Five Business Tips to Improve Your Amazon Sales
By: Skip McGrath
#1 - Convert to FBA (Fulfillment by Amazon)
I have been selling on Amazon since 2006. I also sell on eBay. Back in those days, eBay was responsible for about 80% of my sales with only 20%
selling on Amazon.
#2 - Develop and keep excellent account metrics
Another way to improve your Amazon sales is to pay attention to the statistics. Amazon looks at several of your account activities to see how well you are doing. These include:
Keeping these metrics within Amazon Standards are critical for two reasons. One is if they get too bad, Amazon will simply cancel your account. The second reason is that Amazon uses these metrics as one of the major factors when they determine who wins the buy box for a given product that is being sold by several sellers. Price is the biggest factor when Amazon determines who wins the buy box, but if your metrics are poor, you can lose the buy box even if you are the lowest price seller.
#3 - Grow a Large Inventory
There is a very simple rule on Amazon: The more items you have listed (and in stock), the more you will sell every day. I am always amazed to see sellers who have been selling on Amazon for more than a year or two and they have less than 50 to 100 listing SKUs. (SKU stands for Stock Keeping Unit. It is a number you make up and assign to keep track of your products. Each separate item you list on Amazon requires a SKU )
I used to have over 1000 SKUs (different items listed). When I was at that level, my daily sales were about 55 units a day. Recently my wife and I decided to scale our business back (We are getting older and just wanted to slow down a bit). So , now we are down to about 600 SKUs, and that translates to about 30 items sold per day
So as you sell, keep investing your profits (or at least a good portion of them) into finding more items to sell. And watch your inventory levels
to make sure you replenish items when you start to get low on stock. When you run out of stock, Amazon removes that listing from results and your
sales rank on that product will drop when that happens.
#4 - Get Rid of Non-Performing inventory
Non-performing inventory (NPI) is inventory that sells either very slowly or not at all. Having this inventory in stock hurts you in two ways.
The first is the opportunity cost. You have money tied up in stock that could be used to buy stock that sells. The second way is, if you are using
FBA then you are paying Amazon monthly storage fees on items that are not selling.
#5 - Raise Your Average Selling Price (ASP)
Last, but not least, another way to improve your Amazon sales is to raise your
average selling price.
If you sell 50 items a day and make a dollar on each one, then you are making $350 a week or $1,470 per month. But, if you make an average $10 on
each item, now you are talking about some serious money.
The second item is an item I sell where my product cost is $17.50 (again including inbound shipping and shipping to Amazon). I sell that item for $49.95 and my net is $38.40. So less my product cost of $17.50, my profit is $20.90.
So, which one would you rather sell more of? Don't get me wrong, I do have a few low price selling items. The $12.95 item is a garlic slicer, but I sell about 50 of those per week. The second item is a gun holster that only sells about two per week, but as you can see I make almost as much profit on those as I do on the higher selling garlic slicer.
Would you like more information on improving your Amazon sales? Check out The Complete Amazon Marketing System...
The Complete Amazon Marketing System is a two-volume printed training manual over 350 pages long. It also comes with several training videos, over a dozen free bonuses and free lifetime membership in my Wholesale Sourcing Members Site.
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