We all hear the tales of third-party sellers making millions of dollars in their Amazon FBA business. As of 2021 (Q1), Amazon can thank 55% of its sales (per Statista) for being attributed to this, creating $80 billion in revenue. As the world’s largest eCommerce company, Amazon presents many opportunities for new entrants.
If you are struggling to run your Amazon business, check out these five tips below.
To grow your Amazon FBA business, your focus should be on creating a process. After you’ve taken the first steps to start your journey as a seller your next steps involve expandability, budget controls, and following the latest trends.
Our five tips to follow a structured system involve the following:
- Automation and delegation
- Controlling ad expenses
- Tracking the latest trends
- Expanding your business globally
- Communication with brands for promotion
TIP 1: Automate and Delegate
The first step to making money in your Amazon FBA business is to focus on “big picture” efforts. These efforts delve into two different areas:
Automation is the process of taking administrative and support issues from your business and placing them in the hands of a computer that does it for you. The best example of this is the Fulfillment By Amazon system, otherwise known as FBA.
An Amazon FBA business means automated shipping on individual orders, Amazon handling returns, addressing feedback, and customer support. Automating finances is a big part of this, so look for tools to address tax tracking and budget concerns.
Delegation, or the process of handing duties to another human, is the second half of this. Hiring a virtual assistant is a great way to get started. These assistants can handle more complex tasks:
- Composing business emails
- Scheduling appointments
- Blog writing
- Graphic design
- Social media management
Automate what you can and delegate the rest so you can focus on big picture issues like quality control, brand promotion, and overall strategy to effectively grow your Amazon FBA business.
TIP 2: Control Your PPC Expenses & Amazon Fees
A big part of your budget as an Amazon seller comes back to advertising expenses and fees. The cost of advertising can rack up quickly if you don’t pay close attention. To control your advertising expenses, you should familiarize yourself with Amazon’s “Create a Campaign” system.
Creating an ad campaign on Amazon is deceptively easy, allowing you to do the following:
- Set a per-day limit
- Choose when to reduce or increase what you spend on ads (based on effectiveness)
- Choose a date range you want your ad campaign to cover
- Allow you to focus on targets that are potentially more competitive
The sponsored product advertising on Amazon allows you to target keywords to show up on the first couple of pages. The cost of ads can add up quickly if you don’t establish a total budget. Make sure this budget comes from your daily limit times the number of days you want the campaign to run.
Amazon FBA fees should also be considered when factoring in costs. Amazon audits and FBA reimbursements should be performed and claimed consistently to recover funds and help scale your Amazon FBA business.
TIP 3: Track Trends for New Ideas
New products are constantly released from Amazon’s stores. Both third- and first-party sellers have to be actively responding to a changing environment. Doing so ahead of the competition is crucial to remaining competitive.
You can track trends through four locations:
- The Amazon Trend Report
- The “Best Sellers” Section
- Current “Movers & Shakers”
- Amazon product research tools
Bestsellers are updated hourly, tracking the top sellers in various categories. By going to your product category, you’ll be able to see the top 100 most popular products. The Amazon Trend Report also offers some exciting statistics alongside a “big picture” view of what’s going on.
The “Movers & Shakers” section focuses on the sales rank increase over 24 hours. This list is a short-term view of trending, allowing you to take some ideas from others currently acquiring success.
It’s essential to work from both short- and long-term perspectives when tracking trends. The latest trends may last anywhere from five minutes to the following year. Both are important when remaining competitive in your Amazon FBA business.
TIP 4: Expand and Sell Globally
Good customer service and a high star rating are excellent to help drive your Amazon FBA business forward. Still, true success for sellers comes back to giving yourself the most significant potential to grow. For expansion potential, an early thought of yours should be to expand to different countries.
Amazon offers translation options that allow you to expand to other areas quickly. If you are an FBA seller, they handle all of the logistics for you. Also, having a global brand gives you the potential to capture a new market.
If selling globally, always be aware of local tax codes and regulations. Amazon offers detailed guides on all of this, making it easy to sell your products globally.
TIP 5: Communicate With Brands to Promote Your Products
In the past few years, Amazon has created a strong preference towards establishing brands. The Amazon Brand Registry program is an excellent example, so setting yourself as a brand gives you another sales channel.
Amazon brands can create content, use enhanced analytics, and provide a “social page” that allows frequent shoppers to follow you. You can also create specialized sponsored brand campaigns that provide consumers a link to your storefront.
But what if you don’t want to become a brand?
If you aren’t a brand yourself, you can also take the time to communicate with other brands for promotion. The brands you sell on behalf of others have natural strategies for winning as a product listing.
Using and tweaking previously successful strategies already implemented by the brands you work with is an excellent way to boost your product listing. Still, you might consider eventually creating your brand to take advantage of the enhanced features.
Through a combination of automation, delegation, budget controls, tracking trends, and global sales, you give yourself a more significant opportunity for success. For those new to selling on Amazon, you shouldn’t expect to have all of these strategies at once.
Work towards tweaking your FBA business strategy until you feel comfortable with it. A good plan allows you to focus on some of the most critical aspects of your business. You can’t afford to spend your time running around and putting out small fires. Using these tips, you don’t have to worry about that.
Christina Passmore is the Content & Relationship Manager at GETIDA, a company dedicated to improving the overall operations of 3rd party Amazon FBA sellers.
Originally posted in Small Biz Daily