Amazon Sellers? Here are six business concepts that can help you to sell more!
Prototypes and Market Feedback: When you sell through FBA, this means you can sell items online without even necessarily seeing them – even if the Product is something YOU designed with the help of an Alibaba manufacturer.
Still, seeing them is very important and you should always make sure to order prototypes.
In fact, you should do this during the design phase too so that you can iron out any problems before they emerge and so that you can perfect your product.
Feedback Loops and Iterations: That said, if you are a perfectionist then you might work hard to make sure that your product is absolutely perfect before you release it and this isn’t actually what’s best for business.
Rather, it is generally agreed that what’s much better for your overall chances of survival is to release your product early and to then to continuously iterate based on the market feedback and what seems to work…
This way you can ‘evolve’ your product to suit the market and you will find that it gradually becomes more popular as a result.
You can also use this method as a reseller, by speaking with the manufacturer, or by trying slightly different versions and suppliers for your products.
Anticipation: If you can build anticipation for your product before you release it, then this is a fantastic way to increase the number of sales once it’s out.
People hate being made to wait for something, and if you can make your product seem desirable and then force the audience to wait then you can increase its desirability to a large degree.
Split A/B Test: A split A/B test means that when you’re making a change to your product line, you don’t make it to the entire line in one go, but instead change it for just a portion of the line and your audience so that you can then get feedback on those changes without risking your reputation.
For instance, you might do a beta test of a redesign to your products – letting just a small batch of customers try the iteration, and this way get feedback on the change before you release it to everyone.
You can also use a split test to “try out” changes to your Amazon listing, to see which sells best.
Try running one image or description for two weeks, then switch to another. Which sold more units?
Why Amazon FBA Trumps Selling From Home Every Time
If you want to start selling products for profit, you can set that up from home with relatively little trouble.
Just order the products wholesale and then deliver them to your buyers when they buy them from you.
This might make you question why you would need a service like Amazon FBA that handles the delivery for you.
In a typical reseller business model, a business owner or entrepreneur would first identify a product they liked the looks of, then go directly to the manufacturers/wholesalers.
They’d next put in an order for 100 units (or thereabouts) which would get delivered to their own premises.
A small entrepreneur might keep the stock in their front room, while a bigger business might own a warehouse.
Either way, the individual then markets the product themselves, and makes sales.
Each time they sell something, they will package up the product, place a label on it, and pop it in the post.
When you buy wholesale, you will typically be able to get products at a discount.
Usually this is a very significant discount, as the sellers see the value in guaranteed sales and thus are able to offer the low price.
This means that for every pair of jeans, blank CD, or set of dumbbells you buy for $5, you can sell them onward for $10 or $15.
Sell off your entire inventory, and it’s normal to make a solid 100% profit or more.
Except not quite: because you also have to think about things like storage and fulfilment.
This is where things can become significantly more challenging.
Many independent entrepreneurs for example are not going to have the funds to afford a warehouse for storage, and nor are they going to hire staff to attach labels.
Therefore, it becomes their job to store all those items in their own homes, while making sure they keep track of how many items are in their inventory (and preventing things like moisture and mold from destroying your goods.
Delivery is complicated too.
You’ll now need to calculate the cost of the delivery, find the best couriers for buyers in all markets (including overseas in most cases), and make sure you have a smooth process capable of handling large influxes of orders without missing deliveries! Imagine if you have a sale and you sell 250 units.
Would you be able to manually package and deliver all those items?