How to Grow Your Business on Amazon FBA

by Shaun Whynacht  - May 13, 2022

Amazon FBA is an attractive option for businesses because it offers them the ability to scale up without having to increase manpower and land area. 

Everything you need is on one single platform — from storing your goods to receiving orders from customers to shipping them. It’s up to you how to optimize these benefits to grow your business.

There are 2 million sellers on Amazon, with 25% based in the U.S. However, of the 500,000 American third-party sellers, only half take advantage of the convenience of Fulfillment by Amazon (FBA), which was launched in 2006. 

Let’s take a look at some simple ways in which you can boost your business on Amazon FBA.

How Does Amazon FBA Business Work?

Fulfillment by Amazon (FBA) is a major service by the e-commerce giant that allows businesses access to its expansive logistics network a very beneficial service for businesses in their growing phase and those with limited capital. 

All a seller has to do is send their products to designated Amazon fulfillment centers, where Amazon handles the storage. Once a customer purchases a product online, Amazon takes care of the packaging and shipping, in short, the logistics. If that were not enough, Amazon takes care of the customer service aspect, too, particularly in the case of returns. 

With FBA’s convenience, sellers no longer have to worry about looking for a larger warehouse to store their products. Amazon has 110 fulfillment centers in the US and a total of 185 centers around the globe, allowing sellers across the world to avail of this service. 

The Process

  • Product Procurement/Manufacturing

The first step is acquiring the products you will be selling. These could be products your company manufactures or those purchased from a wholesaler. 

  • Dispatch to Amazon for Storage

You will then ship the products to Amazon, where they will be stored in the company’s warehouses. 

  • Orders

When a customer places an order online, Amazon will receive the order. The customer will then receive an order confirmation. 

  • Shipping

Amazon will then ship the order to the customer’s address. 

5 Methods to Grow Your Business on Amazon FBA

Nearly 73% of the top Amazon sellers in the US use Amazon FBA, and for good reason. 

Since Amazon has already established a profitable model, growing your business on FBA is a matter of choosing the right blueprint for scaling your business. 

Here are five excellent ways to attain business growth while on Amazon FBA:

1. Increase Product Inventory with Wholesale

With FBA doing the majority of your work, it frees up a lot of time and space for you to look into increasing your product inventory. 

You may already have a selection of products, but if you want to grow your business, expanding your product inventory to offer a wider range of products is one of the best ways. 

Research the best items that fit your business identity and buy them in bulk from wholesale suppliers to save money. You can then resell the products for a profit. Of course, bulking up the price of these products is also necessary since you still have to pay for the fulfilling service. 

Start by searching for top ten product ideas from AMZScout — a product research tool with over a million accounts, mostly from Amazon sellers worldwide. It will not only help you find products that have a higher chance of making large profits but also enable you to optimize listings for more sales. 

2. Run Amazon PPC Advertising

Advertising is crucial for businesses. You want to reach a broader audience than just family and friends. 

Amazon Pay-Per-Click (PPC) Advertising is a practical tool for entrepreneurs. You only pay Amazon when a web user clicks on your ad. So, when you run an ad through Amazon PPC Advertising, you don’t have to pay for impressions, which usually inflates the advertiser’s bill. 

When managed efficiently, a PPC campaign can truly amplify the products’ visibility and increase sales. PPC advertising may even improve a product’s organic ranking, thus paving the way for long-term success. 

3. Get More Reviews

Positive reviews are a major factor that impacts sales on Amazon. 

People who browse on Amazon almost always check the reviews before putting things into their cart. According to research, 97% of consumers say reviews influence their buying attitude. 

So, how do you ensure positive reviews? One of the easiest ways is by ensuring your products are of good quality. A happy customer would gladly pen positive reviews when truly satisfied with the product.

And if you are confident about your product, you could always send out a personalized request via email. Amazon has its own template request for customers to leave a review. However, a personalized note is always more impactful. 

Make the process easier for your customers by providing them with a direct link to the product page. If their review extends to social media, even better. You can include that in the request as well. 

4. Collaborate with Influencers

Some may turn their noses up at influencers, but there’s no denying that they are effective “tools” for marketing. We wouldn’t be seeing this exponential surge in influencers if what they were doing wasn’t working. 

Collaborating with social media influencers will ensure that your product reaches many people and hopefully encourage engagement. Your products or brand will also reach a new audience because of hashtags that could optimize social media reach. 

Make sure your collaborator is someone who embodies your brand’s image and has followers who fit in your target audience range. 

5. Scale Your Business to New Global Markets

Since Amazon is a global platform, it offers a fantastic opportunity for businesses to reach markets they haven’t tapped before. But, before you take the leap, you have to be sure you are ready to expand your business globally. 

Examine and assess whether your business is ready to enter potentially larger, newer markets. Explore if there is a market for your products outside your home country. And finally, ensure you have an in-depth understanding of financial management or hire people who do, especially since you will now enter international economies. 

Scale Your Business on Amazon FBA

Establishing a good strategy, or a whole slew of them will allow you to grow your business seamlessly. The Amazon FBA model is convenient for businesses and flexible to boot. 

It makes things simpler for business owners — it allows you to focus your time and energy on growing your business by increasing inventory, managing advertising, and expanding your reach. And remember to take advantage of the many tools that Amazon offers to make the most of this resource. 

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Shaun Whynacht

Shaun, our Founder and CEO has been bitten by the entrepreneurial bug at a young age. He knows firsthand how much love and determination gets poured into running a business after spending more than 10 years touring all over Canada learning from different industries. Not only is Shaun passionate about marketing he also developed some very unique abilities to stay current with changing technology in this ever-progressive world

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