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BizReport : Ecommerce archives : December 28, 2017

How marketers can make the most of Amazon deal features

Amazon's Deal of the Day features are helping many brands, third party sellers, and other marketers capitalize on merchandise sell-through. The key is knowing how to snag a deal of the day, and how to prepare once a deal is offered. Here's how brands can get ready.

by Kristina Knight

Shore up inventory

"Make sure you store 5X the normal inventory at Amazon's Fulfillment centers a couple months before next holiday season," said Bardia Deiban, CTO, Volusion. "Amazon does a pretty good job requesting more inventory when a merchant is on FBA (Fulfillment by Amazon), typically sending out communication for X more units in Y time period. It should be noted that many of these requests are part of the FBA policies and requirements. Amazon does have the right to change FBA pricing, and they charge for long-term storage (unsold inventory). If you really want that Prime badge but are concerned that your product might not meet the FBA restrictions, Amazon Seller Fulfilled Prime might be a better alternative (there is a trial period for SFP)."

Make it simple for first time buyers to become repeat customers

"Create an easy path for repeat customers and referrals so it's not just a one-time increase of orders," said Deiban. "Amazon makes it clear that you cannot divert transactions or buyers, but there are a few things you can do as a merchant to increase the likelihood of repeat purchases or new purchases via referral. First, you can ask for the buyer to review your product. This typically comes as a rating email, from Amazon, with the product in the body of the email along with some stars. Or you can ask the buyer to answer a question posted on your product detail page (within Amazon). You could also include an offer or coupon code for repeat purchase, through Amazon and not your own ecommerce website. This may only be feasible if you're packing the item for shipping yourself, like with SFP, or if the offer is embedded inside the product packaging itself."

Be ready three months prior to the next Amazon Prime Day (2018).

"If you are participating in FBA, it's good to understand how Amazon receives and stores your inventory. There are storage limits and restrictions, as well as storage costs, so figuring out your average weekly/monthly sales and anticipating Cyber Monday or a Deal-of-the-Day can be a slippery slope. There are no guarantees, but your inventory availability and discounting strategy during that timeframe could set the tone and signal to Amazon that you're ready. Also, there's a human at Amazon that's responsible for purchasing and stocking, I promise. It's your job as the business owner/operator to make sure you try and open two-way communication well before any holiday or high-volume selling period," said Deiban.

Tags: advertising, Amazon Deal of the Day, Amazon sellers, ecommerce, mobile marketing, Volusion

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  • You can leverage Amazon's power and build a successful online business.
    By the way ,Amazon is the first place I recommend people to start their online businesses.



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