Amazon had another crazy year in 2021. As more people began to shop online, more businesses jumped on board to cash on this modern-day online platform. It is predicted that around 571,000 new sellers will have signed up for the Amazon seller account by the end of 2021.
Let’s take a look ahead to 2022 and make some predictions about how running an Amazon FBA business will be any different for sellers.
How will 2022 be for Amazon Sellers Worldwide?
2021 was a great year for Amazon as well as e-commerce sellers as all the brands got back to business after facing difficulties due to covid-19. However, 2022 is going to be a lot better than 2021 for Amazon sellers. To assist sellers in preparing for 2022 in advance, here are a few developments that will have an influence on all FBA businesses in the coming year!
1. Domestic manufacturers will be used more by sellers
With the global supply chain issues taking a heavy toll on businesses, the prediction is that more sellers will begin to order their products from domestic suppliers and manufacturers. However, sourcing products from the United States can also be a lot more difficult than sourcing items from other countries like China. You can simply get in touch with a supplier for practically any product you want to import from China using Alibaba or other similar sites. If you wish to get your products from the United States though, you’ll have to do a lot more research to get exactly what you need.
Still, on the positive side, if vendors succeed in discovering a dependable source at a reasonable price in the US, they will get a competitive advantage over their competitors who are having trouble purchasing and getting merchandise. Moreover, delivery of products from the US will be a lot quicker and less expensive than having them shipped from China.
Amazon sellers can also look out for suppliers within the continent. For instance, if you are living in the United States, seek suppliers in Mexico or Canada, where you can find less expensive materials or perhaps of better quality.
Customers will now become more interested in buying things that are manufactured in their own country. By far, the term “made in USA” has seen a 54 percent spike in search volume.
2. Secondhand items will be highlighted on Amazon
It is forecasted that to stay ahead of other competitors like eBay, and possibly Facebook Marketplace, Amazon will also focus on spotlighting used and restored products. Purchasing used products helps the environment in staying sustainable but also helps purchasers find the things they want when they are running short on money.
What changes will Amazon bring?
- Amazon will put more emphasis on highlighting used products on the platform.
- Purchasers will have the option of sorting things according to their grades (for example, used-acceptable quality or used- looks new)
- The marketplace will add another section to its homepage that will allow customers to shop for used items by selecting the section of secondhand products.
3. There will be a rise in the cost of advertising on Amazon
It is expected that the cost of promoting items via Amazon advertising will rise throughout 2022 since new sellers are entering the marketplace and brands are looking forward to launching new, trendy products. From 2020 till 2021, Amazon’s cost per click grew by roughly 52%.
Sellers may have to accept that their worst fears will come true. Currently, 62% of Amazon sellers are quite concerned regarding the increasing marketing expenses.
Now that we know that Amazon advertising will be expensive, what strategies can sellers implement without the need to advertise through Amazon?
- Sellers need to make sure their listings are optimized for conversions.
- Make your product images the best they can by updating them on a regular basis and adding interesting ones. You can also add product videos to attract more customers.
- You can also write an A+ content description by signing up with Brand Registry.
4. Amazon will introduce more programs and tools for Amazon sellers
If you are a member of the Brand Registry program on Amazon, then you are already aware of the numerous tools and services accessible to you. Third-party sellers that do not have their brands registered are missing out on features like A+ content, Video advertisements, Amazon Stores, Virtual Bundles, and many more.
It is easy to say that Amazon will keep on adding tools and programs for the ease of Amazon sellers and if you haven’t signed up for the Brand Registry yet, now is the time. The changes Amazon will bring in 2022 are:
- Amazon will introduce a profit and loss dashboard on the site where brands can check their payment data and total sales on a daily basis. You can keep up with your weekly, monthly, as well as yearly sales to see how much you have earned. Seller Central doesn’t allow you to check your exact profit and loss, so this feature will actually be a great upgrade.
- Amazon will probably develop additional features as well as tools to help brands increase traffic and visibility to their Amazon storefronts.
Additional tip: Even when Amazon will bring all these new features and tools on board to assist sellers, they must still invest in the best Amazon repricing tool to win the Buy Box, maximize sales and profit and increase visibility on the site. Yes, these tools can help a lot, but having the best product prices will actually help you a lot more.
5. Amazon will highlight new features that are similar to social media
Since more and more consumers are using social media platforms to look for products, influencer and social media marketing have become an essential element of marketing strategy for every e-commerce brand these days.
Amazon has Amazon Live to carry forward influencer marketing, which allows influencers and brands to come live on Amazon to talk about their favorite products. Amazon also has a Posts program, where you can post about your products and inform your customers about new items.
Amazon will most likely continue to build such tools where all the sellers enrolled in Brand Registry can promote and introduce their products. It is predicted that Amazon will most likely introduce a feature like TikTok where customers can learn more about the latest products.
Amazon is already the largest e-commerce marketplace and it will continue to invest in technologies to stay on top. It is up to sellers on how they take advantage of all the new features that Amazon will introduce in 2022 to increase their sales and profit. However, Don’t forget to invest in the basic tools you need to retain your position on Amazon, such as the best Amazon repricer to win the Buy Box, as well as other necessary inventory and product management tools. Keep hustling and have fun with all the new features Amazon introduces this year.