Your Amazon business has some real growth potential, but only if you know what to do to make it as successful as possible. While on the surface it may not seem like you have much control, by making the right business decisions and finding ways to make your life easier, you can improve your profits. Here’s more information about this:
Carefully Set Product Prices
The price point of the product your selling can determine the success of your business and may stifle or spur the growth of your business. You should sell products that you are sure are in demand so that your revenue and profit are supported. Look for a product with a consistent and strong selling pattern. When you upload the product for sale, include keywords that match the actual search words a typical customer would type in the search bar.
Negotiate with vendors and suppliers to get the most competitive cost price for the product. Focus on the unit price but do not overlook additional fees like shipping, or customs fees. This will allow you to set a selling price that will put you in the buy box, a high profit margin that doesn’t lose customers. If you are a little confused about pricing, use a repricing tool that will automatically calculate the price and set it on your behalf.
Efficiently Control Inventory
In addition to pricing well, your business needs to maintain proper inventory levels. Have too much product will cut into your profits while being out of stock will give business to your competitors. There are high consequences to having an Amazon stock-out and to investing money into inventory that is losing value in your storage.
Based on your sales history, determine your sales velocity, how much product you are selling at what rate. Also, identify times of the year when your sales are higher or lower so you can adjust your levels and orders to maintain equilibrium.
Keep Tabs on the Competition
While offering a great product is important, offering competitive customer service is also essential to growing your business. Having weak customer service will make you lose potential customers, and you will most definitely lose repeat business. Keep customers coming back and get referrals from your customers by giving them the peace of mind that you will take care of any needs related to the sale.
Consider offering prime benefits, so that you can deliver the shopping experience that customers expect with Amazon purchases. Minimize negative reviews by delivering great customer service. The more positive reviews you have, the harder it is for the competition to take business from you.
Get Help with Shipping
Another important strategy you can use is getting help with shipping. When using the Amazon FBA system, it is true that Amazon stores products in their warehouse and then fulfills them for you when someone places an order. However, before Amazon can do that, you need to get your products to Amazon.
This aspect of the business model can be a pain, but it isn’t a headache if you have help. By using a fulfillment company, this can save you some serious time and allow you to pursue other business activities that will boost your profits.