Amazon sellers will have to face unique challenges in 2022 while enjoying Amazon’s expanded list of resources and features aimed at improving the selling and buying experience. The pandemic continues to wreak havoc on supply chains across the world and there is little to suggest these issues will slow in 2022. The most successful Amazon sellers will adapt to these changing conditions.
In light of those challenges, sellers will have to modify where they source their products. On the upside, Amazon is increasing its features to aid sellers in their journey. Features such as Amazon Live and Amazon Attribution grants sellers access to a more direct way to connect with their consumers. Though there are some potential challenges ahead for sellers, there are plenty of ways for them to respond to the changing landscape.
One of those methods is to incorporate the right software tools in your business infrastructure. At SellerMobile, we have a full-suite of tools that ensure your business stays ahead of the curve in the rapidly changing Amazon marketplace. With seller tools that provide inventory analysis, profit and cost analysis, and automated repricing, you can launch into 2022 with confidence with Seller Mobile.
Explore the Benefits of Locally-Sourced Vendors
Supply chain issues are expected to continue well into 2022 with no signs of the pandemic stopping anytime soon. Because of the strain on the supply chain, Amazon sellers will do well to shift their focus to more locally-sourced products and vendors.
In the US, sourcing materials will cost more per unit to maintain inventory. However, Amazon sellers who source their products within their immediate area will experience shorter shipping times. Sellers should also look intercontinentally for their products – manufacturers in Canada or Mexico might offer cheaper and potentially higher quality products.
On the consumer side, people might look to their own backyard for buying opportunities because of increased product costs in countries such as China. Resellers should be aware of the potential to maximize profits using locally-sourced products.
Sourcing from the US poses its challenges compared to sourcing from countries such as China. Alibaba makes it simple to find a supplier in China. Sourcing from the US takes more research. Notwithstanding, finding a reliable source in the US will be more beneficial in 2022 due to the supply chain bottlenecks it will avoid. This will make it easier in the long-run to track and maintain inventory.
As we progress into 2022, Amazon continues to increase the ability for sellers to directly market to their consumers. With features such as Amazon Live and Amazon Attribution, sellers will be able to plan Amazon Live campaigns, build a brand identity that aligns more closely with customers, and plan a cross-channel marketing campaign.
These features help sellers improve their product marketing with the Amazon Traffic tool. Amazon Attribution allows sellers to advertise and analyze how their non-Amazon marketing channels perform on Amazon. Amazon Live grants sellers access to live feed features where they can directly reach out to consumers via a live stream. These tools are just a few of the resources Amazon is providing sellers so they can market more directly.
Greater Focus On Brand Integrity
Sellers must utilize the expanding suite of tools provided by Amazon to connect with their consumers in a meaningful way that projects their brand’s mission. If your brand stands for something, you need to highlight that to your target market. Attaching your brand to partners who share your purpose is a proven way to expand your reach among your customers and establish loyalty.
Furthermore, Amazon sellers must concern themselves with customer satisfaction more in 2022. Due to the pandemic and supply chain issues, customers are looking for the brands they can trust.
More Outsourced Positions
Dropshipping and Amazon FBA won’t be the only processes sellers outsource in 2022. Entrepreneurs looking to expand their online brand in 2022 will enlist the help of contractors who can provide specialized services.
Professionals such as creative professionals, advertising agencies, digital marketing experts, and search engine optimizers will all grow in popularity among Amazon sellers in 2022. For the upcoming year, the most successful sellers won’t be independent. They will have a team of experts working toward their expansion.
Amazon Will Spotlight Secondhand Products
Wth the increase of competition from platforms such as Facebook and eBay, Amazon will likely have to pivot towards offering more refurbished products. This pivot is in line with the broader shift toward more sustainable business practices.
Amazon has some programs already that support sustainability such as FBA Grade and Reseli, and FBA Donations. However, in the past, Amazon hasn’t promoted these features heavily. Other features such as Amazon Renewed and Amazon Warehouse are also in line with the push towards a more sustainable buying environment.
In 2022 and beyond, it’s reasonable to assume the push for sustainability will lead to Amazon promoting these platforms more consistently.
Increased Advertising Costs
With more and more sellers entering the marketplace and launching new products, it’s hard to imagine a scenario where advertising costs don’t increase. The average cost per click increased nearly 52% from 2020 to 2021. The majority of sellers have been preparing for this for some time, but they will have to continue devising ways to respond to the growing costs.
Sellers should consider incorporating more proven keyword research and optimization for their listings. They can also update your images, enroll in Brand Registry and optimize their content descriptions. Lastly, with the increase of video content, sellers should learn how to add a product video to their listing to increase their chances of a conversion.
Additional Things for Amazon Sellers to Consider
Inspect Sample Products Before Switching Manufacturers
If you have poor feedback from your customers, it’s time to change suppliers. A few negative reviews can kill your brand reputation and you can’t afford to lose your consumer market’s trust.
To avoid a damaged reputation, you should inspect products from your suppliers before switching suppliers. There can be a tendency to panic if you’re switching suppliers, but doing so will only hinder you in the long run.
Take Advantage of Amazon’s Expansive Branding Tools
Amazon’s Brand Registry puts product control in the hands of the seller. The program is easy to join and you can take advantage of the following benefits:
- Increase your product sales and conversions.
- Give you complete control over your product listing.
- Access the sponsored brands feature.
Focus On Amazon’s Evolving SEO Algorithms
SEO is vital for anyone who wants to succeed in the Amazon marketplace. The more visibility you achieve, the more opportunity you have for conversions. When consumers search for products on Amazon, whether or not the algorithm directs customers to your listing depends on keywords, images, and optimized titles and descriptions. These SEO elements help determine the highest purchase likelihood for consumers.
Similar to Google’s on-page SEO practices, there are technical steps you can commit to to improve your product’s ranking, including using keywords, images, and optimized tiles and descriptions.
A10 (Amazon’s algorithm) undergoes continuous updates and slightly adjusts ranking factors. This means you have to stay current on evolving algorithm updates if you want to keep your product listing at the top of Amazon.
Conclusion – What Do Amazon Sellers Need to Know In 2022?
2022 should be a time for Amazon sellers to continue planning how they can reach more of their target market using various techniques such as examining their suppliers, optimizing their product listings, and ensuring they utilize Amazon’s expanding features to improve their brand authenticity. Additionally, sellers should continue to incorporate the expanding software options for business functions such as repricing, inventory management, and cost and profit analysis.
SellerMobile provides Amazon sellers with tools that ensure they make the most out of their inventory and expand their business. With tools such as our Amazon restock and purchase order tool and feedback automation, SellerMobile simplifies the seller’s process to ensure you always stay ahead of the competition.
Register today to start making the most out of your Amazon seller experience.