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Tag: Pricing strategy

  • How to Start a Momos Business in India

    Have you ever bitten into a delicious momo and thought, “I wish I could sell these”? Well, great news! Starting a momos business in India is not only feasible but also potentially very profitable. Momos, which are a type of dumpling originally from Tibet and Nepal, have become incredibly popular in India. This blog will guide you through the steps needed to kickstart your own momos business, from understanding the market to setting up your shop.

    Understanding the Market

    Types of Momos

    Momos, a popular dumpling dish originating from Tibet and Nepal, has evolved into a versatile culinary delight with numerous varieties to cater to diverse tastes. 

    Traditional momos are usually steamed and filled with minced meat, such as chicken, pork, or beef, often mixed with finely chopped vegetables and aromatic spices. 

    Vegetarian versions, filled with cabbage, carrots, onions, and mushrooms, are equally beloved. Innovative variants include fried or pan-fried momos, which offer a crispy alternative to the soft, steamed original. 

    Additionally, fusion momos have emerged, featuring unique fillings like cheese and spinach, paneer, or even chocolate or coconut & Jaggery for a sweet twist. The accompanying dipping sauces, ranging from spicy tomato chutneys to tangy sesame dips, further enhance the momos’ appeal, making them a versatile and cherished dish across different cultures.

    Momos are enjoyed by people of all ages and backgrounds. They are versatile, offering both vegetarian and non-vegetarian options, which makes them a hit among diverse groups. Given their widespread popularity, it’s no surprise that many entrepreneurs are looking to capitalize on this trend.

    Market Size of Quick Service Restaurants in India in 2024, With an Estimate for 2029
    Market Size of Quick Service Restaurants in India in 2024, With an Estimate for 2029

    Market Research

    Before diving in, it’s crucial to conduct thorough market research. Look at existing momos businesses in your area. What types of momos are they selling? What are their price points? Are there any gaps in the market that you could fill? Understanding your competition will help you position your business more effectively.

    Planning Your Business

    Business Plan

    A solid business plan is the backbone of any successful venture. Your plan should include:

    • Mission Statement: What do you aim to achieve with your momos business?
    • Market Analysis: Who are your target customers?
    • Menu: What types of momos will you offer?
    • Pricing Strategy: How will you price your momos competitively?
    • Marketing Strategy: How will you attract customers?
    • Financial Projections: What are your expected costs and revenues?

    Location, Location, Location

    Choosing the right location can make or break your business. Ideally, your shop should be situated in a busy area with high foot traffic, such as near schools, colleges, offices, or marketplaces. Accessibility and visibility are key factors to consider.

    Setting Up Your Momos Business

    Before you start selling momos, you’ll need to obtain several licenses and permits:

    1. FSSAI License: This ensures that your food is safe for consumption.
    2. GST Registration: Required for tax purposes.
    3. Local Municipal Health License: Ensures your business complies with local health regulations.
    4. Shop and Establishment License: Required if you’re setting up a physical store.

    Initial Investment

    Your initial investment will depend on various factors such as the size of your shop, equipment, and initial stock. Here’s a rough estimate:

    • Rent and Deposit: INR 50,000 to INR 1,00,000
    • Equipment: INR 20,000 to INR 50,000 (steamer, utensils, etc.)
    • Raw Materials: INR 10,000 to INR 20,000
    • Licenses and Permits: INR 5,000 to INR 10,000
    • Marketing: INR 10,000 to INR 20,000

    Sourcing Ingredients

    High-quality ingredients are essential for making delicious momos. Establish relationships with reliable suppliers for flour, vegetables, meat, and spices. Consider sourcing organic ingredients to attract health-conscious customers.

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    Creating a Mouth-Watering Menu

    Types of Momos

    Variety is the spice of life, and offering a diverse menu can attract more customers. Here are some popular types of momos to consider:

    • Vegetarian Momos: Stuffed with veggies like cabbage, carrots, and paneer.
    • Chicken Momos: A favorite among non-vegetarians.
    • Pork Momos: Another non-veg option that’s gaining popularity.
    • Cheese Momos: A unique twist that can attract cheese lovers.
    • Chocolate Momos: Perfect for dessert lovers!

    Pricing

    Your pricing strategy should balance affordability with profitability. Research the prices of momos in your area and set competitive rates. Offering combo deals or meal packages can also attract more customers.

    Marketing Your Momos Business

    Online Presence

    In today’s digital age, having an online presence is crucial. Create a website and social media profiles for your business. Post mouth-watering pictures of your momos, engage with your audience, and run promotions to attract customers.

    Offline Marketing

    Don’t neglect traditional marketing methods. Distribute flyers, put up banners, and consider collaborating with local events to get the word out. Word-of-mouth is also powerful, so ensure every customer leaves satisfied.

    Delivery Partnerships

    Partnering with food delivery services like Zomato and Swiggy can significantly boost your sales. Many people prefer ordering food online, and being available on these platforms can increase your reach.

    Managing Your Business

    Hiring Staff

    As your business grows, you’ll need to hire staff to help with cooking, serving, and managing orders. Look for individuals with experience in the food industry and provide adequate training to ensure consistent quality.

    Customer Feedback

    Listening to your customers is vital for continuous improvement. Encourage feedback and be open to making changes based on it. Happy customers are more likely to return and recommend your business to others.

    Financial Management

    Keep track of your expenses and revenues meticulously. Use accounting software to manage your finances and regularly review your financial statements to ensure your business is on the right track.

    Conclusion

    Starting a momos business in India can be rewarding if done correctly. Each step is crucial for your success, from understanding the market to setting up shop and marketing your delicious momos. With dedication, hard work, and a love for momos, you can build a thriving business that satisfies the taste buds of many happy customers.

    FAQs

    Is momo business profitable in India?

    The momo business offers high-profit margins, making it a highly lucrative opportunity.

    How big is momos market in India?

    India’s momo market is now valued at approximately $3 billion annually, with over 90% dominated by unorganized street-side vendors. However, the organized sector is expanding rapidly.

    Which licenses are necessary to open a momos business in India?

    FSSAI License, GST Registration, Local Municipal Health License, and Shop and Establishment License are necessary licenses to open a momos business in India.

  • Innovating Marketing Strategy of Levis Strauss & Co.

    What’s the first thing that comes to our mind, when we think about Jeans? Yes, your guess is right! It’s Levi’s. The widely famous American clothing brand whose denim jeans are worn by every second person.

    Levi’s includes a sub-category of four brands, Levi’s, Denizens, Signature, and Dockers. The brand is known for its remarkable quality and comfort of blue denim jeans, which holds the status of highest sold brands.

    The brand has seen a lot of ups and downs but still, it remained one of the most extraordinary clothing brands across the world. Today, the hype of Levi’s is known by everyone. The brand has opted for such an advanced and ultracool marketing and pricing strategy that has been a great success. In 2021 Levi’s appointed Deepika Padukone as its global brand ambassador.

    The 167-years-old blue denim jeans company, Levi’s keeps up with the track of every ongoing change that occurs in retail habits. The tagline of the company goes by “Live in Levi’s”.

    You must be wondering how this company has still such a strong foothold in the market! Levi’s follows very extraordinary and advanced marketing strategies that show how people would be shopping in the future.

    In order to address such remarkable marketing strategies, we have presented this article, to discuss the marketing strategies of Levi’s. Let’s get started!

    Levi’s Product Marketing Strategy
    Levi’s Distribution Channel
    Levi’s Pricing Strategy
    Levi’s Target Market
    Levi’s Marketing Analysis

    Levis Marketing Strategy

    Levi’s Product Marketing Strategy

    When it comes to Levi’s products, they are extremely comfortable and of great quality. Through this, the company owns immense popularity in the market and has a huge customer base with loyalty.

    Levi’s offers such incredible products and services that they don’t look elsewhere for purchasing. Its denim jeans are innovative, enough spacious for keeping the necessary stuff and come with double layers for durability.

    The most popular Levi’s product is its blue denim jeans, however, over the past few years, other products are also gaining prominence.

    Besides its fame for denim jeans, Levi’s provides a great range of products including skirts, jeans, underwear, shirts, dresses, jumpsuits, belts, accessories, and many others.

    Its denim jeans are further categorized in many designs such as Taper, Skinny, Boot cut, Slim, Flare, Relaxed, Moms, and Big and tall. The most unique part is, it associates a three-digit number with its jeans.

    Suppose, you find great jeans with a number 201 but in the men’s section, then you can find the exact same jeans in the women’s section with the number 200. Sounds incredible, right!

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    Levi’s Distribution Channel

    Levi’s is entirely distinguished into three major geographical areas: Levi’s Strauss Europe, Levi’s Strauss America, and Levi’s Strauss Asia Pacific. Its Asia Pacific region includes the Middle East countries like Qatar, Oman, Kuwait, and United Arab Emirates as well.

    The official headquarters of Levi’s is based in San Francisco, United States. Levi’s distribution strategy is remarkable. It manages the entire supply chain smoothly as well as the delivery through distribution channels, franchise models and advanced qualified staff.

    Its products are delivered through numerous distribution channels. Alongside its holds, several factors owned retail outlets and showrooms within Levi’s franchise.

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    Levi’s Pricing Strategy

    Levi’s is a very well-established brand that comes with a great policy of conserving standardly fixed prices across the globe. Its pricing for the pair of denim jeans is measured with tons of factors behind it.

    These factors are the demand for products, cost of products, product’s uniqueness as well as convenient features, and product’s affordability based on the target audience.

    Likewise in India, the price of denim jeans ranges from Rs 1299 (for Levi’s cost-sensitive customers) to Rs 7000 (customers with luxury).

    Its pricing strategy is totally based on the preferences of its customers and that’s why it is quite prominent with its services.

    Levi’s Target Market

    Levi's Net Sales Worldwide
    Levi’s Net Sales Worldwide

    Levi’s has developed its strategies through a mix-up of geographic, demographic, and segmentation strategies. This is basically for building distinct types of offerings according to the market and customers’ choices.

    Levi’s opts for mass targeting strategies in order to convince the requirements and needs of its customers. Levi’s Market position is quite upright and competitive but at the same time, the brand prioritizes the value of money for the customers. And that’s why it influences its customers and gained such a huge base.

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    Levi’s Marketing Analysis

    Levi’s functions in a very rigorous and competitive marketplace. The market holds a huge counterfeit category of products and services along with various nationwide performers. All these combined are majorly affecting the performance and development of the brand. However, various other components such as climatic circumstances, Labour expense, and developing lifestyles are some of the central factors that are influencing the marketplace across the globe.

    In 2021, Levis appointed Deepika Padukone as its global brand ambasaador. The brand is planning to target millennials. The popular actress was also seen in its new campaign focused on the new range of jeans.

    On its association Deepika Padukone said,

    “Authenticity, Originality, and Honesty are values that the brand has been built on and are values I identify with the most! For those unaware, I have always been jeans and t-shirt kind of girl. The right pair of jeans not only make me feel comfortable but also confident!

    I am absolutely honoured and delighted to be associating with one of the world’s most iconic brands-Levi’s.”

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    Conclusion

    Besides being one of the most popular clothing brands across the world, Levi’s manages to keep up with its records. The brand follows some of the very significant marketing strategies that have brought incredible results for the company.

    From products to marketing analysis, Levi’s is known for its tremendous strategies that have kept the brand on the top for 167 years. The marketing strategies of Levi’s are immensely famous as well as strong.

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    FAQs

    Who is the brand ambassador of Levis?

    Deepika Padukone is the global ambassador of Levi’s.

    Which country is Levi’s based?

    Levi Strauss & Co. is an American clothing company.

    When was Levi’s founded?

    Levi Strauss founded Levi’s in 1853.

    What is the revenue of Levi’s?

    The annual revenue of Levi’s was $5,764 million as of 2021.

    Who is the CEO of Levi’s?

    Charles V. Bergh is the current CEO of Levi’s.

  • Setting Your Product Price: 7 Useful Tips to Keep In Mind

    Price is what a customer pays in terms of money to acquire a product or avail a service. As an entrepreneur setting your product price can be a real task.

    Several factors are involved in deciding the price of a product. This is because Product pricing plays a very significant role in determining the position your product will acquire in the market.

    This becomes more significant in today’s scenario when the market is full of competitors. As a Start-up, the price of your product is capable of making or breaking the market for you. It is an essential element of financial modelling.

    High Price vs. Low Price

    You would have noticed that most products that are considered branded and thus, of great quality, are sold at quite higher prices. However, in contrast to other similar products available in the market are sold at lower prices.

    This scenario reflects the common belief system that states “when you pay for bananas, you buy monkeys”. Therefore, in an attempt to get the supreme quality products, they are willing to pay higher prices. However, this is not always true.

    Sometimes keeping the cost way too high can make your customers lose interest. This can be especially true in terms of startups where you still have to establish your product in the market by winning the trust of your customers.

    At this point, you might consider keeping the prices as low as possible for your customers, so at least they may give it a try once. Howbeit, if the price is too low even if it attracts a lot of customers it can have a negative impact on your profit margin.

    Sometimes, it is also seen that such tactics were used by the companies to create initial awareness about their product but as soon as the prices were hiked, the sales declined.

    Confused? Then how do you decide the price for your product?

    For any product to start and maintain a consistent market setting the right price is very important. It is capable of making or breaking the market for you.

    So, here we are with the 7 most useful tips that you must keep in mind while setting the price for your product.

    Keep reading…

    1. Include All the Variable Costs
    2. Indirect Fixed Costs and Break-Even Point
    3. Determine Your Profit
    4. Value-Based Pricing
    5. Scan Your Competitors
    6. Study the Market
    7. Update the Product Prices

    1. Include All the Variable Costs

    Variable costs include the actual expenses incurred right from the start of product manufacturing till the time it reaches a customer. It includes the cost of raw material, manufacturing cost, packaging & shipping charges, etc.

    The first cost considered is the cost of goods sold. This includes the cost of raw material and manufacturing per unit of product.

    After this, the time and labour costs, incurred in the production of a particular product, are counted. You can decide the cost of time on an hourly basis. This means you first decide the hourly income you expect from your business and then divide it by the number of products that can be manufactured in this duration.

    Finally, you add other variable expenses such as packaging & shipping cost, promotional material cost, and affiliate commissions. The sum total of all these variable costs is known as the total per-product cost.

    2. Indirect Fixed Costs and Break-Even Point

    Two other major factors that must not skip while deciding the price of your product are the indirect fixed costs and breakeven point.

    Indirect fixed costs include salaries of office staff, rent of office space, marketing and advertisement, depreciation cost, insurance, and other professional fees, etc.

    Basically, these are the expenses that you are bound to pay irrespective of your sales or production. Therefore, it is crucial that this cost is covered under the price of your product. However, how to break these costs in terms of the per-unit price of your product can be difficult. Understanding the breakeven point will help you in this regard.

    It refers to the level of production at which the total revenue becomes equal to the total expenses. The formula used to calculate the breakeven point is mentioned below:

    Break–Even point (Units)= Fixed Costs ÷ (Revenue per Unit – Variable Cost per Unit)

    By calculating the breakeven point you will be able to determine the number of units of the product that you will have to sell to equalize the variable and fixed costs. This, in turn, will help you to make an informed decision while setting your price.

    3. Determine Your Profit

    The next step is to determine the extent of profit you wish to make. The profit margin should be enough to save you from regular market fluctuation.

    Profit margin is usually expressed as a percentage and is an indicator of the money you make out of your sales.

    You have to consider both fixed and variable costs while deciding your profit margin. Thorough market research will also give you an idea to set an acceptable price.

    The basic formula used for calculating the profit margin is given below:

    Gross Profit Margin = Gross Profit / Revenue x 100

    4. Value-Based Pricing

    The aim of any business is to earn a decent profit. This is known as cost-plus pricing. However, as a long-term goal for your company, you will also have to identify what your customer is ready to pay.

    This can be determined by how valuable your product is for your customers. The high-quality and other superior features associated with it as well as the capacity of customers to identify and appreciate those features is what makes your price look reasonable.

    You can also conduct small online or offline surveys to understand the psychology of your customers.

    “Pricing is all about customer value. Price is what you pay. Value is what you get.”- Warren Buffet

    5. Spy on Your Competitors

    It is always a good idea to keep an eye on your competitors. In terms of setting the price, it will help you understand the strategies they are using for the evaluation of the price of their product.

    The right price for your product can only be determined as per the market norms that are set by the already existing companies.

    For example, if your focus is to build a large market share for your product you may launch your product at a relatively low price than your competitors. This might help you gain customer trust for your future products and services.

    However, if you want your customers to feel like they are about avail of some novel and exclusive services that are not available anywhere else, setting a price towards the higher end can be a good decision. If everything goes well and your customers believe you, this might help you establish your product as a brand right at its initial stage.

    6. Study the Market

    You cannot just decide your profit margins with your own mind. Neither can you set your price to match or beat the price of your competitor? You will have to study the market to understand how the other brands are doing and what the customer requirement is. However, the foremost thing to do is to identify your target audience so you can survey the market keeping their needs in consideration.

    Surveying the market will also give you an idea about the other factors that may affect the price or sale of your product. These factors may include simple Geographical issues, legal concerns, etc.

    A major example of such factors is the extreme shift observed in the market during the COVID-19 times. As per a survey, owing to the lockdown restrictions the tour & travel industry collapsed badly. On the other hand, the technology industry observed an upsurge.

    7. Update the Product Prices

    The price at which you launch your product does not have to stick with it forever. There are a lot of regular ups and downs in the markets that will affect the variable and fixed costs associated with your product.

    Therefore, you will have to remain updated with the latest market trend and keep revising the price of your product accordingly.

    Other than the market trend, there can be other valid reasons for you to raise the price of your product. For example, when you decide to re-establish your company from a value-oriented service provider to a high-quality brand, you may apply a price hike. This is known as strategic change.

    Other reasons may include a competitor raising the price of their product. This usually means that the overall price of that industry or service in the market is going up. Hence, it becomes obvious for other similar companies to hike their product price in a similar range.

    Conclusion

    Considering all the challenges it may be difficult for you to set the correct price for your product. However, by following the tips mentioned above, you will be able to make an informed decision.

    The simple things like knowing your costs and surveying the market as well as competitors can be of great value.

    Hope we could resolve your problem. You can thank us later.

    FAQs

    What are the factors to consider when setting a price?

    Include all the variable costs, calculate indirect fixed costs and break-even points, determine your profit value-based pricing, spy on your competitors, study the market, and update the product prices.

    How do you set a price for a product?

    Use different pricing plans, spy on your competitors, include all your costs and keep flexible pricing.

    What is the selling price formula?

    The selling price formula is: Selling Price = Cost Price + Profit Margin.

  • Master the Art of How to Do Amazon’s SEO With Its New A10 Algorithm

    As a customer, whenever you land on the Amazon platform, your motive is to buy a particular product. Ever since Amazon launched its marketplace in the year 2000, it has successfully turned many people into robust e-commerce entrepreneurs.

    The product that is required by the customer must be available to that person. Now the whole question revolves around who he/she will buy the product from. If you want your Amazon store to sell that particular commodity to that customer, then it is vital to anticipate the usefulness of Amazon SEO (Search Engine Optimization). With over 2.5 million sellers, Amazon SEO has proven to be a successful advertising search engine to locate buyers.

    Amazon SEO strategies are needed at this hour as the level of competition is now off the charts. Although Amazon has generated a handsome profit for digital entrepreneurs, the service may be withdrawn if the essential products are not available to potential buyers.

    Search Algorithm- An Overview
    Amazon’s A10 Search Algorithm
    Factors Affecting Amazon’s A10 Algorithm
    Amazon SEO Strategy – Product Listing Optimization

    Leading online sources where consumers search for products worldwide (as of April 2021)
    Leading online sources where consumers search for products worldwide (as of April 2021)

    Search Algorithm- An Overview

    Let us first understand the meaning of the search algorithm to understand better how it works in Amazon. Search algorithm refers to the process of locating a particular data amidst a collection of data. It is a fundamental procedural algorithm that involves the usage of computer science to derive the goal state. Artificial intelligence has tightened its roots and laid an impact on the working of these algorithms.

    Amazon, like Google, assesses search results using an algorithm that takes into account a variety of parameters. Currently, A10 is the name of the underlying search engine. Unlike Google, Amazon is laser-focused on the shopping experience of the shoppers. The sole priority of Amazon is conversion and growing sales metrics. The algorithm searches for relevant data using the keywords, historic data also matters a lot. The A10 algorithm determines the pertinence of millions of products stored in the Amazon database to search queries entered by customers.

    You have to serve a double purpose – maintain your customer loyalty as well as optimize your respective product listing under Amazon’s search algorithm for ranking higher on the search results page.

    Amazon’s A10 Search Algorithm

    The main change that Amazon bought was an update in the Amazon A9 algorithm. The A9 focused on getting a better ranking by using pay-per-click (PPC), keyword consistency, and paid advertisements on Amazon. But A10 algorithm has shifted Amazon’s focus to revenue-per-click from PPC. Now, more focus is laid on consumer behavior in the current phase to fight competition.

    The Amazon SEO process is based on Amazon’s A10 search engine. A10, an Amazon subsidiary situated in Palo Alto, California, developed its search engine technology to help buyers find the most relevant products on the Amazon platform. A10 algorithm lays a strong emphasis on searches of buyers and gives them more accurate results to their findings. Amazon A9 dragged the profitable products to the users, whereas A10 delivers the most relevant data to the shoppers even if it is not profitable.

    A10 does not pay much heed to sponsored links due to which PPC has lost its importance. But it still holds certain great value and is not declared completely irrelevant. You just have to add a more polished and strategic approach while using PPC.

    The Authority of the seller plays a vital role as it involves hustling after positive feedback is received from the customer. It also highlights the fact that A10 supports vendors with a longer tenure on Amazon in comparison with the newer ones along with better returns handling capacity.

    Amazon A10 Algorithm
    Amazon A10 Algorithm

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    Factors Affecting Amazon’s A10 Algorithm

    Search Engine Optimization (SEO) is the prime concern of the sellers as they want their products to rank higher on the Amazon platform. Here are some factors that the A10 Amazon algorithm suggests, will improve the SEO of the products:

    • Seller Authority- Amazon and seller’s activity run simultaneously to each other. Amazon gives great weightage to seller’s activity in the market platform, enclosing performance metrics, inventory levels, feedback on the customer’s rating, and method of fulfillment. All these concerns are related to consumer experience and Amazon’s A10 algorithm works after that thoroughly. The seller has to maintain the quality and quantity of products in its catalog, good enough for the buyers to be attracted to the seller’s products. The refund rate, cancellation of orders, and efficient order tracking must be handled with care. All these endeavors will result in the creation of excellent value for customers. This will enhance your chances of appearing on Amazon organically.
    • Handle Your Keyword Game- Buyer persona is a very crucial aspect of selling on Amazon. The A10 algorithm proposes that the customer intended keywords that engage the customer’s attention are important. The customer should be able to relate to the product they are looking for. Overstuffing the product titles and descriptions with long-tail keywords is not necessary but the customer must find relevance while reading them both.
    • Maintain Your Impression Rate- Your product must be visible on the Amazon website. Sellers must ensure that their products have the highest views on Amazon, affiliate sites, and partner sites. The higher the views on your products, the higher will be the rank.
    • Conversion Rate to be Monitored- There is no point in having views on your products or having a substantial amount of leads if you can’t convert them into potential sales. Conversion rate involves a huge contribution to the ranking of products.
    • Obtain Positive Reviews- The most decisive ranking factor after Amazon’s A10 algorithm is obtaining a good review for your product. Whenever you buy a product, you always land on the reviews section to gather information about the likeliness of the products. You look for other people’s reviews as they have already bought that particular product and are familiar with its exact features and benefits of it. Social proof is a must to convince the buyers about the usability of the product. Positive reviews make the A10 algorithm place your product inventory higher in the search results. For attaining a higher review rate, you have to inculcate a feeling of belongingness among the customers and build a continuous healthy relationship.

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    Amazon SEO Strategy – Product Listing Optimization

    The product listing optimization can be done with the following:

    Conducting A Keyword Research

    You must realize that without keywords your products will be portrayed as meaningless and they won’t be able to reach the desired customers. One most efficient way to conduct keyword research is the amazon search bar. Whenever you type a product name, many related product categories show up. That is where you should initiate your keyword research. The Amazon search bar will automatically complete your search and also provide you with the necessary keywords for your products.

    Many tools will guide you through the process of keyword research, like Semrush, Keyword planner, and Ahrefs. These tools will yield a list of keywords that will help you to understand the search volumes and rating of the particular keywords. With these keywords, you can now optimize your product listings.

    Optimizing The Product Content

    Amazon - Product content optimization
    Amazon – Product content optimization

    In the Amazon marketplace, shoppers understand the language of a well-written sales copy, so, for product optimization, you need to take the following into consideration:

    • Plan an engaging product title- The product title is the first text that customers will see on your product listing. It should be simple and provide the most important information about your item. Amazon SEO is greatly influenced by the product-title ranking factor.
    1. Include a brand name that becomes a household name for people easily.
    2. Specify all the product details and their usability.
    3. Mention the key features of the product.
    4. Give information about the quantity and dimensions of the product.
    5. Mention the product size and color.

    You can rapidly attract your customers’ attention and increase your company’s sales potential by optimizing your product title. But don’t stuff your product title with a lot of keywords, as the Amazon A10 algorithm might not read it naturally which will send it to the spam folder automatically.

    • Write a good product description- A detailed product description is the most useful in pitching to customers for effective sales as Amazon is a pure online marketplace. Make maximum use of this avenue for sales maximization. This section is usually located at the bottom of the page and a shopper who is contemplating buying will search for information in this area. Writing a good product description is very important as it emphasizes conversion rate. It will assist the shopper to understand the benefits and uses of the products. A shopper might get the necessary product feature that he or she is searching for in the product description.
    • Optimize the bullet points- The target audience can be persuaded when your sales copy is written in bullet points. Because bullet points are readable and understandable, so your buyers will pay special attention to this section. Tell your buyers about the benefits of your product (rather than just the characteristics), and provide important details like features and dimensions.

    Concentrate on Creating High-Quality Photos

    If you want your sales volume to be high, then incur the greatest expenditure by buying a high-resolution camera for the best image quality. The best possible light must fall on each product. This is the most important purpose of product photography.

    High-resolution images improve the click-through and conversion rates. This will automatically persuade the buyers as they will be able to see the exact product they are searching for.  It becomes more convenient for the shoppers to search when the main image is engaging. This will contribute to a great click-through rate. Good images will leave a positive impact on the minds of users and will assist them in their buying decision. Sales are highly affected by this.

    Construct a Convenient Pricing Strategy

    Everything you do on Amazon related to the product lays a direct impact on the Amazon conversion rate. Product pricing on Amazon significantly affects the conversion rates if you put up a competitive pricing strategy. The product you sell must be priced at par with your competitors, and if your product price is optimized effectively, then your conversion rate will be positively impacted. But remember, if your pricing is above others on the search page then your product is likely to be overlooked. Make sure there is a proper price comparison done before you launch your products as you don’t want to be overlooked. Sellers Automatic Pricing Rule is a tool that will assist you in matching the prices quickly and will tell you whether your product is priced at a higher-end or a lower-end.

    Psychological tricks applied by Amazon on Its Pricing
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    Conclusion

    An ideal Amazon SEO plan cannot be built with a magic formula. Instead, it requires constant toil and research, along with constant monitoring. Learning the fundamentals of the SEO process is already a huge step toward your e-commerce success. To stay at the top of the search results, you must keep up with the latest trends, algorithm updates, and ongoing optimization. You must track your performance metrics on Amazon Seller Central using the given parameters.

    FAQs

    What is Amazon Product SEO?

    Amazon Product SEO (Search Engine Optimization) is the process of ranking your products higher in the search results by optimizing your product listing as per the related keywords.

    How is Amazon’s A10 algorithm different from A9?

    Amazon’s A9 algorithm focused on leading the customers towards more profitable products whereas its A10 algorithm focuses more on providing the customers with more accurate results for their searches.

    What is Amazon Best Seller?

    Amazon Best Seller is a badge that appears on certain products listed on Amazon. It means that the product has the highest number of sales in a particular category. Amazon’s algorithm updates this status hourly, however, it may take 24-48 hours to appear.

    How to do SEO for Amazon products?

    SEO for Amazon products can be done with product listing optimization. This includes:

    • Conducting keyword research
    • Optimizing product content
    • Construct a convenient price strategy
    • Concentrate on high-quality pictures
    • Utilize backend search terms

  • Seven Psychological Tricks Applied By Amazon In 2022

    ‌‌‌‌Amazon is the most common e-commerce platform providing services across the globe. The start of an Amazon was quite simple with a single product in its basket. Now in the year 2022, Amazon consists of millions of products on its e-commerce platform. Apart from the e-commerce market, Amazon has also topped in its Technology business.

    It is not an easy task to manage and achieve a position as high as Amazon has reached. There are many tactics applied by Amazon in all possible directions. The prime service enabled by Amazon earned it many customers. Especially those who wanted to receive their product delivery within a short period. Apart from these, Amazon is famous for good quality products at a lower rate. To achieve this, Amazon applies many Psychological Tricks in its pricing strategy.

    Amazon’s Pricing Strategy
    Need Of Using Psychological Tricks By Amazon
    Basics of Amazon Data Collection
    Psychological Tricks Applied By Amazon On Its Pricing Strategies:
    1. Concepting The Prices Lower Than Other Platforms
    2. Grouping For Comparison
    3. Preparing A Free Gift For Customers
    4. Additional Clarification
    5. Periodic Sale
    6. Attaching Social Reviews
    7. Summing Up The Cost With Number 9

    Amazon’s Pricing Strategy

    Each platform has its pricing strategies built for better functioning. Pricing strategies are essential to finalize a cost of a particular product or service by considering many related aspects such as market conditions, demand, supply, etc. Amazon also has many strategies to use for its pricing model. The pricing model used by Amazon is to keep the prices as low as possible to achieve a higher buying rate. Based on this model, pricing strategies are planned.

    Need Of Using Psychological Tricks By Amazon

    The graph demonstrates a tremendous increment in the annual net sale of Amazon mainly because of its strategies
    The graph demonstrates a tremendous increment in the annual net sale of Amazon mainly because of its strategies.

    Each seller needs to be ahead of others. For this purpose, they need to use tricks. One of the most useful methods is to apply psychological tricks. Psychological tricks are used to make customers believe that the deal cracked by them is truly a saving one. However, Psychological tricks are just a trick. There are many tricks one can apply for increasing sales.

    Apart from each seller, Amazon as a whole also needs to be ahead of its competitive platforms. For this purpose, multiple psychological tricks are used by Amazon in its pricing strategy.

    Basics of Amazon Data Collection

    It is not a mystery now that all e-commerce platforms collect their users’ data. This data is then used by the platforms to provide better services. The same is done by Amazon too. Amazon collects all inputted data from its users such as searches made on Amazon, filters applied, etc. This data is then combined with a few psychological tricks to make Amazon work as a customer store.

    Psychological Tricks Applied By Amazon On Its Pricing Strategies:

    Amazon is a continuously evolving platform. There are many chances for one trick to be applicable now and get an alternative after some time. This is mainly because the process is always applicable to improvement. Some of the psychological tricks are:

    1. Concepting The Prices Lower Than Other Platforms

    Amazon is known for its high-quality products at cheap rates. But is it factual or just a concept? Amazon sells its products at an average rate and not at low prices. However, the most trending products are sold at Lesser prices than on other platforms. This itself allows the manufacturers to sell a higher number of products at a minimum profit. On the contrary, some products have significantly higher prices on Amazon to indicate a better pricing strategy for customers.

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    2. Grouping For Comparison

    Similar Items are grouped together to provide a better understanding and comparison of products without the need of visiting any other place.
    Similar Items are grouped together to provide a better understanding and comparison of products without the need of visiting any other place.

    Comparison is the key to reaching a decision. Amazon understands this well. Amazon allows its users with three or more similar options of the same product with different packages. This allows the customers to make better choices from a single platform only, rather than going to other places for comparison of prices.

    3. Preparing A Free Gift For Customers

    Giving a free trial always has a better impression on customers. It can give them trust in the provided facility. Way Amazon allows its customers the facility of using Amazon Prime free of cost for 30 days. Once a customer starts using this facility, they will indirectly feel debted to Amazon. One can also try to purchase as much as possible in this period just for the sake of that membership. It can also make others purchase the facility once its free trial is completed.

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    4. Additional Clarification

    The complete clarification about shipping details helps in the proper placement of orders as per need.
    The complete clarification about shipping details helps in the proper placement of orders as per need.

    There are many customers purchasing orders from Amazon as a gift. Giving out clear clarification about shipping details and days required for the order to arrive can ultimately speed up the process of purchasing. This can be because no one likes to receive the product after its needed date. This step gives an ultimatum to customers without the actual use of any warning.

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    5. Periodic Sale

    Periodic sales work as a time bomb, the difference is that they work on the human mind. For any product available in the sale, with a limited time offer. Customers do not have the option of pondering much on the same thing. This forces the customers to make a quick decision. Hence, eventually, they can also lead to good sales once the psychology is well understood.

    6. Attaching Social Reviews

    Customer Reviews Summed Up For Easy Understanding.
    Customer Reviews Summed Up For Easy Understanding.

    Almost everyone goes to the comments section of Amazon before purchasing a product. This gives the impression of the received product. There are thousands of users purchasing products from Amazon. Each customer can’t read all the given comments for a better understanding of the product. Hence, Amazon came up with a great solution of summarising all comments into one simple rating box. This allows quick and easy identification for customers.  Higher the rating, the higher the number of customers willing to buy the product. Keeping the review and rating box on the product detail page is a great innovative step taken by Amazon.

    7. Summing Up The Cost With Number 9

    The Easy Explanation Of "Charm Pricing".
    The Easy Explanation Of “Charm Pricing”.

    Also known as “Charm Pricing“, it is considered one of the most successful strategies used by Amazon. In this method, the left number of cost is exchanged with the number “9”. Price number ending in 99 or 9 number makes the Price looks quite lesser than the whole number of cost. It primarily deals with the thought process of the human mind. It is estimated that Nine ending prices are slightly lower than the one ending a process or whole numbers.

    Conclusion

    Amazon is known for its multiple services. It is one of the best examples to acknowledge e-commerce platforms. Amazon is always in a changing phase. Amazon has its share behind making great Strategies for its products to be on top. This takes the teamwork of both the manufacturers and Amazon together for increasing its rank in the eye of customers. Amazon is always known for its good quality products at less prices. To maintain this, Amazon takes the help of psychological tricks. Some of the psychological tricks have been explained above.

    ‌‌‌‌

    FAQs

    Who is the CEO of Amazon?

    The current CEO of Amazon is Andy Jassy.

    When was Amazon Incorporated?

    Amazon was incorporated in 1995.

    What is the cost of Amazon Prime for one month?

    Amazon Prime costs about Rs 179 per month.

    Do retailers use any tricks to increase their sales?

    Retailers on Amazon use a number of tricks in order to achieve a higher sale compared to their competitors.