Being successful on Amazon requires patience, planning, and a significant amount of sweat equity. If your brand has been reaching consumers through more traditional distribution channels such as brick and mortar retailers, you will quickly learn that eCommerce is a whole new world with a different set of challenges. Consumers that shop online are looking for a perceived value and they love free shipping! If you are new to selling on Amazon, here is our list of “Top 5 Things to Consider When Selling on Amazon”.
Pack Size
Consumers that are shopping online for a favorite product often shy away from a single item sold at a high price. Single products are often higher in price due to the Amazon fee structure that is being imposed. Bundling 2, 3 or 4 of the same item and offering it for sale as a “multi-pack” will help reduce the cost of a single item.
Building Variety Packs for Selling on Amazon
Variety packs are a great way to introduce your products to consumers in a way that allows them to purchase more than one flavor at a time. As with Pack Size, bundling multiple flavors will reduce the cost of the single item. Consumers are then free to purchase more than one flavor with less risk of spending too much for an unknown product.
Unsure of how to create a variety pack? We have a variety of tools at our disposal to assist you with determining the best options for variety packs.
Repack Services
Unsure of what to do when your manufacturing facility or co-packer will only produce boxes of product in large quantities? We understand that some manufacturing facilities are only set up to mass produce and package product. We also understand that this is not the most end user friendly way to sell product.
LongTail, Inc. offers many ways to repack product into end user friendly sizes. Whether it’s taking 100 bags of chips and packaging them into 8, 12, 15 or any other configuration. We are ready and able to complete this task typically within 2 business days. We will also label the product with brand specific labels so you do not have to provide us with custom packaging.
Avoid Channel Conflict
One of the most commonly asked questions of new Amazon sellers is “Will my selling on Amazon impact my distributor’s sales?”
We highly recommend creating variety and multi-packs that are unique to the Amazon sales channel. In doing this, you are offering something to consumers that your distributors are not. In offering something different, you are not in direct competition with your distributors on Amazon. This is a prime opportunity to grow sales, not impact your distributor’s sales. This is the prime way to avoid channel conflict.
Pricing
For those sellers new to the Amazon and eCommerce space, you may not know how to price your product. This is more common than people realize. There are many factors to take into consideration when pricing a product.
Some of these factors include:
- Product Cost
- Inbound Freight to warehouse
- Outbound Freight to Amazon
- Amazon commission fees
- Overhead costs to run the business
We at LongTail have developed an easy to use pricing model for both Amazon FBA and VC programs. Ask us how we can help you realize the true cost of your goods.
E-commerce Nation gives many compelling reasons as to why you should consider a partnership for fulfilling your e-Commerce needs.
