Detailed explanation of Amazon’s major sellers and brand operating models
As one of the world’s largest e-commerce platforms, Amazon not only attracts many buyers, but also brings together a large number of sellers. Among them, some top-performing sellers stand out due to their unique operating models. This article will combine the operation strategies and brand operation models of Amazon’s major sellers to help new and old sellers better understand how to succeed on Amazon.
The operating model of Amazon’s big sellers
Commodity Strategy
Major sellers on Amazon are very cautious in product selection and tend to select products that are in high demand and competitive in the market. In addition, they pay close attention to product pricing to ensure that they both attract customers and ensure profit margins.
Price strategy
Dynamic pricing is one of the techniques commonly used by large sellers. They use automated tools to monitor market price fluctuations and adjust selling prices accordingly to maintain a competitive advantage.
Inventory management
In order to manage inventory efficiently, many large sellers choose the FBA service provided by Amazon. This not only improves shipping efficiency, but also reduces its own warehousing pressure.
Marketing
In addition to using Amazon’s built-in advertising system to increase product exposure, large sellers will also promote through multiple channels such as social media and email.
Customer Service
Providing high-quality customer service is also a focus of large sellers, including responding quickly to customer inquiries and complaints, and improving products based on feedback.
Data analysis
Use various data analysis tools to track sales performance, customer preferences and industry trends to guide decision-making.
Amazon Brand Operation Model
For newbies or experienced sellers who want to join Amazon, it is important to understand the different types of operating models.
Distribution mode
In this model, sellers do not need to carry large inventories, but select suitable products to put on the shelves based on data analysis, which is suitable for novice sellers with limited funds.
Distribution model
Compared with the distribution model, the distribution model emphasizes sales first and purchase later, which reduces initial investment, but may face homogeneous competition problems.
Premium mode
Once sufficient market awareness is accumulated, sellers can switch to a boutique route and focus on a few high-quality products.
Pan quality mode
Between distribution and high-quality goods, the pan-high-quality model allows sellers to gradually transition to a higher-level operation strategy.
In short, whether they are pursuing economies of scale or deeply exploring market segments, sellers should choose the most appropriate operating path based on their own conditions. At the same time, a deep understanding of Amazon platform rules and strict compliance with relevant standards are the basis of all successful cases.
References:
- The operating model of Amazon’s big sellers
- What are the Amazon brand operation models?