The secrets of million-dollar Amazon Sellers
Amazon Seller site Jungle Scout has released the findings from their annual study into activity on the site, and it has provided some fascinating insights.
The survey covers 4,864 Amazon entrepreneurs, business owners and major brands, exploring the sellers who drive more than half of the company’s $386 billion revenue. The full results can be read at https://www.junglescout.com/amazon-seller-report/.
The site has then also published some of the findings of the million-dollar selling companies on Amazon, which provide invaluable information for Sellers at all levels. Those can be read in full at https://www.junglescout.com/blog/successful-amazon-sellers/. Thompson and Holt Senior Case Handler Laura Monk has highlighted three findings in particular which could help your online business.
1. Million-dollar sellers are more likely to sell a higher volume of products
Jungle Scout found:
* 72% of million-dollar sellers have 20 or more active product listings on Amazon. By contrast, 70% of non-millionaires have 10 or fewer
* 34% of million-dollar sellers have 250 or more products listed on Amazon. Only 5% of non-million dollar sellers reported the same
Thompson and Holt’s Laura Monk: “It’s clear that having a high number of products is something successful Sellers do. Flexibility is also the key here. We deal with highly profitable Sellers who constantly monitor their listings, so that when sales drop off, they discontinue those products and look towards something new. Focusing your attention on listings that are doing well, and looking to move on those that don’t, is definitely a key factor in being successful when you have the kind of high volume accounts that are making the most money.”
2. Spend your time on the areas that matter most.
Jungle Scout found:
Million-dollar sellers are more likely to be focused on growth-oriented areas of their businesses, like marketing their products on and off Amazon, monitoring their finances, and getting more customer reviews. Non-millionaires are more likely to focus on finding products to sell.
Amazon Sellers Areas of Focus Millionaires Non-Millionaires
Optimizing my product listings 74% 55%
Managing my inventory 74% 52%
Finding products to sell 61% 68%
Managing my Pay-per-Click (PPC) bids 60% 46%
Getting customer reviews 53% 46%
Monitoring and managing financial metrics 52% 45%
Managing cash flow 41% 29%
Running promotions for products 38% 24%
Off Amazon marketing 25% 19%
Hiring and vetting freelancers 21% 10%
Thompson and Holt’s Laura Monk: “There are some really interesting findings here. Firstly it’s important to understand that million-dollar Sellers spend more time in general on their Amazon accounts, which can often be down to them focusing their full-time energies on it rather than having it as a part-time sideline. But even then the way they spend that time is telling - it’s focused around growing the business rather than just maintaining it, so optimising product listings, running promotions and using freelancers all see noticeably higher percentages than for non-million sellers.”
3. Even million-dollar Sellers make mistakes
Jungle Scout found: That all Sellers come across problems that they need to solve, even the most successful ones.
Common Challenges for Amazon Sellers Millionaires Non-Millionaires
Getting support from Amazon/Dealing with changes 58% 45%
Protecting from black hat tactics and counterfeiters 54% 33%
Getting customer reviews 48% 57%
Finding a product to sell 35% 53%
Managing PPC bids 33% 46%
Thompson and Holt’s Laura Monk: “This should be reassuring for any Amazon Seller. Whether you’re looking to make your next million or just starting out, having to deal with the issues that arise on Amazon, including black hat tactics from rivals, is something that can affect anyone. At Thompson and Holt we deal with hugely successful accounts that have found themselves suspended at different stages - the key is to learn from those mistakes, deal with them quickly and not repeat again. There will be hurdles to overcome, but they are manageable.”
Worried about an Amazon suspension?
If you have found yourself suspended while selling on Amazon, contact Thompson and Holt for a free LiveChat to get your Seller business back online as quickly as possible.
Thompson and Holt are also offering a free month’s trial of their Monitor and Protect service to help sellers prevent a suspension of ASINs or an their account during the COVID pandemic, more information on how to protect your Amazon seller account from a suspension can be found here.