Amazon

There are many factors to consider if you want to be successful on Amazon. With a thorough market analysis and strategy development we will help you to get started and achieve success on Amazon.

Amazon at Iternum Digital

Amazon is the biggest marketplace in the world: in 2023 it sold products for over approx. 574.78 billion dollars. Amazon is still growing and gaining more and more in market shares across the world. Amazon in the USA receives three billion website visitors each month, and Amazon in Germany attracts over 500 million visitors each month. Another notable country is Sweden, which recently launched its Amazon marketplace and is already averaging 15.6 million visitors per month in the first quarter of 2024. This means that you as an e-commerce business have a great potential to increase your sales and attain new markets through Amazon. We provide assistance both to those new to Amazon and to those already selling on the platform.

There are many factors to consider if you want to be successful on Amazon. With a thorough market analysis and strategy development we will help you to get started and achieve success on Amazon.

- Hanne Larsen, Senior Digital Marketing Specialist

01. Who can sell on Amazon?

It is possible for both, commerce and brand owners to sell on Amazon. Generally speaking, it is easier to obtain success on Amazon if you are a brand owner. Brand owners have an opportunity to register their trademark and through this approach gain other advantages, such as the option to build your own Amazon Brand Store (your own website on Amazon to promote their trademark). As a commerce you will likely be selling a lot of the same products as many other suppliers, which means a greater competition. No matter what type of company you own and what kind of products you sell, we recommend a thorough market analysis before you consider selling on Amazon. We will help you analyze and assess your potential on the platform.

02. How do you sell on Amazon?

It’s possible to sell in two different ways on Amazon – either by letting Amazon deal with stock and logistics, which is called FBA (Fulfillment by Amazon), or by you, as a company, being responsible for the logistics and sending the products directly to the consumer. which is called FBM (Fulfillment by Merchant). There are some advantages and disadvantages with both approaches, but FBA is usually recommended in most cases, because Amazon offers competitive prices and handles returns as well as customer service. With this approach you can focus on growing your business. Furthermore, the products that are handled via FBA often have more conversions. That’s because of Amazon’s algorithm which chooses to rank these products the highest, both, organically and through paid advertisement. No matter which solution fits you best, you have to register an account before you can start selling. We can help you through the account registration, which often can be a difficult and time consuming process.

03. How to be succesful on Amazon

There are many factors to consider, if you want to achieve success on Amazon. First and foremost, it is about having a product with potential. This is what our market analysis shows.
Secondly it is important to work with SEO, PPC and reviews. Read more about this and how we can help you below.

04. SEO on Amazon

To put it briefly, it is about using the correct keywords for your products, so the customers can find what they are searching for. This is something to take into consideration when you list your products on Amazon. With a thorough keyword analysis, we will ensure to make SEO optimized product pages.

05. Paid Advertising (Amazon PPC)

Like Google, Amazon also offers a campaign tool that allows you to market your products and ensure visibility in relevant search results. The creation of the correct Campaign type, which ensures you a good ACoS (Advertising Cost of Sale), demands a great knowledge of how Amazon PPC works. Based on your business model we can help you set up and optimize your cost-effective campaigns that will increase your sales.

06. Reviews

By having many good reviews you will increase the conversion rate and produce better results, both organic and through advertising. To obtain many reviews is not an easy task and takes time. We will help you prepare a strategy for that.

Which marketplaces can I sell on

It is completely up to you which marketplace you want to sell your product on. Our customers usually want to focus on the European market. By registering for Amazon’s “Unified Accounts” system (in North America or Europe), you can easily manage multiple marketplaces from a single seller account.

Europe (Germany, Sweden, Spain, Italy, France, UK, Netherlands, Poland and Belgium)
America (United States, Canada and Mexico)
South America (Brazil)
Asia – The Pacific Ocean (Japan, India, Australia and Singapore)
The Middle East (The United Arabic Emirates & Turkey)

What does it cost?

The cost of selling on Amazon varies depending on what type of product you sell and whether you are selling via FBM or FBA. The costs can be sorted into the following categories:

- Referral Fee

Amazon always takes a percentage of your sale calculated from your sales price. The fee is usually between 10-15% but can vary depending on the category. This is a fee you have to pay no matter whether you’re using FBM or FBA.

- FBA

If you choose FBA, you will be paying for stock control, which is comprised of dispatch fee and storage costs. The dispatch fee varies from the size of the products and which market(s), you sell on. Storage costs is calculated by volume.

- Marketing

Paid advertising, which increases your sales, should be considered as an expense.

- Others

There are also other costs, such as return costs (if you are using FBA). In addition to that, your seller account also costs approx. 400DKK/month (a professional account).