Email marketing can help Amazon sellers take their business to the next level.
Emails are a direct line to the customer, but selling on Amazon alone does not allow sellers to develop customer relationships in the same way that email enables. Yet collecting emails and employing the basics of email marketing can allow Amazon sellers to get more sales on this enormous retail platform. It also gives them the option to drive sales off of Amazon and build a more robust brand that is less vulnerable to penalization threats from Amazon.
In this piece, I’ll discuss how Amazon sellers can build and use email lists to grow their business – all without violating Amazon’s Terms of Service. But before we get into tactics of collecting and using emails, let’s go over 5 benefits that Amazon sellers can gain by using email marketing.
Why Should Amazon Sellers Use Email Marketing?
Selling exclusively on Amazon has some serious disadvantages, but Amazon sellers can collect emails to diversify their approach and mitigate these perils. To build an off-Amazon sales channel makes the business more robust, and collecting emails enables that.
However, many Amazon sellers are concerned about getting kicked off the giant retail platform, so I’m going to explain how to get the best of both worlds: build email lists in order to sell on and off Amazon.
1) Drive Additional Traffic to Your Amazon Listings from Your Email List
Have an email list? Great. Make more sales on Amazon. This is the most obvious benefit.
On Amazon, if customers search for your (non-branded) keywords, you have to compete with all the other listings that show up in their Search Engine Results Pages (SERPs).
But by driving traffic to your Amazon product listings via email, you lessen the competition.
Amazon rewards sellers for driving their own traffic. Your rankings will spike from the increase in traffic and sales and then Amazon will send you more customers through organic searches.
2) Use Your Email List to Sell Off of Amazon
One of the amazing benefits of selling on Amazon is having access to a huge base of customers primed to buy. (Get it? Amazon’s membership program is wisely called Prime.) People searching on Amazon already have a high intent to buy, compared to people searching on Google or scrolling through Facebook.
However, this does not come without costs. To sell on Amazon, you must pay referral fees (between 6% and 20% depending on your category) and closing fees. And if you take part in the Fulfillment by Amazon (FBA) program, you pay fulfillment fees ($2.41 to $4.71 for standard-sized items) and storage fees. That’s a lot of fees.
And while almost every e-commerce business would benefit from selling some products on Amazon, if you could generate sales off of Amazon as well, you could forgo Amazon’s fees and keep a higher margin.
The median Return on Investment (ROI) of email marketing is 122%, according to a June 2016 survey from Direct Marketing Association and Demand Metric.
If you have your own e-commerce website, you can make additional sales and keep more money from each sale. Emails allow you to drive sales to your website so you can take advantage of all that Amazon has to offer, while mitigating its downsides.
3) Nurture Customer Relationships
Emails allow you to build a brand in a way that Amazon alone does not allow. With emails you can interact with your customers in a more meaningful way.
While 26% of small- and medium-sized businesses surveyed by DMA used email to drive sales, only 22% used email to increase engagement and a measly 7% used email marketing to drive brand awareness:
4) Get Repeat Business
Because email marketing gives you the ability to stay in touch with customers, it’s one of the best ways to encourage repeat purchases.
And repeat purchases are really great. Why? Every time someone buys from you, the chances they buy again increases. According to RJ Metrics, while only 32% of first purchases result in a second purchase, 53% of customers who buy twice will buy a third time, and so on.
Getting loyal, repeat customers is one of the best ways to turbo charge your business’s growth.
5) Keep Selling via Email if You Get Kicked Off of Amazon
When a customer buys on Amazon, the online retail giant is pretty adamant that it is their customer, not yours. They don’t give you access to customer email addresses because they don’t want you redirecting their customers to other sites.
However, if you collect emails in a compliant manner (we will discuss how to do that below), then if you get suspended from the Amazon marketplace, no problem – you can keep selling off of Amazon with the emails.
6) Sell Your Business at a Higher Profit with an Email List
If you want to eventually sell your business through an online business brokerage like EmpireFlippers, having an email list will make your business more valuable.
An email list contributes to a company’s “moat.” It makes it more robust to competition, which is why it increases the valuation multiple for FBA businesses.