As an Amazon seller, navigating a recession can be a challenging but rewarding experience. While economic downturns can lead to decreased consumer spending, they also present opportunities for sellers to stand out and differentiate themselves in the marketplace. Here are five ways to succeed as an Amazon seller during a recession.
Take advantage of Amazon’s Brand Referral Bonus.
Amazon’s Brand Referral Bonus is a program that rewards sellers for promoting their own branded products through any non-Amazon marketing channels. The program offers a ~10% referral fee on eligible sales to participating sellers. You can use tools like Levanta to easily tap into channels like influencer marketing & affiliate marketing, both of which qualify for the brand referral bonus.
Focus on offering high-quality, essential products:
During a recession, consumers tend to be more cautious with their spending and prioritize purchasing essential items. As a seller, you can differentiate yourself by offering high-quality products that meet the needs of your target audience. Consider offering products that are in high demand, such as household essentials, health and wellness products, and personal protective equipment.
Offer competitive pricing:
Price is an important factor for many consumers during a recession, so it’s important to be competitive with your pricing. Conduct market research to understand the pricing of similar products and make sure your prices are in line with what your competitors are offering.
Utilize Amazon’s advertising tools:
Amazon’s advertising tools, such as Sponsored Products and Sponsored Brands, can help you reach a larger audience and drive sales. By targeting specific keywords and demographics, you can effectively reach potential customers who are searching for the products you offer.
Leverage customer reviews:
Customer reviews can be a powerful tool for attracting new buyers and building trust with your target audience. Proactively ask your customers for reviews while adhering to Amazon’s review policy. Carefully monitor all of your ratings and be sure to address any negative reviews as quickly as possible.
Diversify your sales channels:
While Amazon is a powerful sales platform, it’s important to diversify your sales channels to minimize risk and increase your chances of success. Consider selling on other e-commerce platforms, such as Etsy or eBay, or even setting up your own website.
By following these tips, you can position yourself for success as an Amazon seller during a recession and continue to grow your business even in challenging economic times.