Some entrepreneurs have found success using specialized marketing tools that are aligned to the Amazon marketplace. These tools, along with other offerings on the marketplace, can help other small businesses better navigate an economic downturn.
Jungle Scout’s “2023 State of the Amazon Seller Report”, conducted recently, shows that these small businesses are experiencing a substantial increase in sales. 89% of them will report profits in 2023. This is a significant increase from the 85% of last year. The cost of selling goods, shipping and advertising are all increasing.
The retail boost that Jungle Scout and other platforms have given them has been key to their success on Amazon. The company processes more than 500,000,000 Amazon products. Its database tracks both the products and sales history from Amazon’s catalog.
Jake Zaratsian is an Amazon seller who relies heavily on research conducted by the company for information on marketplace sellers and their buying preferences.
“Jungle Scout provided me with a detailed analysis of the Amazon FBA market, including the number of keywords, search volume, and historical Amazon sales data. fees He told The E-Commerce Times that ROI was the main concern.
FBA (also known as Fulfillment By Amazon) is a service which allows retailers to utilize Amazon for storing, picking, packing, and shipping customer orders.
Amazon Sellers Multichannel Strategies and Demographics
The Jungle Scout study shows that Amazon’s sellers are resilient compared to businesses in other sectors. This speaks volumes for global e-commerce.
Multichannel marketing is the key to success for sellers. For instance, 61% of Amazon retailers used at least one other channel in 2022 — up from 58% the year prior — and more than half plan to explore new e-commerce platforms and new global marketplaces in 2023.
Amazon sellers who responded to the Jungle Scout survey and compiled the report’s findings cited the top five platforms they use to support their multichannel marketing strategy. They rank Shopify and eBay in order of importance. Walmart, Etsy and Facebook Marketplace occupied the remaining slots.
One third of sellers are also looking to acquire other ecommerce brands in this year. This shows a general confidence in the future of the industry. The report didn’t indicate differences in success between different Amazon seller profiles.
The report does identify that the average seller is between the ages of 24 and 44 (58%) with a majority of men (72%). Amazon isn’t their sole source of income. The majority of those surveyed have part-time or full-time jobs that are not related to e-commerce.
The Analytics of Selling Strategy
Zaratsian’s biggest tip for entrepreneurs who want to start a successful online business during a recession, is to fully understand the market before investing. This advice is what he encountered when launching his Amazon retail business.
First, confirm that the product has a high demand all year long. Analyze the competition and see if the established brands are dominating the category, or if there are new sellers.
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But most importantly, you should understand the fees and costs associated with the sale of the product. Zaratsian explained. “This will give a clear picture of your expected ROI.
Newcomers on Amazon can benefit from the services of seller support companies. Amazon offers a wide range of tools and resources for its sellers.
Zaratsian mentions two names that sound similar. Jungle Scout The following are some examples of how to get started: AMZScout.
AMZScout primarily functions as a tool to research products. It allows you to set parameters and search the Amazon database in order for new product ideas. The user can research keywords, and then analyze their competitors.
Zaratsian claims that Jungle Scout allows sellers to uncover and quantify all. The company is Amazon FBA Guide There are also more retail sales lessons on YouTube. Jungle Scout YouTube channel.
Zaratsian grew to be more closely associated with Jungle Scout. Jungle Scout is different from Zaratsian in that it offers sellers more than keyword and product research.
Zaratsian says that Jungle Scout, for example, provides sellers with tools to manage and scale up their business at every stage. These include Inventory Management, Marketing, Sales, Profits, and Advertising Analytics.
Drop shipping to private label success
Zaratsian had no experience in retailing before joining Amazon’s Marketplace. He tried drop shipping first for several years.
The business didn’t make him much money, but he was able to start his e-commerce career. Zaratsian decided to become an Amazon seller in order to gain more control over his business and manage his own private label.
I stopped [drop shipping] I never looked back. “Unlike private labels, my products were not mine,” he said.
The thing he loves most about private label merchandise, is that he could one day sell his entire business to focus on another project or launch a new brand.
He said, “I’m glad I switched to drop shipping because you can’t do that.”
Amazon: How to Get Experience
Zaratsian used the Jungle Scout tools, such as the Rank Tracker and Extensions, to locate his products. He used advanced filters to find and organize the products with high demand, low competition, and a sustainable ROI.
After a few days of analysis, the data lead him directly to the products he now sells.
Why do you research products that you want to sell? To calm the fear that he could lose all his hard earned money if he tried to sell a useless product.
Instead of relying on gut instinct, he relied on historical and accurate sales data in order to make a data-driven, wise decision. Jungle Scout is essential to his business success because of this data-driven approach, he said.
It helped me to identify categories that were overly competitive and also understand products with low costs but high profits margins. “I felt a weight lifted off my shoulders knowing I had done everything I could to verify the investment opportunity before making it,” he said.
Combining Filmmaking Passions with E-Commerce
Zaratsian, who is still an Amazon seller today, also works as a scriptwriter for Jungle Scout’s video team. He was able to utilize his skills as a scriptwriter and presenter for the video team at Jungle Scout.
Zaratsian began his career as an Amazon consultant after he left filmmaking, which he had pursued earlier along with dabbling into retail. He gained a lot of experience by working with many brands, ranging from startups to global giants in various categories.
Jungle Scout was used to research products. Then, he expanded his retail business.
Unexpectedly, a chance arose for me to combine my passions of Amazon and filmmaking through Jungle Scout. “It is a great opportunity to share my knowledge and help others grow their own e-commerce business, like I did,” said he.
Combining Talents For Fun And Profit
Zaratsian, who was initially at Amazon and received a sales boost from Jungle Scout, became so satisfied with their service that he eventually joined them. He now manages 3 Amazon brands.
Natural Events sells plates made from palm leaves that are eco-friendly, sustainably produced, and made with sustainable materials. With three SKUs and Amazon FBA, the company grew its revenue from $150,000 to more than $150,000 within its first year.
The entrepreneur also manages Amazon operations for a brand that sells over 1,000 SKUs in the Industrial & Scientific category with monthly revenue exceeding US$1 million. This brand manufactures its entire product line in the U.S., and uses Amazon FBA for order fulfillment.
Zaratsian, a video content creator for Jungle Scout, also manages Jungle Creations. The company has four SKUs: bamboo roasting sticks, and the most recently launched product, washable pee pad for dogs.
In the first year of sales, the new product had generated over 500 reviews and reached a revenue of $200,000. Check out Jungle Scout’s YouTube channel for more information about this brand.
Data-Driven strategies for E-Commerce success
Zaratsian’s biggest takeaway from adapting his marketing strategy in order to keep up with the ever-changing landscape of e-commerce is to understand his customers better than any competitor.
“This was why I combined first-party Amazon data with Jungle Scout data to gain a complete 360-degree perspective of my clients, the challenges they are facing, and the solution they need,” said he.
The data is the brand owner’s most significant competitive edge because it changes with his customers.
Every business owner faces a major challenge when it comes to managing their time and resources. Zaratsian observes that Jungle Scout allows you to delegate tedious tasks, and helps avoid costly mistakes. It offers sellers critical information to help them make successful business decisions.
He concluded, “Whether you are a new seller or an experienced pro, the most comprehensive data gives you that competitive edge.”
