Pay With Amazon – A step closer towards Data mining

This April we bid farewell to Amazon’s CBA process. Amazon has been giving you enough notices and you are expected to make the necessary changes.

From books to grocery, Amazon Prime to Amazon Go, it has come a long way in terms of innovation and customer satisfaction. If this wasn’t enough, Amazon also launched its own payment gateway “Pay with Amazon” in october 2013 and so far a cumulative total of more than 33 million unique customers have used Amazon Payments since the service launched.

Pay with Amazon

Amazon is aiming at acquiring as much as business as could reasonably be expected from shoppers moving their spending from stores to desktop PCs and cell phones, regardless of the possibility that the exchange isn’t done on Amazon.com. Preparing installments is another approach to do that by charging dealers 2.9 percent in addition to 30 pennies for every exchange took care of by Amazon

Amazon aims at expanding in all possible ways. It plans to reach out to even those who do not buy from Amazon.com through its processing payments. The added advantage is the credibility it offers and of course the brand name associated.

Riveter, a North Carolina company that sells bags made by the spouses of U.S. soldiers, switched from PayPal to Amazon Payments in February, two days before the company was featured on the television show “Shark Tank.” In anticipation of the show airing, founder Lisa Bradley expected a surge in orders, prompting the switch.

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What’s in the store for you

For pioneers, you get inline address and payment widgets that keeps you centered on website. Hence, as a seller if you are selling service that needs monthly renewals, drop your worries. Pay with Amazon will handle your payment method so you can focus on more important work.

Pay with Amazon is aptly optimized for your mobile sites as well.

Finally, Amazon’s “Pay with Amazon” also bears the payment for digital products. So let’s say you are selling a software service you can offer your customers a Pay with Amazon Options

However, PayPal is still at number one on the list of most prefered online payment, processed by  $82 billion in transactions for nearly 180 million shoppers. The driving force behind this is also that other giants like Walmart will not let amazon sneak in so easily into the datahive. Given the tech forces Amazon has, all it need is Data and within no time it will monopolize the market.

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How do you inculcate Pay with Amazon

It totally depends on your website and the platform you sell on. As of now Pay with Amazon is supported on following hosts

  • Shopify
  • Big Commerce
  • PrestaShop
  • Opencart
  • 3Dcart
  • Lemonstand

There are several significant platforms too where Pay with Amazon is integrated. However, if you aren’t using the hosted platforms where it is already integrated, you can still use Pay with Amazon on your website.

Amazon does offer you an option where you can generate your own Pay with Amazon button.

The bottom line: Amazon will hold you regardless of how your site is set up. You very well might need to enlist the guide of some expert engineers to get it going.

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How does it affect your business and why should you integrate Pay with Amazon

  1. Increase Conversions:   

Pay with Amazon offers smoother and a familiar checkout experience. CBA is more order management process while Pay with Amazon is more oriented towards payment procedure. Customers click due to smooth and familiar checkout experience as they need to spend minimum time on entering details as it lets your pre store it

       2. Increases Personalization and  strengthens CRM

Amazon creates a set of API that lets merchant “Check in and Checkout”. Once you checkout, you will put credentials and your password to pay, once you are done with it. It eventually decreases the redundancy of filling credentials all the time.

The prime benefit of check in is that it enables you to connect to your CRM. This gives you clear idea of your customers and their preferences. The process authenticates and validates the customer. Judging by  this, you can shape your business module.

       3. Fraud protection and enhancing buyer confidence.

Help reduce your costs and protect your business with Amazon’s proven fraud protection, at no additional cost to you. Enhancing buyer confidence offers protection against defects, delays and customer support to buyers on your website through the 100% Buyer Protection Guarantee.

FInal Thoughts:

Making the service effortlessly accessible to prevalent e-commerce business, fundamentally augments Amazon’s span and impact over the online retail universe. Shopify, for instance, one of its Premier Partners at dispatch, serves 243,000 shippers; each of them can now introduce Amazon’s installment procedure administration, and make checkout swifter and less demanding for

Amazon’s expansive base of customers. Amazon’s developing nearness in different features of the E commerce background can keep the brand top of mind for a great millions out there.

Amazon depends on the analysis of data, both substantial scale and granular, to drive its techniques and strategies, and to tailor the offers, services, items, and messages it uses to pull in and hold clients.

In the online world, insightful retailers can transform Data into power and few, assuming any, retailers are savvier than Amazon.

 

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Why are Amazon FBA sellers a tough competition?

With ever evolving buzzword in this industry, the one that has been top notched for over a year now is “FBA”, Fulfilment by Amazon. The industry has discussed and debated a lot on its affiliate marketing but has shied away from expressing opinions on FBA.

So what is all ruckus about? What’s the deal with FBA business model that has caused hullabaloo?

Well, for one thing, it holds the future for entrepreneurs. If I look back at the time, I don’t recall a single massive, reliable e-commerce platforms where you can sell and get a fair share.

No wonder FBA sellers have been more successful than others and are as true to competition as the platform.

Scalability

FBA businesses are very scalable compared to other enterprise. The main reason being you need not have a large team to function and can be on your own even as you grow. All you need to do is create and obtain inventory to sell and that’s all for your primary expense.

Moreover, there is no as such limitations on how your product category sale. As an FBA seller, you can sell anytime whatever suits you best and can grow faster. You can also hire staff to look over when it becomes unmanageable.

Takeaway: You need not shell out more, and keep it low cost while you expand the search for other products and profit opportunities. As an entrepreneur, you can stay focused on priority, yet explore.

FBA sellers get a competitive advantage:

Amazon offers a competitive advantage to its sellers. Most FBA sellers are the one’s who knows how to establish a relationship or bond over with the customers. Not every seller is great at marketing, but the one’s who are, FBA is a blessing to them.

For instance, if you are an FBA seller selling some kitchen product, you can ‘Affiliate’ with a food blogger or a well-known chef.

The biggest sellers on Amazon often have some kind of competitive advantage which is difficult for others to replicate. They might have a better marketing plan than everyone else, but the chances are that includes working on building relationships that others don’t have.

For example, if you sell kitchen products, what might happen if you develop a good relationship with a well-known food blogger or even a celebrity chef?

Takeaway: Most FBA sellers are focused on investment that scales the business. Hence, by being FBA sellers they end up saving high on all of the fulfillment logistics.

Creating Private Labels

My personal favorite word in business is ‘niche’. Finding a niche in product enhances your business sense and helps your business to grow. However for an online store, finding a niche that too a profitable one and generating a private label product to sell, is becoming quite a trend.

I would like to credit Amazon for that. FBA sellers are utilizing it to the fullest with Buy Box win being the center of it. Sellers selling on omnichannel faces difficulty in competing for Buy Box with other sellers selling the same item.

With the rise of another giant “Alibaba” that served as a one-stop solution to connect with manufacturers globally, it only made more feasible to source and brand a private label and avoid the competition for the Buy Box.

Takeaway: Amazon FBA s Private Label is somewhat like this

  • Find a niche product to sell on Amazon. A product that could be customized in some way to make it stand out from the crowd.
  • Find manufacturers who make the product using Alibaba.com.
  • Contact manufacturers to negotiate costs, minimum orders and customizations.
  • Decide on a manufacturer.
  • Receive samples of your customized item until you are happy with it.
  • Get manufacturer to add your own brand label to the product.
  • Get manufacturer to ship inventory directly to Amazon.
  • Cross fingers for orders!

Final Thoughts

FBA services are regarded best for their on-time fast delivery and precision. It also gives an added advantage to seller on Amazon marketplace by enhancing their visibility in the Buy Box, thereby making them eligible for the most popular Prime free shipping programme

Perhaps it shouldn’t be surprising then, that 79% of all sellers surveyed use FBA for some or all of their products sold on Amazon. 44% use FBA for 90% or more of their sales, and 27% use FBA for everything they sell.

$1M+ sellers are less reliant on FBA: a third use it on 90% or more of their sales, but only 10% use it for everything they sell.
At least now we know what makes FBA sellers a tough competitor.

How does Amazon Fresh works: All you need to know

Amazon Fresh

Buying from Amazon has always been a wonderful experience for us. Whether you pick books, apparels, gadgets, electronic appliances or household items, the gigantic e-store has given us the option to choose from a broad assortment of products making our purchase easy.

Considering the global ranking, Amazon stands 6th and is best known for offering quick services and amazing products.

  • Amazon Kindle (ebooks reader/ tablets)
  • Amazon Prime (Instant shipping service)
  • Amazon Prime Music & Amazon Instant Video (Instant streaming sites)
  • Amazon Fresh

Amazon started Amazon Fresh program just after 5 years of its inception in Seattle. This online grocery program was under testing in the hometown itself and later in the year 2013, this service was finally opened to other cities of USA including Philadelphia, New York and parts of California.

Growing Industry

Online grocery is the $10.9 million dollar industry in U.S and it is expected to grow by $9.6 million dollars by 2019 according to the market research report by IBISWorld.

Peapod is the leading online grocery store with 5.8 percent of the market followed by Fresh Direct at 4.8 percent and Amazon which also now delivers online grocery at 4.7 percent according to IbisWorld report..

What products you can buy from Amazon Fresh?

On Amazon Fresh, you can shop for a variety of products you need daily. Beverages, Bakery items, Fruits, Vegetables, Canned Food, Condiments, Salads, Oil, Toiletries, Household items, name it and you will get.

For instance you would want to shop for tomatoes, you will get a wide options to pick from which you may not find in any online grocery store.

Take a look

Amazon fresh products

What else can you get from Amazon Fresh?

Amazon Fresh caters a separate recipe section Creative Kitchen where you may find various kitchen tips and recipes of exotic dishes and sauces. You may get a lot of recipe varieties here which can add flavours to your meal and make your day refreshing.

Take a look

amazon fresh creative kitchen

The quality Amazon Fresh maintains

Shopping from brick-and mortar stores become easy where you make sure about the product quality with a touch. Many individuals have their own preference to choose what they want to buy. Some may like to buy riped fruits or some may prefer canned or jarred fruits.

In stores, you also find fresh food items which you think you may not get it online. That’s the reason why companies are struggling to gain more from the expensive picking, packing and delivering fresh foods to their customers.

Despite of such a strong competition where grocery stores like Walmart, Instacart, etc. sell groceries to customers with the picking services to the nearest stores at cheap rates, Amazon Fresh’s main concern is to deliver fresh food items to its customers as per their preference which is similar to purchasing from brick- and mortar stores.

Amazon Fresh carefully controls the condition in which the products are stored, right up until the moment customers receive them, so that fresh items stay fresh & chilled and frozen items remain frozen.

How does Amazon Fresh works?

The working of Amazon Fresh is pretty straightforward. If you place your order by morning 10, you may receive it by 6 pm. Whereas orders placed later in the day will be delivered to you before your breakfast time.

Most items are available for same-day or next day delivery. Shopping from restaurants or neighborhood shops alongside Amazon Fresh products can help you in avoiding making trips often and minimize your to-do-list. And, if you are doing so you need to place an order in advance to enjoy on-time delivery.

Amazon Fresh offers free attended or unattended delivery on the order of or beyond $50 with Prime Membership.

You can also choose your delivery time and schedule your order on the day you want.

Take a look at the below Delivery Option Page

Delivery Option Page

The negative point of Amazon Fresh is, it provides its services to Prime users only. Once you are completed with your 30-day trial, $299 will be charged as an annual fee on top of the products you purchase.

How sellers can sell their products on Amazon Fresh?

It has never been easy for sellers to sell their grocery or perishable goods online because consumers expect the same services alike physical stores. If at all, sellers start selling things online they have to maintain their own delivery system which may not be beneficial to them.

With Amazon Fresh, sellers can easily sell perishable goods or groceries to consumers ensuring that whatever they sell are fresh and of good quality.

Restaurants or neighboring shops too which have experience in delivering fresh and hot meals can enroll in Amazon Fresh and get connected with millions of consumers.

Ending Note:

Amazon has always been the choice for consumers who look for unique and creative things online. It has shelved almost every brand and every product in the  store which can attract people. With an impressive collection and delivery services, it seemed inevitable that Amazon would add grocery too in it’s shelf.

Thus, growing its Amazon Fresh service in various cities suggests that Amazon has a long haul in grocery.

Sources: http://www.bloomberg.com/news/articles/2015-04-15/amazon-offers-cheapest-grocery-delivery-in-new-york-study-finds

https://fresh.amazon.com/help

http://www.investopedia.com/articles/personal-finance/052015/how-amazon-fresh-works.asp

http://millennialmagazine.com/does-amazon-fresh-work-in-the-real-world/
http://www.bloomberg.com/gadfly/articles/2016-04-08/amazon-fresh-prime-now-aim-to-kill-your-local-grocer

Amazon key selling practices for holiday season

Holiday season are proving to most profitable season for retailers year-after-year. A report by Statista shows the increasing sales growth rate in the United States from 2012 and forecast for this year 2015.

Picture1Amazon Marketplace holiday sales growth

Among multiple marketplaces and selling platforms present online, Amazon.com experienced it’s 20th holiday season in the 2014 that generated a little more than a third of its $74.45 billion in sales for 2013 in the final three months of the year.

With the above facts and figures, sellers on Amazon have greater opportunities, but are they really making the most out of it?

This article will highlight the key practices for Amazon sellers, allowing them to take complete advantage of the coming holiday season, 2015.

1. Quality listings

First, you would need to think of ways to attract customer’s attention. And, the design of your shop can help you get eyes rolling and encourage customers to engage with your brand.

Ensure you offer a special theme as per the occasion to allow customers a joyful shopping experience. Check on your listings, and provide seasonal content to your product descriptions, all in an effort to allow customers get information quickly and take actions on-the-go.

2. Automate Inventory updates

Holiday season will bring you rush of orders, and you end up receiving  hundreds or even thousands of sales on a daily basis. But, if you don’t have a proper inventory management tracking system, you can experience costly stock issues that will make it difficult for you to process orders in time. And, selling over the leading marketplace Amazon.com- if you are unable to fulfill your customer’s orders, they’ll will jump to one of your competitors selling on the same channel and never return back to your store. Whether you have a single shop or running multiple stores on Amazon, having a system to track and automate inventory levels after every sale, will help maintain sufficient products in hand, especially during holiday season.

3. Quick Fulfillment

Unlike regular days, don’t delay in shipping orders. Ensure you try and get every order out as soon as you make a sale. This will leave you enough of time to process quicker returns, if any problem occurs. Adopting a good order management system will streamline your order processes and help you connect with leading and most cost-effective carriers, to ensure in-time delivery.

4. Instant Customer support

The better you solve your customer’s concern, the more sales you will make during holiday season. Ensure you have a proper support system in place that can help you respond to all your customer’s concern at the earliest(24 hours maximum). This way, you customers will feel safe to shop from your brand and result to repeat purchases throughout the holiday season. Also, you get an ability to receive feedback and take actions to make the most out of those rush days.

So, if you are selling via Amazon.com, ensure you adopt the above practice to maximum benefits and minimize the challenges this year during holiday season.

Godspeed!

Source Link
http://www.statista.com/
http://fortune.com/
https://www.amazon.com/

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Mistakes to avoid while selling on e-commerce giant, Amazon

Selling products online can invite a huge new market for many businesses. The enticing part of selling online is that your web store is open 24*7 and you can reach a huge mass of audience without the cost of mailing and call centre experts, in turn can be a big boon to your business. But this is not an end, there are plenty of points to be consider when selling on e-commerce giants. E-commerce giants like Amazon, can surely be a boon to your business as they display your products to millions of interested shoppers. Amazon is estimated to have count of millions visitors on a daily basis and billion of page views per day according to stats. With this ratio of visitors pursuing Amazon product page, it is not difficult to understand how it can be a good channel for many online retailers. Unfortunately, listing dozens, or even thousands of products on Amazon can be a daunting task that leads to expensive mistakes.

Below are some of the most common mistakes made that you should avoid while selling on e-commerce giants, Amazon.

Amazon selling mistakes to avoid

The prices that you have listed your products are too low

Amazon is a leading marketplace where retailers share common product image and description. The only way to compete is through reviews or on price. Selling on a calculated price, is something that a retailer must be prepared to do, but often it is seen that retailers miscalculate the selling fees, underestimate the shipping cost, or likewise list the product with a price that is too low. To make it simpler let me explain with an example: If you sell a product for Rs. 100 plus Rs. 5 in shipping and handling, for a total of Rs. 105. Amazon charges you a fee Rs. 10, leaving Rs. 95. The actual shipping charge was Rs. 8 and the product cost Rs. 80, leaving a profit of Rs. 7 in profit. This is acceptable margin for your product, but is you land up selling the same product for Rs. 88, you have not calculated your shipping fee properly and you lose money.

Product or description is not correct

Please avoid creating new listings for every product. Imagine what would happen if Amazon showed the same product 10 times on a product category page. Customers would be confused and sales will automatically decrease. As a result, marketplaces ask retailers to provide a universal code or a similar unique identifier which is used to associate several sellers with a single listing. If there is an error in the code or a seller accidently associates a product with the wrong code, a huge problem arises. This is certainly a mistake that you’ll want to avoid.

Un-organized inventory management

Inventory can be the main cause of frequent mistakes for retailers selling on e-commerce giants like Amazon.

This problem will undoubtedly arise when retailers do not have a real-time inventory management system. Imagine if a retailer has five products hanging on the shelf in his physical store, but also has those same five products included in his website available inventory and in Amazon marketplace’s available inventory, it is possible that the retailers will sell more products than are actually on hand. This results that a customer somewhere won’t get the product he/she was expecting and may never purchase from that retailer again alongside Amazon marketplace might stop the retailer for listing items in future.

Its better for retailers to allocate inventory to each channel. For example, if you have five products, hang three in your physical store, one in your web store and one in Amazon marketplace. So, when a product is sold, it will be easy to re-allocate rather overcome the scenario on an upset customer.

Missing easy marketing opportunity

Amazon is an ultimate way to market new prospects and potentially build long-term customer relationship. As per a research in customer’s shopping behavior it is noticed that a customer who returns for a second purchase spend twice when compared to first purchase, and a customer who returns for third purchase spend five time more when compared to the first purchase. Knowing this, it is essential to encourage such customers for future purchase.

Many online retailers ignore this upfront marketing opportunity. So, when you sell on Amazon include a coupon code in a box encouraging them for more purchase in the future. But as Amazon restricts in-package marketing, consider using an email as a follow up. This email can thank the customer for the order informing them you have a website too.

Avoiding mistakes is real challenge. Every human is bound to make a mistake now and then. Your goal should be to limit your mistakes.

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