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Amid ongoing economic challenges, some entrepreneurs are finding success with specialized marketing tools aligned with the Amazon marketplace. Using these tools and other marketplace offerings, small business owners can better navigate the challenges of an economic downturn.
According to the “2023 State of the Amazon Seller Report” that Jungle Scout recently conducted, these small businesses have seen substantial growth in sales, with 89% reporting profits in 2023. Up from 85% the previous year, that figure is highly significant. Sellers are experiencing rising costs for everything from goods to shipping and advertising.
Key to their sales successes on Amazon is the retail boost they got from platforms supporting their entrepreneurship, such as Jungle Scout. The company processes data from more than 500 million Amazon products. Its database tracks products from the Amazon catalog and the sales history of a product.
Amazon seller Jake Zaratsian relied heavily on the company’s research for insights on marketplace sellers, buying preferences, and other retail statistics.
“Jungle Scout helped me quantify the size of my market with over two years of historical Amazon sales and competition data, identify the top keywords in my niche with search volume estimates, and gave me clear insight into what my Amazon FBA fees and ROI would be,” he told The E-Commerce Times.
FBA, also known as Fulfillment by Amazon, is a service that allows retailers to use Amazon to store, pick, pack, and ship customer orders.
Amazon Sellers’ Multichannel Strategies and Demographics
The Jungle Scout report shows that Amazon sellers have a level of resiliency shared by other e-commerce businesses compared to other sectors. That speaks loudly for e-commerce globally.
Multichannel marketing is driving sellers’ success. For instance, 61% of Amazon retailers used at least one other channel in 2022 — up from 58% the year prior — and more than half plan to explore new e-commerce platforms and new global marketplaces in 2023.
Amazon sellers responding to the survey forming the basis of the Jungle Scout report cited their top five alternative platforms to feed their multichannel marketing plan. Their rankings place eBay as number one, followed by Shopify. Walmart, Etsy, and Facebook Marketplace captured the remaining marketplace slots.
In addition, one in three sellers is focused on acquiring other e-commerce brands this year, signaling overall confidence in the industry’s future. The report did not indicate success differences among differing Amazon seller profiles.
However, the report did identify the typical seller as between 24 and 44 years old (58%) and predominantly male (72%). Selling goods on Amazon is not their only income source. Half have full- or part-time jobs outside of e-commerce.
Analytics Essential to Selling Strategy
One of the biggest tips Zaratsian has for entrepreneurs on starting a successful e-commerce business in a recession is to understand their market fully before investing. That advice represents what he faced in launching his retail business on Amazon.
First, you want to confirm that the product is in high demand year-round. Then analyze the competition to check whether the established brands dominate the category or if new sellers are competing.
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“But most importantly, understand all the costs and fees associated with selling the product. This will give you a clear idea of your expected ROI, hopefully above 100%,” Zaratsian explained.
Seller support firms can be critical for newcomers to Amazon. Amazon also offers sellers a selection of training and marketing tools.
Two that Zaratsian briefly discussed have similar sounding names: Jungle Scout and AMZScout.
AMZScout is mainly a product research tool for setting parameters and scouring the Amazon database for winning product ideas. Then users research keywords and analyze competitors themselves.
Jungle Scout helps sellers uncover and quantify everything, according to Zaratsian. The company’s Amazon FBA Guide is on YouTube, as are more retail selling lessons on the Jungle Scout YouTube channel.
Zaratsian later became more closely affiliated with Jungle Scout. The two companies differ in that Jungle Scout provides sellers with more than only product and keyword research tools.
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