There are 2 main ways to increase profits. Sell more of your product or lower your costs. Your product is the most expensive cost in your business, but there are other important factors to monitor also.
In this article we cover the top ways to boost your Amazon profits.
Tip 1 Careful Selection
You win or lose the Amazon game based on the product you select.
You might have an amazing listing but if you are in a very competitive market it will be hard for you to make any profit. So the first and most important job is to carefully select which niche you are going into.
Evaluate markets carefully before entering. If you are already in a market – do a deep analysis of your top 10 competitors to see how you can differentiate your product to stand out.
Tip 2 Increase your price
Once you’ve selected your product, you need to think of ways to increase the price you can get for it.
This can include bundling it into a two-pack, including relevant additional items to create a set, or adding premium-looking packaging to make the perceived value of the product higher.
These tactics will make it possible to sell the same item at a higher price. Even better photo images can give the impression of a higher quality product & allow you to charge more for the same thing.
Tip 3 Optimize Conversions
Every day you’ll get a certain amount of traffic to your Amazon product.
If you increase conversion from 5% to 20% that means you’ll increase your sales and profits four times. Achieving 20% conversion is realistic on Amazon because people go to Amazon to buy.
Listing optimization starts with thorough and detailed keyword research, professional photography, and using copywriters to weave the keywords you researched into great listings that are informative and engaging to read.
The single biggest ROI on Amazon comes from optimizing your listing. It is worth spending the money and time to make it the best in your niche.
Tip 4 Switch on Pay Per Click
Spending money on advertising can boost your profits.
If you have a good ACOS then for every one dollar you spend you could be getting back $2 to $10. So the more you spend the more you make.
Carefully analyze your keyword performance to ensure you’re getting the most bang for your buck.
Amazon Ads help to boost organic sales also. This is hard to measure but you should see an uplift in your rank over time.
Tip 5 Extra Marketing
Just as spending more on pay per click can boost your profits, so can spending more on other forms of advertising.
The secret of making money by advertising is simply to start small, measure the results and continually optimize.
Imagine if you sold an extra 100 units a month via non-Amazon channels. It reduces your dependence on Amazon but also boosts your Amazon product business at the same time.
Tip 6 More Products
Add more relevant products that you can cross-sell with your original products.
For example, if you’re selling a knife set, you can offer your customer base a 10% discount on your cutting board. You get to leverage the same list without having to promote and advertise to build a new list.
So the returns for any similar products will be much higher. Run fewer promotions, spend less on advertising and make more profit by cross-selling several related items.
Tip 7 Continuous Improvement
The biggest secret to making huge increases in profit on Amazon is:
If you are persistent, put in the time and effort to improve your listings, add more products and optimize your promotions over time, the extra effort will turn into thousands of dollars of additional profit.