Any business needs dedication, planning, strategy and manpower. The same thing applies when you talk about starting your business on Amazon. Yes, you can start your online business by just having necessary business documents, products you want to sell on amazon, and product details like its features, high-resolution images, description, selling price and that’s it.
Then one question will be definitely come to your mind, Why most of the sellers are not able to generate a profit on amazon?
Here I am sharing with you 9 killer tips you must follow to generate a profit on Amazon
- Right Product Selection: As per amazon data there are 6 crore products listed on the Amazon catalog so if you don’t want to be in a rat race then it’s very important to find the less competitive and high in-demand products. Some quick tips which we want to share with you are that the price range should be in-between 1000 INR to 2000 INR with average ratings of >4.0 and not more than 200 ratings on products.
Try not to select the products where sellers like cloud tail, amazon brands are already selling. Because these are very big giants on amazon seller’s jungle so cannot beat them so it’s better to select the other products. If you are a new seller and do have much appetite to take risks then we also suggest you start with non-returnable products so the risk of return will be ZERO.
- Right Product Listing: On amazon, everything depends on how you list your product, how well you have present your product to buyers to attract them and to give them a feeling that they are buying a branded product. The main advantage of amazon is that you can create your brand on Amazon. So your product should have a minimum of 4 to 5 high-resolution images including lifestyle images.
If your products need some certificates Like FSSAI or any specific feature which you want to highlight like if you are selling a mobile cover and it is “scratch-proof” then you should have a relevant image with technical information. If you are not good at this then don’t worry, search your product on amazon and check what your competitors are doing.
- Right Pricing: If you want to sell on amazon then you have to be very precise on your product price and your profit. Because the competition is very high in every category and if by chance you have selected electronics products or you are selling some well-known branded products then this competition will be very tough. In these categories generating profits for the seller is just near to impossible and where you see more than 5 to 6 sellers are fighting to get a buy box.
Because if you want to get more orders then it is necessary to have a buy box. So for winning the buy box price is not the only key factor but it is also an important factor. So if you want to win the buy box then your price should be compatible with the buy box winner.
- Good Quality Products: No matter how cheap or costly your products are the only thing that matters is the quality of your products. When you choose to sell products on amazon then there is only one thing on which you can survive in the Amazon jungle is the quality of your product. There are millions of products listed on Amazon and if you can see the numbers on your amazon business report then it’s very important that you should have good quality products. So take help from paid tools like Jungle Scout and do some research then decide your products.
- Fulfilled by Amazon Tags: Amazon strongly believes that the customer is the king and therefore if you want to become a successful seller on amazon then it is necessary that you should deliver the product to the buyer on time and the amazon mentioned guidelines.
If you have a big plan and want to invest in your inventory storage then you should apply for Amazon Prime, Fulfill by Amazon. Yes, these two tags are magic tools for sellers who can send their inventory to Amazon warehouses and Amazon will pack and send it to your buyer address. For this service, amazon charges some fees from sellers such as amazon storage fees, FBA fees, FBA Removal fees, etc.
But don’t worry if you don’t want to invest much in inventory and storage then you can fulfill your order using a private delivery service. But once you are confident enough then it’s highly advisable to opt-in for Amazon FBA service.
- No Inventory Issue: Many sellers do the mistake that they don’t keep an eye on inventory like such as once they start getting orders they don’t focus on inventory status and their products start getting out of stock and once your products get out of stock then its effect on your sales rank because as per the amazon out of stock is not a good sign for sellers. It is very important to keep checkpoint on your inventory and as soon as your stock reach to low inventory it’s your responsibility to work on restock the products.
- Manage Account Health: This is also very important to manage and control amazon decided percentages like amazon has defined that the late dispatch rate should be less than 4%. The late shipment rate should be as per amazon guidelines. If you do not maintain this matrix then amazon can deactivate your account.
- Manage Negative Reviews Properly: As you know Amazon is a customer-centric platform and therefore product reviews play an important role If any products get repeated negative reviews then amazon will remove your products listing from the catalog. So you have to take care that your seller account rating and product ratings should not be under 2.5
- Run the Advertisement: Many sellers want to generate more numbers but not willing to spend on marketing and advertisement. Yes, this is a vice a Verse thing if you want to earn then you have to give amazon a chance to earn more through your account. If you want to generate more sales on amazon then your products should have more impressions and clicks. And for this, you have to promote your products on amazon through its own Amazon Advertising Platform. Yes, Amazon has a very well managed platform for handling amazon advertisements.
You can start with a low budget and increase your budget gradually once you have confidence in your amazon advertising campaigns and generating ROI.
If you spend more on amazon the chances of getting orders on amazon will be higher because more ad spend means more impressions and more clicks and if you have some knowledge of how to play with the keywords then you will have more conversion and that means more orders on your account.
So that’s the end of the blog, I hope you will get enough knowledge about what need to do before and after becoming an Amazon seller and how you can become a successful Seller on Amazon.
We would love to hear your thoughts in the comment section.