Amazon FBA has enabled anyone with a business motivation to run a successful online operation. The fulfillment centers take care of all your storage and shipping. So, now you can focus on developing a better Amazon selling strategy to grow your business and outdo your competitors.
Multiple proven methods can work when it comes to growing your Amazon FBA business. For instance, you can carefully select products that bring you the most returns. You can also expand and explore new audiences. However, one of the best strategies to maximize profits with FBA is to find and sign up with an excellent Amazon prep center.
Of 9.5 million Amazon sellers worldwide, 73% use FBA for their business. If you want to win the competition and build a unique brand, you have to be smart and strategic. Keep reading to learn how.
There are lots of Amazon seller KPIs. However, there are crucial ones that every Amazon FBA seller must keep an eye on. Some essential Amazon KPIs are revenue, return on ad spend or RoAS, ctr, inventory age, etc.
There are a lot of things to know about these KPIs. It would be best if you learned the basics of these to keep your Amazon sales performance steady. This article will discuss seven important KPIs for Amazon FBA sellers and some relevant topics. So, let’s get started.
5 Tips To Grow Your Business With Amazon FBA
Fulfillment by Amazon lets small business owners sell their products under the e-commerce giant’s logo. This instantly gives them a minimal level of credibility in the eyes of the average customer. Plus, Amazon takes care of a lot of your heavy lifting. This means you can invest more time and effort in growth strategies.
There isn’t some groundbreaking Amazon selling strategy to quickly put you in the same category as elite brands. You must tweak your products, prices, and target audience cleverly.
Tuning And Automating Product Prices
Trends, public demand, the number of products in stock, purchasing costs, and other influencing factors are constantly changing. Amazon sellers follow along by regularly changing their product prices. This is how they reserve their profit margins and maximize them.
However, tuning your prices to meet profit margins require extensive monitoring and tracking of your product lines. Plus, you have to keep updated on what your competitors are doing. Afterward, you will sort through this vast amount of data to make sense of it and put it to practice.
Manually accomplishing this is quite frankly impossible. So, sellers use trusted Amazon product monitoring tools and repricing software to automate the process. Besides saving time and energy, these tools yield the most accurate results.
Avoid Bulky Slow-Moving Products
One of the greatest perks of Amazon FBA services is its storage facility. The company offers FBA Sellers the same high-quality storage options as they do for their main line of products. However, if you plan to keep your products in Amazon’s warehouse for more than 365 days, you have to pay the long-term fee of 6.9$ per cubic foot.
These fees can pile up and significantly affect your profit margin because there are also shipping and other fulfillment fees that you will be paying. Here, the smart move is to sell products that move fast and take up less room space. In other words, it is difficult to maximize profits with Amazon FBA if your items are bulky and slow-selling.
Selling lightweight items also means you will save much on shipping. And if you must sell bulky items, use the revenue calculator to see how profitable it will be in the long run. Electronics, clothing, and personal care products sell the fastest on Amazon.
Use a Credit Card To Purchase
The key to increasing your profit margin is cutting costs wherever possible. And your Inventory Purchase might be one of those sectors that need trimming. If you are using Payoneer or Paypal, you are losing a chunk of your profit in fees to these platforms.
You are already paying seller fees, fulfillment, storage, and shipment fees to Amazon. So, why lose money on inventory purchases too? Instead, switch to a credit card for paying your suppliers. The yearly percentage rate you will pay for credit card purchases is much lower compared to PayPal and Payoneer fees.
That way, you don’t have to push your inventory purchase fees toward your customer. Meanwhile, you will enjoy certain points and cash-back rewards as a credit card holder.
Buying Out The Supplier
Wouldn’t it be great if you were the sole seller in your Amazon niche? You could dictate the price as you saw fit. Plus, your target audience would only buy from you. Even in the short term, having this kind of monopoly will significantly impact your overall profit margins. And you can make this possible by buying out your supplier.
On various occasions, you will find that your supplier has a remaining stock they couldn’t sell. In this case, you can offer to buy all of it and relieve your supplier of the burden. As a result, you will own all the products in your niche for a short period while the competitors wait for the arrival of new stock.
This temporary monopoly increases your profit margin in two ways. Firstly, you will sell more. Secondly, you can sell at increased prices. Also, you might get a discount on your purchases when you offer your supplier a buy-out.
Bundling Products
One of the nicest Amazon selling strategies is Bundling products. Both the buyer and seller win when you bundle multiple products together. From the buyer’s perspective, they get several items in one purchase. Thus, they are spending less money and time on their Amazon products.
Meanwhile, as a seller, you have two advantages. Firstly, bundling allows you to sell more items per purchase. Secondly, you can bundle slow-moving items with fast-moving ones and get them off your hands. The combined effect is a remarkable increase in your profit margins.
FBA Prep Services: The Ultimate Amazon Selling Strategy
Although fulfillment by Amazon handles a lot of the heavy lifting for you, there is still much left to do. Packaging, labeling, and sending them off to fulfillment warehouses. If these are not up to Amazon’s standards, they will not sell your products. You will have to pay removal fees on top of the fact that your business is slowed down.
Singing up with a FBA prep center is the best solution in this case. These companies provide Amazon 3pl services and ensure your products move along smoothly.
What is An Amazon prep service?
There is a lot of prep work involved before you can put your products in the Amazon warehouses. For instance, you must package your items according to Amazon’s terms and put FNSKU barcodes on them. Then you have to oversee the shipment of these products to FBA centers. You must also carry out a quality inspection before these packages leave you.
Imagine how much work that would be when sending hundreds of products to Amazon. It will take away precious time and energy you could have invested in growing your business. This is where an Amazon FBA prep center comes to the rescue. They take care of all this, so you don’t have to bear the stress.
How Prep Services For Amazon Increase Your Profit Margins
Amazon prep centers increase your profit margins by reducing prep costs. If you had to hire employees, buy packaging materials and equipment and rent a place to hold your stock before shipping off to Amazon, you would lose significant money at this stage alone. Prep centers cost you much less because all these services are bundled together.
Secondly, packaging products is no easy job. You need experts who are aware of Amazon’s packaging requirements. Plus, unskillful packaging can damage fragile items at any point in the shipment process. So, fba prep centers save your product from getting both Amazon’s and your customers’ rejections.
Lastly, prep centers save you a lot of time. Being in a different line of business, you can never package, label, and ship products with the same time efficiency as the professionals at the prep centers. And in this highly competitive era of e-commerce, moving products fast determines the winner.
Getting the services of an FBA prep center is an Amazon selling strategy that gives you an edge over your competitors. If you are searching for ‘fba prep services near me,’ ESRPrep might be your answer. We offer some of the most affordable Amazon FBA prep service fees. Feel free to contact us with your queries.