Amazon is globally the best way to operate and grow a profit-making business today. They work equivalently well for digital and physical businesses. They will keep you focused on what matters most, guiding your priorities, your decisions, and your day-to-day operations.
Recognize Your Numbers
Fulfillment by Amazon sellers should use Amazon’s provided Revenue Calculator to check if selling specific products via Amazon is cost-effective after fees and expenses are accounted for. One important thing to know is your adjusted gross margin. Track anything you can and record everything from the starting day. Many business owners make the mistake of not give much time to the amount of data they are keeping track of and analyzing. It is very important now as the business grows and in the future.
Capitalize on Your Strengths
We advise against investing in a business that you have minimum interest for the products on sale. If it is a profitable business, being passionate about what you are selling is going to give you an advantage in your industry, especially over the long term. In FBA, particular passion can be helpful in seeking out relationships that can allow you a significant competitive advantage. Use your passion to support existing connections that you may have in the industry you are entering. Make sure you are hiring people who share a similar passion for what you are selling if you need to hire. This can help the business grow not as individuals but as a team.
Build Your Own Platform
One major point with running an Amazon FBA business is that you will not have any direct access to your customer data which Amazon holds on to.
Obtaining customer information is important for long-term business growth. As Amazon will not provide you with this, I would suggest you look into using The Moore Collective’s Amazon Marketplace Web Services (MWS). This tool provides users with a simple web interface that displays order and historical exports, customer data, ship ability exports and automatically updates data as orders are placed and fulfilled.
Optimize Best Seller Rank
The Best Sellers Rank of your key product listings is important for your sales and customers focus on outselling your competition. If you can’t appear to keep with the competition’s BSR rank, it might be time to switch up your product offering and find something with less competition. It can be easier for you to increase your BSR rank by outselling the competition. In addition to Best Seller Rank, make sure you don’t give your customers a reason to rate your product down or write poor service reviews.
The Buy Box is located under the price on a product page and displays 3 to 4 of the same products that are priced similarly. If you cannot be profitable and have the lowest priced item, make it a goal to at least get into the Buy Box. 3 variables that affect the status of your product in the Buy Box:
• Seller Rating
• Shipping Performance
Amazon Advertising can be used as a successful tool when it comes to building your customer base. The slower effect of Search Engine Optimization paid to advertise can be a quick solution that if done correctly. The important thing is that when it comes to advertising is a test. If you think you know your business, it can surprise you. The positive way to learn about what advertising works for your business is to do multi-variant testing across each step of your sales funnel.
• Use all of the email addresses that your business has accrued over time and lookalike audiences to advertise to.
• Testing the creative on your ads first (images and copy)
Expand Your Audience
Too many consumers are still focusing on their home market, limiting their sales and potential customers to Europe. There are some shipping solutions that are available and a growing global market for products sold on Amazon, there is no excuse for limiting oneself. The European market is as big as the United States market and markets like Australia and Japan are growing fast. The Australian economy is less than the size of the UK and other English-speaking markets could help to generate more sales.
Utilize Content Marketing
If you haven’t tried to create your own content, last year might be the year to test your skills as a copywriter. Building a blog relates to your product niche, you can drive traffic towards your products. By focusing to write articles of between 2000 to 5000 words in length, you can stack up organic traffic from people who are most likely to convert to your Amazon products. You will have to do some keyword research, and decide which topics might be too competitive to rank for. Using the blog to gather email addresses could open up a new way of communication with potential customers. Once you have enough contacts you can push notifications and try weekly newsletters to create more engagement.