So, you are already an Amazon seller and you are leveraging Amazon FBA in order to scale your business in terms of fulfilling orders to your customers. That’s a great start and we are glad to have you on the journey with us! However, we know that you probably have ambitions to go beyond where you are right now. If that’s the case, here are some handy ways in which you can take your Amazon FBA business to the next level:
#1 Expand your inventory to include items that sell well
You need to constantly be on the lookout for products that perform with consistency and have great turnover rates. It might just be these products that put you in a good position if you ever want to focus on your own products or brand.
What constitutes a good product on Amazon? Good question.
We believe that the following more often than not forms part of a great Amazon seller product:
- $10-$50 price range: In a Venn diagram, this price range would be the one that falls right in the middle. It’s a price that is affordable to almost anyone, is not so cheap to be questionable yet still low enough that it doesn’t make buyers sweat, and many products that sell well just happen to fall in this range.
- Weight and size: Products that are heavy or awkwardly shaped will cost a lot more to ship.
- Fragility: We just can’t help it. We are always nervous when we have products shipped to us. People are much less likely to buy very fragile products to be shipped online.
- BSR ranking: The Amazon Best Seller Ranking is meant to rank products according to their overall sellability and rating. While going with the best might seem like a good choice, that also means you will be in a very competitive channel. A BSR ranking of 1,000-10,000 is considered a good window.
How do you find them?
- Check the BSR rankings regularly.
- See which ASINs are furthest up Amazon search results.
- Check their selling history and price fluctuations.
What do we think are good products?
Products in the following categories tend to have many of the characteristics we mention above:
- Personal electronics and accessories
- Baby clothes
- Jewelry and fashion accessories
The potential of different items change over time and you should always review your current merchandise performance as well as be on the lookout for new performers.
#2 Invest in your own website and online store
There are plenty of benefits to having your own website dedicated solely to your business and product that make it worth your time and money.
For one, you can get a lot more traffic to your product and to your brand through this kind of channel. Just make sure you properly optimize your website to improve your search engine result rankings. This way visitors can either buy straight from your site or they can buy from you on Amazon because they are Prime members and want free 2-day shipping. Either way, you will draw attention to yourself and increase your sales.
There are many other ways you can also make money through your own site. You can leverage it for paid advertising or run affiliate programs with Amazon or other businesses.
If you are worried about how you will fulfill your orders without Amazon FBA, don’t worry. They also have an MCF (Multi-Channel Fulfillment) program which is basically FBA for external stores.
#3 Go international with your FBA business
It’s very easy to make your items available internationally. Simply change the setting in your Seller Central dashboard. If you think that shipping locally was a challenge before Amazon FBA, you don’t want to know what shipping internationally is like. Without it, you will have to invest in a lot more time and effort into customer service, item tracking, and coming to terms with export/import laws and the applicable taxes. Effort and time-wasting is something we try to avoid.
There are over 10 marketplaces you can ship to internationally through Amazon. Besides all the great features you’ve come to know through local sales, utilizing Amazon internationally means they take care of any taxes as well as exporting/importing tasks.
#4 Be on top of your numbers, always
As a businessman, there is simply no excuse for not knowing where every single penny goes. Amazon does provide a very handy (and free) Revenue Calculator that you can use to calculate the potential profitability of a certain product.
They also provide a variety of other awesome tools for tracking your sales and calculating your fees. All of these you can access in the Seller Central dashboard.
Even though you might not know exactly what you are doing in the beginning, it’s important that you track every single thing that you do. Working with numbers becomes natural over time and soon you will be keeping track of your financials like a pro.
If you want to grow, you need to know what you can afford at which point in time. Timing plays just as big a role as what you actually end up doing. Perfect timing is almost impossible if you don’t have your financials at your fingertips.
Being able to work with numbers accurately and apply them will also enable you to see when and if it’s a good idea to expand into a new product or niche.
Go grow your business
Growing your business is a product of making smart decisions and applying these decisions at the right time. Knowing beforehand what choices you might have to make in the future to grow your business will help you prepare and be ready when the time comes. Take advantage of a new year to expand your business while using Amazon FBA.