Nexus • 22 Jan, 2024

How to Sell Premium Products on Amazon Successfully

It’s a well-known fact that Amazon is associated with online shopping and direct to consumer (DTC) products. There are many low-price products on the platform and a wealth of deals from various vendors. Because of this, many vendors of premium or high-priced products tend to shy away from the platform, as it would seem that Amazon isn’t designed for selling luxury products to consumers with disposable income.

However, this couldn’t be further from the truth. There is plenty of data out there that shows customer markets of many different types (and financial standing) enjoy shopping on Amazon. Even consumers who tend to value brands and quality more than affordability shop on the platform as well. Selling premium products on Amazon could be an excellent way to access a larger target market.

In this guide, we’ll break down the basics to get you started on selling premium products on Amazon and advertising those products the right way.

 

Selling premium products on Amazon is quite simple if you follow a few key steps

 

Establish a clear strategy

As with any brand or product that is ready to launch, one of the most important things a brand owner can do is understand their customers. Why do they want to pay more for your specific product, rather than opting for a less expensive alternative? What problem does your product solve that makes it worth the cost for consumers?

When you’re developing a good strategy for your premium product launch, sit down and answer these questions:

  • Does the product have incredible quality?
  • Is the product sourced from a specific place?
  • How sustainable or “green” is the product?
  • How does your brand connect with customers? Is your storing inspirational or admirable?
  • What’s your brand’s overall mission?
  • Do any influencers, celebrities, or critical figures in your product’s related niche endorse your brand or product?

Understanding what makes your brand different is key to creating excellent ad campaigns, marketing campaigns, and branding strategies.

 

Demonstrate the product’s value on the product page

When it comes to selling a premium product on Amazon, your product page is going to be a major tool. For less expensive items, the product detail page is usually not held in as high regard as, say, the number of quality reviews or the price of the product. For premium products, consumers are going to read a bit more into the value of your product, and the first place they are going to look into is the product page’s detail section. Make sure that all images you use on your product page are high-quality and relevant to the product itself.

Your goal should be to showcase the product in the best way, and shoppers will appreciate quality images that really show the scope of the product. Using video is another great way to add value to your product page. Just make sure you’re not using salesy language. Rather, your video should offer value to your customers in terms of instruction, tips for use, maintenance guidance, etc. It’s also highly recommended to avoid using text symbols or too much punctuation in your product page.

Keeping things informative and simple is key. It is typically a very good practice to opt into Amazon’s Prime program and secure that Prime badge for your product page. Just as well, many consumers gravitate more towards products that are fulfilled by Amazon and boast an FBA badge. This is because Amazon’s reputation for quick and efficient order fulfillment is very desirable and trusted by most consumers.

 

Optimize your storefront

Your Amazon Brand Storefront will be another touchpoint and opportunity to establish your brand and product value. For sellers of non-premium items, many will rarely clean up their storefront simply because of the notion that buyers of non-premium items are not very likely going to look at it. This is very different for premium sellers. Your target audience wants to know as much about what makes your brand different as possible. Your storefront is another excellent way to demonstrate that value.

Setting up your storefront is quite easy to do. Amazon Brand Stores boast a ton of great customizable and edit-friendly templates to make your store look attractive and easy to navigate. This is a great opportunity to craft a compelling and interesting story about your brand for your customers to enjoy. Use as much content as you can, including images, videos, copy, etc. The real goal here is to create a home base page that communicates quickly and effectively why a customer would want to spend a little more money on your product, rather than another product from another brand. With so many personalization options available, you might feel a bit overwhelmed when crafting your storefront.

We recommend cruising around Amazon and checking out different storefronts from other brands to get inspired. Specifically, look into other premium product vendors or even competitors to see what kind of content and overall look they are using to promote their products via their storefront. Remember, there are three key things that your storefront should do: Establish the value of your product, communicate why consumers should spend more money on your product specifically, and catch the eye of your target market by using visually attractive yet informative media.

 

Advertise the right way

Now that we’ve established how to showcase your product’s value and set up shop, let’s explore the best methods for advertising your premium product. Many sellers will simply dump their ad spend into PPC ads and leave it at that. This is not a very effective strategy and could actually be a waste of resources. For premium products in particular, you should have a clear and researched strategy in place to target the right buyers.

Our recommendation is to use a mix of optimized content, Sponsored Advertising, and Amazon DSP. If you’re following these steps in order, you’re already on your way towards optimizing your brand’s content. Your storefront is loaded with great value-proving content. Now, it’s time to develop more value-proving content to use as advertising and marketing material. Such content can include blog posts, articles, videos, infographics, etc.

Because your target audience is more likely to care about the brand mission and product value rather than price and reviews, your content should be optimized for potential leads who want to learn more about what your product can do for them and the planet. It’s also worth looking into Sponsored Advertising. This can put your product at the top of results for relevant long-tail keywords. Sponsored Advertising is particularly useful for premium products because consumers will be more likely to use highly specific keywords to find a premium product, rather than just a bland generic version. Bidding for these product places is an excellent way to get ahold of incremental sales.

Amazon DSP can also be used to target specific customers who have shown interest in one of your competitor’s products. Amazon DSP has a ton of targeting features that makes finding these specific users very efficient and simple. It uses first-party customer data to help you target shoppers by demographic, geographical location, shopping activity, etc.  You can also use Amazon DSP on Amazon affiliate sites as well.