Many novice sellers believe that the cost of Amazon FBA is too high, and it is not cost-effective to use it to deliver goods. Moreover, the funds are not very abundant and they cannot afford such losses. However, the correct use of Amazon FBA can help sellers better recover their costs and make money. The key is to make correct judgments when purchasing goods. So, let’s take a look at whether Amazon’s FBA will increase sales?
1. Understand the return on investment.
Every seller comes to Amazon to make money. Therefore, make sure that the products you purchase have a good ROI. For novice sellers, it is recommended to look for products with a 100% return on investment. It is important to find products that have a good ROI so that sellers can make money.
2. Determine the products that can be sold.
Many sellers will ignore whether the product can be sold when purchasing. Some products are prohibited for sale, while others are only allowed to be sold by specific sellers. If you purchase products without conducting an investigation, you may face infringement and violations. Therefore, when purchasing, be sure to determine whether the product is allowed to be sold.
3. Understand sales rankings.
Product ranking can show the sales speed of the product. Sellers should consider the average sales ranking of the product before purchasing to understand the product’s sales performance within a specific period of time. You can quickly get a product’s average ranking by looking at CamelCamelCamel and Keepa charts. If a product has a high sales ranking, it means it sells quickly. If the ranking is low, the seller needs to carefully analyze whether it is necessary to purchase the product.
4. Determine competitiveness.
Unless you are selling a super unpopular product, there will basically be competition. Generally speaking, there are two main opponents that sellers need to consider: Amazon and other sellers. If the opponent is Amazon, it is recommended to give up purchasing the product and check Amazon’s self-operated product inventory. If someone is already selling the product you want to purchase, it is recommended to switch to other products.
The above introduction is the relevant knowledge about whether Amazon’s FBA will increase sales. In short, to use Amazon FBA correctly, you need to understand these factors and make correct judgments when purchasing goods. Only if you are willing to bear the cost can you make big money. Under normal circumstances, Amazon does not share shopping carts with other sellers because 70% of sales on this platform come from shopping carts. Therefore, sellers who purchase the same product that Amazon sells are basically doomed to lose their shopping cart. If sellers use Amazon FBA, there are four key elements that need to be carefully considered. Only in this way can you gradually earn back the cost of using the Amazon FBA platform.