Working Capital for Amazon Sellers:
How Much Do You Need for Social Media Marketing?
A survey from Statista, a market data specialization website, found that the worldwide digital markets have increased from 2014 to 2021. From 1.66 billion buyers, there are now over 2.14 billion of them. Because of the increase in the number of consumers, traditional companies need to level up.
Another research finding from Statista revealed that online retail sales in 2022 will grow up to USD$6.54 trillion. Indeed, digital marketing platforms, like Amazon, help companies reach more audiences. However, if you’re new to this game, you might not know how much working capital for Amazon sellers these platforms require.
This article contains enough information to guide you through building a successful e-commerce from scratch. Moreover, it includes information on the costs of using social media marketing strategies.
Continue reading to learn the five-step process for building an e-commerce page on Amazon:
Assess Your Product Value
Product value is what your customers get to fulfill their desires. Determining your product value is critical in understanding your market, figuring out how to enhance your products, and prioritizing market aspects.
Conduct Market Research
Market research allows companies to analyze their target customers.
Here are 10 reasons why understanding your market is beneficial in establishing a successful Amazon page:
- It helps you determine your product’s strengths and weaknesses, which will lead to an increase in product value.
- It reduces investment risks
- It helps you recognize potential opportunities and threats
- It allows you to figure out your competitors’ weaknesses, which you can capitalize on
- It improves the digital marketing plan
- It lets you identify emerging online customer trends
- It helps you stay ahead of the competition
- It provides sales projections
- It focuses on market demands
- It leads to discovering social media platforms that best adhere to industry needs
So, if you want to build a successful Amazon page, you must conduct market research after assessing your product. With thorough research, you’ll get to understand your competition better and apply effective and affordable digital marketing strategies.
Identify Possible Social Media Marketing Costs
Social media is a fast-growing gateway for online businesses. However, since digital marketing has opened millions of sales opportunities for its sellers, e-commerce platforms don’t give away opportunities for free. Although there’s no perfect formula to create 100% successful digital marketing strategies, it’s still possible to achieve a higher return on investment (ROI).
Here are two options to choose from when determining working capital for Amazon sellers or possible social media marketing costs:
- Create your own social media learning curve
While understanding the social media learning curve requires time and a lot of research, it’s a great strategy to track all your social media interactions simultaneously. Your biggest challenge will be sticking with this method. Since this option monitors your interactions in one convenient place, the estimated total cost ranges from USD$20 to USD$100 monthly. - Hire a social media management agency
Small businesses need to stick with their budget to create higher revenue. However, you’ll still have to take your time to advertise your products to your target audience. So, if you have enough money for digital marketing, hire a reliable social media management agency that offers affordable services.
As you go around looking for the right agency, you must consider their reputation. This strategy involves research and is time-consuming, but it will save you from possible risks.
The estimated total cost for outsourcing work to an agency ranges from USD$100 to USD$1,000 monthly. Once you find the perfect agency for your online business, the time spent on research will be worth it.
Register Your Business
If you’re a budding business owner and haven’t registered your company yet, you must do it before you find a suitable e-commerce website and build success on it.
Here are some benefits of registering your business to achieve digital marketing success:
- Avoiding legal issues
- Safeguarding your reputation
- Earning your associates’ trust
- Giving complete marketing freedom
- Providing opportunities to connect with giant corporations
Respond to Customers 24/7
A survey from Microsoft, a multinational technology corporation, revealed that over 56% of consumers worldwide discontinued purchasing products from companies because of poor customer service. Customers expect a good experience when they visit your e-commerce page. Thus, you must continuously provide real-time support.
What good will effective digital marketing do if you don’t respond to your customers’ queries immediately? A great way to ensure digital marketing success is to build an interactive relationship with users. For instance, you can utilize a chatbot that can support your customers anytime or when your employees aren’t available.
Key Takeaway
In a world where social media is an essential tool for both buyers and sellers, businesses benefit from e-commerce. If you want your business to thrive and reach a wide audience, you can follow the digital marketing process discussed in this article.
