Why you should be on Amazon Prime
With the recent Amazon’s announcement about making free one-day shipping a golden standard 🔥 for delivery to its Prime members, it is easy to imagine that the stakes have become high for online retailers all over the world. The competition tightens even for the largest online marketplaces like eBay and Walmart.
Amazon promises to cut the standard delivery time in half and remove the minimum order threshold. Which is clearly an attempt to keep the Prime members on the marketplace and attract new members too.
This announcement is definitely good news for marketplace buyers. But is it as good for the sellers? 🤔 In this article, we will outline the benefits of being an eligible Amazon Prime seller.
What is Amazon Prime?
You probably already know what it is but on the off-chance that you don’t, we will explain in a few words. Basically, Prime is Amazon’s membership program, that gives the customers a few extra perks for just a few dollars a month. The list of Amazon Prime benefits is quite big. 🙌 There are Prime Video and Music streaming, Prime Rewards, discounts on groceries and other selected product categories, and rapid delivery just to name a few.
The only disadvantage of Prime from the point of view of the customer is when they do not shop online enough to actually use all the advantages of the membership.
Why sell on Amazon Prime?
The first and foremost reason to get on the Prime bandwagon is the customer trust metrics. Amazon is a giant marketplace, literally millions of people use it every day.
Imagine how much money you need to spend on establishing your brand, marketing, finding new customers, and retaining the current ones (by using a membership program, for example).
Well, with Amazon you have all of that done for you by the retail giant with vast recognition, established reputation, and enormous customer base. They have even created the Prime membership program 👑 to retain the customers and keep them buying. In fact, the latest numbers show that about 101 million people have a Prime membership.
So, the choice is basically between building everything from scratch or getting a head start with Amazon. And it is quite obvious what the right choice here is. 😎
But what if you already have a store that you sell your products in. How do you take advantage of selling on Amazon as well? The obvious answer is ‘Go multichannel!’ To avoid stumbling along the way and quickly establishing your multichannel selling business, you can use multichannel automation tool by Sellbery.
The second reason is that Prime members are actually active customers 🙋♂️ on the marketplace. What use do millions of website visitors have for you if they do not buy anything? Well, with Prime users there is no such issue at all. The majority of Prime members tend to shop on Amazon at least one-two times a week. These are the customers who not only actively shop on Amazon but also seek out products that are part of the Prime program 💳
So, if your products are eligible for Prime that means that you have a solid customer base on Amazon from the start. And providing that you have done your product research and all the necessary preparations there are no reasons for your products to not fly off the “online shelves”.
The third big thing is Prime shipping. It might be no secret to you that shipping is the second biggest deciding factor for the majority of buyers, right after the price. And many surveys confirm that.
With all other things being equal and the two similar products being in the same price range, faster shipping 📮 can sway customers toward choosing one product over the other.
Prime members actually pay extra to get their products quicker and for free. And now with the one-day delivery standard, they expect an even better service. So, if you provide the service, the sales will come your way.
How to sell on Amazon Prime?
First of all, you need to get on board of Amazon FBA. If you have never sold on Amazon before, things might seem a bit confusing at first. That is why we have compiled this ➡️ step-by-step guide for beginners on how to start selling on Amazon FBA.
Being an FBA seller automatically qualifies you to offer you products under the Prime program. Once you get acquainted with the Amazon seller account navigation and list all of your products online, you can go to the next step.
The next step is to become eligible for selling on Prime. Eligibility to provide one or two-day shipping is not something that is given to you by Amazon straight away. You need to meet certain criteria and provide high and more importantly consistently good level 🎖️ of service. Otherwise, Amazon can revoke your eligibility until you improve your seller stats or even terminate your account completely.
There are no specific instructions from Amazon on what exactly you have to do to become eligible. But there are a couple of general rules you need to follow to succeed.
- Keep you “bad” rates down. 📉 Constant low return and refund rates show Amazon that you are perfectly capable of providing excellent service to the customers.
So, you need to make sure that your product is superb quality to avoid people returning for “not as described” reasons. And you must always keep track of your inventory to avoid overselling and refunds.
- Keep your “good” rates up. 📈 You must establish a good seller reputation before Amazon allows you to enroll.
Try making your products more visible on the marketplace with a PPC campaign or by improving your product listings. And more importantly, get more positive 👍 reviews for your products.