Part of what makes Amazon so competitive is that there are no barriers of entry; practically anyone can list products for sale. Sellers have to continually use competitive practices to get a slice of the ballooning e-commerce market.
If you are already on Amazon, you have probably heard of the Fulfillment by Amazon (FBA) program. It allows sellers to take advantage of Amazon’s packing and shipping infrastructure to deliver goods to customers.
What is FBA?
Fulfillment by Amazon (FBA) lets sellers send their products to Amazon’s warehouses. Amazon will then handle storage, packaging, shipping, and customer service on your behalf. The program will simply spare you from the legwork that accompanies e-commerce, and you will ride on Amazon’s reputation for maximum customer satisfaction.
Taking a comprehensive FBA course is a quick way to get straight to selling and making profits. If you intend to build a global Amazon business, check out this Marketplace Superheroes Review for a thorough breakdown of one of the most popular FBA courses on the market.
Becoming a Top Seller with FBA
Doing business in Amazon needs tact and strategy. As you already know, competition on the platform is cut-throat, but you can use FBA to your advantage with the steps below:
- Create a Niche
Beginner Amazon FBA sellers make the mistake of listing products readily available in popular chains like Costco to make quick profits. Such products have stiff competition on Amazon, and the market may be too saturated.
If you intend to be a top seller on Amazon, your best bet is selling unique products with minimal competition. Take your time to research potential niches and use all analytics that you can get.
- Aim for the Buy Box
The Buy Box remains elusive for most Amazon sellers, which is more the reason to try and bag it. Amazon’s algorithm awards the Buy Box to the seller who it believes will provide the best shopping experience, based on a variety of metrics like price, customer service, and availability.
FBA sellers are in a better position to win the Box because Amazon views its fulfillment service as offering the best customer experience.You will, however, need excellent scores in areas like feedback and return rate to rival other FBA sellers, especially if your competitors are on FBA as well.
- Leverage Amazon’s and Third-Party Automation Tools
Amazon has a wealth of tools for its FBA sellers that harvest and analyze the information on your account to help you strategize better. Choose a tool to add as a Chrome extension to help you analyze and research products. Invest in inventory management software and automate bookkeeping and accounting, while taking advantage of other tools such as:
- Amazon Pricing Tools
You can use Amazon’s pricing tools to compete better on the FBA space and save time.If you want to increase your sales and profit, for example, you can use RepricerExpress. Sellers who are keen on bagging the Buy Box can use Repricer.com or Bqool.
- Review Tools
In addition to pricing, customer satisfaction is another factor that helps Amazon FBA sellers stand out. Tools like AMZShark and FeedbackExpress will keep you on top of negative comments and send automated emails to customers for positive reviews.
- Tax Software
Calculating sales tax can be a headache for any Amazon seller, as you have to process hundreds of transactions. You can easily manage the tax aspects of your e-commerce business with tools like TaxJar.
- Market, Market, and Market
It is easy to relax because Amazon will handle the behind-the-scenes aspects for you, but keep in mind that your products are listed on one of the world’s most competitive marketplaces.
One reliable way to advertise isthrough Amazon Marketing Services. To beat the competition, however, you need to venture beyond Amazon and into social media platforms and Google Ads. Use forums like Quora and email listings to drive traffic to your product pages.
- Stay Informed on Amazon’s FBA Policies.
Stay on top of the restrictions placed on different Amazon marketplaces. You may need to provide formal documentation or pay fees for some categories, and you may end up losing out if you disregard such policies.
You can be banned from the FBA program due to preventable factors like selling a fake product or mislabeling an item. Your products should also not stay at the fulfillment center for too long to avoid penalties.
Final Thoughts
Amazon’s marketplace can be intimidating, but the above tips will help you rival your competitors. The best strategies to use are automation and aggressive marketing, with the ultimate focus on customer satisfaction.
