{"id":9343,"date":"2016-11-16T13:24:10","date_gmt":"2016-11-16T13:24:10","guid":{"rendered":"http:\/\/www.repricerexpress.com\/?p=9343"},"modified":"2020-09-24T12:22:43","modified_gmt":"2020-09-24T11:22:43","slug":"the-business-of-selling-on-amazon","status":"publish","type":"post","link":"https:\/\/www.repricerexpress.com\/the-business-of-selling-on-amazon\/","title":{"rendered":"9 Expert Tips for Success When Selling on Amazon"},"content":{"rendered":"

Guest post by Matt Ward from FBA Allstars<\/em><\/p>\n

Success on Amazon takes investment. It takes time and more importantly money. This is something many shy away from and it can lead to failure. Let me explain.<\/strong><\/p>\n

1. Investment Isn’t Optional<\/h2>\n

Starting an Amazon business on a shoestring budget is challenging. You may find you won’t be able to\u00a0order enough inventory, you hamstring yourself on promotions and giveaways and you will probably run out of stock before being able to place a re-order.<\/p>\n

So why do so many try this?<\/p>\n

Two reasons: hope and fear. These don’t go well together. Here is why…<\/p>\n

2. The Power of Hope<\/h2>\n

There is an expression in internet marketing that goes something like, \u201cthe only way to make money online is to teach other people how to make money online.\u201d<\/strong><\/p>\n

In a sense, it is true. People feel\u00a0hope about FBA. As with all internet business (affiliate offers, niche sites, drop shipping<\/a> etc.), as people make money and start to sell \u201cthe secrets,\u201d more and more inexperienced entrepreneurs become attracted to the idea. They buy-in and often become bottom feeders.<\/p>\n

3. The Power of Fear<\/h2>\n

Commitment is hard. Investing in a product or idea and putting your full backing and focus behind it is terrifying. This keeps entrepreneurs up at night. It is also the difference between success and failure, especially with Amazon.<\/p>\n

Sellers that commit big, can make it big. They set themselves up for success by taking risks. And oh do they reap the rewards\u2014and the reward on Amazon can be huge. I have clients doing 250-500k a month – average people with incredible success. Why?<\/p>\n

4. They Bullied Their Way to the Top<\/h2>\n

Winners view Amazon as an investment. That is why I spend hard on PPC and push promos to rank products. I understand the value of ranking<\/strong> and selling long term\u2014<\/strong>it is critical for my one year million dollar exit.<\/p>\n

And I have invested only $10-15k. That is manageable for most, and in my opinion, recommended.<\/p>\n

5. Reinvesting EVERYTHING in the Business<\/h2>\n

This is the biggest difference between average and amazing success, the ability to delay gratification. I have been selling almost nine months and have not taken a dime. 100% of my profits go back into the business\u2014new products, more PPC and pushing to grow.<\/p>\n

The reason? Amazon is a race. More and more sellers flood the market daily. The abundance of courses out there are creating competition.<\/p>\n

Sellers that want big success know they need to outspend, outsell and out-scale the competition. That means launching more and pushing faster (more on Amazon growth strategies<\/a>). That is the only way to stay ahead of the rest. And it means enormous profits and sustainable business success if you do it right.<\/p>\n

6. Building a Bigger Business<\/h2>\n

There are three way to grow a business: reaching more customers, increasing customer value and increasing conversions.<\/p>\n

Typically marketing is the sexy approach. It can also be inefficient (learn more about Amazon PPC<\/a>).<\/p>\n

Imagine an F1 race car. It is fast, it is flashy but it only gets 7 MPG. That does not go anywhere, and it costs a ton to drive. Instead, let\u2019s focus on efficiency, and add profit to your empire.<\/p>\n

7. How to Instantly Earn More Money<\/h2>\n

Increasing customer value and conversions make the easy money. And profit is profit. It does not matter how you earned it.<\/p>\n

First, let\u2019s aim for more money per customer – the Holy Grail of commerce.<\/p>\n

There are two ways to do this: repeat customers and up-sells. Both work. And the best part, Amazon up-sells for you. Frequently bought together and recommended products, push profits higher. But you can do more.<\/p>\n

Consider creating promotions for multi-product purchases. These promotions display under the related products and create additional incentive to buy more. And multi-unit purchases have lower Amazon fees which drive profits and margins even higher.<\/p>\n

8. Repeat Customers Rock<\/h2>\n

Do you know your cost of acquisition?<\/p>\n

Most Amazon entrepreneurs do not. It is critical though. It usually costs money to get a customer. But with Amazon, it almost feels like cheating. It is an established buyer channel and short of PPC and promos to rank products, acquisition costs are low. Still, repeat customers remain the cornerstone of growth. They are more likely to re-buy. That means more money for you without any extra work. Here is how.<\/p>\n

Strategies for Repeat Customers:<\/h3>\n