Launching a successful business on Amazon is made possible thanks to the Fulfillment by Amazon (FBA) business model. This model lets you run an ecommerce business with help from Amazon. Instead of fulfilling your own orders, Amazon stores the products for you, picks, packs, and ships them out to customers. If this sounds like something that can benefit your bottom line, read on for some helpful tips for creating a flourishing Amazon business.
Introduce New Products Regularly
Each category has a cap in volume and buyers. To be a successful Amazon Seller, evaluate new products on a regular basis. This reduces the risk that you become reliant on one or two products only. The more things you sell to customers, the more relevant and productive your Amazon business becomes.
Adjust Your Pricing Quickly
Amazon has a lot of competition, so you need to keep a watchful eye on your pricing. If a shopper sees the same product at a lower cost, they’ll probably choose that seller over you.
Keep Your Products in Stock
It might seem like a no-brainer to have your products in stock, but running low on inventory happens to the best of us. Customers don’t want to see that the product in their cart is backordered, but there’s another element to consider. Amazon’s algorithm is revenue-based, which means that going to $0 revenue will affect your products in a negative way.
Value Your Amazon Buyer
Each buyer has the opportunity to review you and are encouraged to do so. If you receive a negative review, take the appropriate steps to correct the problem. Otherwise, you run the risk of having your ratings decrease, and this can affect whether or not customers trust buying from you. If you are able to rectify what happened, ask the customer if they would be willing to update the review.
Be Careful with Wholesaling
Watch out for wholesalers, as they can begin to sell in your buy box. If this happens, the wholesaler steals vital sales and can tank your product on Amazon. In many cases, it’s best to handle your own products without interference from wholesalers. However, if you do choose to wholesale, be smart about the wholesalers you work with, and avoid online retailers with Amazon access.
Launching an Amazon business is a rewarding opportunity that requires less capital than a traditional ecommerce business. Before starting this venture, make sure that you are educated in the various ways to sell on the site and the resources available to you. As you settle in, you will discover new ways to grow your business and take advantage of Amazon’s fulfillment services.
