they expect 5k a month, when they only have 20 products. And yes, it is possible to make 5k a month on 20 products but that involves other strategies to accelerate these listings. So it is easier to have a large amount of listings AND a variety; let me explain:
Large amount of listings: When you have many listings, you offer the customers varieties. So you don’t just have 1 design for a phone case, but you have 50. This is helpful when you need 10 that are monogram, 10 featuring trendy saying, 10 featuring trendy characters; 10 that show off someones marital status, and 10 that are plain colors. By offering a large amount of listings you can give them options for that product type.
Variety of Listings: This is a little different from what I said above. In this case, you want to offer different product types. SO you can have 50 phone cases, but why not also offer, 50 pop sockets, 50 phone charms, etc.., By having a variety of products, this also allows you to get found for many different types of phrases.
3. Your SEO Isn’t Optimized
So you have considered the demand, and having enough listings that it would be impossible for a buyer not to run into your listings right? Wrong! SEO is what helps get listings found - especially when your listing is brand new. When your listing is not brand new, SEO is part of the algorithm, sales and conversion is another big one.
Its important to optimize your listing for SEO because you may not get found for the keyword phrases that its relevant for.
However, Keyword research can be hard work and applying it to your listing is another thing. You need to make sure that you have brainstormed properly; what do people call your product? what are the synonyms for your product, where do they use it? Who do they give it to as a gift? etc.., This will help identify the best phrases for this product because sometimes some of your phrases will be low demand, so mixing and matching high and low demand keyword phrases may give you a better chance since low demand phrases tend to correlate with low saturation. Low saturation means easier to find your listing, which means higher conversion potential.
So the keyword research process is SUPER IMPORTANT and applying them properly is another method I take huge pride in.
Check out my Amazon webinar for my detailed step by step process for SEO - it walks you through the brainstorming and keyword research process + shows you how I use certain tools to optimize my listings SEO performance.
4. You Haven’t Optimized Your Listings for Conversions
There are so many ways you can optimize for conversions;
- Competitive shipping
- Lower processing times
- Images that answer the buyers questions
- Customization that give the buyer what they need.
But I want to just focus on Photos and Customization for this section.
First photos; You won't believe how many listings I see with questions left unanswered that could be easily solved by having the relevant photo in the listing.
for example: What size do I wear = include a size chart
How will my shirt look is i pick pink personalization - include a color chart or photos of all the ink options on the shirts
Photos can also be used to instill trust in the buyer.
For Example: Creating an image that shows the difference between you and competitors
Creating an image that clearly states your features
Creating an image that goes over your quality
Now for customization, Handmade at Amazon gives you that option for your customers and if you don't use it, you are truly missing out. Even if you are using it, are you using it effectively?
Here are some examples where you can use customization to help with conversions:
- Customer likes your product but wants to pick a different ink color
- Customer likes your product but wants to pick a different font
- Customer likes your product but wants to pick a different size
and the list goes on.
Consider what your customers message you about and see if you can add it as a customization.
Also, don't hesitate to use customization to increase AOV by suggesting an optional add on.
5. Your Shipping Fees Aren’t Competitive & it takes too long to receive
Its not new news that customers love to save money and its been proven that free shipping helps with conversion rates. So are people adding your items to their cart and leaving it? You won't ever know on Amazon, but since its a common practice, you have to assume the worst.
Now you don't need to offer free shipping if it doesn't work for you - but you can easily see how many sellers got with it once Etsy gave them an ultimatum. However, have you considered how you are priced among your competitors in search? Its easy to check. Just search for your product type and look at the other products within search; are they [riced higher then you? Lower then you? Free shipping? Take a look around and see if you are priced competitively. Unless your product is substantially different, its possible your customers are leaving your items for someone elses.
Now lets discuss processing times. You know I’m a big fan of handmade sellers, I am one! But there is no doubt that faster processing times, equals happier customers and more conversions. No one wants to wait 30 days for a phone case - even if its personalized. So consider how you can restructure your production method to get things out faster - particualry on amazon. Amazon rewards shorter processing times (especially with new listings) when the processing time is shorter, but customer also like it better and you may see higher conversions because of it.
6. You Haven’t Used Ad Campaigns to Boost Relevancy
Now the point of using Ad Campaigns is to get your products in front of customers. Earlier I mentioned SEO's role in this - but depending on your market, you shouldn’t just rely on it alone.
Using ads can be a wonderful tool to help boost your presence on Amazon. It can give you the boost you need to help make your items more relevant, so you can eventually take then off ads when the listing has earned its position at the top of search.
You can also used ads to help take sales away from your competition (i know, i know, sounds despicable, but you are a business, its expected), recommend your product as an add on to another popular product, or get to the top of search for keywords that are just to hard to break into.
My Amazon webinar goes over my exact strategies on how to do just this PLUS MORE.
There is a method to it and when executed properly, you can see really great results. Sure it costs some money to run ads, but when following my methods, you can run an effective campaign that has a low cost to revenue ratio.
7.. Your Listings Don’t Have Reviews
Don't roll your eyes! I know what you are thinking... "Well i need sales to get reviews" - yes, I agree. However, how are you treating those customers that you already sold to? And I mean, every sale? Have you worked your very best magic to help get reviews from the customers that actually received your product?
- Included a convincing insert that JUST focuses on getting a review
- Emailed to ask for a review but approach it by offering helpful advice (the whats in it for them approach)
- Provided such fantastic customer service
GOT ANY QUESTIONS OR COMMENTS? LET ME KNOW BELOW, I'D LOVE TO CHAT!
Oh and I also have a private Facebook group you can join and ask questions and my awesome members and I will answer :) JOIN THE GROUP
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