We’ll be starting a new edition of the newsletter titled: Amazon FBA tip of the week. The goal for each of these Friday newsletters is to give you actionable tips and tactics that you can implement today.
Today, we’ll be discussing how to elevate your brand on Amazon and command a premium price point. This is important because for 99% of sellers, competing on price is not a winning strategy in Amazon FBA.
In this Tips edition, I’ll cover
- Exactly what a premium product feels like
- How to differentiate from competitors
- How to price as a premium product
After reading this, you’ll know exactly how to price higher, stand out from the competition, and make more money through Amazon FBA.
Creating a Premium Brand on Amazon
1. Analyze the Search Results
The first step in creating a premium brand on Amazon is analyzing the competition. Type in your main keyword to Amazon and see what comes up. You want to see what people are using for their packaging, what their price point is, and what their overall brand colors are.
Throughout this article, we’ll use the keyword: coconut oil for example.
Shown below are the top results for “coconut oil small size” on Amazon.
We can see
- Exterior Packaging is white with small accents of color
- Most packaging is plastic or clear glass
- Most of the products look heavily similar – there’s no real distinction.
- Prices range from $6.78 – $13.99
2. Develop an unique color scheme to stand out
Now that we know what our competition is doing, we want to do the opposite. To do that, my first thought is to go to Pinterest. Type in “coconut oil” to Pinterest and see what comes up.
You’re going to want to write down what colors pop out of the page and really draw the eye (hint: it’s not white).
For me, what really drew the eye was the blue and the pink on the page. Those colors will form our branding on Amazon.
3. Elevate the packaging
One of the easiest ways to develop a premium brand feel on Amazon is to elevate the packaging.
If everybody on Amazon is using a plastic bottle, use a glass bottle. It may cost $1 more but you’ll be able to price your product at $10 more.
When developing the packaging, we want to keep our competition in mind. What can we do to stand out in search results?
Note: make sure the changes to the packaging are VISIBLE. Customers can’t tell the difference between a 12 mil and a 16 mil plastic bag from an image.
You need to make the changes highly visible and apparent from search results.
4. Use your listing images to craft a premium feel
Once you have a different color scheme, differentiated main image, and elevated packaging, move onto your listing images. Maintain your color scheme throughout your listing images to craft a cohesive brand feel.
In your listing images also include elements that make it feel like a premium brand.
- Have you received press from anywhere?
- Is there a cause behind your brand?
- Is there a way you can incorporate a founder story?
One of the best ways to craft professional looking listing images is to hire a professional. Prime Label Express has expertise in designing premium branding exactly like this for over 1,600 listings and knows exactly how to maintain a premium brand feel.
This is what will help you stand out from competition. The listing image shown above is from this coconut oil listing which does an amazing job of standing out from competition.
Pricing a Premium Brand
If you have all of the elements above, you can price as a premium brand. Pricing high on Amazon gives you more margin and allows you to compete efficiently against competition. With a higher price, you can bid more on keywords and dominate the search results.
Let’s take the brand Conscious Coconut as an example. You can see the search results for coconut oil small size below. The average price/ounce is $0.35 – $0.87/oz.
What is Conscious Coconut priced at? $3.50/oz. More than 4x the most expensive result.
Let’s break it down clearly. They have
- Tinted glass bottle with colors – versus a generic white plastic container
- Bamboo lid – versus generic white lid
- Elevated Branding – the tinted glass helps the product stand out in search results
Inside, it’s the same product! But they are charging 4x more.
3 Actionable Takeaways
Here are actionable takeaways that you can apply to your business today:
- Developing a premium brand for your products is essential to maintaining high price points and avoiding competition
- Take inspiration from sites like Pinterest, Etsy, and even luxury brands. How do they differentiate from lower priced competitors?
- Develop your color scheme & packaging on Amazon specifically to stand out in search results.