How to Sell Electronics on Amazon

Elise Jackson

Post details

  • AUTHOR: Elise Jackson
  • CATEGORY: Amazon Industry Guide
  • DATE: 23/02/2024

Fun fact: The electronics category on Amazon is one of the oldest on the platform – it was launched in 1999, 4 years after Amazon’s launch as an online bookseller!

It is also one of the most competitive and saturated categories on Amazon. The category boasts Amazon’s line of products, Apple, Sony and other electronic giants, as well as thousands of products available within the sub-categories like headphones, microphones and speakers.

If you are sitting there thinking “What’s the point in selling my electronic product then” – don’t! This doesn’t mean you can’t and shouldn’t be selling your electronic products on Amazon as a 1P brand or third-party seller – there is still a big opportunity to see those sales come through the platform.

In 2022, Amazon was the leading online store for the electronics segment in the US, generating more than $71 billion in net sales – and that’s the US alone. While some of the bigger names may take dominance within the well-known categories, there are opportunities to still get a cut of that market share or dominate the space.
So, how can you cut through the noise to get your products selling on the e-commerce giant? This article will dive into the steps to take if you’re starting to sell your electronic products on Amazon, or if you need a refresh to boost your current brand store.

1. Before you do anything, get clued up on Amazon’s electronics guidelines and policies.

Before you dive straight in, Amazon has standards and product regulations you need to comply with to sell your electronic products otherwise Amazon will remove your listings or fine you.

 

What are the policies and guidelines for selling electronics?

Amazon requires sellers of electronic products to comply with the relevant national and local requirements. When setting up your account you need to provide the following information:

  • Company name
  • Seller/Vendor ID
  • Email address
  • Phone number
  • A list of ASINs for the products

 

Depending on the product, Amazon might also require:

  • Product images showing compliance markings, safety information, and other relevant content
  • Product user manuals
  • Test reports
  • Certificates or other documents

 

The guidelines change depending on what you are selling. For example, if you are in the sub-category for selling lightbulbs then you have specific voltage requirements, plug recommendations and usage guidelines.

You can check this article for further information on the rules around selling electronics on Amazon and how to get approval.

The key message here is: to ensure you have all the relevant certifications and documentation you need when submitting your product for a smooth approval process!

 

What electronic items are prohibited?

Electronic items that enable dangerous activities are, of course, not permitted by Amazon:

  • Products that descramble, or gain access to, cable or satellite television without permission
  • Products designed to intentionally block, jam or interfere with licensed or authorized radio communications, such as phones, GPS, radars, etc.
  • FRS/GMRS radios
  • Odometer modification devices
  • Portable lasers

You can see the full list of prohibited items here.

 

2. Craft Compelling Content and Product Listings that stand out

After you have done the all-important step of registering as a seller, at the most foundational level of your strategy for selling electronic items, you want to create content and listings that are as optimised as they can be! Focus on these steps:

 

2.1 Conduct keyword research and optimisation

Before you list a product, it’s imperative to conduct Amazon keyword research. Without keyword research, you are listing your product blindly. You may know how you would search for your product, but you don’t know how your customers will search for it – and that can make a big difference.

So, say you’re a brand that sells lightbulbs and you’re looking to create a product listing that stands out from the crowd, here’s how we would conduct the keyword research;

We use platforms such as Helium10 to search for a specific search term, i.e. “light bulbs”. The platform allows us to see the search volumes of “lightbulbs” and its related keywords, which we then use to inform us what search term we should include in our titles and keywords to have in our descriptions.

 

2.2 Utilise strategic placement of keywords in product titles, bullet points, and descriptions.

Once you have conducted keyword research, we recommend including the most important, high-search volume keywords in your product listing title.

Think about it from your potential customer’s perspective – they’re going to search for exactly what they are looking for, so these words should be included in the title. You have a character limit of 80-200, depending on your product category – you can double-check this on Amazon Guides.

Include the main keywords in the title, keeping it concise and direct. Extra keywords can be transferred to backend search terms, bullet points and descriptions.

Crafting your titles and descriptions:

  • Length: There is a limit of 200 characters.
    • The desktop view is limited to about 100 characters.
    • The mobile view is limited to about 70 characters, which is where a lot of Amazon customers shop.

 

Keep the most important keywords/message in the first 70 – 100 characters

  • Unicorn layout “Brand – Product Name (with KWs) – Colour – Size/Quantity”.
  • Hyphens should be used to separate topics and commas to separate words.
  • There is no need for extra information in the title, it can be expanded in the bullets.

Example:

 

Amazon Keywords/Messages

 

2.3 Optimise your product descriptions

For your product description, you want to elaborate on the bullet points above, and give the customer a reason to buy your product. Utilise A+ or Premium A+ content.

Include details about your brand, the benefits of the product and any “extras” you may offer, such as a warranty. We have an Amazon product listing optimisation guide which you can use to set up your create discoverable product descriptions.

 

Amazon Product Descriptions

 

2.4 Add photos and videos to your listings

Amazon Video is becoming predominantly more important. With the rise of TikTok over the past two years, all social media platforms & advertising platforms have been prioritising this feature as statistically, people prefer to obtain information through short videos than reading text.
Video is the easiest way to develop that emotional connection, to help the customer picture the product in real life and how it will benefit them.

 

Tips for powering up your video reach:

  • Stay consistent
  • If using voice-over, use subtitles
  • Include a quick introduction
  • Ensure it is short yet informative
  • Have a key takeaway

 

3. Navigating Amazon fulfilment options for selling your electronics

Amazon has several fulfilment options available – here’s a handy guide explaining the ins and outs of the different Amazon fulfilment options.

 

What is Fulfilment by Merchant?

With the Fulfilment by Merchant (FBM) option, the brand is completely responsible for storing products in its warehouse or with a 3rd party fulfilment provider (3PL).

This includes storage, picking, packing and labelling, which can be taken care of in-house or with the assistance of a third-party logistics partner. You will record your products on Amazon, where buyers can purchase, but that’s the end of Amazon’s involvement.

Sellers that use this method without having prime eligibility, won’t show the Prime badge on product pages. If you want Prime Access, you can choose the Seller Fulfilled Prime (SFP) method, which we will talk about in the next section.

 

What is Fulfilment by Amazon?

In the Fulfilment by Amazon (FBA) option, Amazon manages the complete customer delivery experience. FBA allows products to be shipped to an Amazon fulfilment centre, where Amazon takes care of the rest – from storage to shipping and delivering to buyers.

 

Benefits of Fulfilment by Amazon for Electronics

  • Products automatically join the Prime programme. This means the product listings will show the prime badge which gives huge visibility on Amazon & is one of the first things customers look for. It offers free shipping within two days for subscribers, increasing the product’s attractiveness.
  • Amazon handles the customer shipping and customer service experience, so you don’t have this stress.
  • It helps swing the pendulum towards your product – customers are far more likely to purchase from a seller with Prime shipping options.
  • FBA offers are prioritised for the Buy Box and Amazon always displays FBA products higher in their ranking, therefore overall the sales rank will be better.
  • Access to marketing features such as Lighting Deal and Deal of the Day, which help attract customers!

Handing over the reins to Amazon to fulfil your orders requires consistent work to ensure you meet the inventory requirements, so creating an inventory management plan from the get-go is wise to avoid disruption.

This should include forecasting for health-related seasons and trends, a plan to avoid stockouts and overstock and implementing real-time inventory monitoring for timely replenishment.

Best practices for your inventory planning:

  • Build and maintain relationships with suppliers
  • Monitor your sell-through rate
  • Restock popular products quickly
  • Run promotions to reduce ageing inventory
  • Keep an eye on your margins
  • Reduce excess inventory to increase your profitability
  • Choose the right inventory management system
  • Maintain four weeks of inventory cover

 

4. Pricing strategies that beat the competition

Electrify your sales by developing a pricing strategy that finds the right balance between profitability and competitive pricing.

Developing a smart pricing strategy that is flexible is key to success on Amazon:

  • View Amazon Pricing History: This provides crucial information about pricing trends, market competitiveness, and consumer buying habits. By understanding how prices have changed historically, you can more effectively predict future price trends.
  • Leverage Technology: Automated repricing tools can help to implement smart and dynamic pricing.
  • Utilise competitive pricing: You can monitor your competitors’ prices and adjust yours to beat prices to remain competitive.
  • Implement value-based pricing: It’s not always about being the lowest price to beat the competition. Too cheap can raise red flags about the quality of your product. Highlight the value of your products and consider customer feedback when creating your pricing strategy.

 

5. Get in front of customers with Amazon Advertising for Electronics

A key strategy for competing and succeeding in a saturated category is to utilise Amazon Advertising. Granted, one major consideration is budget as this category has big competition which means higher bids are needed for Cost-per-clicks (CPC) and competing with bigger brands.

Amazon advertising for electronics requires a full article to talk about (see a complete Amazon Advertising Guide for Brands: From Sponsored Products to DSP here) but we have spotlighted some of the Pay-per-click (PPC) ads you can utilise:

Self-Service Amazon PPC includes:

  • Sponsored Product Ads: Crafted to elevate the visibility of individual products, these ads are tailored to appear alongside organic search results.
  • Sponsored Brand Ads: Designed to enhance brand recognition, these ads showcase a brand’s logo, a curated selection of products, and a captivating tagline.
  • Sponsored Display Ads: Capitalising on the power of product targeting, these ads extend beyond Amazon’s confines, reaching potential customers even as they explore the broader web.

Searching for a robust advertising strategy that will power up your PPC campaigns for your electrical products? Download our Amazon Advertising Plan Template.

 

Amazon Advertising Plan Template

 

6. Focus on building customer reviews

Word-of-mouth is a powerhouse when it comes to brand promotion, but it’s relatively out of your control. The next best thing is customer reviews.

The more reviews you have the higher your trustability is. This is powerful in swaying purchasing decisions for customers in a very crowded electronics segment. Building reviews is a long-term strategy that’s mixed with a focus on customer service and experience, but if you get it right this has the power to set you apart from the competition.

As well as converting customers, more reviews spell out some nice benefits; they affect keyword ranking, buy box eligibility and the ability to qualify for Amazon’s Choice Badge.

Reviews are crucial as they build trust in a product, with customers relying on positive reviews to guide their purchasing decisions. These reviews offer valuable insights into a product’s quality, usefulness, and potential issues, empowering potential customers to make informed choices.

 

How to do this:

1. Focusing on building a seamless customer experience. Invest in great customer service, purchasing experience and shipping process. All of this helps to foster positive sentiment that will encourage customers to leave a great review.

2. Enrolling in Amazon Vine is one of the best ways to get Amazon reviews fast and is great for new products to obtain reviews. The programme is open to sellers who use Fulfilment by Amazon (FBA), have fewer than 30 reviews and have an eligible Amazon Standard Identification Number (ASIN).

3. Implementing post-purchase follow-up emails to gather feedback. You are allowed to request reviews, either via Amazon Seller Central or third-party tools that do it automatically while respecting Amazon’s policies such as FeedbackFive. Once an order has been delivered to your customer, you can request a view from customers inside Order Reports. This feature allows you to send one follow-up email to shoppers within 4 to 30 days of the purchase, and you cannot send two requests.

4. Leveraging social media and other channels to drive initial reviews. A key selling strategy that can lead to organic Amazon reviews is to encourage your social media audiences to leave reviews. Building a robust social media strategy that focuses on brand awareness and conversion can lead to boosting your sales on Amazon.

To effectively manage your reviews, set up daily check-ins via Amazon Seller Central where you have a comprehensive dashboard that displays your reviews.

 

Our thoughts

Don’t be put off by the competitiveness of the electronics market! As we highlighted in the beginning, there is a big opportunity to be found in emerging sub-markets.

Slow and steady wins the race! The key to success when selling your electronic products is creating a long-term strategy that focuses on listing optimisation, crafting a competitive pricing strategy and focusing on building a robust customer service experience that encourages reviews.

Amazon advertising offers extra opportunities to boost sales but keep in mind your budget as this is a highly competitive space.

 

Amazon Advertising Account Audit

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