10 Tips for Selling on Amazon FBA

Amazon's marketplace has grown exponentially over the past decade. By the end of 2020, it was reported that third-party sellers were responsible for 55 percent of sales. This level of growth opens the door for greater opportunities for brands and businesses that want to succeed online.

With growth comes increased competition as everyone makes a play for positioning within Amazon's algorithm and consumer confidence. Whether you're in the beginning years of growing your business or reaching a point where you're considering a sale, here are 10 tips for selling with Amazon FBA.

#1: Create Consumer-Friendly Listings

Set a solid foundation by implementing consumer-friendly listings. This starts with creating clear, concise titles, bullet lists, and descriptions that are easy to read and engaging for consumers. Make them informative, and adhere to the character count specifications Amazon provides. Additionally, use hi-res photos of your products and provide multiple angles to show functionality and size.

As people search online for products in your category, beautiful, crisp imagery and well-formatted titles and descriptions make a difference in how professional your brand appears online. Even as a seasoned Amazon FBA seller, it's always a good idea to review these basics periodically to ensure the foundation is as good as it can be.

#2: Sell Within Core Categories

Unless you're an established brand, it's difficult to enter the Amazon marketplace with fad or trendy products. It's better to meet the high demand of built-in audiences by selling products within enduring consumer categories, such as health and wellness, home and kitchen, and pet accessories and toys.

These types of categories represent areas that are core to everyday life, which creates more stability when selling these products. Diversifying product offerings within one of these main areas can build customer loyalty and attract repeat sales.

If you want to learn more about top amazon categories, read our article "what sells best on Amazon FBA".

#3: Manage Inventory

As companies begin to grow, managing FBA inventory becomes more of a challenge if there isn't a set management system in place. Efficient inventory management keeps you from overselling items you don't have in stock or paying extra storage fees for a surplus of items that aren't going to be sold anytime soon.

Managing your FBA inventory levels not only helps to save on costs but also preserves customer satisfaction. Review your Inventory Performance Dashboard regularly to check your Inventory Performance Index (IPI) score. A low score may result in overage fees and inhibit your ability to send more inventory through the Amazon FBA platform. The performance dashboard allows you to mark down or move products to avoid extraneous storage fees and create new opportunities to increase sales.

Using the tools available keeps your listings active and alerts you to any errors that may be "stranding" your inventory. It'll also help you reduce out-of-stock inventory, protect your sales ranking, and receive more one-day and same-day orders.

#4: Use Automated Pricing

One of the best tips for Amazon FBA professional sellers is to automate activity, when possible. Much like monitoring your inventory, regulating your pricing to maintain competitiveness is important.

On your first Amazon product launch, you may individually price each product. Once your company begins to grow, with multiple orders and thousands of dollars in monthly revenue, automating this process makes it simpler and more cost-beneficial to your business.

Automated pricing allows you to create rules for specific product SKUs to adjust to a certain activity, such as competing with the Amazon Buy Box. With automated pricing, you can set a rule that lists your pricing $.10 below the Buy Box price. There's also the option of choosing from pre-defined rules set by Amazon as they fit your current needs. For example, the Competitive Price rule offers a recommended price configuration to increase your likelihood of becoming the featured offer.

Getting your products in front of more people is always a goal of Amazon FBA professional sellers. Even if you have a steady percentage of repeat buyers, growing your business requires inviting more people to view and buy your products. Enticing them with competitive pricing is one effective way to achieve this.

#5: Review Performance Metrics

There are multiple tools available through the Amazon FBA seller platform that are geared toward your success. Taking time to review performance metrics on at least a monthly basis will help you scale and grow your Amazon business. Your performance as an Amazon FBA seller impacts your ranking on the platform and opportunities for growth.

Among the many metrics to consider are order defect rate, late shipment rate, and conversion rate. Identifying a problem early on can prevent the loss of multiple Amazon sales in the future. It can also show where changes may be necessary regarding your listings, pricing, and variety of profitable product offerings. Using data to drive changes within your selling strategy can also lead to improved solutions for shipping and tracking management.

Boosting brand performance allows you to earn a reputation as a top Amazon seller. Without reviewing performance metrics to analyze operational effectiveness, it can become costly to your business.

#6: Focus on Customer Reviews

Customer satisfaction drives business growth and helps to increase Amazon sales. Handling customer responses effectively will allow you to reach the next level of success. Nearly everyone reads online reviews before making a final purchasing decision. Furthermore, customer satisfaction is a major factor in qualifying for Amazon's Buy Box.

The Amazon Buy Box feature is displayed on the right side of a product page and is highlighted in a way that sets it apart from other listings, enticing shoppers to Add to Cart. Having your product in the Buy Box area elevates your presence and trustworthiness as a high-quality brand.

Follow up on requests for product reviews and personally reach out to gauge how satisfied customers are with your products. This will provide insight into areas where you can improve and give your product listing a brand lift when you increase the number of positive reviews received.

#7: Optimize Product Descriptions

Another way to improve sales is by identifying Amazon listing optimization opportunities for your product descriptions to elevate visibility. Provide details and benefits that are informative, unique to your products and brand, and incorporate keyword-rich language.

This content should align with but not repeat information provided in your bullet points. Show potential customers how your product works and ways it can be used. Then, take a final look to ensure your product descriptions are free of misspellings and typos.

#8: Produce A+ Content

Enhanced brand content, now known as A+ Content, gives you the opportunity to tell your brand's story with eye-catching, customized imagery and text that promotes your digital storefront. A+ Content goes beyond the informational portion of your product listing and provides a more promotional overview of what makes your products special.

It allows you to highlight campaigns and products in engaging ways to decrease your bounce rate and increase conversions. Creating fresh, A+ Content also supports imagery you may be using on social media and in consumer newsletters to create brand familiarity as part of a holistic online strategy.

#9: Invest in Amazon Advertising

When learning how to increase sales on Amazon, take advantage of advertising opportunities to initiate growth. Sponsored Products, Sponsored Brands, Sponsored Display, and Stores all help increase your visibility on the platform and allow you to reach shoppers that are more likely to buy your products.

Each is an effective approach to your online growth strategy. It's easy to control costs with pay-per-click ads, which allow you to work within a set budget and track spending to optimize your Amazon advertising campaigns and maximize results.

#10: Expand Audience Reach

Once you've reached a level at which you can better predict sales and customer interactions, expansion may be the next step. This could mean expanding globally and/or offering new products or differentiations within your chosen product category.

Mirror the steps of your previous success to reach new audiences and gain more customers. Continue to build upon the strategy proven to work and scale in a way that's manageable. Once you've established yourself as a premium Amazon seller, reliable brand, and competitive business, expansion will guide you to the next stage of financial growth and opportunity.

Growing a Successful Amazon FBA Business

Launching and nurturing the growth of your Amazon FBA business takes time and attention to the details that allow you to become profitable. Establishing a strong foundation allows you to adapt with changes more easily on the platform, economic trends, and consumer expectancy.

If you'd like to eventually sell your Amazon business, following these tips for selling with Amazon FBA to help you get to where you want to be.

At Forum Brands, we look for passionate sellers who have built outstanding brands with a loyal customer following that have achieved at least $200K in net profit in the past year. To reach this status, practice due diligence in following best practices and continually invest in your company's growth. The effort you put in today can pay off in the future when you're ready to explore other ventures.






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