ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Keeping Up With Changes And Trends For Amazon Sellers This 2020 For Beginners

Updated on January 17, 2020

Amazon is growing at a massive pace overtaking Apple and Google last year, 2019, in the share market. They have their presence in the UK, India, Germany, France, Australia, and Japan, to name a few. From 2014 -18, they have grown four times in billions. It all means that Amazon's growth is going steadily ahead. So, how about you? Are you sailing steadily ahead with your sales?

With growth comes changes. Here, we give you the Strategies on FBA handling, inventory management, right time for PPC and other important solutions to overcome the changes. Experience smooth sales this year 2020.

FBA is where you can send your products to Amazon's warehouse, and fulfillment to customers happens from thereon. The plus point is that the warehouse is open to even one-day fulfillment. It is a chief reason for their growth because they have opened doors to a vast market, even for the new seller by offering fulfillment options. They have built a strong reputation through two-day fulfillment. In addition to that, they also provide a 30-day replacement policy that enables the customers to return the product, for whatever reason they are unsatisfied with, and get a refund.

So now, the customers know and believe that they are dealing with a credible seller. Partnering with amazon can help you pivot and shift gears and venture from your small market to a worldwide exposure.


Problem: With too little stock, you may face the risk of running out of stock. If you order too much that don't sell, unfortunately, you face the risk of inventory cost and monthly storage fees for your dead product.


Solutions:

  1. Planning your inventory orders - Determine the amount of inventory beforehand, and it's imperative. Depending upon the product you may have from about 100 units to over 2000 units. Have two months worth inventory.

  2. Don't send all of your two-month worth inventory to Amazon at once - Send only the first batch, which is the first month's inventory. Allow the launch to happen, then initiate PPC when sale begins. Then during exhaustion of the first batch, send in the next batch to Amazon.

  3. Right time to place refill orders - Let the sales velocity climb. After you have sent your second batch to Amazon, this is the right time to purchase the next two month's worth inventory. Initiate sending purchase orders to vendors or manufacturers, respectively.

  4. Price them well. Calculate the profit margins according to the product you wish to sell. Offer the best possible price to satisfy your customers.

The above measures prevent you from removing orders or getting back the products from Amazon and fees for taking up more space. If it doesn't sell removal fees and storage fees are applicable.

Gauge and control with the help of keywords. We would suggest that you launch later because competing with the big players makes you seem minimal. Your competitor is doing 25 units per day and when you try to match that with only 500 total units, you may run into out of stock situation. So go with two longtail keywords than short-tail keywords initially.

During the second launch, target one or two short tail keywords because you have some social proof and organic sales. Organic tractions and traffic to your listing manage your inventory effectively and efficiently.


Gauge your sales through analyzing the below-mentioned data

  • Forecast data

  • Steadily build social proof

  • Manage supplier relation

  • Set standard shipping time

Grow a rhythm on your operations, predict your sales, and have enough money to operate smoothly. It covers all bases for your Business.


Here are certain things that you can do while handling inventory with Amazon:

  • Increase your sales volume

  • Avoid overstocks

  • Improve your in-stock rate for products in demand

  • Fix up a planned inventory

  • Integrate amazon with best inventory management software

What Else Must You Know?

We think these things might come in handy for a beginner before venturing into Amazon FBA.

  • Its always better to learn the fundamentals before starting a new business. Learn the rules, the do's, and don'ts so that you don't end up losing money and assets.

  • Now you have started selling. So what's next? Initiate to make a system and automate your process. Amazon Inventory management tools can help you manage your inventory, automate purchase orders, generate reports, and track status.

  • Many sellers face this one constant problem, which is change! Yes. Amazon is known for its constant changes in API and policies. Keep updated. Analyze adjacent markets. The UK market may implement a new change that the US market follows. So keep an eye out for the changes in other countries as well.

  • Gather historical data of your sales so that you can predict the further sales. You can stock up the volume of a specific product during a particular season. For example, Amazon's Big Billion Days during winter, you can see more sales of winter clothing and winter skincare products. You can check with your inventory and such data can come in handy when you start to send out purchase orders for the month.

  • Diversify your base. After a long run, don't stick with one or two products. It's like crop rotation technique in agriculture wherein crops are sown on a rotational basis on the same land at different seasons. Likewise, keep changing according to the season, latest arrivals and demand. It calls for a more significant investment, but then you reel in higher profits too due to demand.

With more sellers coming in, so are more restrictions. So, soon Amazon may not be a suitable place for small sellers. Apart from the rise in storage fees, there's this feature called Amazon Lending. It offers loans to Sellers with a strong Paypal sales history. It is available in countries such as Canada, France, China, Germany, India, Spain, Italy, and the UK on an invite-only basis. Peter Faricy mentioned that Amazon uses internal algorithms. It tracks sellers based on the frequency of stock depletion, product popularity, and inventory cycles. This policy poses a threat to new sellers to capture a significant market share.

With more and more sellers diving in, get ready to spend on keywords. By spending, we don't mean just money. It would be best if you had more creative and unique keywords to top the list.


Conclusion:

So, to stay in the market and be competitive against the massive inflow of Sellers, we are concision the three factors that you need to keep in mind.

  1. Keep your pricing low – frame a competitive Pricing strategy. Work it out with the manufacturer or distributor so that you can get more of Buy Box

  2. Find a good SEO – Keep your products ahead of the listings to gain more visibility

  3. Impulsive customer experience – It all finally funnels down tot he customer. Keep your customers happy by offering them a flawless service

  4. Invest in Amazon inventory management software – the best inventory management software can help you to sync your entire inventory. You can keep up with the stock limits, manage time, eliminate delays, track accordingly, and get things done on the go, anywhere, anytime.

© 2020 eSeller Hub

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://maven.io/company/pages/privacy

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)