5 Strategies To Increase Amazon FBA Sales
Is there any seller on Amazon who doesn’t want to grow sales? Everyone does. However, Amazon is a highly competitive marketplace, and sellers must be creative to outplay the competitors.
Despite the competition, Amazon offers excellent opportunities to increase sales. 2.5 Billion buyers visiting Amazon monthly offer huge potential to grow your business. This target is achievable with the right strategy. This post describes the 5 effective strategies to grow your Fulfillment by Amazon sales and how they work.
5 Strategies To Grow FBA Sales
1. Set competitive prices
Setting the right price for a product is essential. Products are more appealing to buyers if they are priced competitively. In addition, an attractive price helps win the Buy Box because Amazon often grants Buy Box to the best price offer. If you win the Buy Box, it makes your sales on Amazon because over 80% of the shoppers make purchases through the Buy Box.
However, pricing competitively doesn’t automatically mean setting the lowest price. For instance, you can set a price of 1.5% above the lowest FBA seller and still be competitive.
You mustn’t overdo price reductions because your business should maintain sustainable profitability. Identify the break-even selling price level and don’t go beyond it even though a competitor may win the Buy Box. They may run out of stock, or Amazon can remove their Buy Box due to their account health issues. Then, you can step in. Sacrificing profits short-term may hurt your business in the long run. Keep that in mind and match the lowest price only if you can afford it.
How to set a competitive price?
To maintain competitive prices, you must determine the average and the minimum Buy Box price and set yours accordingly. Seller Assistant App lets you quickly determine the average and the minimum Buy Box price and calculate the price increase by 2%, 5%, and 10% in the dropdown menu. It also gives information about the price dynamics.
2. Offer quality products
Amazon sellers must ensure that their products meet quality standards. High-quality products produce a better first impression on the buyers, encourage them to make a purchase, and ensure they are satisfied with the product. Happy customers are likely to leave positive seller feedback and reviews, which helps build trust in you as a seller. Many buyers look at product reviews and your seller rating before making a purchase.
On the other hand, offering poor-quality products triggers many returns and negative seller feedback. Remember that Amazon measures Order Defect Rate (ODR), the percentage of a seller’s orders on which customers complained about an issue with the product. ODR must be kept under 1%. Therefore, in addition to losing money in returns, low-quality items may trigger the suspension of your account for poor seller performance metrics.
How to ensure product quality?
To minimize the chance of buying low-quality products, try to purchase from reputable suppliers. If you don’t know the supplier, do research. Also, make sure you keep all documents related to your product — purchase orders, invoices, etc.
A reliable method to detect issues with the product is looking into the product sales history. If a product has generated negative reviews or customer complaints, it is better to avoid it. Seller Assistant App shows you such products with its IP-Alert feature.
3. Offer the best customer service
If your Amazon customers are happy with the services you provide and are sure that you will answer their product questions or take care of any product issue should it arise, they will definitely consider coming back to you as a seller. Excellent customer services often generate recurring purchases.
As an FBA seller, Amazon handles customer service on your behalf. However, you can offer enhanced customer experience to build the loyalty of your buyers and grow sales.
How to enhance customer service?
It is vital to monitor your Amazon seller performance metrics. They give you an understanding of the level of your customer service. Amazon shows them in the Account Health Dashboard in your Seller Central. Amazon requires having your Order Defect Rate (ODR) less than 1%, the Pre-fulfillment Cancel Rate less than 2.5%, and the Late Shipment Rate (LSR) less than 4%. Ensure that you respond to customer questions, inquiries, and issues within 24 hours. Also, monitor your negative reviews and try to resolve them.
4. Propose deals
All customers love special offers, discounts, and coupons. However, certain customers specifically browse Amazon for deals. Discounts also allow you to target price-sensitive customer categories, that way increasing sales.
How to propose Amazon deals?
You can create special offers from your Amazon seller account. In your Seller Central, go to Inventory > Manage Promotions. On the Create a Promotion tab, click the Create button for the promotion type you want to offer. After you select the type of promotion you would like to create, specify the conditions for your offer and schedule it.
5. Attract external traffic
External traffic is customers who get to your listing off Amazon. In most cases, higher traffic means increased sales. Though not all traffic converts and becomes sales, the more visitors land on your listing, the higher the chance your product will be purchased. That way, attracting external traffic helps grow sales.
How to attract external traffic?
There are different sources of external traffic. Your buyers can find your product from referrals — influencers, bloggers, and other affiliates promoting your referral links; on social media — YouTube, Facebook, Reddit, Twitter, and Instagram ads; in email newsletters you send; on deal sites — online platforms where buyers search for discounted products; and in Google search, if they use Google search engine to find products.
Selecting the right traffic source will help you attract off-Amazon buyers. However, you must keep in mind that many traffic sources have a specific target audience. For instance, social media ads are sensitive: advertising on Instagram or Pinterest must include visually attractive products, while TikTok's target audience is customers between 10 and 29 years old.
Growing sales is every Amazon seller’s target. That target is achievable with the right strategy and tools. Seller Assistant App is a popular new-generation tool that helps with these tasks. It offers an impressive portfolio of valuable and handy features. It allows Amazon sellers to perform advanced product analysis and sales estimations.
Seller Assistant Аpp is an all-in-one extension incorporating features vital for product research. Advanced IP Alerts can immediately tell you if a product has any sales restrictions or has led to problems with account health in the past. It combines an FBM&FBA profit calculator, Quick View, Stock Checker, and Restrictions Checker in one tool.