4 crucial successful DNA traits amazon seller must know
Successful Amazon Seller
Amazon marketplace has been dynamic since its formation. Amazon sellers have developed sophisticated skills to help it thrive. It is in a competitive marketplace where nearly two million competitors with different analytical and operational skills exist. It means that what worked in 2010 to generate superior profits will not work today. Only a few Amazon sellers distinct of internet entrepreneurial composition will succeed long-term. We have examined thousands of Amazon sellers’ experiences and now share the four key traits that a successful Amazon seller possesses.
A data scientist
Vast product information can be searched and properly utilized by Elite Amazon sellers through developed mechanisms to attain a competitive edge. Randomly identifying new trade shows products is now an old-fashioned approach. Instead, sellers use scraping tools to identify product data from Amazon site, assess price changes, sales levels, and their feature limitations to create superior new product launches. The approach of linking products to source or improving their product catalogs is simplified through collection and synthesis of publicly available data.
The sellers also use collected historical sales data to construct sales forecasting models. It enables them to understand suppliers’ historical stock levels and seasonal trends so as to stock large quantities before peak seasons. Less sophisticated competitors usually will experience hidden stock-outs costs of during that time.
An expert negotiator
Successful sellers consistently utilize the supply-side advantage in their marketing efforts. Unique supplier relationships that are well-managed can aid businesses to perform well even if sellers lack forecasting tools. Having impressive social skills enables sellers to find the best product deals across their vast professional networks. A good negotiator is an individual who knows how to maintain a tough bargaining position with suppliers as well as keep a tight relationship.
An operational engineer
Amazon sellers normally use advanced, data-driven software tools to automate processes which leave outsiders to the site surprised. These software tools entail inventory management software for inventory, repricing software for the product, feedback software to solicit customers’ product reviews and listing software for product content management.
Replacing repetitive tasks with appropriate software enable advanced sellers accelerate efficiency and thereby increase their profit margin. They will incorporate software to run repeatable business processes and complex parts. They will also use software to generate crucial data that feeds for their primary business analysis.
Best sellers recognize that each product in their catalogs possesses its customer dynamics, pricing evolution and competition. They carefully analyze each product’s return rates, fully-costed profitability, and sales velocity. Moreover, lastly, the sellers regularly update these data to replenish profitable items levels while eliminating unprofitable product rapidly.
As new Amazon sellers build thriving business, sales become very strong, and purchase orders are randomly placed. Then, sales abruptly stop. It could be that Amazon suppliers could have cut-off re-sellers so as to sell directly to its customer. Alternatively, new competitors may have exerted price pressure on some items. Or maybe, Amazon began purchasing directly from the manufacturer. The initially successful sellers, overnight, may be left to liquidate and substantial loss amounting to hundreds or thousands of units.
Successful Amazon sellers not only focus on current products but also maintain a longer-term view for additional opportunities and marketplace developments. Through their experience, successful sellers diversify across brands, categories, and suppliers. Rather than depending on a few best sellers, they diversify their success through adding more products. In such a way, the sellers will experience less negative effect on their overall business success.
The owner and PM of Techinfographics.com. Dimitar is young entrepreneur who is into technology and innovation. He is an investor and key figure into several other online projects. He travels and writes about technology and business.