You probably started your Amazon business to make more money and work less. To do that you need a steady stream of profits from your business. In this article, we cover some of our best tips for boosting your profits – without spending a fortune.
Increase Your Sales!
It sounds obvious, double your sales and you double your profits. But that is not always so easy to do.
One great way to boost your sales rank, organic sales, and gain new customers is to launch a promotion for your item. That’s where a platform like VIPON for Sellers can help.
Top Sellers on Amazon do consistent promotions every month to keep growing their business. We have a ton of info on VIPON on how to run successful promotions.
Increase Your Price
Another super simple way to increase your profits is simply to increase how much your product sells for, your price. Some products sell better at a higher price and some sell better at a lower price.
You don’t know what is the best price without testing. Sometimes an increased price will result in a drop in sales. But often it can have the opposite effect and lead to more sales.
Why?
If I offered you a $50 wine and a $5000 wine which one would you want to try more?
Customers associate a higher price with higher quality – so if all your competitors are dropping their price – you might look better if your price is slightly higher. So simply increasing your price to be slightly above your competition can give the perception that your product is better. See the next section on how to make this actually work.
Optimize Your Listing
You need to make sure your images, text, and product look amazing on Amazon. You only get 1 chance with a customer – they will never come back to check your product again in the future. The same item will look more valuable with better photos.
If your images were taken in a dark room with your iPhone, it is gonna be really hard to justify a higher price.
Make sure to invest in high-end professional photos, great copywriting, and excellent images for your product – then customers are going to perceive the same item as a higher value. The same item will seem better if the copyrighting helps users see the benefits of your products.
Without changing anything but leveling up your amazon listing you can potentially increase the value of your product in customers’ minds. It will also lead to more conversions too.
If 100 customers now order 20% of the time instead of 10% of the time. This can result in an instant 200% boost to your profits.
Lower Your Costs
The other way to boost profit is to find a way to lower your costs.
Every $1 saved from your costs becomes profit. It also means you use less capital when you re-order stock, your margin improves and your cash flow improves also.
This could be reducing shipping costs by using SEA freight instead of AIR freight or it could be by renegotiating with your supplier for higher volumes.
One example is to order more stock. You might be able to get a discount from your supplier for more as well as save on the cost of transportation as you are moving more units so the cost per unit goes down.
I found when I ordered my product in larger quantities I was able to save 10 to 20% or more on my cost of goods. Small shipments are more expensive per unit. Also, factories give you a discount for buying in bulk, you just need to ask them at which quantities can you get more discount.
Storage costs and ad costs are two other major areas of costs for an FBA seller. Optimizing your PPC spend may result in a boost in sales while at the same time a drop in costs, a fantastic way to boost your overall profitability.
