Growing an Amazon FBA business can be overwhelming.
With so much competition on this giant eCommerce platform, there are a lot of things you need to do to be successful on Amazon as there is money to be made.
According to Smarts, nearly half (44%) of Amazon sellers make from $1,000-$25,000/month, which could mean annual sales from $12,000-$300,000.
With as many as half the brands found on Amazon spending $60,000 on ads monthly, having the right game plan (with specific steps) is key.
This also means that failure to complete any of the crucial steps when attempting to grow an FBA business can lead to having minimal (or even no) sales and ultimately, a business that’s not profitable.
But don’t worry, we’re here to help.
If you’ve recently purchased an Amazon FBA store and looking to scale, this article will outline the most critical steps you need to take to reach your goals.
By the end of this article, you will have a solid understanding of what you need to do to succeed using the fulfillment by Amazon (FBA) program.
Let’s get right into it.
Steps To Growing An Amazon FBA Business
The following are the key steps that you need to take to grow your Amazon FBA business.
Capitalize On Your Strengths
While starting an Amazon FBA business might be straightforward, growing it is a different ballgame.
The first step is to capitalize on your strengths. What do you do better than anyone else? What can you offer that nobody else can?
There are two main ways to stand out from the competition when it comes to Amazon FBA: offering unique products or providing superior customer service.
If you can find a way to differentiate yourself from the competition in either of these areas (or ideally both), you will be well on your way to success.
A unique product will attract customers looking for something they can’t find anywhere else, while superior customer service will keep them coming back for more.
Focus On Successful Niches
Just because a niche is popular doesn’t mean it will be profitable for you. To find a successful niche, you need to do your research and find one with low competition and high demand.
There are many different ways to do this research, but an excellent place to start is by looking at the best sellers list on Amazon. This will give you a good idea of which niches are selling well right now.
Another thing to consider is the seasonality of the products in the niche. Some niches are more popular in specific times than others, so you will want to make sure that you know the market trends before you dive in.
Optimize Best Seller Rank (BSR)
The next step is to ensure that you do everything possible to optimize your Best Seller Rank (BSR). The lower this number, the better your sales should be.
You can do many things to improve your BSR, but the most important thing is to ensure that your product is well-priced and in high demand. You can also enhance your BSR by using effective keywords and marketing your product correctly.
Image Credit: https://amazon.com/
Having a lower BSR will also help you rank higher in Amazon’s search engine, bringing even more buyers to your product listing.
Image Credit: https://amazon.com/
It’s important to note that the BSR will depend on the product category – if a product is found in multiple categories, then it will have different BSRs to consider.
Paid Advertising
Paid advertising can be a great way to increase your sales and grow your business. There are many different types of paid advertising, but the most effective one for Amazon is Sponsored Products.
Sponsored Products allow you to place ads for your product directly on Amazon’s search results and is a great way to get your product in front of more buyers and increase your sales.
Image Credit: https://amazon.com/
Running paid ads from the get-go is an excellent way to get your Amazon business on the right track – as long as you are doing it correctly and are able to target potential customers.
Develop Content Marketing
Content marketing is another great way to attract buyers to your product and increase sales. By creating high-quality content, you can educate your buyers about the benefits of your product and give them compelling reasons to purchase from your store.
There are many different types of content that you can create, but some of the most effective ones are blog posts, videos, and infographics.
Using high-quality product photos is also a great method to increase conversions. It’s important that the photos used for your marketing are high resolution on neutral backgrounds. A background changer is a commonly used tool to polish product photos.
These formats allow you to share knowledge about your product with potential buyers, building up business longevity in the process.
Make sure that you publish high-quality content regularly to keep your buyers engaged and help you become an authority in your space.
Creating valuable content also means that you can repurpose it into other formats, such as e-books and whitepapers. This ensures that you get that much more out of your content marketing efforts.
Grow Your Audience
To grow your Amazon business, you need to have a large audience of buyers. One of the best ways to do this is by increasing your social media following and marketing your products to them correctly.
If done correctly, this would also help build up your email list to reach even more buyers over time. By providing valuable email content to your audience, you can show these people what’s in it for them and why they should trust you with their money.
Growing your audience through the right email marketing tools also makes it easier to run promotions, contests and other proven ways to increase your sales.
Keep in mind that since Amazon will deliver your products through their fulfillment centers, having more sales won’t mean more stress for you – it just means that you need to ensure that everything is kept running smoothly
Move Into New International Markets
Growing your audience also means having the ability to move into new markets. As your Amazon business expands and you perform the right market validation, you might want to consider expanding into different areas.
There are many different markets that you can target, but the best ones have a high population and are ever-increasing. For example, catering to markets such as India and China can be something to consider as these are two of the best markets for many Amazon businesses.
That said, there are almost an infinite number of market possibilities you can explore.
Make sure that you do your research before expanding into a new market, and also ensure that the market is suitable for your product. Furthermore, you need to be certain that you have the resources to expand into new markets, such as staff and infrastructure as needed.
Offer Amazon Prime
Another way to grow your Amazon business is by offering Amazon Prime.
Amazon Prime is a subscription service that allows buyers to (amongst other incentives) receive free shipping on all of their purchases. This is great news for buyers, and many are more likely to purchase your product if it is eligible for Amazon Prime shipping.
Image Credit: https://amazon.com/
Once Amazon has your products in its warehouse, the Amazon Prime logo should automatically be shown on your product listings.
Simply ensure that this is the case and that potential buyers can see this logo when your listings show up.
One important factor in getting the Prime logo to show up is to ensure the right product weight is entered before dispatching your products to Amazon’s fullfilment centers.
Some sellers have complained that the Prime logo was not showing up on their listings and this solution seems to have fixed any pending issues.
Customer Satisfaction
Always make sure that you are providing excellent customer service to your buyers. This is the best way to ensure that they are happy with their purchase and will likely purchase from you again in the future.
If a buyer is unhappy with their purchase, make sure to resolve the issue as quickly as possible. This will help maintain your reputation and ensure potential repeated business.
Be sure to constantly gather feedback about both your products and customer service to help you improve your business.
Manage Reviews
Furthermore, it is essential to manage your reviews on Amazon. By monitoring and responding to reviews, you can ensure that your buyers are happy with their purchase and that other interested parties are more likely to buy your products in the future.
If you see a negative review, make sure you respond to it as quickly as possible. While it might not always be possible to give your buyers exactly what they want, it will show them (and others) that you care about their satisfaction and are willing to strive to provide them with the best outcome.
Look At A Wholesale Business Model
Another way to grow your Amazon business is by looking at a wholesale business model. A wholesale business model involves selling your products in bulk to retailers instead of directly to consumers.
Ensure that you research the retailers you want to sell to and ensure that they are a good fit for your product.
Why FBA Is Better Than A Traditional Online Retail Store
Many potential issues and limitations are part and parcel of traditional online retail stores. Using Amazon FBA can help you avoid these problems and grow your business.
The main problems with traditional online retail stores are:
- Limited reach: Your store is only available to customers who visit your website. Amazon has a much broader reach, which allows you to sell to more buyers.
- No brand recognition: Your store may not be well-known, which can make it difficult to attract buyers. Amazon has a famous brand, which can help you attract more customers.
- High costs: It can be expensive to set up and maintain a traditional online retail store. Amazon FBA is much more affordable, making it a cost-effective option.
- Prone to security attacks: Your store is vulnerable to attacks and malware from hackers, which can result in data theft or website downtime. Amazon is a secure platform, which helps to protect your business from these risks.
- Difficult to scale: It can be difficult to increase sales and traffic to your online retail store. Amazon is a scalable platform, which means that you can easily expand your business as needed.
How To Grow An Amazon FBA Business – FAQ
How Do I Grow On Amazon FBA?
You can grow on Amazon FBA by expanding your product offerings, moving into new international markets to reach more buyers, and even using a wholesale model.
Can You Start Amazon FBA With No Money?
No, you will need to choose a plan when selling on Amazon.
Image Credit: https://amazon.com/
These are the available plans:
- The Individual plan: $0.99 for every product sold
- The Professional plan: $39.99 monthly for unlimited sales
Amazon’s cost calculator can help you figure out what’s involved when it comes to costs.
Image Credit: https://amazon.com/
Is Amazon FBA Worth It In 2022?
Yes, Amazon FBA is worth it in 2022. The platform offers many benefits, such as a wider reach, brand recognition, and security. Moreover, the platform is scalable, so you can quickly increase your sales and reach more buyers.
Conclusion
Using Amazon FBA can help you grow your business and give you access to a large buyers’ market. Make sure that you research the Amazon FBA platform well and ensure that it is a good fit for your product before attempting to grow.
By following the above steps, you can ensure that your Amazon FBA business scales and prospers, allowing you to sell more products while building a brand that customers can trust.
