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How CPG Entrepreneurs Thrive on Amazon

Have you ever needed something and needed it fast? Where do you go to get it? Whether you need batteries, a book, or a specific snack, Amazon, the world's largest online retailer, has you covered.  


Amazon’s success is directly related to two factors: convenience and choice. With an endless array of products, overnight shipping, competitive pricing, and reliable reviews at their fingertips, Amazon is often a shoppers’ first stop.   


With this in mind, entrepreneurs may view Amazon as a “prime” opportunity to introduce their brand to the platform’s 300 million active users. But is selling on Amazon right for your brand?  

Before you launch your product on the platform, you should consider the pros and cons of selling on Amazon and speak to other founders to learn from their experiences.   


We tapped a few entrepreneurs in the CPG space to understand how they found success on Amazon. 


Have an Ideal Demographic? Amazon Can Connect You to Your Perfect Consumer 

Made with a popular type of cacti in Mexico, Nemi Snacks provides a nostalgic experience for Mexican Americans. Founder Regina Trillo needed to get her brand in front of the Latinx community. She turned to Amazon to help her.  


"We've been able to get into more Latinx homes, and we would not have been able to without Amazon," Trillo said. "We re-launched with a strategy directly targeting the Latinx consumers, and the response has been positive."  


Waiting to Have a Physical Retail Presence? Amazon Might Get You There Quicker  

Stacey Kohler knew she had a hero product with the Crawligator, an aid to help infants with tummy time, and was eager to get the product under the bellies of newborns.  


"I knew it would take a year to get on a retailer's shelf, and space would be limited to the top-performing sellers, Kohler said. "As a scrappy early-stage startup without a marketing or advertising budget, it was the fastest way to get to market. In addition, when considering most consumers look to Amazon first when searching for a product, it was the best option for Crawligator at the time."  


After 16 months on the platform, Kohler is pleased with the results, analytics, and exposure.  

"Amazon has given Crawligator the ability to grow that otherwise would not be possible given the circumstance of the pandemic," she said.  


Limited Staffing and Storage Space? Amazon Helps Save Money While Making It.  

Adrienne Walker, the founder of BlueHenry, was looking to add a layer to her business-to-business strategy and go direct-to-consumer as well. However, she had limited resources. Amazon provided a solution.  


"With staffing and space constraints, it made sense to use a fulfillment operation that could handle that part of the business for us," Walker said.  


An increase in sales confirms the right direction for both the business's B2B and B2C sides.  

"We doubled our production the first and second year we were on Amazon," Walker said. "Now we continue to get exposure through that platform and routinely get wholesale clients who first found us on Amazon." 

Data is King and Amazon Provides a Plethora of Information  

Kohler and Trillo emphasized Amazon's metrics, customer feedback capabilities, and analytics as reasons they are on the platform.  

"It's a good place to get data, not only from sales and the information Amazon provides but mostly from reviews," Trillo said. "You can see how Amazon customers are talking about your product, what they like, what needs to improve, how they connect with the brands, etc. As a small company with limited capital, we have to be creative on where/how we're getting data."  

 While some may argue that Amazon hurts small businesses, the brand is making strides to elevate these types of companies on the website.  


As part of Amazon Prime Day 2022, the company introduced a Small Business Badge for small business brands and artisan sellers and has launched a  Support Small hub highlighting black-, women- and military family-owned businesses, among others. 


Additionally, there was a sweepstakes, where customers were entered in a drawing for exclusive experiences for every $1 spent on eligible small business products.  


For more information on small businesses on Amazon, check out Amazon's Small Business Academy.  


Ready to Join the Jungle? Here are Tips for Amazon Success   

  • Do Your Research - Selling on Amazon is a commitment. Make sure it is suitable for your business before jumping in. "Amazon is a vast channel, it can be profitable, but you need to be mindful of margins, the time it takes to manage, and the impact on cash flow," Trillo said. "I suggest other entrepreneurs do their research, talk to several Amazon experts to get a better sense of what it takes, time-wise and financially."  

  • Invest in High-Quality ProductImages – Images significantly impact people's buying decisions. Make sure your product images are clear and visible, high-definition, and show different angles or uses of the product.   

  • Have Enough Product to Sustain Growth - Consumers turn to Amazon because they want something quickly. Make sure you can deliver your products in a timely matter.  

  • Be Descriptive – If you're planning to sell on Amazon, make sure the products you're posting have a clear, in-depth, yet easy-to-read description.  

  • Make Good Use of Search Terms – Amazon Search Terms are strings of keywords that shoppers’ type to find a product. Include keywords that will help shoppers quickly find your product. 

  •  Price Your Products Strategically– Pricing is a significant factor in the Amazon marketplace. You can use the Amazon Seller app to compare and set prices and view competitor prices.  

  • Focus on Customer Reviews – Feedback is essential, and understanding what your buyers want is valuable. Ask your buyers to leave honest reviews and adjust accordingly.  

  • Take Advantage of Amazon's Free Education Resources. "Read every email you get from Amazon," Walker said. If invited, join its seller educational programs. Amazon wants you to succeed on their platform and provides you with a wide variety of free tools."  

  • Hire an Amazon Guru Account Manager – This was a clutch hire for Kohler and Crawligator. "I would recommend hiring an Amazon account manager to create an advertising campaign," Kohler said. "It can be a bit challenging as a solopreneur to manage the performance of keywords strategy." 

  • Consider Becoming a Fulfillment by Amazon (FBA) Professional Seller. For a company to sell under Amazon Prime status, it must be a FBA Professional seller.  


Amazon has changed the retail space forever. Success is attainable for entrepreneurs who decide to sell on their platform. Still, it's essential to navigate the website efficiently and effectively. These suggestions and tips will take your company's Amazon presence to the next level.  

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