Tips for Growing Your Amazon FBA Business

8 Suggestions for FBA Success

Fulfillment By Amazon (FBA) is an option that takes some of the pressure off of Amazon sellers. FBA sellers store inventory in Amazon fulfillment centers, and when a purchase is made, Amazon employees package and ship the product. Some businesses use this as their entire business model and others’ as simply another sales outlet for their products. If you are on the road to making FBA your primary business model, here are some valuable tips for growing your FBA business.

Narrow Your Focus

At the beginning of your growth, focus on one main industry or product type. One of the biggest mistakes you can make when breaking into Amazon is trying to do it all. Do not simply find products that appear to be profitable – what works for others may not be a good option for you. Know what products you can personally connect with and build customer connections with as well.

Love Your Products

Narrowing your focus leads to choosing products you like and can genuinely get behind. Find the products you’re excited about and your business is much more likely to succeed long-term, as customers will feel your excitement. Use any connections and resources in the industry to continue to grow your business and build your passion. If you love the product, communicate with the supplier and build a relationship that can benefit both parties down the road.

Increase Offerings

Remember that Amazon customers’ wants and needs are fluid and can change – and you’ll want to adjust accordingly. Don’t become dependent on a single product; rather, increase your product offerings so that as tastes, styles, and fads change, you’re not left behind as Amazon and your competitors speed away.

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Improve Your Best Seller Rank

Nearly all products in Amazon are assigned a Best Seller Rank (BSR), which can be found in the product details section, is updated hourly, and shows how a product is performing. BSR is based on recent sales and historical data, so it’s difficult to alter rankings. However, you can influence BSR by outselling your competition. Increase sales by winning the Buy Box, improving reviews and ratings, and having competitive prices.

Build a Website

Create a professional website for your business. Amazon can be a great platform on which to sell products, but you’ll want another way to market your products and build your brand. When using FBA, your product is provided to buyers by Amazon. Ensure brand awareness by launching a website that will educate consumers about your business and products. In addition, selling products on your own website gives your the ability to capture customer data like email addresses – information that is crucial to long-term success.

Join Amazon Associates

Join Amazon Associates and become an affiliate to your own products on Amazon with your brand website. The Amazon Associates program helps sellers and website owners make money by advertising new and used products from Website owners and bloggers in the program create links to products, and when users click those links and purchase from Amazon, you earn a referral fee. It’s a nice way to recoup some profit loss.

Limit Sellers

If you manufacture your own products, you should limit the number of authorized sellers allowed to sell them. Limiting sellers allows you greater control of your brand and your product representation on Amazon. Allowing numerous sellers can devalue a brand and saturate the marketplace, creating price wars that devalue your product as well.

Develop a MAP Policy

If you have authorized sellers of your product, you need a strong Minimum Advertised Pricing (MAP) policy that includes marketplace inclusion limits. A MAP policy is a policy that manufacturers use that establishes the lowest price and circumstances around which wholesalers, distributors, dealers, and resellers are allowed to advertise products. A strong MAP policy can benefit both parties by ensuring products are sold at value and at a profit, regardless of business size.

Whether selling your own brand or reselling products well represented on Amazon, an FBA business model should be taken as seriously as all others. There is serious work to ensuring success. FBA incurs fees that can eat away at your profit. When profits are tight, it is imperative to ensure you have high volume sales. Know your products and know your business. Understand where every penny of profit is achieved or lost. That will ensure a successful FBA business.


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