Last updated - August 4, 2022
Growing an Amazon FBA business is not easy, especially since there a lot of sellers now and the competition is tough, however, Amazon is accounted for a leading 37.3% of the online retail sales in the U.S. There are lots of things to think about – from choosing the right products to sell to setting up your shipping process to creating effective marketing campaigns. As a result, it can be hard to know how to begin..
But don’t worry – you’re not alone. Thousands of entrepreneurs have found success with Amazon FBA, and there are plenty of resources available to help you get started. In this article, we’ll share six tips on how to grow your Amazon FBA business quickly and efficiently, so you can maximize your profit.
Mark Pierce, CEO of Cloud Peak Law Group, shares that “businesses that focus on getting their processes and infrastructure in place from the beginning are usually the most successful in the long run.” And that’s good advice for anyone starting an Amazon FBA business.
Invest in Product Research
Product research is one of the most important aspects of starting and growing an Amazon FBA business. But, first, you need to make sure you sell products that people want to buy and are in high demand.
“Product research is the lifeblood of any successful business, whether that’s Amazon FBA or otherwise.” — Grey Idol, Director of Marketing of altLINE Sobanco.
There are a few different ways to go about this. First, you can use Amazon’s Best Seller Rank (BSR) to gauge demand for a particular product. Look for products with a BSR of 4,000 or less, which means that the product is selling well and is in high demand.
You can also use Amazon’s search function to see how many results appear for a particular keyword. If there are a lot of results, that means there’s high demand for products related to that keyword.
You can also use third-party tools like Jungle Scout to help with your product research. Jungle Scout is an Amazon FBA tool that allows you to see estimated sales volume, average price, and other essential data for products on Amazon.
Focus on Your Best-Selling Products
Once you’ve started selling on Amazon, it’s essential to focus on your best-selling products. These are the products bringing in the most revenue and profit for your business.
Aaron Gray, Managing Partner of NO-BS, reminds business owners that “focusing on what is already working is essential to successful growth no matter the market.”
If you’re not focused on your best-selling products, you’re not successful in Amazon FBA.
You can use Amazon’s Sales Rank (ASR) to see which products are selling the best. The ASR is a number that shows how many units of a particular product sell in a given period. The lower the ASR, the better the product is selling.
Use Amazon Sponsored Products
Amazon Sponsored Products is a paid advertising service that allows you to place ads for your products on Amazon.com. When customers search for a product on Amazon, your ad may appear in the search results.
Sponsored Products can be a great way to increase visibility and sales for your products. In addition, Amazon allows you to set a daily budget for your ads, so you can control how much you spend on advertising.
To get started with Amazon Sponsored Products, sign up for an Amazon Advertising account and create a campaign. Be sure that your ad copy is clear and concise and that your product images are high-quality to maximize eyes on your ad.
You can also use Amazon Marketing Services (AMS) to create product ads. AMS is a self-service advertising platform that allows you to create and manage your ad campaigns.
Create Effective Listings
Your Amazon product listings are one of the most critical factors in driving sales and profit. Your listing is what customers see when they search for your product on Amazon. Therefore, make sure your listings are clear, concise, and accurate. To create an effective listing, you’ll want to focus on the following aspects.
Product Title
The title is the first thing customers see when they search for your product on Amazon, so make sure your title is clear, concise, and accurate.
The title should include the main keyword for your product and any relevant secondary keywords. For example, if you were selling a wireless speaker, your title could be “Wireless Speaker with Bluetooth, NFC, and Built-in Mic.”
Product Description
Your product description should be clear and concise. It should include all the crucial details about your product, such as features and benefits. Also, include a keyword-rich copy in your product description to help your listing rank higher in Amazon’s search results.
Product Images
Your product images are one of the most critical factors in your listing. They should be high-quality and show your product in the best light possible.
It’s also important to include multiple images in your listing. Amazon allows you to upload up to nine product images. You should use all nine image slots to show different angles and features of your product.
Use Amazon FBA
Amazon Fulfillment by Amazon (FBA) is a fulfillment service that allows you to store your products in Amazon’s warehouses. When you use Amazon FBA, Amazon will pick, pack, and ship your products for you.
To get started with Amazon FBA, sign up for an Amazon seller account and create a listing for your product. Select the “Fulfilled by Amazon” option when making your listing. You will also need to create an FBA shipping plan. This plan tells Amazon how you want your products to be shipped to their warehouses.
Maintain a Positive Feedback Rating
Customers trust products that have positive reviews and an overall positive feedback rating. As such, reviews are one of the most critical factors in whether or not a customer will buy your product. Tim White, Founder of milepro, shares that “focusing on getting reviews early helped our business multiply and boosted our organic rankings.”
Amazon is strict when it comes to their review process so you’ll need to follow Amazon’s guidelines to stay out of trouble. One way to do that is to use Amazon’s Vine program to get reviews for your products. Vine is a program that allows manufacturers and distributors to send products to reviewers.
Sign up for an Amazon Advertising account and create a campaign to get started with Vine. Be sure to select the “Vine” option when creating your campaign.
Conclusion
Maximizing your profit on Amazon requires a combination of effective marketing and efficient operations. By focusing on these areas, you can quickly grow your Amazon FBA business and increase your profits while keeping your costs low. This will help you be more successful on Amazon and increase your chances of success in the long term.
