5 Ways To Boost Amazon Sales
It’s a common question you are sure to hear from friends and relatives. If your sales have flatlined, you may be answering, “Not so good.” However, as an Amazon merchant, you don’t have to settle for giving that reply. And even if sales are good, they can always be better, right?
Read on for five easy tips for increasing your Amazon selling power.
Are you offering products that are also carried by other Amazon merchants? If so, be sure to do some reconnaissance to find out your competition’s pricing and lower yours accordingly. On the flip side, if your price is far below the competition, you may be leaving money on the table and it might be time to consider a slight price increase. This is especially true if you have more and better customer feedback than your competition.
But be conservative and responsible with your pricing - price wars can result in tiny margins for everyone. Once your price is set, don’t think of that as the end of your mission. Be sure to review your competition’s pricing periodically to ensure you are consistently remaining in the ballpark. Consider using a pricing tool that can support your overall pricing strategy.
To avoid a situation where many merchants are competing for the same product, you can also take the opposite route. If you can offer items that no one else has, you are already one step closer to a sale. Your competition is eliminated. This also means that you have more leeway with pricing. If your customer is having problems locating a niche item and found yours available on Amazon, he or she is probably more willing to pay a premium price for it. You can also create unique bundled products that other sellers either cannot list against or are far more likely to list against.
Of course, utilizing Fulfillment by Amazon (FBA) automatically cuts out your hassles of storing, packing, and shipping.Time is money, so you can focus on the things that will really drive business. On top of that, FBA can dramatically lower merchants’ costs in terms of shipping and packing.
However, even though these are great advantages, the perks don’t stop there. Amazon reports that over 70 percent of sellers who switched to FBA saw an increase of 20 percent in their unit sales. Why? Because FBA merchants’ products automatically qualify for Amazon Prime shipping. Compared to another seller with regular shipping, customers will almost always go with the option of free, two-day Prime shipping. And Prime really gets the attention of your potential customer base, since there are tens of millions of Prime subscribers, who also tend to buy over twice as much through Amazon than non-Prime members.
Talk to Your Suppliers
Check in with your suppliers periodically. Contact them to ask about the possibility of bulk discounts, any specials or liquidations they may have, and/or free shipping. If that doesn’t work, research additional sourcing options. Even if these ideas do not not lead to a greater volume of items sold, working on your sourcing strategy can increase your profit margin. Of course, you can always research additional supplier options by looking at products you want to sell and evaluating the possible supplier.
Provide Excellent Customer Service
In addition to pricing, before making a purchase, buyers also take customer service into account by looking at a merchant’s feedback ratings. A feedback score hinges on a variety of aspects, but one of the biggest complaints from customers generally centers on pictures or descriptions not matching the product they actually receive. Others revolve around shipment times. If you are taking advantage of FBA, you’re likely in great shape. If you are fulfilling orders yourself, it’s critical to ship items expediently and respond quickly to any problems a customer may have with an order. Great customer service is a terrific base to build on to win a new customer, and, of course, it can also help you earn repeat business as well.
Try out a few of these suggestions, and the next time you’re asked how business is going, you’ll be happy to answer, “great!”
Originally published on September 30, 2015, updated August 12, 2019
This post is accurate as of the date of publication. Some features and information may have changed due to product updates or Amazon policy changes.