The Amazon marketplace has been evolving every year since its inception. What started as an online bookstore has now turned into the global powerhouse for ecommerce. Some interesting facts include:
- It ships products globally and has marketplaces in 16 countries
- Amazon took half of the US ecommerce market as of 2018
- 5 million third-party sellers use the platform to sell their products
- 19% of sellers in 2018 raked in over $1 million of sales
All these stats are attractive for any entrepreneur that wants to start an Amazon FBA business. On the flip side, things are often easier said than done.
The good news is that there are numerous opportunities to start your FBA business. If you do everything right, there is no reason why you can’t succeed. Here are some of the secrets to help give you the upper hand over the competition.
01. Reinvesting into your business
This is a general strategy to succeed in any venture and works even better with an Amazon FBA business. Yes, we know that you want to start getting your ROI as soon as possible. Nevertheless, delaying your gratification increases the chances of your business staying afloat in the long run.
Successful entrepreneurs in Amazon invest back their profits in the business for at least nine months. They do this to develop new products, marketing, and PPC.
Outspending gives you more money to grow your business and outgrow the competition. If you do this in your first year, you will be reaping the rewards in the coming years.
02. Using software to your advantage
Automation is the way forward when it comes to Amazon. It makes your work easier and allows you to focus on ways to grow your business.
Some of the key tools you can use include feedback software, and project management systems. The tasks are essential, but the tools ensure you keep your eyes on the prize.
03. Proper bookkeeping and accounting
As with all business, your numbers ultimately determine the level of your success.
It is easy to get lost with actual profit margins when you have a constant flow of sales, stock purchasing, ad spend, fulfilment fees etc.
Proper accounting done regularly will help you keep track of how your Amazon FBA business is performing which in turn makes it easier to leverage your income and trim expenditure.
If you don’t outsource accounting, it is a good idea to learn the basics of bookkeeping and using accounting software can really help you with this. Some Amazon FBA courses actually cover this in great depth.
04. Track your inventory
Since Amazon FBA mainly deals with the storage, your inventory management system hugely determines the profits.
It is vital you keep an eye on your sales velocity and know what your product reorder times are. The worst situation you can have is running out of stock. Every day without stock is essentially money lost.
On the other hand, if you hold too much stock, you will have to pay more for storage fees in the long run.
It is a fine balancing act, but one which will have a big impact on your bottom line.
05. Investing in an Amazon FBA Course
“The beautiful thing about learning is that nobody can take it away from you.”
― B.B. King
Some people believe in self-training which has worked for them. What they don’t tell you is the number of mistakes they have made and the pain they have gone through behind their success. But it doesn’t have to be like that.
Investing in an Amazon FBA course will shorten your learning curve and likely save you so much time and money in the long run. There is no better way of getting ahead than learning from experts. People who have been in your position before and are now where you would like to be.
Check out this best Amazon FBA courses guide from Performance Funnels to see which ones are worth looking into.
There are many strategies you can try on your quest for success in Amazon FBA. The bottom line is to start with a few and practice them until you get it right. It is always small consistent steps that leave a strong foundation for long-term success.