Q4 on Amazon coincides with the holiday season and is a period of increased sales. Amazon is the ultimate online shopping destination for those who want to get their hands on exclusive holiday items.
As an Amazon seller, you have the potential to see a significant increase in revenue during this period, whether you sell toys, kitchen utensils, beauty products, or any other product.
However, positioning your business to take advantage of this increase in sales can be challenging. In this guide, the Click Fluency team discusses several steps to help your store take full advantage of the holiday season.
Important Fourth-quarter Sales Dates for Amazon Sellers
Q4 on Amazon starts at the beginning of October and lasts until the end of December. Most of the important sales dates in the eCommerce calendar fall during this period and include:
· Black Friday
· Cyber Monday
Black Friday takes place on the first Friday after Thanksgiving, the fourth Thursday of November. Cyber Monday is an extension of Black Friday and allows shoppers to save money on new products via online purchases.
Christmas shopping starts at the beginning of December. Boxing Day, another important shopping holiday, falls on December 26, the day after Christmas.
If you want Q4 to be a success for your company, you need to start early. Once the shopping holidays start, it is too late to invest in an advertising campaign, add relevant keywords to your listing, and manage your inventory.
Review your business performance during the last quarter of the previous year, and identify avoidable mistakes that can affect your earnings. Generate a report to determine which of your products were best-sellers, and prioritize these items when you stock up or optimize your listings.
You should also reach out to your suppliers and start sourcing products to minimize the effects of supply chain disruptions. Research trends and vet suppliers during summer so you have enough time to expand your product selection and get traction on your listings.
Maximize Online Sales With Listing Optimization
Optimize all your product listings, starting with your best-selling items. The goal of listing optimization is to stand out from your competitors and maximize your conversion rates and profits.
Your product listing should include:
· A readable, keyword-rich title that outlines a unique selling proposition
· Bullet points with relevant keywords that list the product’s benefits and features
· A description that conveys the product’s added value
· High-resolution product photos
Do extensive keyword research to ensure you are targeting the correct search terms. If you add irrelevant keywords to your listing, your bounce rate might increase, which will decrease your visibility.
Create Backup FBM Listings
Most FBA sellers have experienced supply chain issues, fulfillment delays, and temporary product suspensions. When selling higher volumes, your store might also run out of stock, which will cause your inventory limits and search rank to plummet.
Set up Fulfilment by Merchant (FBM) and create a backup listing for all your ASINs, especially your best-selling products. If you don’t have a warehouse, partner with a third-party fulfillment company that offers fast shipping and meets the Amazon Seller Fulfilled Prime standards.
If you sell products on platforms other than Amazon, these fulfillment brands can give your customers access to same-day shipping at consistently low prices.
Automate Your Follow-up Sequence
Amazon has strict rules about communications between Amazon sellers and buyers. However, sending feedback requests can help you build a relationship with your target market. You will also save valuable time, as these emails go out automatically.
You can schedule emails to go out at specific times, for example, after the buyer makes the purchase, when the product leaves the fulfillment center, after delivery, and a few days after delivery.
Various feedback tools are available, and you can choose one that integrates with your Amazon store. These tools follow Amazon’s rules and can contribute significantly to your store’s success.
Implement a Competitive Pricing Strategy
Even though your product’s price is not the only deciding factor in the buying process, it can affect your ranking, visibility, and sales. To win the Buy Box, you need to price your stock competitively. However, sellers who go too low on their pricing tend to lose money or create the impression of poor quality.
Use an automatic repricing tool to find the optimal price point. Such tools analyze the demand for your products, Buy Box opportunities, and direct competitor pricing to calculate the price point sweet spot.
Increase Your Products’ Visibility With Amazon Advertising
Stores that run Amazon advertising during Q4 tend to see significant returns on investment. Create a native ad campaign to boost your listings’ visibility and sell more products while Amazon sees an increase in overall traffic.
The earlier you start with your advertising campaign, the better. During the COVID-19 pandemic and resulting supply chain crisis, customers started their holiday shopping earlier in the year, and you can expect this trend to continue.
With A/B testing, you can determine which images, keywords, and titles generate the highest traffic and conversion rates. However, by the time Q4 starts, the time for split testing is over, and your high-performing ad campaign should be up and running.
Inventory Management – Establish a Healthy Cash Flow
How much free cash flow does your business have available? In the run-up to Q4, you should make sure that:
· You can pay all short-term debts, even if you don’t sell any products for a specific time
· You have a healthy inventory turnover
· You generate a sustainable ROI after paying taxes
Managing your cash flow will ensure you don’t run out of stock and lose your ranking.
Start Planning for the Holiday Season Today
If you want to learn how to run an Amazon advertising campaign and prepare for the final quarter, reach out to our team at Click Fluency. We provide our clients with all the assistance and insights they need to succeed on Amazon. Contact us today to schedule a free discovery call.