Amazon FBA is a good source of earning and many people have started a business on it in order to earn a profit. Every seller wants their business to grow. If a seller wants more demands and profits, he should go for scaling. Because it shows the right track behind the already working sellers and helps the new one in understanding which area they should look into in order to surpass others.
Below are a few tricks you should keep in mind and enlist before moving on with your amazon business and scaling it to 7 figures.
Expand Your Amazon Advertising Possibilities
Amazon advertising provides you with a vast amount of options to grow and scale your business. Sponsored Product advertising is the most common one used by sellers, with ads that appear in shopping results and on product pages.
There are more than ten ways for product advertisement, and if you are only using one or two of them, you are missing out! Try out the other ways to reach potential customers. Amazon post is Amazon’s version of Instagram, where you can post lifestyle pictures and tag your products to drive brand and product discovery.
Amazon DSP is a demand-side platform that enables you to programmatically buy, display, video, and audio ads both on and off Amazon. You can also run Sponsored Video ads to showcase your products to potential customers. Be sure to track your Amazon advertising performances so you don’t spend unnecessary money on ads that don’t work.
Deal With All Negative Reviews
A frequently made mistake of a lot of sellers is ignoring negative reviews. It doesn’t matter if the review is positive or negative; it is important to respond to reviews. It shows that you care about their feedback.
There are lots of reasons why customers write negative reviews:
- They want to tell others about the flaws of the product.
- They are not satisfied with the product.
- They want to hear back from you.
- They are your rivals trying to take you down.
Although you won’t be able to do enough about the last reason, you can still learn how to deal with bad Amazon reviews and turn them into positive fuel. When you respond to unsatisfied customers and resolve their issues, there is a possibility that these customers will change the negative feedback into positive ones. Never leave any negative reviews unchecked! Try Product pulse to receive alerts whenever a customer leaves you a product review.
Optimize Your Product Listings Regularly
Similar to PPC campaigns, it is important to optimize your product listings on a regular basis so that you always have the top keywords indexed by the Amazon A10 algorithm. Amazon often updates its selling guidelines and you should stay up to date with the latest changes.
Keyword research is undoubtedly the most important step in optimizing your product listings. Search terms used by customers repeatedly change, so it is important that you research new keywords and include them in your product listings.
Build A Presence Across More Platforms
A great and pretty useful feature of e-commerce is that you aren’t limited by geography, unlike with a physical shop. If you are successful with a competitive marketplace like amazon, you can do well on eBay, Etsy, and other marketplaces.
One drawback with platforms other than Amazon is the lack of a managed fulfillment service like FBA. But you could still use Amazon fulfillment for orders gained through different marketplaces. If you have your own fulfillment system, scaling across platforms should be a breeze.
Delegate Repetitive, Process-Oriented Tasks
To keep an FBA running, you’ll have to constantly do time-consuming tasks. You’ll also have less frequent tasks, such as inventory management and product category research, which are important. Business owners can’t spend too much time on things like this to scale operations.
Customer service, bookkeeping, and product listing maintenance shouldn’t be the owner’s responsibility. While these things keep your business running, they are time-consuming. You should hire a dedicated e-commerce virtual assistant if it is affordable.
Getting a VA frees you up for high-impact action items. With a VA, you can analyze ad campaigns and sales goals, make adjustments, and do more market research.
The key to endless profits in FBA is private labeling. If you don’t know what it is, you’re basically having products manufactured for you with your own company logo or labeling on the product. Most sellers source the items overseas in China or India; however, some are capable of manufacturing in the US and still maintain margins high enough to profit.
The big advantage to private labeling is that because the product is yours and thus cannot be sold by anyone else without your permission, you will always own the Buy Box. It doesn’t get any better than that.
So how would one scale a private label FBA business? It’s very similar to wholesale in that you simply need to find more products that can sell at a high rate with a margin. A few successful private labelers hire employees in China to find them good products from trusted manufacturers. You can get help from Scale Fortune also if you need the best service of private labeling.
There is one thing that you should remember for private labeling, websites such as Alibaba or Global Sources are mostly used to find products and manufacturers. This can be problematic due to many reasons, such as uncertainty of the other half, language barrier, and financial transaction trust.
These are a few easiest ways of expanding your growth criteria and enhancing net profits. Scaling will obviously help you and improve your sales ratio. Learn more methods and strategies for improving your scaling. All in all, scaling is all about growth!