Fulfillment by Amazon (FBA) businesses are continuously on the rise. Looking at how the industry is now, its popularity will continue to grow. Primarily because sellers and buyers are increasingly interested to learn and be involved in these opportunities. However, since the Amazon FBA is a relatively new venture, getting formal and proven advice around this area can be quite challenging.
Luckily, some of the most successful Amazon FBA business owners are more than willing to share some tips and tricks on how to start up and seasoned entrepreneurs can maximize their profits. Check out some of the most effective advice below:
Look at the Numbers
Many FBA sellers put emphasis on checking and knowing the numbers of their products. Having a clear comparison of revenue, costs, and fees would allow the owners to assess the overall performance of their business on Amazon. The most ideal adjusted gross margin for an FBA business should be around 15-20%.
Improve Best Sellers Rank (BSR)
The Best Sellers Rank (BSR) is a fundamental metric for customers and improving the sales of any product. While no one has figured out how BSR is measured, the algorithm usually focuses on the number of sales made.
There are three variables that can influence the saleability of any product on Amazon and these are the following:
- Pricing – For pricing, it’s necessary to ensure that the cost of the product is competitive enough for the store to make profit, but would still remain affordable for customers.
- Shipping – In terms of shipping, keeping the Perfect Order Percentage (POP) high and Order Defect Rate (ODR) at minimum would certainly increase their BSR and make them look more trustworthy.
- Seller Rating – FBA businesses must maintain a seller rating of no less than 90%+. Keeping customers fully satisfied, be it on pricing, shipping or customer service, are just some of the few ways to improve seller rating.
Consider Paid Advertising
Advertising is another effective strategy when it comes to growing your customer base. When done correctly, Amazon Sponsored Ads program can lead to the overall success of any FBA business. Contrary to what most people would’ve expected, advertising can ensure the success of your brand. This is true when done correctly.
Many might be wondering how this could be possible, the secret is in testing. Ads can be tricky, but once you learn how to play around with it, it can do wonders to your brand.
Grow Your Audience
Many business owners on Amazon are guilty of limiting their reach to a specific set of audience. While it is normal to focus their initiatives into their home market, restricting their sales to certain areas, locations, and interests might deter them from gaining new and potential customers.
With all the available shipping solutions, product delivery and shipment to global consumers has never been this easy. This is why if you want to further expand your business, making your products readily available for international audiences is the most effective way to make this happen.
Take Advantage of Content Marketing
In Amazon, content marketing is not only limited to creating a fully optimized product page. It also means introducing your brand through blogs to drive more traffic towards your business. Content is important as it builds a certain level of connection to what people are looking for versus what you can offer these potential customers.
When it comes to content marketing, it’s important to do some basic keyword research using an Amazon keyword tool so you could come up with topics that your audience might find relatable and/or relevant.
It is fairly easy to grow and run an FBA business. It just requires a little bit of hard work and research. You see, maintaining a successful Amazon brand is a continuous process because you need to know what your audience is looking for.
As with any other fulfillment e-commerce business, you need to effectively utilize all the resources you have to ensure the success of your brand. Don’t be afraid to target new markets and look for opportunities that will help you to go further. Lastly, be sure you keep this advice in mind and your Amazon business is set out to grow and flourish.