In an April 2018 letter to shareholders, Amazon CEO Jeff Bezos heralded many milestones and noteworthy accolades. He announced that there were over 100 million paid Prime members around the globe, and that in 2017, and for the first time in their history, over half of the units sold on Amazon were from third-party sellers, including small- and medium-sized businesses (SMBs). In fact, according to his letter over 140,000 SMBs surpassed $100,000 in sales on Amazon that year. This is a number that can and should and will grow.
It’s no surprise (yet no small feat) that in the same year, the American Customer Satisfaction Index ranked Amazon #1 for the 8th year in a row, with similar superlatives from comparable indices around the world. This is in spite of what Bezos calls the “divinely discontent” customers. As he puts it,
Customers with high standards are a call for improvement rather than a hindrance to action; high standards beget high standards, and high expectations lead only to a consumer’s desire for even more. But what’s good for Amazon and good for the consumer can mean more work, more challenges, and more costs for the rising number of SMBs. As Amazon becomes more expansive and consumers become more sophisticated, SMBs run a greater risk of getting lost in the maze of growing third-party sellers, with decreased sales caused not by an inferior product but by an inferior product listing.
Amazon consumers will always want more. Amazon sellers are constantly growing. For a third-party SMB to not only navigate the labyrinthine Amazon landscape but survive and thrive, asking for outside help to achieve even a modicum of success has become the norm if not an outright necessity. The trick, then, is to find the professional assistance that can provide more than the bare minimum and turn your Seller or Vendor Central account from a confusing, inefficient mess to one that is expertly listed, organized, and optimized.
As consumers’ demands increase in both variation and intensity, SMBs may face a dilemma: in a world of finite time, money, and energy, how can one maximize positive results on Amazon without draining valuable resources vital to the SMB itself and its products? Managing sales and maintaining profits on Amazon can be prohibitively difficult if your gaze is directed at anything other than Amazon, like, say, manufacturing products and other day-to-day costs that come with the consumer goods business. A good product does not guarantee success on Amazon; to maximize potential, help is often needed.
In the same letter to shareholders, and in between highlighting milestones and lessons learned on the way to those milestones, Jeff Bezos relayed an at first seemingly tangential anecdote:
The lesson in this anecdote revolved around “unrealistic beliefs on scope [which] kill high standards”, but hidden within the text is the reminder that in many cases, success requires significant help. Knowing your talents is just as important as knowing your limits, and any effort, no matter how inspired, can fall short without the proper help and guidance. Whether it’s making handstands to your satisfaction or providing consumer goods to customers’ satisfaction, the right partnership can lead to proper success in an efficient manner. For Amazon customers, standards are already high and will only go higher; to experience a full metaphorical handstand, to not only match consumers’ expectations but anticipate how and why and when your product will appeal most to them, your own personal handstand coach may be needed.
Maintaining a significant and cost-effective presence on Amazon is like that perfect handstand: it’s harder than you think, and if you really want it to happen, you need the help of people with professional experience. It takes time and it takes resources, but as Jeff Bezos observed, “To achieve high standards yourself or as part of a team, you need to form and proactively communicate realistic beliefs about how hard something is going to be”. Good communication with the right professional assistance can lead to a more efficient, cost-effective, and ultimately successful relationship with Amazon consumers.
In the Amazon era of the divinely discontent, splitting your resources between your product and your customers can lead to unsatisfactory results across the board. Don’t let your product suffer because you were focused on trying to figure out Amazon; focus on your product, and consider a consultancy that, in time and with good communication, can provide you with positive results. There’s a lot to do when you’re an SMB on Amazon; find the right handstand coach so you can focus on your products. Amazon consumers may remain divinely discontent, but with the right help and support, you can leave your customers superbly satisfied and happily wanting more.