Amazon sellers often find themselves looking for alternative methods to increase their profit margins. The shared insight we hear to help boost profit is generally to optimize the Amazon listing, increase review counts, and have a well-differentiated product. In this article, we’ll outline 4 ways to increase your profits on Amazon. Strategies that can be easily overlooked if you’re too focused on your product offer and listing to leverage your margins.
While higher review counts, eye-catching images, and influential copywriting can undoubtedly impact margins, there are a few other ways you, as an Amazon seller, can boost your conversions and profitability.
Combining strategies with an effective Amazon FBA reimbursement solution such as GETIDA can massively help Amazon sellers boost earnings.
#1 Understanding Your Inventory Metrics
It’s fair to say that as Amazon sellers, we learned a valuable lesson in 2020 – Amazon is not a storage warehouse or dumping ground for products. It will leverage its fulfillment centers to its advantage at all costs. The online superpower has a stronghold over shipping and fulfillment, but above all, its excellence in customer care has earned its trusted reputation.
That being said, 2020 was a lesson about inventory, storage, and third-party fulfillment. If you do not have a good handle on these three factors, you could negatively impact your bottom line.
Tips to Better Manage Inventory & Storage
- Look for smaller 3 PL facilities – The more established 3PL centers may have limited or capped capacity due to increased demand. (They may charge more for the simple fact that they can.)
- Be willing to pivot: Amazon is a dynamic marketplace, and things change rapidly, because of the inventory restrictions we have seen in the last year. You may need to utilize an FBA inventory audit software or be willing to slightly slow sales if it means avoiding going out of stock; you’ll need to be swift on your toes.
- Understanding your Amazon FBA Logistics & Inventory Levels: How much inventory are you turning over, and what are the lead times on your products? Are you shipping in the most effective way possible? Planning requires understanding, and you should be able to identify the answers to these common inventory questions.
Without proper inventory management, especially post-global pandemic when changes are rampant on Amazon, you could be running out of stock for excessive periods and losing profits to your competitors.
#2 Social Influence
More than ever, with the rise of platforms like Tiktok and Amazon Live, social influencing offers massive potential to even the small player in the Amazon world.
Amazon influencers demonstrate problem/solution-based products for everyday living on apps such as TikTok. Some of this content has gone viral, leaving a massive earning potential in both the short and long term for the everyday Amazon seller. Reaching out to these influencers could be a realistic way of driving new conversions and getting out of the sales sinkhole that you may be experiencing.
Options to connect to influencers include:
- Agencies
- Networking on apps such as Clubhouse
- Referrals & direct messaging on Instagram
Social influence should be an active part of your marketing campaign, of course, product and niche dependant.
#3 Content is King (or Queen)
Most Amazon sellers focus the majority of their budget on a launch strategy. Post-launch, however, sellers fall short in continuous efforts to drive traffic and increase profits through content output. Often Amazon sellers dismiss the value and impact certain types of content can have on their private label business.
Following the launch phase, sellers are focused on PPC, listing maintenance, and expanding their brand with new products; blogging isn’t a high priority. With over “400 million blogs today”– Neil Patel, not utilizing blogging is a misstep if you are looking to spike profits in your Amazon business.
Joe Reichsfeld of Ecommerce Optimizer says the number one blog type Amazon sellers need to focus attention to is Listicle Blogging.
Listicle blogging is a blog article where a list is provided to the reader. Example: Top 10 Ways to Effectively Increase Your Profits on Amazon.
Combined with effective copywriting that provides substance to the article, listicles are powerhouses to getting ranked on sites like Google. It’s also true that, as an Amazon seller, the more traffic you drive externally to Amazon, the happier the algorithm is said to be.
How to Effectively Leverage Listicle Blogs in your Amazon brand:
- Hire a copywriter who has a proven track record in writing listicle blogs. (Always see a sample of work before you hire
- Keep blogs at a minimum of 1000 words. Anything less than 1000 words is not ideal for ranking.
- Use affiliate links to link directly to your products, and list your products in the first few number placements in the article.
- Circulate the blog on your website, newsletters, and be sure to pin your blogs to Pinterest. (Blogs are gold on Pinterest!)
For more information on how to leverage Pinterest in your Amazon business, head here.
#4 Solve Your Cash Flow Crunch
The two most significant issues we hear Amazon sellers face are cash flow and time.
Even the best selling products can fail if cash flow isn’t managed effectively, and the same is true about a great private label brand. If the owner can’t control their time effectively and juggle their Amazon FBA business’s inner workings, their profits can decline.
Amazon FBA discrepancies can kill a seller’s profit margins, and as such, they must be routinely managed and logged. If a seller cannot keep up with the demands of reimbursements, they can be in the dark about how much of their cash flow Amazon has a grip over.
GETIDA analyzes your data and reconciles inventory with a cultivated expert team of dedicated case managers who file claims for maximum reimbursements on your behalf.
Recovering funds can help you focus on marketing strategies, including hiring influencers and content writers, sourcing new products, and scaling your brand.
Without proper cash-flow considerations, your brand has a slim chance on Amazon. GETIDA’s Amazon FBA recovery process helps you recover profits, providing you with the opportunity to scale.
Finishing Touches
Being agile in business is fundamental to long-term success and is key to an Amazon business. It’s about getting ahead in Amazon and finding long-term sustainability on the platform. When a trend comes into play, you trial it; when cash flow becomes a headache, you navigate it; when your sales take a dip, you influence it.
Summary
We hope you find this article helpful in understanding the potential benefits of increasing your profits on Amazon. If you have any questions, feel free to reach out to us at su*****@ge****.com.
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