AMAZON FBA, WHERE ARE WE HEADED IN 2021? THE FUTURE IS BRIGHT!
To say 2020 was a global whirlwind is an understatement. For Amazon sellers, the highs, the lows, the changing face of the Amazon trajectory had us all jumping for joy, and in some cases bringing us to our knees. We made it through the best and the worst year on so many levels, and it's fair to say that the estimated 2.5 million people selling on the platform are looking forward to a breath of fresh air in 2021.
As we continue to navigate the changing face of a global pandemic, how can we be sure that positive signs are coming to the Amazon platform in 2021? Like anything in life, we aren't going to tell you everything will turn up roses, but we do have some great projections for 2021 that we want to share with you. Keeping a positive mindset can only help you maintain focus on your goals and understand that there is massive opportunity amongst the grueling hardship, so buckle up, and don't give up just yet.
WHAT'S IN "STORE-AGE" FOR AMAZON FBA 2021?
Nearly every Amazon seller has experienced inventory restrictions and the difficulties associated with balancing demand in the boom of eCommerce in 2020, as well as housing the inventory levels required to sustain our businesses. All sellers can agree that those challenges brought about much frustration. That said, amongst our frustration, we learned how to navigate dynamic inventory management, and we were graciously reminded that we must play by Amazon's rules.
“I KNEW IF I FAILED I WOULDN’T REGRET THAT, BUT I KNEW THE ONE THING I MIGHT REGRET IS NOT TRYING”- JEFF Bezos
Success in Amazon in 2021 will be determined by sellers being open to navigating inventory restrictions creatively and proactively. A more robust plan for 3PL storage, considerations to Merchant Fulfilled shipping and applying for Seller Fulfilled Prime will better prepare you for inventory management as a whole. All of this to say, while restrictions will be in place, we see Amazon loosening the reins to some degree.
BETTER BRANDING AND MARKETING PLANS FOR 2021 WILL SET SELLERS UP FOR SUCCESS
While managing inventory will remain a top priority in 2021, evaluating current marketing plans, brand strategies, and cost per click advertising structures need to be assessed. Weaknesses in your brand presence mean a lack of identity, and ultimately your brand will be lost in the Amazon space. The more eCommerce booms, the more likely your competition will be drawn to various online platforms such as Amazon and look to broaden its hold on its market share. Conducting proper market research, understanding your audience's needs, and ultimately knowing your brand's USP will improve your positioning and grow your sales.
"IF YOU ARE NOT A BRAND YOU ARE A COMMODITY"- Phillip Kotler
It doesn't stop at marketing, however. In Amazon, the truth is strong brands will sell and will sell well. Strongly optimized listings are essential to differentiate the ever-growing competitive space. Understanding your customer's pain points and adequately addressing those in your listing will require going above and beyond the basics. Utilizing excellent imagery that is easy to understand and visually appealing is more crucial than ever to gain your buyer's interest.
Further to focusing energy and investment on appealing imagery, using Amazon's PPC opportunities should be a priority to your growth. Haphazardly using PPC without fully understanding its metrics can see users increase spending without heeding any real results. Invest in understanding PPC and develop structures and processes that mean advantages in advertising against your competition—programs like Brand Registry will further assist brand success in 2021. A prime example is using video ad creation while other sellers don't have access to the Brand Registry program. Video ad use is smart marketing and, overall, a compelling example of high performing PPC use.
WE KNOW A 'PRIME' OPPORTUNITY WHEN WE SEE ONE- AMAZON AGGREGATES INCREASE VALUE IN THE SPACE
2020 on its own has highlighted the overall value in eCommerce but the emergence of a dozen or so Amazon aggregate companies means Amazon FBA business value will go up in 2021. This on its own is great news for those sellers streamlining their Amazon FBA business to sell. With an increase in aggregate options, these platforms have made selling your Amazon FBA business a simplified process yielding better and faster results.
These newer buying platforms have been buying up brands for a few years, but a massive spike in growth has been seen in more recent months. A strong indication that 2021 will see another increase in these types of transactions as some Amazon FBA business owners skyrocket their sales like no previous year to date. Selling your Amazon FBA business has never been so attractive, and value in doing so is only increasing.
"Failure isn't fatal, but failure to change might be" - John Wooden.
Whatever your stance on 2020, surely there will be hurdles to overcome in 2021 on Amazon. However, the future does look bright for those willing to push ahead full steam or dive in as beginners. Come prepared to play on Amazon's terms, and come prepared with the tools needed to drive your business forward. 2021 will be a great year for Amazon, one that will involve adapting to challenge and change- you won't want to be on the sidelines watching.