With the increase of Amazon’s threshold and the intensification of industry competition, the profit of the store is getting slimmer and slimmer, which has become a common problem faced by many Amazon sellers. Below, we will explain how Amazon can improve the profit of the store?
1. Improve the quality of the main picture.
The better the quality of the product’s picture, the more buyers will click and buy. If the product picture is taken with a mobile phone, the shooting scene is not good, and the buyer does not know the quality of the seller’s product. From the picture, the buyer will not believe that the quality of the product is good.
If the product picture is professionally photographed and has excellent copywriting, then the buyer will think that the seller’s product quality is better!
2. Increase the price of the product.
The easiest way to increase profits is to increase the price. Raising the price may lead to a decrease in sales, but if the seller sells an order, the seller will make more money, and the buyer will think that the seller’s product quality is better.
Why do you say that?
If I give a bottle of wine for $50 and a bottle of wine for $5,000, which one do the sellers want to try?
People associate higher prices with higher quality. Raising your prices slightly above your competitors can make people think your products are better.
3. Control logistics costs.
Small batches are expensive to ship. In addition, factories offer discounts for your bulk purchases. It makes sense to buy more inventory to reduce the average cost per unit of goods.
Increasing the number of stocks you buy each time can reduce costs and increase profits.
There is another benefit to this. If sellers can buy products cheaper than their competitors, sellers can use the extra profits to expand their market share and further develop their business.
4. Track sales and profits in real time.
The first step to improving Amazon profits is actually to accurately understand the performance of sellers. What are the sellers’ most profitable products? What is the profit margin? Has the profit decreased or increased recently? What is the specific reason? These are the data that sellers need to know.
You need to monitor all key indicators to decide on your products. You can view the real-time profits of your business and compare your performance over the past week, month or year.
5. Suppliers of quality products.
It is worth looking for better suppliers. Perhaps with an increase in the number of sellers, different suppliers can offer sellers more competitive prices.
Sellers should be able to get cheaper products. Every dollar saved turns into profit. This also means that when sellers reorder stock, sellers will use less capital, and sellers’ profit margins and cash flow will increase.
A less obvious benefit is that sellers should be able to switch to higher quality factories. Higher quality will lead to fewer negative reviews and more positive reviews. Sellers will also have fewer returns.
Amazon has noticed this. That’s why they measure sellers’ return rates and penalize sellers who return too many products.
Finally, spending to improve product quality can have a huge impact on sellers’ long-term profits. Amazon’s quality and returns are an important factor in the ranking algorithm. The above is all about how Amazon can increase store profits and methods, I hope it will be helpful to sellers!