Amazon FBA program is a great platform for selling products on a large scale. If done right, a person can become a full-time seller with promising returns to look forward to; but the lack of a good selling plan can make selling on this platform a regrettable idea.
There are challenges to expect in the selling chain that needs proper planning. Each step in the selling process poses a new challenge that can affect the sale of products. Below are important lessons learnt on the first day of Amazon FBA sales.
1. Products with Good Reviews Sell
Products of all types can be sold through the Amazon FBA sales program, but not all items sell. Most customers look up to the reviews of products by previous buyers before buying. It is advisable that a seller focuses on products that have good customer rating. Not only does it reduce returns, but it also increases a seller’s revenue.
2. Pricing Can Influence Profits
Profit margins differ based on different factors. Spending less on sourcing costs gives a seller the will to determine the selling price of a product. The lower the sourcing costs are, the higher the profit margins a seller can expect.
Another factor affecting profit margin is the quantity. The number of products sold through the Amazon FBA program will also influence profit margins. Selling products that do well on the market push up profit margins. Market research that is done before a person starts selling can help determine fast moving products.
A seller should prioritize shipping before profits, since it takes long to package products. Before sending a product to Amazon fulfillment centers, products have to be well-packaged. Each of the products should be packaged in a right-sized box. Other additional things needed for proper packaging include:
- Scotty Peelers that are used for removing the price tags in the items.
- Poly wraps or self-seal poly bags helps in enhancing the packaging appearance of your goods.
- Dymo label printer for printing the Amazon FNSKU label needed for the goods you are going to ship.
First-time packaging is always the hardest. However, the process becomes easier as time passes by.
4. The Right Tools
Challenges expected on the Amazon FBA Sales platform require a seller to have a cache of tools. A seller can use tools found on Amazon Central; additional tools can help add value to the business. An all in one tool is preferable in managing the following:
- Order reports
- Inventory management
- Product search
- Shipping and tracking
- Product filtering
- Customer data
Remotely accessible tools are preferable since they make managing stock and products easier.
Preparation is the key to selling products through Amazon FBA Sales program. A seller needs to conduct enough market research and have the right tools to ease selling. With the right strategy, Amazon FBA program can be a dream venture for the business aspirants out there.