Running an Amazon FBA business isn’t easy. First of all, the competition is fierce – according to Statista, more than 70% of Amazon sellers in the US use FBA. In addition, you’re constantly facing difficult decisions, from which products to sell to the fulfillment process you should use.
So, how do you distinguish yourself from your competitors? These 7 tips will help you boost sales and grow your Amazon FBA business.
Image source: multichannelmerchant.com
1. Choose Your Niche
One of the biggest mistakes you can make is selling a bunch of random products. If you’re just starting out, take some time to see what your options are. Some factors that will help you define your niche are your pricing methods, the competition in the field, the product margin, etc.
You should also choose products that you’re actually passionate about. Selling something that you love is a great way to keep interest in your business in the long run. Passion should be a key factor when hiring people as well. Hiring qualified individuals who are equally excited about the products you’re selling can help you grow your business much faster.
2. Create a Website
When you’re selling your products on Amazon, even if customers like them and leave great feedback, they are probably not aware of your existence. If you ask them, a majority will answer that Amazon is the one providing them with the said products.
That’s why you need to work on building brand awareness. The first step is to create a website and invite customers to visit it. Besides getting recognition, having a website will also help you gather valuable customer data and work on increasing customer loyalty. For instance, you can ask customers to leave their email addresses and start announcing new products to your subscribers, sharing news about promotions, and sending out targeted campaigns.
Getting visitors to give you their email address is very important so you might want to look into plugins that will boost your email subscribers count. You’ll want to grab as many emails as you can, so don’t let something like dull-looking sign-up graphics hinder your way to success.
3. Expand Your Team
When it comes to hiring, start by recruiting someone for the tasks that are less important, such as your listings on Amazon. Leaving such tasks to employees will allow you to concentrate on more important stuff such as building relations and marketing.
Once your FBA business starts making money, you can expand your team with a customer service agent who will be in charge of resolving customer queries and providing effective solutions, and/or a business analyst who will make the most out of your data.
4. Improve Your BSR (Best-Seller Rank)
Even though there is no universal strategy, there are certain things you can do to improve your BSR.
The first thing you should focus on is outselling your competition. Of course, this is easier said than done, but don’t forget that you can always change your offering and move to a less competitive category.
Another important factor is customer reviews and ratings. If you’re already running a solid FBA business, a couple of negative reviews won’t make a big difference, right? Wrong. If you want to leap ahead of your competitors, you need to keep an eye on the small details and ensure that you offer the best product and service possible.
5. Use Amazon Seller Tools
If you want to sell on Amazon, you’ll need to use Amazon seller tools. Sure, you can try to start without a tool, but chances are you’re going to fail.
In order to be able to grow your Amazon FBA business, you need to be familiar with all the different elements of eCommerce including finance, feedback, tax, shipping, price, tax.
Luckily, there’s a great number of Amazon tools and services, ranging from multi-channel selling and repricing solutions to inventory management.
6. Take Advantage of Paid Ads
While SEO is a long-term strategy that’s also pretty much free, it does require a certain amount of work and patience. So, why not consider paid advertising? Paid ads can be a great way to promote your product without having to produce tons of content or making a great number of small tweaks to your site.
However, in order to be successful with paid ads, you’ll need to do some testing:
- Collect customer data. Besides building your email list on your site, you can also use tools such as Amazon MWS Customer/Order Export service to get to know your customers and build lookalike audiences to advertise to.
- Split-test your images and copy to see what engages your target customer most. You might be surprised by the results! Keep in mind that people tend to see images first and copy second.
- Use retargeting. Try to capture shoppers off-site before they’re gone forever.
Image source: businessleader.co.uk
7. Offer Amazon Prime
Here are a few stats you should pay attention to – Amazon Prime memberships in the US alone stand at more than 100 million! That translates to over 60% of Amazon customers getting access to perks such as Prime Video streaming and free 2-day shipping. What’s more, Amazon Prime members spend on average $1.4K per year.
With such positive growth, why wouldn’t you take advantage of this extra pool of shoppers?
Not to mention, there are a lot more benefits under the Amazon Prime umbrella, like being able to tap into the 185 countries that receive Amazon deliveries and the one billion FBA items delivered every year.
Getting an Amazon FBA business up and running is relatively inexpensive and simple, but growing that business is somewhat more complicated. Hopefully, the information in this article has shed some light on how you can get your Amazon business booming.