The thing about giants of the market that distinguishes them from the mediocre competitors is that they explore the out of box ideas from time to time. Before we head into details, let us understand what are we talking about today.
What is FBA?
FBA stands for Fulfillment by Amazon which is an initiative taken by creative minds of Amazon. After becoming the most sought-after E-commerce platform, they have started a retailer-oriented scheme with the motto- ‘You sell it, we ship it’.
The following steps are involved in this service:
Step 1: You set up an agreement with a supplier to provide you with a product.
Step 2: You ship that product from the factory to Amazon warehouses.
Step 3: Instead of being housed by you or another warehouse, the product sits in a warehouse owned by Amazon.
Step 4: When people buy your product from Amazon, Amazon “ fulfils” the order by handling all of the logistics, including shipping and customer service.
Also, by leaving the storage and shipping of the products in hands of the most trusted online e-commerce plaform gives you the time and resources to focus on marketing campaigns for your product. Today, we are going to discuss how to outshine other competitors in this business Model with the following tips:
1. Play on your strengths
The biggest mistake you can do is trying to be jack of all trades. If you are fresh in business, analyze your options and choose the product that you would love to sell i.e., do not follow the herd, what is profitable for someone else might do no good for you, so select your niche wisely.
If you have been in business for some time, you are mature enough to understand what is going to work for you and what is not. Factors that help you define your niche are competition in that particular field, your pricing methods, the margin on your products etc.
Besides, some Amazon product research seller tools will help you find how to sort and find the perfect niche for your needs.
2. Higher Average selling price
If the average selling price of your products is high then you can sell fewer goods and make more profit, as simple as that. Try to sell high-value products instead of selling the bulk of low-value products.
It all starts with the very basic, manufacturing cost, connection with the supplier and so on. It also depends on the factor that your product appeals to the customers, it needs to be superior to other alternatives in the market. People tend to pay more than usual if the product is worth it, so focus on value for money.
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3. Build a website
While you are selling your products on Amazon, even if people like your products and are giving a great response, they hardly know about you, for them it is Amazon that is providing them with those products. So, to ensure brand-awareness you must launch a website and invite customers to visit it. This way, you get the desired recognition, as well as customer loyalty, is increased.
Another advantage is that after the traffic on your website is significant, you can use customers’ data to your benefit. You can use their email address and you can start sending out targeted campaigns, sharing news about promotions and announcing new products to your subscribers.
4. Pack smart
From paper clips to bedroom sets, sellers ship products of all shapes and sizes to Amazon each day. One important aspect of the products received by the Amazon is the packaging of the goods. Once the package arrives, Amazon carefully weighs and measures it. Since there are precise scanners for doing so, even a silly mistake can cost you more than usual.
To reduce your FBA fees, you need to pack systematically and according to the product. For eg., if the product is soft, pack it tightly to reduce the dimension which in turn reduces the charge.
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5. Use some Amazon seller tools
To excel in long-term Amazon FBA business one must be familiar with all the different elements of e-commerce including price, feedback, finance, shipping, tax etc. So there are several amazon tools to help the sellers with such issues. Along with the team, you would need an order management software named EMERGE App to keep track of orders which can help you assign tasks to each employee.
6. Hire an employee
Recruit a suitable individual for the tasks that are of significantly lower importance. For eg., get someone who can do your listings on the Amazon. By leaving the computer work in hands of your employee, you will have more time to focus on more pressing concerns like marketing and building relations in the market.
There are a bunch of options when you are hiring as per your requirements. You can hire a Business analyst to have a good number cruncher on hand and make the most out of your data. You can also go for Customer service which will be able to resolve customer queries and provide effective solutions. A good service rep will be customer-focused and able to communicate and negotiate with customers.
7. Advertise and optimize your ads
The single most thing that can turn your business around is the right marketing for your products. With the help of Amazon, you can Create a Sponsored Products campaign or add to your existing campaigns to start strong with more traffic, visibility, and brand recognition.
Make use of social media platforms to promote your product, place google ads. SEO has been a proven method to increase sales exponentially. Your goal is to research as many relevant keywords as possible that could potentially match the search queries of the customer.
8. Improve your BSR
Amazon is known for its flawless system, everything is data-based and the more organized you are, the more you are likely to succeed. On Amazon, for a specific product, there are best seller rankings based on your overall competency.
The basic factor on which Best Seller ranking depends is outselling your competitors. You have to keep your sales high. Along with that, Customer ratings and reviews are also thought to factor into your overall BSR. Make sure to offer your customers the best product and service possible, to avoid negative reviews and ratings.
So, if you are looking forward to growing your FBA business the main thing is to Capitalize on your strengths. You must be systematic in your ventures and make the most out of your data, that will surely lead you to the top of the chart. Another important thing is to thoroughly understand the algorithm of Amazon, this way you can plan better and be easily accessible to more customers.