Amazon FBA Sellers – Why You Need to Build a Brand Before It is too Late

There’s a surprising number of Amazon FBA sellers who don’t think that branding is important.

They believe that it’s okay to sell the same product as everybody else as long as they offer a better price.

This strategy can be viable in the short term but it is rarely sustainable for the long term.

You do not want to settle for being the cheapest in the market. You don’t want to compete with other Amazon sellers that also think the same.

It will become a competition of who can set their prices the lowest. This will hurt your profit margin.

What you want is to be able to compete with other sellers even if your prices are not the lowest. And you can do that through branding.

Reasons to Start Brand Building Today

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You need to get started on your Amazon FBA brand development strategy as soon as possible.

And here is why:

Stand Out from the Sea of “Me Too” Products

95 million Americans have Amazon Prime memberships.

Consumers purchased over 100 million products on Prime Day 2018. These two Amazon 2018 stats are proof that Amazon is a lucrative marketplace.

Amazon gives its FBA sellers the chance to make it big quick.

The benefits being so great is also a disadvantage. Everyone wants in on the action. Thousands and thousands of new sellers join Amazon each month.

This creates a sea of “me too” products, where everyone is selling the same white-labelled products and using the same strategies. Many of the listings end up becoming indistinguishable.

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A sea of “me too” products

 

Escape the Saturation Plague

A significant part of Amazon sellers offers generic products.

This causes the marketplace to suffer from a high level of saturation.

Market saturation is one of the most glaring Amazon issues. This makes it a lot harder for a new seller to enter his desired niche.

After all, it’s hard to stand out when a thousand other sellers offer the same product as you do.

You can change this with branding and actually stand out.

This doesn’t mean just slapping on a logo. It means taking the deliberate path of creating a brand that means something, that has values, that has a story, and goes beyond just the logo.

Charge a Premium Instead of Being a Commodity

Selling is all about perception.

Make consumers think that what you’re selling is different.

This will allow you to make them buy even if your prices are higher.

There can be no better example of this than Yeti’s $300 cooler. People were shell-shocked.

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It was surprising that consumers were actually willing to shell out 300 bucks for a cooler.

It was so baffling that it became a popular meme.

But even if it became a meme and was considered outlandish by many…Yeti is getting the last laugh.

Because while other people sell coolers for $80, they are able to sell their’s for triple the price. And it works.

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Build a Brand That Demands a Premium

So what gave Yeti the audacity to charge so much for a cooler?

Yeti believed in its brand.

While most Amazon sellers focus on being the cheapest, Yeti did a 180 and decided to be the most expensive.

This was possible because Yeti was able to establish itself as a premium brand.

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Yeti makes their products look premium and advanced

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When consumers buy a Yeti product, they don’t pay only for that product. They also have to pay for the brand.

Develop Customer Loyalty & Build a Loyal Fan Base

When was the last time you bought a generic product online and remembered the seller?

It’s hard to build customer loyalty when your customers can’t even remember your name.

And what can’t they remember your name? You’re selling the same unbranded product as everybody else so why would they bother?

In the minds of consumers, there’s no reason to remember you.

They believe that they can get the same product from another seller. It won’t matter if they can’t find you again so there is no point in remembering you.

But if you spend the time and effort to build a brand that focuses on them, they will remember you and think of you.

Build a Brand That Inspires Confidence

The first step to building a loyal fan base is creating a brand that commands trust and respect.

Let’s look back at Yeti. Imagine a lesser-known brand selling a $300 cooler. Consumers would most likely dismiss it as nonsense. Some will even outright laugh at the foolishness of it.

The $300 cooler only worked because Yeti did it.

What did Yeti’s loyal customers do after they heard about the $300 cooler?

They rationalized that the cooler must be far superior to other coolers. They didn’t feel skeptical. They believe that Yeti always gives them the right value for their money.

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Build a Superior Customer Experience

By having your own brand, you can offer your customers a unique experience.

You can engage your fan base on social media. You can convince them that you care for them. Show them you respect their feedback.

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Yeti showcasing customer’s photos of their product

Consumers love the feeling that the seller actually cares.

Publish useful and/or interesting content on a regular basis. This will make consumers want to follow you. Make them look forward to new products you are planning to sell.

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Yeti Youtube Channel

Become a Trusted Resource of Your Niche

Build a thriving community around your brand.

Become that dependable friend.

Be the first thing consumers think of when they need to buy something.

Think of ways to offer a customer experience consumers can’t find anywhere else.

For example, you can offer to send articles on how someone can make the most out of a product they bought. All they have to do is provide you with their email. You can then use the collected email as leads for your next marketing strategy.

Enjoy Creative Freedom Through Brand Longevity

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It’s easier for an Amazon FBA seller to be creative when they know that they have a fan base that will give them a shot.

Knowing your loyal customers are there for you will give you peace of mind.

You’ll have more confidence to launch a contest or event. All you need is one viral campaign to make your popularity explode.

And each surge in popularity helps ensure the longevity of your brand and your business.

Don’t be Afraid to Defy Conventional Marketing Wisdom

Remember KFC’s 11 Herbs and Spices Twitter campaign of 2017?

All KFC did was follow only 11 people on Twitter: the five original Spice Girls and six guys named herb. Then KFC waited for someone to notice.

Remember what happened when someone finally did and twitted about it?

That original tweet had been favorited more than 700,000 times. It also received more than 300,000 comments.

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Why did KFC come up with that campaign? It knew it had enough Twitter followers to make it work.

Branding is essential if you want to be a successful Amazon FBA seller.

You will be another generic seller in a wide sea of generic sellers if you don’t.

Building your brand should be one of your top priorities. A strong brand will give you the competitive advantage you need.

Your brand will ensure your business will remain sustainable for the foreseeable future.

The #1 Mistake Amazon FBA Sellers are Making and Why You Need To Build A Brand

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Are you making this costly mistake?

Amazon is one of the largest online marketplaces. They had an insane 49& share in the entire US e-commerce market in 2018. It’s no wonder why so many people started flocked to create businesses that focus solely on this platform.

But with so much attention and hopes of riches on Amazon FBA, there lie many opportunities for beginners to follow the wrong advice and come out of this journey at a big fat loss.

Today I’m going to share with you the #1 mistake I see novice and advanced Amazon FBA sellers make.

Let’s dive in!

Don’t Fall Into The Same Trap

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Every aspiring online e-commerce entrepreneur dreams of a successful Amazon FBA Business and living those stories of reaching 7 or 8 figures. The number of FBA sellers is increasing and that, in itself, can be a problem.

As more and more people flood into the platform and listen to the same gurus, the growing competition makes it harder for everyone to gain a foothold.

But even with the influx of new sellers, time and time again, I see people continue to make one massive mistake that can completely kill their Amazon FBA business’ potential.

The Bane of Amazon FBA Sellers – Being A Commodity Business

Quantity! Quantity! Quantity!

This is the only thing most new FBA sellers only think about. You may think that selling more products is enough. But such a strategy is not viable for the long-term.

Don’t take shortcuts. Don’t skip branding. Otherwise, your Amazon FBA business won’t last long and only be a commodity business.

What’s a commodity business? One that focuses on selling and neglects building brand equity. This, in turn, puts them on a very dangerous position – where they could only compete on price to lure new customers.

Forgoing brand development is the biggest mistake an Amazon FBA seller can make. Here are the reasons why selling unbranded items (and poorly branded items) on Amazon won’t work as a long-term strategy.

Amazon’s Product Saturation Problem

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Amazon FBA provides online sellers the opportunity to potentially earn massive profits. New sellers are flocking to this online marketplace every day with that goal in mind. But, most are content with selling a few generic items. This causes saturation of “me too” products.

When a consumer search for a product on Amazon, there’s a high chance that they’ll be given pages and pages of the same item but with just a different colour or logo slapped on. This makes it hard for sellers to stand out and establish a following of loyal customers.

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1. Everyone is Following the Same Advice About Ranking

Many Amazon consumers only look at the first page of the results when they perform a product search (like Google search results).

So getting a top ranking can exponentially increase your sales volume and eyeballs on your product. But, doing so is easier said than done. Everybody seems to be using the same strategies to boost their Amazon ranking algorithm to improve the spot their listing shows up on.

  • Having specific keywords in the product title, description, and feature bullets
  • Running giveaways to increase sales signals
  • Get as many reviews as possible

Having everybody use the same optimization techniques is troublesome. You need to do the best practices, but it also has the same effect as nobody performing optimization.

2. You have to Adhere to Amazon’s Rules

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There are limits to what you can do to get your products ranked higher and stand out from the crowd. You have to follow the same rules imposed by Amazon (assuming you’re building an authentic business). Such factors make it hard to get creative.

It makes it all the more challenging to stand out from the rest of the Amazon FBA sellers. By spending time and creating a brand (not just slapping a logo on your product), you are no longer like everybody else. You have your own identity and message that you can incorporate in your marketing and build a community that could eventually become your raving fans.

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Vitacoco Amazon Brand Content Store

3. It is a Race to the Bottom

Imagine having to lower your prices again and again just to stay competitive…

Not something I’d ever want to do. But that’s the reality if you are a commodity business.

It is the most damaging aspect of selling unbranded or generic items on Amazon. You sell exactly the same product as everybody else. You offer the same quality of packaging and shipping (since it’s handled by Amazon and not you).

The only way left to compete is with the price.

The only way you make your products more desirable by lowering your prices. But chances are high that your competitors will fight back. How? They’ll bring their prices lower than yours. You can then only react by lowering your prices again. It will inevitably become a vicious cycle. It will be a cycle that is great for consumers but devastating for sellers.

And the person with the deepest pockets win. In most cases, it’s not you.

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Become A Premium Brand & Charge More

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A big mistake I see business owners make is thinking that they need to spend the time and effort on branding AFTER they make revenue. But it’s backward. You need to be carving out the time from the beginning to create a solid brand and then let it build organically.

Never underestimate the importance of branding. Even though it is difficult to see its effect, it is an important factor in how we decide between one product from another. By building a recognizable e-commerce brand will let you get out of the abyss of selling generic products and the sea of “me too” items.

When people connect with what your brand is about and what it stands for, they’ll be willing to pay the premium for your product. It is why some brands are able to charge double the price of their products, while others need to go into a pricing war that continues to lower their margins.

Here are the 5 most powerful reasons why you need to be serious with building a brand on Amazon:

1. Cut the Need to Compete on Price

Establish your brand, then you won’t have to keep trying to undersell your competitors anymore.

You can even price your products higher. Why would you do this? To make yourself stand out while reaping more profits.

Yes, consumers generally go for products with a lower price. But that is only if you fail to make them perceive that your product offers a higher value.

For instance, if you search “water bottle” on Amazon, you’ll find these two very similar looking and described products beside each other:

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BOZ vs. Mossy Oak water bottle

Although Mossy Oak isn’t a brand that is recognizable for the majority of people outside of their niche, doing a Google search and you’ll find that it is actually an established outdoor equipment business in Mississipi. They create valuable content like How-To Guides and host various events that connect with their target market. They are able to charge a premium by aligning their brand name as an authority.

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Photo Credit: Mossy Oak

Whereas, Boz is just a standard “brand” you’ll find on Amazon that is doing all the ranking strategies well. Because they have not spent more time in creating an outstanding brand, they have to continue to compete on pricing.

2. It’s All About The Perceived Value

Have you ever wondered why some people are willing to spend thousands of dollars for Louis Vuitton or Gucci products?

Because of their perceived value.

People could find value in 2 ways:

  1. an increase in status (ie. the Gucci branded shoes makes them feel high class) or
  2. they believe they are getting more than what they pay for (it’s a damn good deal)

By increasing the perceived value of your product, people will be willing to pay a premium.

Although it takes concerted effort and time to align your brand name with an increase of status value, it can be the reason why you’ll have a legion of fans that keep coming back to purchase for you.

One popular way to have people believe they are getting a good deal is to include add-ons that look valuable but are actually quite cheap to produce. What’s the simplest way of knowing what accessories you should bundle with your products? Look at the “Frequently Bought Together” suggestions provided by Amazon.

3. Boast About Your Product

Another way to go about it is to highlight the advantages and benefits that your product provides.

Do it in a way that it strikes the strongest pain points of your target consumers. Explain in detail why and how your product is the perfect solution to their want or needs. The value of the presentation is massive. Is your brand the only thing that makes your product different? If yes, the presentation can do wonders.

Take a look the often-memed Yeti’s $400 cooler.

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YETI Portable Cooler VS. Other Portable Coolers…

You heard it right, Yeti is selling a cooler for $300 and people are buying it.

Yes, it is better than most coolers. It has offers improvements and new features. But does that justify the hefty price tag? Maybe.

A strong brand can get away with a lot.

So how did Yeti do it?

It didn’t build its brand on being the cheapest. It branded itself as a premium product with the highest in quality, technology, and features.

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Photo Credit: YETI; YETI Portable Cooler Product Technology & Features

And more importantly, they have a story that resonates with their intended customers:

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Photo credit: YETI

And now, Yeti is selling as many products as the cheapest competitor, but at a massive price difference.

That shows the power of building a proper e-commerce brand.

4. Better SEO and Conversions on Both Amazon and Google

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Branding gives you a significant edge when it comes to search engine optimization. And it isn’t limited to Amazon since you’ll also have an easier time getting your products ranked high on Google.

By having an established brand, you’ll have an easier time building brand loyalty. It will be easier to forge relationships with consumers when you’ve created a brand that has specific values it stands for and a personality that connects with a target audience. There’s a reason why so many people are loyal and diehard fans to Apple.

It’s also simpler for word-of-mouth to spread for a branded product than a generic one.

All these can lead to various benefits such as:

  • higher reviews
  • higher conversions
  • higher search rankings on both Amazon and Google
  • and more

5. Stabilize Your Sales with Repeat Business

It’s a lot easier to get repeat customers when you built a respected brand.

In fact, 48% of transactions are from repeat customers.

Satisfied customers will remember your brand and be more likely to buy the same product from you again and again. It’s the same as people who are shopping for a car, they often gravitate to the brand they enjoyed or known for a particular trait (like safety or fuel efficiency). They’ll also have a bias in favour of your other products whenever they recognize your brand over others.

Spending the time and effort to really build a brand is something every e-commerce entrepreneur should do. It isn’t entirely just for Amazon FBA sellers.

But brand building is often overlooked or done in a lazy manner. It only requires a little investment and consistency, but the payoff can be massive.

By having a proper brand, you can gain a significant competitive advantage that will transcend your current product line. You’ll be empowered in dominating the countless generic Amazon FBA sellers.

Are you building a brand for your e-commerce business?

 

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