Some products last the test of time and enjoy long-term year-round sales. These types of products are the foundation of many successful businesses on Amazon. But not all profitable products are evergreen profit machines. Some are seasonal, some see big spikes or dips in price based on supply, and some are fad items that see huge short-term success before fading out. Identifying trends in your industry can help you maximize Amazon FBA profits for your Amazon store.
When it comes to maximizing profits on Amazon, there is no substitute for a great Amazon FBA profit tracking tool. Understanding exactly how much profit you are making on each of your sales factors can make or break a fiscal year. Studying sales trends is another great method for fine-tuning your sales strategies to maximize profits.
Here are three easy ways to maximize Amazon’s FBA profits.
Study Amazon’s Trending Pages
Amazon makes it easy to find out exactly what is trending on its platform. On the Amazon.com website, there is a drop-down menu labeled “All” in the top left corner. When you click on this menu, the very first section on display is the “Trending” section, which is broken down into three subsections: “Best Sellers”, “New Releases”, and “Movers & Shakers”.
The “Best Sellers” page is one of the most useful tools Amazon provides. From here, you can navigate into different categories and subcategories to see what items are the top sellers in each of these categories. Once you have identified the top-selling items in your category, you can study their listings and the advertising strategies of their sellers. You can also use these products as inspiration in product creation or bundling.
The “New Releases” page lets you see what brand new products are being released in your category. This is a great way to keep your finger on the pulse of what is hot in your industry. If you notice a bunch of similar-looking products being released, chances are that product is trending and is in high demand. Can you do it better? Or come up with an accessory that might compliment this item?
Movers & Shakers
The “Movers & Shakers” page shows what products have seen the biggest recent sales. These could be brand new items or items being popularized by something like a celebrity endorsement or a big sale. Whatever the case is, it doesn’t hurt to know what the big movers are in your categories.
Cut Supply Costs With the 3 M’s
The three M’s—measure, manage, and maximize—are key areas explained by Randy Ofiara, to explore to realize your company’s full potential and get the biggest, fastest savings in your supply chain today. Keep tabs on your Amazon FBA reimbursements to also measure, manage, and maximize your profits.
To measure your supply chain is to create an overview of your operations and, within that, to understand key processes and where your company’s strengths and weaknesses lie.
Creating an overview of your supply chain is the first step in measuring what your company is doing right now and what your current process looks like. Turn that information into actionable items that your company can use to make better business decisions.
Measuring Amazon FBA profits can help you:
- Analyze the need for process improvements.
- Understand where cargo can be consolidated to increase cost savings.
- Measure carrier cost structures to maximize efficiencies and lower costs.
- Achieve better financial efficiency in your supply chain network.
- Enhance control over shipment scheduling.
Effective management is all about the internal conversation in your organization and understanding the flow of goods, money, and information. The data and analytics gathered during the measure phase can create the insight necessary to understand why these decisions are being made and how you can improve them.
The manage phase has four key advantages:
- Visibility across the entire supply chain, from sourcing raw materials to delivering finished goods.
- Modeling future supply chain scenarios as your company grows/changes to ensure speed to market while maximizing cost structures.
- Complete insight into production, partner, and supplier performance to ensure responsiveness to customer needs.
- A global perspective to stay updated on the latest developments and optimize processes across North America.
Maximizing Amazon FBA profits is making the most possible good out of every factor and decision within your organization. For example, technology helps maximize efficiency and, in turn, increase profitability.
The other two M’s are crucial in maximizing, as they help you understand the organization’s layout and what steps to take to see the most benefits, whether it’s further developing strengths or optimizing a specific aspect of the operation.
A well-managed supply chain provides the ability to execute best practices in demand planning, procurement, logistics, inventory management, information systems, compliance, distribution, and risk management.
Maximize Amazon FBA Profits With the Right Tool
A great Amazon auditing tool makes it easier than ever to maximize Amazon profits within your own information. You can view all of your data using attractive and customizable charts and graphs to see information like how products are selling compared to other time periods. You can also quickly identify your most profitable items and your least profitable items in the “Top Sellers” section. This can help you decide which products to invest advertising in and which ones to reconsider your branding and strategies on.
With the right Amazon FBA profit tool, you can easily:
- View all of your data in one convenient dashboard, so you’re not migrating from tool to tool.
- Customize labels to empower you to sort your analytics into useful categories for your business and online store.
- Select custom date ranges to study and compare, such as profit margins before and after Prime Day.
- Catch trends early so you can act on them and ride the profit margin wave.
- Quickly identify your best and worst selling items, so you can optimize pricing.
- Easily analyze your profit margins across all international marketplaces, giving you real time data into marketing efforts.
The FeedbackWhiz Profits and Accounting Tool leaves no stone in your business unturned. Every expense and sale is accounted for, giving you a complete picture that you can use to determine what areas are working and which ones might need improvement. Having this much data at your fingertips that is so easy to customize and read, with attractive graphs and charts, is truly the easiest way to maximize Amazon profits.
So, what are you currently doing to help your eCommerce business maximize Amazon FBA profits?