With the popularity of eCommerce site and the increasing competition on Amazon in 2020, many Amazon sellers have turned their eyes to eCommerce site.
Established Amazon sellers have their own supply chain resources and excellent operators. This gives them an absolute advantage that others can hardly catch up to in the process of expanding the channels of eCommerce site. However, because of the differences in operational logic between the Amazon platform and eCommerce websites, Amazon sellers may encounter various problems in the transition process.
How can Amazon sellers avoid detours? How can someone get started with traffic and product orders quickly on an eCommerce store? This guide will cover crucial advice for sellers from different aspects, including traffic operation, the supply chain model, and team layout.
1) Focusing on the Stability of the Supply Chain
To succeed with an eCommerce store, the most important thing that a seller should pay attention to is the supply chain. This is especially true for sellers who are trying to enlarge and strengthen their business in the eCommerce site area.
There are two major points concerning the supply chain that needs our attention. One is the search for high-quality products, and the other is the search for stable supply chain resources. If the seller is in the start-up phase and the shipments are few, the stability of the supply chain may not matter much. There are even some eCommerce store sellers who will adopt the No Goods in Stock Model, that is, without stockpiling the goods, a large number of products are uploaded to the independent website. However, once the orders begin to increase, if the source of supply is unstable or the supply cannot meet the sudden demand, it could spell disaster for the seller.
Therefore, we can see many big sellers on Amazon first complete managing their supply chain resources well before determining to enter eCommerce site. Some sellers even will directly invest in their suppliers to become one of the shareholders. Sometimes they will buy some advanced production equipment which is given to the manufacturers to improve production efficiency. After all, manufacturers have different attitudes towards those who invest money and those who do not.
If the seller is a quick learner, has various supply chain resources that can meet the demand, and the comprehensive quality of the seller’s team is high, it will generally be easier to start and develop business on an eCommerce store.
2) Reasonable Team Layout
For the new sellers on an official site, even if their original operation team is relatively mature, because of the differences in operational logic between eCommerce sites and Amazon, the layout of the sellers' teams must be adjusted after starting on the eCommerce site.
If the team’s structure is completely in accordance with the one on Amazon’s platform, you may find it hard to fit in on an eCommerce website.
For example, a team of Amazon sellers is actually operated by Amazon operators based on the rules of the Amazon platform. As Amazon has its own traffic, one operator may be in charge of one Amazon store. Operators only need to optimize listings and improve the review scores, thus improving the overall ranking of the store without too much consideration of the operation such as drainage from other sites.
For the operation of an eCommerce site, however, there are multiple facets involved in drainage alone. Some of these examples include Facebook advertising, influencer marketing, and EDM. Various channels and methods of drainage should be considered, and these different drainage methods need to be equipped with various personnel. The division of the operation work for an eCommerce site is subdivided and more specific. The requirements for the team are higher and the framework for the team is thereby very different from Amazon.
3) Looking for Professional Payment Partners
From the perspective of payment, the tricky problem that sellers are facing is the success rate of collection. You may spend a lot of money on advertising to attract traffic to your site. In the end, however, because there is a problem with the payment link, the final transaction cannot be completed, causing the traffic costs to feel like a waste.
There are two main causes for this. Firstly, it could be an issue with the payment company, such as a license issue that will lead to a relatively low payment pass rate. Secondly, it could be an issue with complaints against some sellers for selling counterfeit products or incorrect products. This also will lead to difficulty in collecting payments.
Therefore, to solve the issues involved in payment collection, sellers should look for payment partners with relatively high payment pass rates and avoid violations while selling products.
4) Improving the Operational Conversion Rate
From the overall logic level of the entire website operation, whether it is Amazon or an eCommerce site, it will ultimately come back to the product itself. Both Amazon and eCommerce sites attach great importance to the stability of the supply chain, as well as the maintenance of CIM (Customer Interaction Management). The fundamental operational differences between the two are drainage and conversion rate. These differences can be subdivided even further.
Take product uploading as an example. In fact, many sellers on Shopify do not have a website-building background when they build their eCommerce sites, so the image size of the product is often ignored when uploading products. If the image is too large, the opening speed of the entire website will slow down. If the image is too small or unclear, it will affect the overall visual effect of the website, as well as the conversion rate of the website.
For another example, Amazon's product images need to have a white background. Sellers on an eCommerce site have fewer restrictions. Except for the image displayed in the show window, which needs to be a white background, the sellers can design their photos with their own style. Therefore, eCommerce store sellers can optimize the detailed product description through photos, leaving larger space to create. However, it is also necessary to pay attention to the overall visual effect of the website after putting various pictures together, which will greatly affect the conversion rate of the website.
In fact, image design is a science. For example, from a visual point of view, a single picture that looks good may not look great after being put together with other pictures on the website.
Many sellers lack a holistic view when it comes to website designing. A single picture may look good, but it will not look so after being put together with others. Therefore, inexperienced sellers are suggested to invest in website designing in the initial stages so that the design matters can be handed over to professionals for an overall better result. Or, in the early stages, you can refer to website and picture styles of some larger and industry-leading brands. For example, we can refer to Anker's official site where the style of every picture is unified. Therefore, the overall effect of the website will look sharp and professional with unified style and color.
5) Reducing the Abandonment Rate
As mentioned above, whether it is a payment issue or the differences in operation, it is both about the improvement of the conversion rate. For sellers who are preparing to start a business with an eCommerce site, the rate of abandonment cannot be ignored.
For example, if a product is viewed by 100 people, then added to the shopping cart by 30 people, but the final number of transactions is zero, 30 people have abandoned the purchase.
If the seller does not analyze the data, all the traffic that is painstakingly brought in by advertising may be for nothing. As a consequence, the seller himself may have the thought that running a business is difficult on an eCommerce store, or even doubt the very model of eCommerce site. Shopping abandonment, however, is a common occurrence on eCommerce sites, and there are many factors that lead to this behavior.
For example, does your product include free shipping? A customer may place the order seeing a price that is suitable for the product. But when it comes to the checkout page, they are surprised to find that the final transaction price has been increased beyond their expectation with taxes and/or shipping. The customer may then abandon their purchase.
In other situations, the payment methods provided by sellers on eCommerce sites are relatively few. When consumers are paying, they may find that the corresponding payment channel has not been opened by them, so they are not able to complete the payment, which will also cause abandonment of purchases.
Another case is when a seller’s website does not include a security certificate, or the security certificate has expired. In this case, there may be a red warning on the browser like “This website is not secure" when customers are completing the transaction. Under this circumstance, even if your product and price are attractive, the buyers may abandon the purchase. Foreign consumers tend to pay attention to the website’s security certificate and be afraid that your website may be a phishing website. Therefore, we strongly recommend sellers on eCommerce sites to add security certificates to their websites, or to have their website tested by Norton Antivirus so as to increase the endorsement for credit of websites and reduce the shopping abandonment rate.
Besides this, there are simply cases where buyers deliberately give up completing a purchase.
For example, consumers in some countries may place an order on your website and pay for it, and then claim that the product is not the one they ordered after receiving it. They may also apply for a refund on the pretext that the product quality is substandard. They may use channels like PayPal to operate and refuse to pay. If the product is paid by credit card, the buyers may complain directly to the bank, claiming their credit card was stolen or used without their permission, then the money will be returned to them, and the seller will lose both money and product. These kinds of cases are quite common on eCommerce sites, especially in small countries with low purchasing power.
In response to these situations, the current popular method is for sellers to cooperate with some professional payment companies to filter out buyers with a record of refusal of payment through their specialized data detection. If the buyer’s refusal rate is high, professional companies can directly isolate the buyer in the early stage, so as to reduce the abandonment rate.
In summary, although Amazon sellers turning to eCommerce sites have great advantages in some aspects, they must also be wary of the difference between Amazon and eCommerce sites and some misjudgment caused by experience. Unlike Amazon, eCommerce sites like Shopify have all sorts of apps available in app stores that simplify the process of running an eCommerce store. For example, learning dropshipping in the Oberlo community and using Hitter to analyze products, stores, and market hot search words of eCommerce sites can bring convenience to running your business.
May you enjoy success in your own business soon!