Make Amazon your own marketplace with Seller Central

Amazon’s significant role in the world of e-commerce is by now well known to most. If you have ever had to market a product, chances are you have also considered whether you could reach potential customers via Amazon.

Here you can read much more about how to use the Amazon Seller Central tool and gain a deeper understanding of how Amazon’s systems affect your sales and advertising opportunities.

There is a difference between customers buying a product on Amazon that you happen to sell and customers specifically finding and purchasing your product on Amazon.

In other words: How do you make Amazon the best possible marketplace for your business and your products?

In this text, we cover the following areas:

• Considerations before you begin
• Concepts and mechanisms in Amazon’s sales universe
• Strategy and sales

In the opening sections, you can read about key considerations and points to keep in mind before you start selling on Amazon. The text also covers the most important functions and terms for sellers on the platform. Finally, you will find a walkthrough of how to leverage the features in Amazon Seller Central to generate attention and optimise your sales.

Before you begin

If you are new to the entire e-commerce field, or you are moving from selling via your own webshop to marketing your products on Amazon’s vast platform, there are a few considerations worth having in mind. They are not complicated analyses, but relevant points that most, though not all, make sure to consider.

Here you can read about:

• Making the most of Amazon’s potential
• The relevance of your products on the platform
• Seller Central’s place in Amazon Marketplace

It’s about making the most of the potential

Today, there are many opportunities for selling and advertising on Amazon, and the American giant continues to expand into ever more market areas. In Denmark, we may have been slightly more reserved. However, the same general trend applies here. E-commerce continues to grow, spreading further across traditional retail markets.

The sheer size of both the digital and physical markets covered by Amazon makes it an appealing opportunity for many businesses and sellers. The potential for exposure and sales is huge. Many also see Amazon’s enormous logistical reach as a great chance to reach even more customers.

However, many factors need to align – and ideally work together – if this great potential is to be realised. Precisely because the entire digital sales universe is so vast, there is also a genuine risk that even good brands and products can get lost in the crowd.

If your product is to “break through”, as we say, succeed against the competition, and fulfil even more of its potential, it is essential to understand Amazon. As a market. As a sales platform. And, quite simply, as a website on the internet.

The first step on that journey is to become thoroughly familiar with how Amazon works for you as a seller. What do the terms and abbreviations mean? What tools are available?

All those questions point to one place – Amazon Seller Central, which is the entry point for all external sellers to carry out sales through Amazon. If you get to know Seller Central in advance, you will be much better equipped to run an effective sales operation on Amazon.

Should your products be sold on Amazon?

Now that you are reading about sales, e-commerce, and Amazon, and have come across this text as part of your preparation, you probably already have a good idea that your product would do well on the platform.

However, there are still a number of thoughts and considerations to make before you embark on becoming a selling business on Amazon.

Amazon is one of those e-commerce platforms where almost anything can be bought, and where there is virtually an endless amount for customers to browse. But that does not automatically mean that all products and product types perform equally well in the competition. It may seem obvious, but there are good reasons to keep this in mind.

When it comes to e-commerce, customers’ preferences and their final buying behaviour also vary greatly from product to product. There are also customer groups for whom much of retail is still mainly associated with physical stores.

It is important to be familiar with these factors when engaging in sales and advertising on the platform and market that is Amazon. The competition is significant, and your sales efforts must make sense in relation to the gains that can be achieved.

As you read on, you will learn more about how sales opportunities on Amazon align with your customers as you know them and with what you have to offer.

A part of Amazon Marketplace

The reason Amazon can offer such a wide variety of products to so many customers worldwide is largely thanks to third parties. In this context, third parties are businesses that, in one way or another, sell their goods through Amazon.

Simply put, this happens in two ways, with two forms of cooperation, each with different conditions. Amazon may purchase a business’s products and handle sales to customers. Alternatively, businesses can manage their own sales via Amazon’s platform.

Sales cooperation with third parties is brought together under what is called Amazon Marketplace. This is Amazon’s attempt to assemble everything selling businesses need in one place. And this is where Amazon Seller Central is found.

Choose the relevant central

Amazon Seller Central is the interface on Amazon and the entry point for partner businesses that manage the sale of their products themselves through the platform.

It is important, however, to distinguish it from Amazon Vendor Central. Vendor Central is also part of Amazon Marketplace, but is intended for businesses that let Amazon handle the sales, with the opportunities that entails. For example, you cannot set your own product prices via Vendor Central. It is also worth noting that becoming a Vendor is by invitation only – you cannot simply decide to sell as a Vendor yourself.

There are, however, also advantages to being present on Amazon as a Vendor. For example, there are better opportunities to use Amazon Marketing Services (AMS) and expand your content.

If you want to market your products yourself and have more control over optimising your sales via Amazon, Seller Central is the tool you should use. And that is what this guide is about.

De vigtigste begreber og mekanismer

E-commerce, både i – og udenfor Amazons univers, er et område, som er fuldt af udtryk og forkortelser, der kan virke uklare eller tekniske. Men de dækker som regel over ret enkle ting, som har en klar betydning for det, det hele handler om, nemlig salg. Når betydningen er til at tyde, er det også enklere at udnytte dem korrekt.

For Amazon Seller Central gælder det først og fremmest:

• Selve Amazon Seller Central
• Fulfillment By Amazon
• A9-algoritmen
• Varianter
• Amazons Buy Box

Amazon Seller Central

Helt banalt er Seller Central en hjemmeside, som du vil få fuld adgang til, når du indgår en aftale som selvstændig sælger på Amazon. Meget af det, som du skal foretage dig, foregår helt lavpraktisk ad den vej.

Allerede inden du begynder salget, kan du hurtigt gøre dig mere bekendt med sidens opbygning og se de forskellige afsnit og features.

Salgsforøgelse, kontoindstillinger, fragt og levering, prissætning, lagerbeholdning, ordrer og meget mere. Alle de aspekter, som du kan læse om og håndtere gennem centralen. Du kan også modtage feedback og overvåge, hvordan salget går, og hvor meget opmærksomhed produkterne får.  Og naturligvis findes der også hjælp og teknisk support.

Når du kender opbygningen, er du klar til at stifte nærmere bekendtskab med de begreber og mekanismer, som Amazon udnytter. Det er samtidig ting, som du skal gøre brug af, eller i det mindste forholde dig til, når du tilrettelægger dit salg.

Fulfilment by Amazon

If you have ever been an Amazon customer, you may already be familiar with the term Fulfilment by Amazon, or FBA. You may also have heard of the so-called Fulfilment Centres that Amazon has established in different regions of the world.

Fulfilment might sound a bit lofty when we translate it directly, but in reality, it is simply the term Amazon uses for the final stages of its product chain – logistics, shipping, and delivery to the customer. Fulfilment Centres are, as you probably know, just warehouses. When you sell or buy with Fulfilment by Amazon (FBA), you choose for Amazon to handle the final delivery of the product to the customer.

For you as a seller, this is a very important aspect that can affect your sales operation in several ways.

Weigh up both the advantages and disadvantages of FBA

As both an e-commerce company and a logistics business, Amazon is almost unrivalled. But naturally, there are costs associated with such a comprehensive service and fast delivery. Just as customers pay for delivery, you as a seller also pay Amazon to handle everything relating to the order and shipping.

It is an economic calculation that is unavoidable when you plan your sales effort. The same, of course, applies to other methods of delivery.

Furthermore, FBA is an important factor that can determine whether it is your product the customer ultimately receives at their door. In other words, delivery method is a competitive parameter. You can read more about this below.

Understand Amazon’s algorithm

Just as Google does, Amazon also uses an algorithm that sorts the many search results for users. As with web browsers, the goal is to secure an attractive position where your product gets noticed.

Amazon’s algorithm is also known as A9. It has a lot in common with Google’s mechanisms – most importantly, it’s about meeting the search behaviours of your target audience with strategic and relevant keywords. Both algorithms reward successful and relevant searches. In other words: Keywords and categories that satisfy users and potential customers are highlighted by the algorithm at the expense of less successful ones.

However, A9 differs from Google’s browser algorithm in some crucial ways. A9 is directly sales-oriented. Amazon is primarily an e-commerce platform, and the algorithm specifically highlights those search results that lead to sales.

This means that, while a good position (ranking) on both Google and Amazon can stimulate attention and sales, the sales aspect is, in itself, a direct and decisive factor on Amazon. The ability to generate sales is not just a side effect of attracting potential customers’ attention – the A9 algorithm actually rewards those keywords and products that already demonstrate an ability to generate sales.

This also reflects the fact that Amazon’s users are typically further along in the buying process. For example, a customer might be looking for new coasters. The first thing they do might be to check Google Images for attractive models. After clicking a few links to companies and products, they discover that several interesting variants are available on Amazon, including your product. At this point, the customer has already chosen Amazon over other potential sales channels, and the decision to make a purchase is much closer.

This aspect is important for every part of your sales effort, from keyword selection to advertising and pricing.

Varianter og produkttyper

Variant-begrebet er af stor betydning for alle, der sælger gennem Amazon. Det lyder måske kompliceret. Hvornår er noget for eksempel en variant af et produkt, og ikke et nært beslægtet, men alligevel selvstændigt produkt?

Men man kan ret enkelt sige, at det handler om de beskrivelses-kanaler gennem hvilke, kunderne kan møde og tilgå dit produkt.

På Amazon Seller Central kan du se varianter beskrevet som ”parent-child relationships” og ”attributes” eller ”characteristics”. Det handler om de karakteristika, der udskiller de enkelte, helt konkrete produkter fra hinanden og fra den overordnede produkttype. Eller moder-kategorien, hvis man skal bruge Amazons familietermer.

Med bordskåner-eksemplet fra før: Kunden leder efter ”bordskåner”. Men det, der er til salg, er selvfølgelig ikke bare ”bordskåner”. Det er bordskånere i bestemte størrelser, materialer og farver. Altså bordskånere med bestemte karakteristika. Teoretisk eksempel: ”Bordskåner. Mørk eg. 20 x 20 cm.” Det er en variant.

Men når kunden søger på ”bordskåner”, er det første, der bliver vist, måske ikke det ønskede produkt, som kunden er villig til at betale for. Derfor er det vigtigt, at du som sælger gør det nemt at navigere på siden mellem de forskellige varianter.

For det første øger det sandsynligheden for, at kunden så at sige bliver på din side, og ender med at betale for et eller flere af dine produkter.

For det andet er det vigtigt i forhold til Amazons algoritme. Varianterne har nemlig andel i den opmærksomhed, som hele den overordnede ”moder-kategori” får i søgningerne.

Buy Boxen er det afgørende

Amazons Buy Box er afgørende vigtig for alle sælgere på platformen. Set fra kundens synspunkt svarer Buy Boxen til de sædvanlige ”Gå til kassen” eller ”Gå til betaling”-knapper, der findes på alle webshops.

Men for dig som sælger er det ikke bare en servicefunktion i brugerfladen. Når Buy Box bliver vist til højre for et produkt på siden, så er det nemlig en slagsstimulerende genvej, som Amazon bevidst ”belønner” produktet og sælgeren med.

Kunderne kan naturligvis sagtens ”gå til betaling” og købe produkter, der ikke har Buy Boxen bekvemt placeret lige ved siden af. Og det er der selvfølgelig også nogen, der gør. Men langt de fleste salg på Amazon går gennem den. Så hvis der ikke er en Buy Box ved dine produkter, går du potentielt glip af størstedelen af de salg, du ellers kunne få.

Den enkleste måde at forstå Buy Boxens betydning på, er at se den som et synligt udtryk for A9-algoritmens usynlige præferencer. Buy Boxen er med andre ord noget, man skal gøre sig fortjent til på Amazons betingelser.

Når det er sagt, er Buy Boxen dog ikke udelukkende det samme som en god placering i forhold algoritmen. Amazon selv har – noget vagt – formuleret det sådan, at ”Excellence in all areas” og ”outstanding costumer experience” er de væsentligste kriterier i forbindelse med Buy Boxen.

Det kan formentlig bedst formuleres på denne måde: Amazon registrerer på sin side, at kundetilfredsheden ved køb af dit specifikke produkt er høj. Det fremgår samtidig, at søgninger, der leder til dit produkt, kontinuerligt resulterer i mange salg. Derfor belønnes du og dit produkt med Buy Boxen for at stimulere den udvikling. Prisen er selvfølgelig også en af de vigtigste parametre for at du får buy boxen,

Strategy and sales

Once you are familiar with the key mechanisms and functions that matter for Seller Central and sales on Amazon in general, you can start to consider how these factors together and individually affect the sales of your product.

To conclude, we will look at:

• The Buy Box as a benchmark
• Tools and functions

Aim for the Buy Box

The Amazon Buy Box is, in itself, one of the most important focal points for sales. It can give a significant boost. But it is not the only thing – for example, the entire advertising element on Amazon can have at least as much impact.

As mentioned at the beginning, many things need to come together if your sales potential on Amazon is to be fully realised.

Key competitive parameters include:

• Well-chosen keywords and strong product descriptions that match a good, flexible range of variants.
• Delivery method and customer satisfaction right through to receipt.
• Optimal pricing.

All of these elements can be managed directly via Amazon Seller Central. They also have in common that they need to work very well in order for you to even be considered to “win” and retain the Buy Box for your products.

It cannot carry a sales strategy on its own, but the Buy Box is an obvious benchmark for your early sales efforts. If you and your products can sell via the Buy Box, it’s a sign you are doing something right.

Strategy is about choosing what to do and what to avoid, and about setting meaningful goals. But especially in the beginning, it can be hard to focus. So it can be a useful indicator, even if you do not succeed straight away. It can signal that something in your sales effort may need to be adjusted.

This is an approach to thinking strategically as you plan your sales effort in a meaningful way. It is not a detailed or “ready to go” strategy, but highlights elements that a successful strategy should take into account or be based on.