5 Ways to Grow Your ‘Fulfillment by Amazon’ Business￼
FBA businesses are becoming more popular by the day. Sellers and buyers alike want to get involved. Many people still don’t understand this business model and, therefore, don’t know how to effectively scale an FBA business.
Amazon’s fulfillment network is one of the most advanced in the world. As an FBA seller, your products are stored in Amazon fulfillment centers. They pick it up, package it then transport it to the consumer. They are also responsible for customer service.
Despite this, some FBA sellers still have a hard time scaling. Here are five proven tips to help you tremendously grow your FBA business.
Understand Your Numbers
Always use the Revenue Calculator provided by Amazon to know whether selling some goods through Amazon will be cost-effective. The adjusted gross margin is one of the most crucial metrics. For FBA businesses, it is usually 15% to 20%.
Also, record and track everything from the first day. Analyzing and tracking every metric is important. Not only will it help you track your business’ growth, but it also helps when you decide to sell the company.
If you can, set up several tracking sources so you can have accurate numbers.
Take Advantage of Your Strengths
Many experts will tell you that it is a bad idea to get into a business that you are not passionate about. Even though it is profitable, passion could put you ahead of your competitors in the long run.
Personal passion in FBA can help you find exclusive relationships. It will also help you leverage any existing connections. When you are hiring, hire people with a similar passion for the business.
Other than taking advantage of existing connections, seek to improve and nurture these connections as your business grows. Reach out to your supplier occasionally and ask about costs and improving quality. By doing this, you will know whether your supplier is great for long-term business or not.
Build a Platform of Your Own
When you are running an FBA business, you will never be able to access customer data.
If you want to ensure long-term growth of your business, you need this data. But you will not get it from Amazon. The Moore Collective’s Amazon MWS (Marketplace Web Services) Customer/Order Export is a tool that offers a simple web interface where you can see customer and order data, shipability exports and historical exports. The data is automatically updated.
With the data you collect, you can create an email list, a Facebook Custom Audience or a Facebook Lookalike Audience. Build your own website too.
Best Seller Rank
The Best Sellers Rank is important for your sales and customers. Do your best to outsell your competition. If you are unable to keep up, consider selling a product with less competition.
In addition to this, provide excellent quality so customers don’t get a reason to give you bad reviews.
Advertising helps you build a customer base. If you do paid advertising correctly. You can get quick results. To find the best advertising method, you need to conduct tests.