If you’re a business owner and not already selling on Amazon, then you’re missing a lot. Amazon is among the most growing e-commerce platform in the world and will remain the best money-making business for entrepreneurs in 2022.
So, if you’ve finally made a decision to start selling on Amazon, you should understand how it works and pay attention to Amazon FBA.
What is Amazon FBA?
Amazon FBA or Fulfillment By Amazon is a seller’s program that Amazon offers. The sellers can send their inventory to the Amazon warehouse, and Amazon handles the fulfillment of orders for you.
There are two ways to fulfill your orders:
#1: Fulfillment by Amazon (FBA)
#2: Fulfillment by Merchant (FBM)
Both have their pros and cons, but the benefits of using Amazon’s FBA outweigh the other ones in many ways especially, if you’re a new seller or just starting out on Amazon FBA. By using Amazon’s FBA, you transfer a lot of critical responsibilities to Amazon that benefits your business directly. For example, you can save a lot of time by shipping to amazon fba and letting Amazon handle your store’s shipments and customer service. Also, suppose you’re not a brand owner and a third-party seller. In that case, you can just directly send your inventory to the Amazon warehouse through their dedicated carriers, and Amazon will put the fba label on your inventory. This service is an additional service that is called Amazon FBA Labelling.
That said, now let have a look at some essential tips that can help you launch your Amazon FBA business successfully in 2022.
#1: Product Hunting and Keyword Research:
Two of the most crucial factors for a successful online business are finding the right product and connecting it to your potential customer or making your product in reach of your customers. You need to find a high-demand product or the product which can become highly demanding in your targeted market of Amazon FBA store.
The best way to do this is by doing product research using a different tool or performing keyword analysis to know what type of products the online users are searching about. Also, there are many paid and free keyword research tools that you can use to discover the winning product. Or you can use some dedicated product research tool for Amazon as well.
#2 Amazon Store SEO:
Search engine optimization is very important for Amazon’s FBA business. The reason is that there are many other sellers on Amazon that are selling the same product as you. In order to rank your products better on the products page, you need to optimize for Amazon’s buy box. Also, you need to keep a high score on your Amazon store if you want to rank well.
There are several ways you that can maximize your chances of ranking high or winning the buy box position for your products;
- Provide the best value and shopping experience to the user by giving them low-priced, high-quality items.
- Play on the differentiation and sell those products which have high demand and low competition.
- Deliver all your products on time.
- Keep your cancellation and refund rate as low as possible.
#3: Use Amazon FBA Label Service:
All the Amazon FBA sellers are obliged to label their products. Every product from the inventory must have a fnsku or Fulfillment Network Stock Keeping Unit Label that Amazon uses to identify your products. You can either put the FBA label yourself or send products to Amazon directly and use the FBA label service. Amazon will put labels on your product and charge you a small fee per labeled product by using this service. Using the FBA label service saves time and money.
#4: Manage your Inventory Proactively:
All the FBA sellers have to pay additional storage fees along with the amazon fba fees. The simple rule applies here. The longer your inventory is stored in the warehouse, the more Amazon will charge you as storage fees.
The best way to minimize the storage cost is by using a technique thats called just-in-time inventory management. In this approach, you need to store as low inventory as possible by keeping your sale rate in mind. As your products get sold, you need to quickly replenish your inventory.
You can also use Amazon’s Replenishment Alerts feature. Using this feature will allow you to monitor your inventory and keep your stocks running efficiently. You can adjust the replenishment alerts yourself.
#5: Balance your pricing:
Amazon has become a very saturated market; however, business owners can still generate a lot of profit by using the right pricing strategy on Amazon. So, in order to maximize the chances of your Amazon FBA store, you need to balance your prices for profit and exposure. Keep your competition in mind and try to offer the best prices by balancing your profit margin on each product and trying to increase your sales.
If you’re not already selling on Amazon, then there’s no better time but now. Start your Amazon FBA store right away, and if you’re a new seller, you can take benefit from Amazon FBA Coaching as well.