Many inexperienced sellers choose to undercut competitors to increase their chance of winning the buy box on Amazon. However, cutting the price may stimulate sales growth for a brief moment but it is not a long term solution.
However, if you are committed to providing high-quality products to customers, you can certainly increase your customer satisfaction and feedback rating. Your customer feedback will influence the purchase decision of many potential buyers.
Gaining feedback left by the customers who have purchased from your Amazon store is a sustainable business strategy. Here are some reasons why getting customer feedback is the key to success.
#1 – Feedback Influences Your Buy Box Eligibility
The most effective way to increase sales is to win the Buy Box. There is a variety of factors that contribute to winning the Buy Box and one of the key factors is ODR (Order Defect Rate). ODR is a metric that indicates how many orders are canceled, returned, shipped improperly or has received negative feedback. ODR is a metric that weighs heavily with the complex Buy Box algorithm. Sellers with better feedback rating will be more likely to win the Buy Box under the same item or shipping conditions.
#2 – Feedback Matters for Amazon Rankings
The Amazon algorithm has taken reviews and feedback into account, and they are two of the key factors that may impact your Amazon sales and ranking. Reliable and positive feedback will lead to a higher click rate, higher traffic, improved conversion rate, and ultimately a higher Amazon ranking. You can see that this cycle is the key to boosting your online business.
#3 – Amazon Penalizes Bad Sellers
Your customers don’t only belong to you, they are the customers of Amazon as well. As Amazon is the largest internet marketplace in the world, what brings customers to your store is Amazon itself. Therefore, your customers’ feedback also does matter to Amazon. Amazon uses Order Defect Rate to continually evaluate your business relationship with customers. Sellers are required to maintain Order Defect Rate of less than 1%. If you fail to reach this goal, your accounts may be suspended.
#4 – Sometimes Feedback Is More Important Than Price
Sure, 82% of Amazon sales go through the Buy Box, some shoppers will check “Other Sellers on Amazon” a page that displays your feedback rating and also other sellers’ offers for the same ASIN. When you offer the same price on an item with your competitors, shoppers are likely to purchase from you if have a better rating.
#5 – Feedback Can Help You Make Informed Business Decisions
When making business decisions, you will need data and information to back up your plan, instead of relying on guesswork. Feedback is like customer insights that will help you understand your customers and their needs. So you can consider taking their suggestions to develop future business strategies and allocate your money to the right area.
#6 – Feedback Is a Free Marketing Tool
Authentic and reliable customer feedback is a valuable resource for Amazon sellers. Every seller is biased to promote how good the product they have, so good testimonials from the customer side make your marketing content much more reliable and trustworthy. Customer feedback can act as a free marketing tool when it comes to both short-term and long-term marketing.
#7 – Feedback Helps You Stand Out From the Crowd
Amazon is considered to be the most competitive online marketplace since more than 300,000 third-party sellers join to sell on Amazon each year. Therefore, every positive feedback can help you establish your brand’s authenticity. The more feedback you get, and the more traffics you may attract. This will create brand recognition and ultimately boost your sales.
Getting feedback can be a defensive or offensive strategy in Amazon’s ever-competitive market. Being proactive in managing your feedback is the best way to maintain a sustainable business on Amazon. This is why it is essential to have a feedback tool with an AI-Powered solution like BigCRM to request and solicit customer feedback effectively and efficiently.