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Did you know that e-commerce powerhouse Amazon relies heavily on independent sellers for a staggering 60 percent of its global sales?
In the Electronics market of Saudi Arabia, Amazon SA reigns supreme, boasting sales exceeding US$100 million in 2023 alone, with a notable 5 to 10 percent of net sales in this category.
These remarkable statistics underscore the e-commerce giant’s immense influence, both on a global scale and specifically within the Saudi Arabian market.
Understanding Amazon’s intricate language helps unlock success in this dynamic marketplace. This article aims to demystify the terminologies and give Saudi sellers the knowledge they need to thrive in this highly competitive platform.
To begin your journey as an Amazon Saudi Arabia seller, here are some of the essential terms you need to know:
After completing your registration, you’ll have access to your Seller Central account. Think of this as your hub for selling in the Amazon store.
You can use the Seller Central on Amazon SA to:
In Seller Central, you have the ability to utilize various tools for tasks such as creating promotions and coupons, monitoring payments and expenses, and undertaking numerous other functions.
Additionally, you can enhance collaboration by inviting other users to your account, which can be particularly useful for seeking assistance with specific tasks.
The Amazon Standard Identification Number (ASIN) is a distinct ten-character alphanumeric code that serves as a unique identifier for products listed on Amazon. This code is generated when a new product is added to Amazon’s catalog and is specific to each individual product.
ASINs are crucial for selling on Amazon. Before selling a product on Amazon, you must obtain its unique ASIN.
You’ll usually use existing ASINs for products already in the Amazon catalog. However, if your product is new or unique, you may need to create a new ASIN.
The FBA is a service provided by Amazon where they store your products in their fulfillment centers.
With FBA, Amazon handles picking, packing, shipping, and customer service for your products. It’s a convenient option for sellers who want Amazon to manage their logistics, especially for those participating in Amazon Prime, as FBA products are eligible for Prime shipping benefits.
“Fulfillment by Merchant (FBM)” describes the practice wherein the seller takes care of storing and shipping products directly to customers, as opposed to Amazon managing these tasks.
With FBM, you retain control over the fulfillment process but are responsible for storage, packaging, shipping, and customer service. It’s a suitable option for sellers who prefer to manage their own logistics or have unique fulfillment requirements.
Third-party sellers, often called 3P sellers, are independent merchants who list their products on the Amazon platform. They account for more than 50 percent of the platforms’ sales and offer consumers a wide range of products.
Becoming a third-party seller on Amazon enables businesses to reach more audiences and take advantage of Amazon’s vast customer base.
Sellers must leverage effective marketing strategies to boost sales and visibility on Amazon. Here are three essential marketing terms that can help Saudi sellers achieve their goals:
A+ Content allows sellers to enhance their product listings with compelling visuals and engaging descriptions. Sellers can attract more customers and increase conversion rates by showcasing unique selling points, features, and benefits.
With A+ Content, Saudi sellers can differentiate their products from competitors and effectively communicate their brand story, leading to improved sales and customer satisfaction.
A/B testing helps determine which of two versions of a product listing or advertisement performs better in terms of driving engagement or sales.
Conducting A/B tests lets Saudi sellers optimize their product listings and marketing strategies to achieve higher conversion rates and revenue. This method allows sellers to maximize their sales potential on Amazon through the most effective approaches for reaching their target audience.
Amazon Marketing Services (AMS) provides sellers with a suite of advertising tools to promote their products on the Amazon platform.
With Sponsored Products Ads, Headline Search Ads, and Amazon Display Ads, Saudi sellers can reach potential customers across various channels and tailor their campaigns to specific criteria such as keywords, budget, and product category.
AMS supports sellers in enhancing their visibility, driving traffic to their product listings, and, ultimately, increasing sales and revenue.
Maintaining good account health and enrolling in Brand Registry are crucial for Saudi sellers to ensure success and compliance on Amazon:
Account Health refers to a seller account’s overall performance and compliance on Amazon. It includes adherence to performance targets and policies required to sell on the platform.
As a Saudi seller, you should regularly monitor your Account Health Rating (AHR) to avoid deactivation due to non-compliance with Amazon’s selling policies. By maintaining good account health, you can establish trust with customers and enhance your reputation on Amazon.
Amazon Brand Registry provides sellers additional selling benefits and protection tools by enrolling eligible brands in the program.
If you are the rights owner of an eligible brand, it is recommended that you enroll in the Brand Registry before listing your products. This allows customers to associate your products with your brand name more easily. It also shields you against counterfeiters and unauthorized sellers.
Learning terms used by Amazon support success in the platform. Saudi sellers, armed with this knowledge, can navigate the marketplace more effectively. Apply these insights to your Amazon KSA seller registration and expansion for your business to thrive.
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