7 minute read
Every Amazon seller is always looking for ways to increase their profits. You may be familiar with some methods already. Things like optimizing your Amazon product listings so customers can easily find your products, and making sure you’re offering competitive pricing are common practices in the Amazon marketplace arena.
These methods are great and they do attract more customers to your listings, but they aren’t your only option when it comes to increasing your profits and reaching higher sales goals. You can also start thinking about using Amazon’s FBA service (Fulfillment By Amazon) to attract more customers and convert them from lookers to buyers. Amazon customers trust the Amazon brand, so using FBA has benefits you’ll want to heavily consider when you’re deciding whether or not you want to change your tactics. Yes, there are additional fees with FBA. No, that shouldn’t stop you. It’s fairly easy to figure out what those fees are with a tool like an Amazon fee calculator.
If you haven’t started looking into the benefits of becoming an Amazon FBA seller, it’s time to start. Here are seven benefits of using Amazon’s FBA program that can help you increase sales on Amazon.
Amazon customers are pretty loyal to Amazon but customers that pay for Amazon Prime spend about twice the amount of money on Amazon purchases in comparison to those who don’t have Prime. Part of the reason they use Amazon more is because they love the shipping benefits that come along with being an Amazon Prime member.
If you opt to sign up for an Amazon FBA account, you’ll find that customers are more likely to purchase from you because they can get free shipping. That’s a big deal to a lot of people. They’re already paying for the Prime services, so they want to take advantage of those as much as possible. Becoming an FBA seller gives you the chance to gain an entirely new customer base.
“Winning the buy box” is a common goal for Amazon sellers. Often with a large marketplace like Amazon, many sellers are trying to sell the same item. “Winning the buy box” means your listing is the one that shows up in the box where customers can click “buy now” or “add to cart.”
Other sellers that don’t win the buy box are listed farther down and customers have to choose to click on the link to see the full list of sellers available to buy from for the item they want. Most customers don’t think much about it and just click the buy box button and move on.
Although Amazon is pretty secretive about its algorithm for winning the buy box, sellers that give Prime customers a chance to get their free shipping benefits do get some preferential treatment. Winning the buy box by becoming an FBA seller is something that will give your sales a huge boost.
Just like any sort of search you might do, links that show up first are probably the ones you’re more likely to click on. If you’re looking for answers to a question it’s unlikely you’re going to scroll through three pages of Google results when the first link is probably the most relevant.
The same is true for Amazon product searches, which is why it’s so important to optimize your Amazon product listings. If your item is showing up higher on the list of results you’re going to be getting more traffic to your listing, and more chances to convert that traffic into paying customers. Amazon’s algorithm favors FBA sellers once again when it comes to what order products appear in search results and that can mean huge jumps in profits for you.
One worry sellers sometimes have about using FBA services is that they won’t be able to see their stock with their own eyes. There are concerns that an item may not sell well and become lost and forgotten in the Amazon warehouse.
In reality that’s not true at all. Amazon FBA has ways to monitor how your stock is selling and uses a performance dashboard to let you know when a product isn’t moving as it should be. This signals you to start adjusting pricing to give your listing some new life, so you can make it more enticing to customers.
Just make sure you’re using an Amazon FBA fee and profit calculator before you adjust anything. You’ll want to make sure any markdowns you make don’t end up costing you money in the long run (because of the fees involved with using the Amazon FBA program).
This isn’t technically an increase in your Amazon-specific sales, but it’s an overall benefit to your ability to increase your profits in general. If you’re selling your items on other sites like Shopify or eBay you can still use FBA to get the items shipped out to your customers in a timely manner.
After a customer places an order on your other channel you just go to your dashboard and enter the pertinent information, then Amazon takes care of the rest. They’ll ship the item out. They’ll make sure it’s correctly deducted from your remaining inventory, so you never have to deal with overselling an item and disappointed customers.
It’s just another way to make Amazon FBA do the work you usually handle yourself. Making the most out of your FBA options is one of the best ways to continue to increase your sales. Using the FBA service to help you with other channels isn’t cheating, it’s being smart and managing your assets extremely well.
As your sales volume increases, you’re going to be spending more time packing and shipping items. Maybe you’ll even hire someone to handle that part of things for you. Once you switch to the Amazon FBA program you no longer have to handle that part of things.
That’s going to save you money and time, because Amazon is taking care of the logistics of getting the items. While it’s not technically a sales increase it’s a way you’re going to benefit financially from using FBA as an Amazon seller.