Competing against Amazon? Here are the 8 things to avoid

Even though competing with Amazon is widely considered to be an unfruitful venture, it is still possible to go up against them. But to do so, we highly recommend that you avoid doing any of the following:

1. Don’t sacrifice your margins

When going up against Amazon, the last thing you want is a race to the bottom; an independent retailer simply can’t win that race. As we have already mentioned in this post, Amazon already has the advantage with Amazon Basics.

But aside from “beating” Amazon on this front, there’s also the issue of sacrificing your profit margin. If you slash your prices until your profits are paper thin, your company’s survival is at risk — whether you’re cheaper than Amazon or not.

Identify a realistic minimum bottom line, and then stick to that for the sake of your brand’s future. Don’t worry, pricing is only one side of this multi-dimensional war with Amazon.

2. Don’t sell the exact same products as Amazon

Amazon’s product listing is just so vast that at times it is a bit of a conundrum to decide on what product to sell. If you are a reseller, there’s no point selling a popular item such as a games console, as these types of products are already dominated by Amazon and other big named brands.

Always aim to sell a product that is either unique or niche. That way you’re focusing your branding towards a particular target market, bypassing the more generic wares sold on Amazon.

If you have the resources, you should seek to create your own product — giving your brand a truly unique space in your industry.

To give you an example, Dan Andrews, founder of ModernCatDesigns.com, noticed how expensive and ugly-looking cat furniture was. Andrews and his business partner then set out to create their own line of contemporary cat furniture that blended in well with the interior of modern homes. You won’t find their furniture on Amazon — unless it’s commissioned by Dan Andrews and his team directly.

3. Don’t wait until Amazon runs out of stock

There are times when Amazon will eventually run out of stock of a particular item. Many Amazon sellers have identified this as an ideal opportunity to “cash-in” before Amazon replenishes their inventory. But this strategy won’t get you very far.

Not only will most Amazon shoppers prefer to wait for the stock to be replenished, simply because of trust, brand loyalty, competitive pricing, and shipping options.

But even if you do manage to capitalize on this opportunity, your business model is dependent on the results of a few days or weeks out of the year. It’s also dependent on an Amazon shortcoming (running out of stock for more than a day or two), which, once fixed, puts you out of business.

4. Don’t re-direct Amazon shoppers to your website

While selling on Amazon can help you gain brand exposure, you should be careful of re-directing Amazon shoppers to your online store. It’s an Amazon policy violation, and it’s a cheap way to gain traffic that the Amazon shoppers won’t appreciate.

You’re better off using your Amazon Store in the way Amazon intends you to; by promoting your brand and building trust within their ecosystem. If you do that correctly, and for long enough, those shoppers will eventually make their own way to your online store.

5. Don’t add your promotional and marketing materials on Amazon product listings

Following up on the previous point, it’s also against Amazon’s rules to add marketing or promotional material to your Amazon product listings. This includes any images that contain promotional texts, title information that refers to a discount.

Accept that you’re stuck to using Amazon’s product listing template, and then aim to thrive within it. You can do that with:

• High-quality product images and product videos
• Compelling, entertaining, and descriptive copy
• A high level of detail and description for the product

6. Don’t have an overcomplicated checkout process

Amazon has pretty much set the benchmark for quick, convenient, hassle-free checkout. If your checkout portal involves filling in long-winded forms and going through multiple-stages, then you’re more likely to see an abandoned cart than a completed purchase.

Do ensure you streamline your checkout portal on your website. You can also take advantage of integrating a number of payment gateways such as PayPal.

7. Don’t have a poor returns policy

Part of the reason why Amazon quickly rose to dominance was that they had a free and reliable returns policy for most of their products.

The prospect of giving your customers the option to return products totally free of charge can be a scary one. But making this offer immediately builds trust between you and prospective buyers. It shows that you’re confident in your products, and it shows that your aim is to offering free returns immediately helps to build trust with your consumers.

8. Don’t have unclear shipping policies

Amazon customers have become accustomed to multiple shipping and collection options. Your business probably isn’t able to compete with same-day delivery, but you can make your shipping policies clear, and you can work on adding more delivery options.

Above all, stay honest and realistic with your shipping dates and pricing. If you can’t compete on price and speed, compete on reliability.