The COVID-19 pandemic has undisputedly disrupted life in 2020. Between social distancing guidelines, carry-out only rules, and strict mask policies, people’s everyday lives changed. These drastic changes and state-wide lockdowns have changed the way customers shop and make purchase decisions, shifting the focus towards a more digital experience.
By the end of 2020, it was expected that ecommerce sales will exceed $4.2 trillion. In fact, with over 150.6 mobile users, Amazon alone exceeded $339 billion in the United States—a record number for e-commerce sales compared to any other online selling platform.
While business ROI took several twists and turns this year, as an Amazon seller, you’re uniquely positioned to recharge after 2020 and amplify your business objectives. Let’s take a look at the steps you need to take in 2021 to boost your bottom line.
- Amazon’s sale volume continues to increase in 2021 as more customers are shopping online than ever before.
- Providing a better experience through new products or feedback will help you earn loyal customers.
- Investing in Amazon features like Prime and Sponsored Ads can increase customer engagement.
The State of E-Commerce Sales in 2020
With more consumers shopping from the comfort of their homes, online and mobile shopping definitely tooka front-seat in 2020. However, as the digital landscape continues to grow, online sellers also face increased competition, higher marketing costs, digital noise, and more. It’s not enough to sit by and wait for sales to hit your online storefront.
As an Amazon seller, it’s important to recognize how ecommerce trends and customer shopping behaviors have shifted. Consider the following statistics:
- 96% of Americans shop online
- 40% of retailers sell on social media and 16% on Amazon alone
- 58% of customers don’t purchase products based on shipping costs
- 43% of consumers are shopping in bed
To recharge after 2020, Amazon sellers need to not only be well versed in the marketplace, but also understand how to better connect with customers.
Recharge in 2021: How Your Amazon Storefront Can Thrive This Year
Whether you’re a new or veteran Amazon seller, 2020 most likely brought your storefront extreme challenges and major accomplishments. But it’s time to recharge! Follow these 5 tips to have a profitable year:
1. Audit Your Stores’ Product Line
During and after a crisis, it’s essential to assess your product line to determine if any gaps exist. While you might think it’s best to zone in on your core product line, your customer’s needs have shifted since the pandemic and may require new goods entering 2021.
For example, if you’re an office supplies seller, consider diversifying your line by offering items more suited for working from home. You’ll also want to watch your inventory levels to ensure you’re properly stocked for “hot” items so your customers don’t turn to a fully-stocked competitor instead.
2. Ask Your Customers for Feedback
While you might think that limited negative feedback is a sign of satisfaction, your customers could still be sharing their bad experiences with others. In fact, one in three customers will leave a well-loved brand after just one poor experience. It’s crucial to ask for your customer’s feedback and implement it accordingly to deliver better products or services.
Since 89% of buyers agree they trust Amazon compared to other platforms, additional reviews on your product listings will help solidify future purchases. After each purchase, consider requesting customer reviews through email. To sweeten the deal, you can even offer incentives like coupons to coax their feedback. The more feedback you receive, the more likely you’ll be able to earn loyalty and attract new customers.
3. Increase Your Marketing Spend and Capabilities
In 2020, you might have been forced to cut back on marketing expenses to balance your budget. However, with more customers shopping online, it’s a great time to double-down on your marketing strategy to drive more exposure to your storefront. Amazon’s Sponsored Product ads allow you to pay for targeted keywords that your customers commonly search for in the platform. With a pay-per-click strategy, you can better control your budget and catch the eye of customers who are already searching for your products.
Beyond paid advertising, think about how you develop more creative and informative listings for your customers. Use every listing as a branding opportunity to capture potential customer’s attention and purchases. For example, consider the following best practices in each product listing:
- Create descriptive titles with relevant keywords
- Write detailed product descriptions in a bulleted list format
- Include high-quality videos and images that showcase your products
4. Provide Prime Delivery Services
Did you know there are over 150 million Amazon Prime subscribers? Modern consumers have a “need-it-now” mentality and no longer want to wait for longer shipping turn times. If you aren’t an FBA seller yet, becoming one in 2021 will give you a competitive advantage against other Amazon sellers. By providing your customers with an elevated customer experience, Amazon prime offers:
- Discounted pricing
- Unlimited one- or two-day deliveries
- Access to Prime Lightning Deals
5. Increase Prices When Necessary
82% of Amazon buyers claim that pricing is an important factor when making a purchase. Due to customer price concerns, it might seem counterintuitive to offer higher pricing, especially after a pandemic. However, Amazon sellers shouldn’t feel guilty about increasing prices. The point is to do it fairly to protect your business against uncontrollable factors.
Boost Your Amazon Profits and Engagement in 2021
Ready to grow your business in 2021? COVID-19 brought unique challenges to businesses and individuals alike. While Amazon sales show no signs of slowing down, online sellers need to improve their strategies to stay competitive and boost their bottom line.
Learn how to grow your Amazon business by registering for Prosper Show’s next annual Amazon seller conference.