Starting an Amazon business is relatively simple and straightforward providing that you have quality products and a well-managed supply chain. Scaling your business, on the other hand, presents its own set of challenges. There is no secret formula to achieve instant success or to grow your business overnight but there are certain steps that you can take to accelerate the growth and expand your online business to the next level. Here are 5 steps to take your Amazon business to the next level:
Diversify Product Range
Once you’re already selling in a specific product category and you start seeing some success, it is important to continuously build on the momentum by developing new products and diversifying your product range. In actual fact, getting up and running is the easy part.
Reinvest your profits into developing a wider range of products in your category in order to build your brand and gain exposure for a competitive advantage. This can also be done by adding child ASINs/SKUs through color, size or pack quantity variations to high performing listings that already have established sales history and ranking in order to gain higher and faster exposure. Developing new products or adding variations to diversify existing products will also cater to your already existing customers who are loyal to your brand and want to buy more of your products.
Developing new products overtime is a great way to boost your revenue, however, it is not as simple and straightforward as listing random products for the sake of diversifying your range. Do your research on Amazon and take your time with competitive analysis to really understand what is actually selling in the marketplace. Customers are spoilt with limitless options now and the best way for exposure and clicks that ultimately lead to sales is to have a professional listing with high-quality images, content and of course a high-quality product with a competitive market price.
Optimize and Refresh Existing Listings
In addition to focusing on diversifying your product range in order to scale your Amazon business, it is also important to review your existing product listings with the view to improving the content. This will allow you to stay relevant to consumer searches and your competitors. This will have a direct effect on your Amazon organic rankings, visibility, conversion and revenue.
Improve your Amazon SEO by refreshing content in your product titles, descriptions, bullet points and search terms in order to capture as many consumer searches as possible. Having an optimized product listing with high volume searched keywords will help improve sales by helping customers find your product with searches that are most relevant to your listings. The more relevant your content is to the searches consumers are doing, the more likely you are to get impressions clicks and conversions.
Now that your content is optimized and visible in the searches that are relevant to what the consumer is looking for, the next key step is to entice the consumer to want to click on your listing to generate a sale. Consumers are becoming more tech-savvy with the majority of shopping now happening via smartphones. People do not spend their time reading titles, descriptions, and features of the products as they much prefer to engage visually. Consumers will decide to click on your product listings with high-quality imagery and attractive infographics. Professional looking images will directly affect your click-through rates and conversion rates which will, in turn, boost your rankings in the organic search results.
Continually optimizing your Amazon listings by refreshing your content and updating your images will enable you to capture search results and secure clicks from customers leading to more sales on Amazon.
One of the most challenging and integral aspects of running an e-commerce business is inventory management. With all the marketing efforts to increase sales and customers, entrepreneurs often look past the importance of managing their inventory. Failing to adapt to the increase in demand can have a significant impact on the growth and scaling of your business.
The consequence of poor inventory management on Amazon can lead to a rapid decline in organic rankings which leads to your sales and revenue plummeting. Forecasting demand and using data analysis on previous sales history can help you stay on top of managing your inventory.
At the other end of the scale, inventory management also means ensuring that you are not over ordering or carrying excess stock as every unit you hold represents money that has been invested. Managing cash flow is a game changer when it comes to scaling your business. It is a key strategy within your business that allows you to have a competitive advantage or it can ultimately lead to the downfall of your business. When you are able to carry out efficient management of your inventory and supply chain, it can also help you reduce costs of carrying excess inventory while maximizing your sales.
Take Advantage of FBA
Using Fulfilled by Amazon (FBA) is a strategic way to expand your Amazon business if you’re not already doing so. Taking advantage of Amazon’s fulfillment service which fully handles picking, packing and shipping of your orders will help you scale your Amazon business. By outsourcing the storage, fulfillment and customer service to Amazon’s experts, you are able to allocate your resources and concentrate on your core business and management of your supply chain.
With your products in FBA centers, your products automatically qualify for Amazon Prime which will give you the visibility and help expand your customer base tremendously. It is estimated that Amazon memberships have doubled in the past two years to more than 90 million people in the USA and about 60% of Amazon shoppers in the US are prime members.
Selling with FBA will attract Prime members to your listing as they know they can rely on Amazon’s trusted customer service and free returns process. Using FBA can help you scale your business by reaching more customers through Prime memberships. By outsourcing the fulfillment operation, this gives you the time to actually focus on expanding your business with strategies mentioned in the points above.
Amazon also offers a Multi-Channel Fulfillment program (MCF) which allows you to sell on other channels and have Amazon FBA provide the fulfillment for these orders as well. Outsourcing all fulfillment to Amazon is a great opportunity especially if you are already using FBA. Centralizing your inventory in one place and having orders fulfilled by FBA for all your sales channels will give you much more control of your inventory.
Expand Your Online Presence
To grow your business, a natural step to take is to expand your sales channel and online presence beyond Amazon. It can be difficult to navigate and determine the right sales channels for your business when there are so many different online marketplaces to choose from. However, one of the key aspects of having a digitally native brand is having your own standalone retail website.
Having your own eCommerce website allows you to have much more control over every aspect of managing your selling environment. Ultimately, by selling on your own website platform, you own the customer relationship and have access to your customer’s data in order to expand your business. It is definitely more challenging to acquire traffic and converting transactions to begin with compared to selling on mega marketplaces such as Amazon, however having an established standalone website provides more credibility for your brand overall. Operating your business through various channels and avenues offers business and brand security as well as more room for generating sales.
Business growth comes from making smart decisions. You are responsible for the success of your own business. If you want to take your business to the next level, follow these simple and strategic steps that will set you up for scaling your Amazon business efficiently and successfully long-term. Alternatively, there are digital marketing agencies that specialize in helping you to scale your Amazon business online.