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Amazon is an undisputed leader in e-commerce and therefore attracts millions of sellers worldwide. With so much competition, the valuation of your FBA business during a potential exit will depend heavily on your sales.
Your sales record in the 12 months leading up to your exit is one of the most influential factors used to determine the profits you will make from selling your business. But many Amazon sellers are struggling with stagnant sales and do not always have reliable expertise to help them out of the doldrums.
After helping many ecommerce brands grow their business, I’ve identified the key areas you need to focus on to increase your product sales on Amazon. Whether you are a DIY seller or would rather enlist the help of a growth acceleration agency, focusing on the following points will help you take your evaluation to the next level:
Killer Product Listings
It’s no secret that without quality product listings, you’ll get lost in the noise. A great product listing consists of five pillars:
Keyword research: Create your product titles around the keywords your potential customers are searching for. You can use several free and paid keyword research tools to find the most relevant keywords for your products.
Pictures and videos: High-resolution images and videos strengthen your brand presence and help your offers stand out from the crowd. Also, videos with added value boost buyers’ confidence and eliminate any doubts they may have.
Optimized descriptions: Your customers get the maximum product information from your product descriptions. Limit the phrases in your descriptions to a minimum and try to achieve the greatest possible benefit through concise and to the point information.
Automatic Repricers: Make sure your prices are always in line with current market conditions. You can use advanced tools to automatically update your prices on the fly. This also helps increase your chances of winning the Buy Box (more on that later).
- social proof: Product reviews on Amazon are very influential and can make or break a sale for a new customer. Always encourage buyers to leave feedback after a purchase. You can entice them to leave a review with add-ons.
See also: 5 Common Amazon Product Listing Errors and How to Fix Them
display and purchase box
It is important for you as a seller to use all the tools available to you. Amazon PPC advertising and Buy Box are two gold mines that should be part of your strategy.
Amazon PPC: PPC advertising on Amazon offers an effective and cost-effective way to increase the visibility of your products. With several options available like sponsored product ads, branded ads, and display ads, you have plenty to experiment with. Beware: It is easy to lose money with PPC advertising if you have no experience in advertising. From keyword research to writing copy, every single aspect counts. If possible, enlist the help of a full-service agency. Otherwise you risk losing money, time and customers.
Buy boxes: Amazon prioritizes sellers who demonstrate competitive pricing, in-stock products, reviews, and seller performance standards to algorithmically determine the Buy Box winner. Winning the Buy Box means you are the first option for your customers and increase the chances of conversion.
You cannot hope to get the maximum score for your business by solely focusing on Amazon’s single platform. You need to spread your efforts across multiple channels to unleash maximum traffic and brand loyalty. FBA buyers look for companies that have a strong brand and can stand up to copycat sellers.
Website and other marketplaces: When building your Amazon business, don’t ignore other acquisition channels like Walmart, eBay, and most importantly, your own website. This increases your brand awareness and makes customers more likely to buy from you.
Content Marketing: Your website and YouTube channel should be the go-to places for your customers to discover the latest and greatest in your niche. Publish regular and relevant content for your visitors to establish yourself as a leader in your niche and generate organic traffic for your Amazon listings.
Social Media Marketing: Your prospects spend almost 2.5 hours on social media platforms every day. Use this to connect with them and build your community. Use it to increase your sales and earn a markup later.
Influencer Marketing: For every dollar you spend on influencer marketing, you earn $5.78 in media value in ROI. So use the power of influencers and their communities to generate additional traffic. The right influencers will also introduce you to your ideal audience. Use this opportunity to build brand equity and increase awareness.
See also: 4 actionable steps for multi-channel marketing
inventory and product mix
The strength of your supply chain operations is the basis of your sale and evaluation. If you’re scaling your sales but your supply chain isn’t able to keep up, your efforts will falter.
- Inventory management: Your products should never be sold out. It harms the buyer experience and your chances of winning the Buy Box. Use analytics tools to always sync your inventory across platforms and be notified in advance in case of low stocks or seasonal demand changes.
- Product mix: You should double down on your top selling products and choose a targeted marketing strategy that focuses on those chosen products. At the same time, having a company that focuses on just a few products is risky and can lower your valuation.
- Global spread: You should explore international markets using Amazon’s customized websites for different countries. Accessing a whole new audience can be the final step in scaling your business.
Most importantly, make sure you comply with Amazon’s regulations. It may seem obvious, but many sellers often ignore them and end up facing account suspension. Healthy sales are important to your business profits, but also go a long way in ensuring the best possible valuation for your FBA business when you have exit plans. Working on the above aspects of your business not only gives you a head start, but also puts you in a good position when it comes to your exit.
See also: Guide to starting a Fulfillment by Amazon business