Top 5 Tips All Amazon FBA Sellers Need to Know

Top 5 Tips All Amazon FBA Sellers Need to Know

Selling on Amazon: It is a huge opportunity for brands wanting to tap into an already-established customer base, reach customers globally, and grow their sales. Here are the Top 5 Tips All Amazon FBA Sellers Need to Know

But the truth is, to really succeed on Amazon, FBA Sellers need to do more than simply be present on the online marketplace. A lot more.  

It is not surprising, then, that there are so many factors to focus on to become a successful FBA Seller on Amazon. 

Here are 5 you need to know to help you manage your Amazon FBA Seller account effectively, grow your sales, and exceed your business goals.

1. Monitor your FBA stock and predict replenishment

Sellers registered to more than one fulfillment center will have Restock Inventory reports showing how frequently their stock is selling out in each center. You should continually keep a check on this report. 

If one fulfillment center’s stock is selling out fast and the other fulfillment center’s stock remains the same, for example, you need to make sure more stock is going to the right fulfillment center. 

This is a big tip for FBA Sellers to focus on because it helps to avoid high long-term storage fees and loss of orders. It can also help you expand your FBA presence to places where you have strong demand.

2. Explore external traffic sources to accelerate your sales

Staying ahead of your Amazon competitors is a constant battle with things like Amazon search rankings and Amazon Sponsored Ads. Focus on channels that capture and drive external traffic to your product listings, and you could attract potential customers who might not have otherwise found your products. 

It is also a great way to stand out from the crowd, help you rank higher, and expand your brand presence beyond Amazon. 

There are many channels to choose to drive external traffic to your Amazon product listings, including:

  1. Blogs  
  2. YouTube
  3. Pinterest
  4. Instagram
  5. Google Ads 
  6. An email list 
  7. Facebook ads

Top tip: Drive external traffic to a landing page, or similar, rather than directly to your product listing for a higher chance of a conversion. 

3. Focus on best-performing products

Remember, it takes the same amount of time to update a well-performing product listing as a listing that is not performing so well. Yet, you have more to gain by improving your performing listings – even a little bit – because it already has traction. So, we recommend you focus on increasing the visibility and conversions of your best-performing products for Amazon’s success. 

One tip to improve your best performing listings is to learn from your Amazon Sponsored Advertising performance. 

Monitor your Search Terms Report on Amazon regularly to see what search words generate the highest level of conversions. You will get a better understanding of what search terms customers are using to include in your product listings to help make them rank higher. 

4. Always be on top of Seller Feedback 

Sellers that want to succeed on Amazon need to focus on Seller Feedback. That is the one- to five-star ratings, your customers leave about things like packaging, shipping, and customer service – NOT products.

High feedback plays a huge part in growing your brand and sales because it helps you:

  • Win the Buy Box more often
  • Boost customer trust and sales
  • Gain a competitive advantage 
  • Protect your Amazon Seller account.

Aim for a Seller Feedback rating of 95% and above, and be on top of your feedback by: 

  • Having a process for collecting feedback
  • Responding quickly and appropriately to negative feedback
  • Proactively asking customers for feedback 
  • Automating the process with feedback-request software like FeedbackFive from eComEngine.

5. Maintain a good IPI score (450+)

The Inventory Performance Index (IPI) is what Amazon uses to measure the overall performance of a Seller’s FBA business over time. According to Amazon, the metric is based on “how well you drive sales by stocking popular products and efficiently managing on-hand inventory”.

Be sure to monitor your inventory levels regularly to avoid overselling and reduce excess inventory. An average IPI score on Amazon is between 400 and 800, with a score of over 450 a good benchmark. 

You should maintain a higher IPI score to avoid:

  • Storage limits: Limitations placed to send new inventory
  • Overage fees: IPI drops and there is more FBA inventory ($10/m³/month)

Stock availability is important for winning the Buy Box too. Amazon considers how many items you have left and how quickly you are selling them.

Want more advice on what you can focus on to maximize your brand potential on Amazon? Book a free 15-minute call with an e-Comas expert today. 

About e-Comas – eCommerce Made Simple

Helping you grow faster on Amazon globally, e-Comas provides expertise in the vendor (B2B2C) and seller (B2C) areas to make sure you make the most of your brand potential on Amazon.