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CPG Startups: Now It’s the Best Time to Sell on Amazon!

CPG Startups: Now It’s the Best Time to Sell on Amazon!
  • 2022 Oct 07
  • Mike Lahi
  • 0

Amazon is the perfect place for CPG startups to sell their products. With over 300 million active users, Amazon is a major retail player. And with Amazon’s recent acquisition of Whole Foods, it’s only going to become more important for CPG startups to sell on Amazon. In this blog post, we’ll explain why selling on Amazon is such a good idea for CPG startups, and we’ll give you some tips on how to get started. Keep reading to learn more!

Read More: How to Sell Food on Amazon

Why Should CPG Startups Consider Amazon?

CPG (consumer-packaged goods) brands that fail to keep up with market trends risk losing the opportunity for a long-term competitive advantage as eCommerce grows. According to the Food Marketing Institute, while brick-and-mortar stores are still the norm for the food and beverage category, online grocery shopping is expected to grow from 23% to 70% in less than ten years.

1. Increased Visibility

When you sell on Amazon, your products become visible to millions of shoppers who might not otherwise be aware of your brand. This increased visibility can lead to more sales and help you to build a larger customer base.

Amazon is not only a shopping channel but also a destination for browsing. To attract new customers and demonstrate how their brands and products differ from competitors, CPG startups should use Amazon as a brand-building marketing tool.

2. Access to Amazon’s Customer Base

You gain access to the company’s huge customer base when you sell on Amazon. This means that you can reach many potential customers with your product listings.

3. Increased Sales

Because Amazon is such a popular platform, selling on the site can significantly increase your business’s sales. This can help you to grow your business and achieve your financial goals.

4. Improved Brand Recognition

Selling on Amazon can also help you to improve your brand recognition. Customers who see your products listed on the site will become more familiar with your brand and what you offer. This increased familiarity can lead to more sales and improved brand loyalty over time.

Amazon has a clear advantage over traditional retail channels for conveying product and brand information. Most brands are constrained by the amount of shelf space and product packaging available in stores to convey product details and brand attributes. However, an Amazon product details page can provide an infinite amount of digital space to share your brand’s story and product information, which can be supplemented with images, videos, and customer feedback.

Furthermore, most consumers agree that they trust the reviews on Amazon product listings, and social proof is becoming increasingly influential in the purchasing journey of consumers. As you build your Amazon presence, keep an eye on your product reviews to stay on top of consumer trends, customer concerns, and opportunities for product improvements.

Read More: Is Amazon a Threat or Opportunity to CPG Companies?

Top 4 Examples of CPG Brands that Also Sell on Amazon

1. Coca-Cola

This is one of the most successful CPG brands on Amazon, with a wide variety of products available for purchase. It offers a wide range of beverages, including sodas, juices, and water. Coca-Cola also offers a variety of snacks and foods, such as chips, nuts, and candy.

2. Pepsi

Pepsi is another CPG brand actively selling on Amazon, with various products available for purchase. The company offers a wide range of beverages, including sodas, juices, and water. Pepsi also offers a variety of snacks and foods, such as chips, nuts, and candy.

3. Nestle

Nestle has a prominent sales velocity on Amazon and offers a wide range of products, including baby food, coffee, tea, and pet food. The company also offers a variety of health and beauty products, such as shampoo and toothpaste.

4. Procter & Gamble

Procter & Gamble is a good example of a CPG brand on Amazon that offers a wide range of products, including laundry detergent, dish soap, and toilet paper. The company also offers a variety of health and beauty products, such as shampoo and toothpaste.

On-Shelf or Refrigerated, Which One is Better to Sell on Amazon?

But what’s the best product to sell on Amazon? On-shelf food or refrigerated? There are pros and cons to both. On-shelf food doesn’t require special packaging or facilities, so it’s less expensive to produce. And, since it doesn’t need to be kept cold, it can be stored and shipped more easily. 

However, refrigerated food tends to have a longer shelf life, which could be a selling point for some consumers. It’s also worth noting that Amazon has recently begun investing in technology that would allow them to sell perishable goods. 

If you choose to sell a chilled or frozen product, you must first register as a seller under the Professional Selling Plan and then go through a validation process. To validate the chill chain, show how the product temperature will be maintained in unexpected circumstances such as delayed delivery and inclement weather.

An independent laboratory will then evaluate and test your product to determine its validity. In addition, you will need to verify the frequency with which products arrive at or below the desired temperature in real-world business conditions. 

So, the future is bright for CPG startups selling on Amazon, regardless of whether they choose on-shelf or refrigerated products.

cpg startups

Amazon FBA vs. FBM, Which One Is Right for CPG Startups?

What is FBA?

FBA stands for Fulfillment by Amazon, and it is a program that allows businesses to store their products in Amazon’s fulfillment centers. Amazon will then pick, pack, and ship the products to customers on behalf of the business. Businesses that use FBA can take advantage of Amazon’s Prime shipping benefits, which can help to increase sales.

What is FBM?

FBM stands for Fulfillment by Merchant, a program that allows businesses to fulfill orders themselves. Businesses that use FBM must handle their own storage, picking, packing, and shipping. While businesses that use FBM will not have access to Amazon’s Prime shipping benefits, they may be able to save on fulfillment costs.

Pros and Cons of FBA

There are both pros and cons to using FBA. Some of the pros include having access to Amazon’s Prime shipping benefits and not having to worry about storage or fulfillment. However, some of the cons include having to pay fees to Amazon and not being able to offer as many customization options to customers.

Pros and Cons of FBM

There are both pros and cons to using FBM. Some of the pros include offering customers more customization options and potentially saving on fulfillment costs. However, some cons include not having access to Amazon’s Prime shipping benefits and having to handle storage and fulfillment yourself.

Which is Better?

For a large-scale brand that can afford and manage logistic infrastructure, FBM is the better option because you’ll have full control over the whole fulfillment process. But for CPG startups, Amazon FBA can be significantly helpful by taking a huge load of responsibility off your plate to help you grow your brand with the saved time, effort and money.

Read More: Amazon FBA vs FBM

How to Get Started with Selling on Amazon

1. Create a seller central account.

The first step to selling on Amazon is to create a seller account. You can do this by going to the Amazon website and clicking on the “Sell on Amazon” link. From there, you will need to create an account with your name, email address, and password.

2. Choose your product category.

Once you have created your account, you will need to choose a product category. Amazon has a wide variety of categories, so you should be able to find one that fits your product. Once you have chosen a category, you will need to provide some additional information about your product, such as its condition and price.

3. Create a listing for your product.

After you have provided some information about your product, you will need to create a listing for it. This listing will include photos of your product and a description of what it is and how much it costs. Once you have created your listing, you will need to wait for Amazon to approve it before it goes live on the site.

4. Promote your product.

Once your listing has been approved and is live on the Amazon website, you will need a well-oiled CPG marketing strategy to start promoting your product. Amazon DSP ads have great potential for CPG startups to raise brand awareness in the early stages.

Read More: Amazon Seller Lending Program

How Can Eva Help CPG Startups on Amazon?

Eva combines superhuman AI technology with top human eCommerce expertise to create an all-in-one platform for CPG startups on Amazon that meets all of your needs, from pricing and Amazon advertising to 3PL logistics and returns management.

Eva’s premier platform ensures that you have maximized sales and profit margins without ever going out of stock or overstocking by deeply integrating pricing and supply chain management.

You are always welcome to give Eva a try with a 15-day Free Trial — the results will speak for themselves!

Read More: How to Sell CPG Coffee on Amazon

How Can Eva Help CPG Startups with Selling on Amazon?

Eva combines superhuman artificial intelligence technology with top human eCommerce expertise to create an all-in-one platform for CPG brands on Amazon to meet all your needs, from pricing and Amazon advertising to 3PL logistics and returns management.

By deeply integrating pricing and supply chain management, Eva’s revolutionary platform ensures that you have maximized sales and profit without ever going out of stock or overstocked.

You are always welcome to request a Free Consultation with one of our Amazon experts and give Eva a try with a 15-day Free Trial — the results speak for themselves!

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