Fulfillment by Amazon, or FBA, allows you to keep your merchandise in Amazon’s warehouses. They help you connect to a broader audience as well as manage the time-consuming tasks of online selling. Not only do they improve seller ratings through fast shipping but they also take charge of the customer service part of your business.
If you’re looking to stay on top of your competition, here are some useful tips on how to grow your FBA business like a pro.
1. Find the passion for your products.
Nowadays, looking for profitable items to sell isn’t enough. Most of the time, you need to have a connection with the products you intend to sell. That means you should be passionate about anything you put on the online selling platform. By being passionate and knowledgeable about what you’re selling, you’ll surely have an edge in the industry you’re operating in.
To have a passion for your products, it’s a good idea to sell in niche markets. All you need to do is to run an effective marketing campaign, make relevant content about the products, and target your audience. If possible, look for product influencers who can help you build your business’ brand.
2. Keep track of the numbers.
As an online seller, it’s essential to make informed decisions for the sake of your business. After all, growing your FBA business isn’t easy. It requires a lot of hard work and patience before you can leg up on the competition.
Try to ask yourself whether you’re earning enough profit. You can determine this if you know how to track the gross margin of your products. If you fail to keep track of the adjusted gross margin, chances are, you can’t figure out the performance of your business.
From there, check if using FBA is a cost-effective way of selling your products online. Amazon is generally a very profitable platform, especially as its popularity and customer base is currently on the rise. Assess your profit and compare it with the fees charged by Amazon. Consider how much you’re paying the company for fulfillment and storage fees and slightly adjust your product prices if you feel as if doing so wouldn’t impact the amount you sell while also allowing you to keep more money in your pocket.
3. Factor in pricing.
Similar to what’s mentioned above, if you want your FBA business to grow successfully, using a repricer can be a good shot. As time passes by, you might have several stock keeping unit (SKUs) to deal with, and pricing will become more difficult if there are so many SKUs listed in the catalog.
From monitoring your own price to checking on the competitors’ price, everything will be much easier if you have repricing software in place. It can help grow your business because it allows you to spend your time on other aspects of the operation.
The best thing about using a repricer is that it monitors and adjust your prices to be competitive. To make things even easier, try fbabee if you want to streamline not just your pricing system but your whole Amazon shipping process.
4. Run an effective ads campaign.
Are you looking to build your customer base? If yes, then you should consider the power of advertising. While digital marketing strategies like search engine optimization can be a perfect way to be on top of organic searches, focusing on paid advertising is the quickest way to reach the best results.
You just have to do it right so you can get the most out of growing your FBA business in the long run. For instance, you can use Amazon sponsored ads for your daily advertising efforts or even for your new product releases. Test your paid advertising initiatives to determine what works best and what doesn’t.
5. Pay attention to incentive reviews.
Even if you might find this tip unnecessary, investing in your incentive reviews can go a long way when it comes to growing your FBA business. Being an online selling platform, Amazon always ensures that customers will get the utmost satisfaction from their services. That’s why they highlight products with quality sellers and good reviews on the first page of the search results.
If someone purchases your product on Amazon, request them to provide a review. All you need to do is to follow up with them or offer them a discount. Amazon has their own Early Reviewer Program and you can make use of this for some of your best selling products.
The Bottom Line
Starting an FBA business can be a challenging task, so much more if you want to make it big. While there can be many challenges that you might run into, follow these essential tips when trying to grow your business. Don’t forget to focus on the processes and leverage the logistical side of Amazon to become more successful in the industry.