Category: Amazon Business

Benefits of Implementing Amazon Price Tracking in Your Business

Benefits Of Implementing Amazon Price Tracking In Your Business

Keeping an eye on competitors' pricing on Amazon is in great interest for an eCommerce business. Tracking and maintaining the price history on Amazon helps businesses keep up with the competition. eCommerce sellers need to reprice their products due to increasing competition and improve their chances of winning Amazon buy box so that they don't lose sales.

Tracking your competitor's listings, getting sales estimates, and maintaining Amazon's Best Seller Rank using the Amazon price tracking tool can give you a clear picture of how your competitors are making more sales by making changes in prices.

Amazon sellers can use the competitors' price information and adjust their product listing accordingly to improve the chances of getting an Amazon buy box. Let's understand what Amazon price tracking is and why it is a must-have in every Amazon seller pricing strategy.

What is Amazon price tracking?

Amazon price tracking is a strategy to track, compare, and monitor pricing from your competitors' product listings. It is also known as a price monitoring tool that collects important information such as availability, visual representation, offers, and customer reviews along with Amazon sale prices. The Amazon price monitoring tool will send a notification to the user when the pricing of the competitors' product changes or a new offer is available.

The tool offers live price monitoring to help Amazon sellers optimize their product pricing vigorously. The tool also enables sellers to predict demand changes related to pricing, so Amazon sellers can list their products with correct pricing. Some Amazon price tracking tools offer features for comparing prices of several sellers, while other tools can provide a detailed price history of a specific product listing.

How does the Amazon price tracker work?

The Amazon price tracking tool uses machine learning and data science technology to provide Amazon sellers with accurate price monitoring along with other parameters like market analysis, demand and supply, deals, visual representation, product availability, and more. Some tools can also provide tracking of the product description, reviews, images, keywords, etc. Amazon price tracking tools can also store the collected information into its database so users can check the data in graphs and evaluate as and when needed. The price-tracking tool works the same way as Google scans a website to rank it on the Google search results page.

An Amazon price tracking tool scans Amazon and evaluates product titles, availability, and pricing. Some price monitoring tools even scan product descriptions, images, customer reviews, and other important aspects of product listings. The tool will then store this collected information in its database. Users can check this information stored by the tool on their dashboard or in a specific layout.

How is Amazon Price Tracking beneficial for your Amazon Selling Strategy?

Creating an effective Amazon seller pricing strategy is not easy. It can be even more difficult if you are new in the market and have to compete with the enormous competition. You need to evaluate the product listings of your competitors to decide on the price.

Also, the strategy is helpful in analyzing other factors like demand and supply, minimum margin, the product cost in local and international markets, etc. When you don't have an effective Amazon selling strategy, it can impact your business profitability.

Hence, it is crucial for eCommerce businesses to use the Amazon price history tracker to analyze competitors' pricing and evaluate their competitiveness. Here are some benefits of using Amazon price tracking in your Amazon selling strategy:

  1. Understand the competition in the market

Using a price tracking tool is an important part of your Amazon seller pricing strategy. Since the growth of any business depends on its profit margins, understanding your competitors' pricing strategy is the key.

When the pricing of your product is low, you may see strong business. However, if the profit margin is lower than competitors', it may be difficult for you to grow and match the competition. The goal of every business is to grab more customers than competitors. While reducing your product prices can be a great way, this may reduce your profit margins too. Amazon sellers can use the Amazon price history tracker tool to evaluate price trends and modify their Amazon pricing strategies to take up their share of the market.

  1. Watch the competition

A sudden drop in your competitors' Amazon sales prices could mean that the competitors know the trend in the market and are more tuned with the customers' needs. As a small eCommerce business, you may be very effective in the market, but you may not be familiar with sudden changes in demand and other important market research positions.

Adding a price monitoring tool in Amazon pricing strategies will help you track price shifts so you can update the pricing and stay ahead in the Amazon price war to gain maximum from the rising product demand.

  1. Opportunity to become the lowest cost vendor

If the product is in high demand, it is highly beneficial to become the lowest-cost vendor. Your potential customers might already know what they want to buy but are looking for the product listing with the lowest pricing. And when you offer the product at the lowest rates, you may be able to enjoy the competitive advantage and grab more sales for your product.

Also, when your product is priced lowest, there is a higher chance of winning the Amazon buy box. This will further improve your conversion rate and boost your business sales. Hence, by monitoring the prices of your competitors' products, you can easily decide your pricing strategy. By using Amazon's dynamic pricing strategy, you can get the majority of the orders.

  1. Increase pricing when there is little to no competition

If you are selling a product that has little to no competition, you can increase your profit margins and be more profitable. This Amazon seller pricing strategy can be used on products for which you are a preferred or the only supplier. A competitor analysis can help you find products where you are the only seller. If you find a product that only you are selling on Amazon, you can increase the prices.

However, if you use this strategy and increase the prices too high, you may encourage new sellers to enter the market, ending your monopoly in the market. Also, you may end up losing all sales to new competitors who will be willing to sell products at lower prices.

  1. Track price history

Amazon price history tracker can be a valuable feature for Amazon sellers. This feature will help you understand where and how your competitors have changed product prices and let you compare it with your own price history to gain valuable insights. The tool is also beneficial in analyzing where you have impacted your competitors and how they have impacted you in the past.

You can also evaluate price history to analyze how you can schedule product pricing throughout the calendar. When you make a long-term Amazon selling strategy, it allows you to predict the profits and business growth for the whole year.

Now that you know the benefits of monitoring competitors' pricing let's look at the four Amazon pricing strategies that you can use to decide the price of a product in high competition.

What are the 4 pricing strategies?

When it comes to pricing a product on Amazon, there are four different strategies a seller can use. The seller with the lowest pricing doesn't always get the Amazon buy box; a lot of factors come into play. Here are four Amazon pricing strategies that you can use on Amazon:

  1. Economy

This strategy uses minimum profit margins along with a low advertisement cost. The strategy is aimed to make the product more affordable so you can target a larger market. Usually, this strategy will include no shipping costs and doesn't rely on sale prices. This type of marketing is effective for daily need products, such as soaps and detergents.

  1. Premium

This strategy takes a completely opposite approach compared to the economy pricing strategy. The product is priced heavily and uses the name of a brand to generate traffic and sales. However, as the brand names generally don't have an impact on Amazon, sellers who are using this strategy usually opt for discounts and offers to grab customers' attention.

  1. Skimming

It is an adaptable Amazon pricing approach in which sellers often start with a higher price and then lower the pricing to match the competition. Sellers who have a unique product to sell in the market use this strategy and then lower the price when they anticipate competition.

  1. Penetration

This Amazon pricing strategy is used when sellers place the product prices lower than their competitors to gain market share. This strategy is normally used by a new brand or when an existing brand launches a new product. The product's price is increased after reaching the objectives to gain higher profit margins.

Conclusion

An Amazon price tracking tool can provide Amazon sellers with crucial marketing intelligence, and sellers can use this intelligence to create their Amazon pricing strategies. By using the price monitoring tools that can automatically provide competitors' price analysis, Amazon sellers can make the best decisions for the growth of their brand. The decision can be to lower the product pricing to match the competition or increase the price to gain more profit when there is little to no competition.

Want to make your Amazon store stand out from the competition? Contact Amazon listing optimization experts from Vserve for all your Amazon listing requirements.

How Customer Interaction Service on Amazon Impacts Your Business

How Customer Interaction Service On Amazon Impacts Your Business

It might look like customer interaction service on Amazon occurs between a single big company and several customers. It doesn’t seem like a customer is interacting with individual businesses that sell their items on a website. 

A person once purchased three novels, but the books arrived in bad conditions. This person raised his fist at the marketplace and didn’t interact with the seller the books came from.  

Amazon seems like a quick-fire market where only the prices and the customer ratings matter. The market space adds to the idea with its design. It also relegates customer interaction service to second place at best. 

Although this might seem like the case, customer interaction service is important to buyers. This means they should be important to sellers as well. Customers find attracting, stores that answer their questions.   

Amazon Customer Interaction Service can be the defining trait of a seller who would ordinarily drown in the pool of numerous five-star stores. This is because it improves customer satisfaction. Additionally, it creates an advert for the seller, which is the word of mouth.

What is a Good Amazon Customer Interaction Service? 

Customer interaction is more than giving customers information on what they need. The memories dearest to me are the ones that made me feel emotion deeply. It is a very important tactic in sales and marketing. Customer interaction service is a channel by which an impersonal online shopping experience can become a very satisfying and memorable one. 

I would define a good customer interaction service as a service that: 

  • Provides satisfaction to the customer. 
  • Builds loyalty. 
  • Establishes a standard of business the customer will expect from future interactions. 

There are three things a good Amazon customer interaction service provides: good sales, marketing opportunities, and brand equity. Good sales come because your customers have had a good experience. 

Customers that have had a good experience with a seller are three times more likely to repurchase from that seller. For instance, after buying my latest phone from a seller and having an amazing experience, I have bought all my mobile accessories and even a laptop from the same seller.

A good Amazon customer interaction service will give the seller valuable marketing. Although we cannot quantify the reach of word-of-mouth, its effect on a business is invaluable. People who are satisfied with a seller are three times more likely to recommend the seller. 

When customers get good experiences from valuable interaction, the seller builds the brand’s name. Reputation will become branding and that will foster loyalty. This is brand equity. 

Good Customer Service = Effortless Marketing

The importance of word-of-mouth in marketing is clear. When a customer is satisfied, family and friends associated with that customer get a referral. There are stores on Amazon that are popular through referrals.

The seller must understand the Amazon customer interaction service because it will funnel in customers. What are the components of good customer service? There are two: generosity and initiative. 

Generosity

Generosity in customer service is choosing to give a customer a good experience even if it will cost you financially. Imagine selling a Nintendo Switch Lite console to a customer as brand-new. Following the sale, the customer says the console didn’t come on after opening the box. You have two options at this point. 

If you don’t acknowledge the problem and do not offer any form of refund or replacement, you might save $200. However, the customer will write a bad review and highlight your response. The manufacturing mistakes of Nintendo will not be as damaging to your business as your response. 

On the other hand, if you choose the other option and offer a replacement unit, you would’ve spent more. Meanwhile, the customer is satisfied and will recommend your store to others.

Initiative

Initiative in customer interaction services is anticipating the challenges customers will face. It is also implementing solutions before the customers state the problems. 

The first and most important step in taking initiative is making it easy for your customers to contact you. I feel much better when I realize a seller’s contact information works on Amazon. It means that I can relay any problem I might face to the seller. This will also make customers loyal. It will also lead to more recommendations by these satisfied customers. 

Note that satisfied customers are three times more likely to recommend your product or service to others. The seller isn’t involved in this marketing channel. This makes the marketing effortless. So, I can say that good customer service leads to effortless marketing. 

Top 5 Reasons Why Customer Interaction Matters on Amazon

  • Your Buyers Want to Feel Like They Matter

No one wants a seller to see him or her as an inanimate asset. I know I don’t want that. Buyers are people and they want merchants to see them as such. They are buying products from your store in the sea of competing stores. 

If they don’t feel like you are valuing them, they will examine their options. This is one of the reasons customer interaction matters on Amazon. It is a way of showing customers you care and they want sellers who care. 

  • Good Customer Service Keeps You Ahead of the Competition

Amazon is a vast marketplace with many merchants selling similar items at similar prices. Sellers that have responded to the reviews and complaints of customers, always get my attention.

Customer interaction hasn’t reached its peak on Amazon so there is still room for distinction in the area. Eventually, good customer interaction services will be standard. When that happens, distinguishing yourself then will be difficult. So, make the best of the opportunity it brings now.  

  • Consistent Interactions Build Loyalty

Customer loyalty is priceless yet it is one of the things growing sellers begin to ignore. It is common on Amazon for sellers to rely on metrics. Being consistent in customer interaction services will make customers come back again. Customers that have good experiences with sellers are three times more likely to return to the same seller. In addition, 44% of these buyers won’t shop around for alternatives.

  • Your Seller Rating Matters on Amazon

Although good customer interaction is beneficial first to the customer, it is also beneficial to the seller. The ‘buy box’ position on Amazon multiplies sales. However, ratings given by customers are a big determinant in Amazon deciding who gets a buy box. 

Even if the merchant doesn’t get the buy box, good customer interaction is clear on your page for potential customers to see. Customers, like myself, are more likely to hover longer in stores that have customer interaction. It gives a good picture of the values of the seller. 

  • Good Customer Services = Increased Sales

We market experiences so much in the world and there is a reason for that. Everyone loves a good experience. That includes buying items on Amazon. There is a reason Amazon gets 50% of online sales in the United States. It is because the experience of shopping is so robust. In such a vast marketplace, good customer service becomes a big neon sign. It is more important than a fancy name or even 2% discounts. 

When customers are satisfied with their interactions with sellers, they are less sensitive to prices. 33% in a study said they would require over 20% discount to jump ship. The same customers are three times more likely to return. They are also three times more likely to recommend the seller's products or services. Good customer services increase sales.

Challenges of Implementing a Good Customer Interaction Team on Amazon

Like most good things, good customer interaction isn’t a walk in the park. If it was, all sellers would be doing it. It comes with challenges that no one can ignore. It can even discourage a seller from being consistent in providing good customer interaction services on Amazon. 

The first challenge is the work required to make interactions successful. It requires a lot of work. There are no shortcuts or easy copy and paste formulas. Each customer, potential or active, is unique in their needs, perceptions, and acceptance of solutions. Good customer interaction will require interacting with all kinds of customers in all imaginable ways. The aim is to fight for their satisfaction. 

The other challenge is the price you will pay to satisfy a customer. There will be replacements that the seller will make and these replacements will come from the seller’s purse. Although this can build customer loyalty and bring in more customers, it is still not pleasant to dent a budget. There is also the cost of manpower required to interact with customers regularly and proffer solutions.

Still, with all these challenges, good customer interactions are important. This means that merchants will have to factor in the challenges of Amazon customer interaction services, into budgets.  

This is the Time to Get Customer Interaction Service into your Business

After figuring out the following:

  • what good customer interaction services are 
  • why they are important in the Amazon marketspace, 
  • combing through the benefits, 
  • and examining the challenges, 

there is one thing left; implementation. 

You might not know what to do and that is where we at Vserve come in. Using our solutions to improve your customer interactions is like Dominic Toretto using his nitrous boosters to win a race. 

We provide email support, Amazon chat support, and call center support. Our prices are in three categories: Lite at $549 a month for 5 services, Standard at $649 a month for 7 services, and Growth which costs $949 a month and offers all the services.

Key Metrics To Evaluate Your Amazon Business After Covid-19

Amazon Key Metrics

The fact that the traditional metrics to assess your business performance are pretty misleading and unhelpful is valid for the post-COVID business scenarios. Pre-COVID Amazon performance metrics are a misfit for the purpose as they cannot track the complexities of working digitally. 

As the crisis demands plenty of resources and time, the Amazon performance metrics should solve the biggest problems we have. Before the pandemic, several performance indicators and metrics served as the critical factors in providing insights into business performance. But as the pandemic rolls on, the struggle lies with gathering the data and measuring performance. 

The pandemic has changed performance measurement, causing the organizations to look for what new indicators they need to measure. So, you need to look for the significant changes in performance measurement and what key indicators you should consider while evaluating your Amazon Business. 

In this blog, we have brought to you the key metrics that would help you evaluate your Amazon Business more effectively and improve your sales. 

Key Performance Indicators Of Amazon to Look For

As an Amazon Seller, you need to track some major KPIs as your business's success depends on it. Identifying those indicators and paying attention to what those indicators tell you is crucial for your business. With Amazon Seller Account Management, you can look into these critical metrics for assessing your business performance.

  • Inventory

For your business's expected sales velocity, the available stock in your inventory is one of the significant KPIs you need to look for. So, you have to work on historical data and seasonal analytics to look for essential changes in your inventory. In this way, you can ensure that your list is well managed according to the demand and you aren't delivering any knockoffs.

  • Aging Stock

This is another important factor that provides you with information on your available stocks. It helps you make more accurate predictions when you order more stocks as it would avoid you having stocks sitting in Amazon's Warehouses for months, increasing your storage costs.

  • Fulfilment of Orders & Shipments

As an Amazon Seller, you need to use Amazon's shipping material and bear the incurring costs with it. So, you have to work on your pricing strategy to include those costs in it effectively. It is because these costs affect your bottom line.

  • Customer Performance Metrics

Amazon is strictly concerned with customer satisfaction, and to measure the performance of its sellers, Amazon uses customer metrics. So, you need to work on return and non-return cases to remain clear of any issues that your customers are facing and don't have to bear any loss. 

  • Reviews & Ratings

One of the actual proof and reports of customers liking your products and services is their ratings and reviews. A potential buyer doesn't have another way of choosing your product apart from looking into your reviews. So, you need to constantly monitor your ratings and reviews and look for negative reviews to solve the issues customers are facing and possibly convert those negative reviews into positive ones.

  • Conversion Rate

When Amazon ranks your listings, it does so by evaluating your conversion rate. If you're not improving your conversion rate, it will end up ranking someone else over you, having a higher conversion rate than you. This is the KPI that most of the sellers do not pay attention to. They think that having the same sales today as it was tomorrow would help them maintain their rank, but it isn't like that.

  • Promotions

When launching promotions and deals, most sellers don't prepare their inventories, and their deals go rogue in seconds, emptying their inventories. While it is great news that your product sold out, it does affect your inventory KPI. It could have yielded a more significant profit if your inventory had appropriately maintained. So, planning your inventory is essential before launching promotions.

  • Ad Expenditure

Your ads might be doing well, and you may be selling great, but if they cost high per click and you have to pay some amount before selling anything, it may result in a downfall of sales. So, monitoring your ads and their costs is essential too.

  • Competitor Pricing

Suppose you have earned a badge on Amazon by having a very high selling velocity. In that case, your competitors can quickly snatch that title from you by lowering their prices and driving up their selling velocity. So, look out for your competitors and their prices as they can bypass your tactics easily. If you need expert support to handle Amazon competitor price tracking, you can reach out to us, anytime.

Conclusion

Amazon Listing Services provide you options to analyze your business with different performance indicators. Keeping an eye on those indicators, you can track your business's performance at each step so that you can work on the measure to improve your performance. Several options, such as Amazon Listing Services, Amazon Competitor Price Tracking and Amazon Content Optimization, give you the best insights into your business performance and growth. 

The key indicators in this blog may not act as a customer magnet for your business. Still, they will surely improve your business performance and pose a great image of your business before the customers. With your business backed by our Amazon Product Listing Services, you don't have to worry much. Just excel and grow.

 

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