Targeted advertising campaigns, selling a diverse range of products and never running out of stock are some of the strategies used by Kwame Miller to achieve more than $4.7 million in sales in just six months on online giant Amazon.
But Amazon’s local success requires hard work to stay on top of the constant changes on the platform while ensuring customers are happy.
Miller, who made his first sale on Amazon in January 2020, saw a steady increase in sales, ending the year with $1,663 in last-day sales.
It sells a number of locally made products.
The Amazon seller has generated US$31,500 (about J$4.75 million) over the past six months while growing its product offering from two to more than 60.
Miller said never running out of stock was critical to his success.
“If you have a product that kills, that’s fantastic. But what if that product doesn’t perform well, then all your revenue is wiped out,” Miller told an audience of potential Amazon sellers.
Miller was addressing the launch of Project Amazon, an eight-week training course for 20 micro, small and medium-sized enterprises (MSMEs) selected by the Association of Manufacturers and Exporters of Jamaica in Kingston on Wednesday.
“Your inventory should never run out; if you’re selling something that people want and you stop selling it because you’re out of stock, they’re going to look on the shelves and see something that may not be as good but is available, and they are going to buy this product,” he explained.
Sales also affect how sellers are ranked by Amazon, so a slowdown in activity pushes you down the search order.
“Once you’ve bought something from Amazon, the easiest thing to click is ‘order again’, so (your old customer) becomes your competitor’s customer for life, and you never want that to happen. happen,” Miller said.
“If you’re out of stock, Amazon says, ‘hey, this guy isn’t making any sales and making us no money’… If you’re not making sales, you’re not the priority (from Amazon ); someone else becomes their priority”.
He said two items could be combined into multiple products, such as a two- or three-pack to diversify offerings to customers.
Miller noted that using an expensive method of shipping your stock might be prudent to stay in business.
“If you’re short on an item and don’t want to be out of stock to lower your ranking, it makes sense to use more expensive shipping to maintain inventory. You’ll keep it coming back in the long run,” did he declare.
He advised sellers to ship ahead so their inventory gets to Amazon in a timely manner. Continuous monitoring of prices and seasons of certain products is also essential.
“If you sell anything in America that’s pumpkin-based, you know that in October you’re going to have a lot of sales… For barbecue sauces, barbecue season is June through August. You must ship your things before this season arrives”.
With over 190 million people and over 350 million products on Amazon, it’s hard to get noticed.
But with “carefully crafted advertising campaigns,” Miller achieved significant sales, earning $4.70 in total revenue for every dollar spent on advertising.