Selling on Amazon is a great way for a business to operate. It doesn’t cost much to start, ongoing expenses are minimal, and you are free to roam the entire Amazon kingdom. Aside from being able to target the hundreds of millions of people that reside in this kingdom, you can also directly benefit from Amazon’s shipping, customer service, and reputation.
However, simply having a seller account on Amazon is only the start. You might be steadily selling products and bringing home a tasty slice of revenue, but are you going all-out to maximize those profit margins? Ultimately, there are many – many – points to consider before that operating profit margin hits the heights it is capable of reaching.
Fortunately, you don’t have to worry about all of the different aspects to cover when maximizing profits on Amazon. This is because we’re here to help. As a specialist Amazon consultant, Nuanced Media understands how to make the most of your product listings. We’ve helped small businesses, large organizations, and everyone in-between takes their gross profit margin to the next level.
To show how this happens – and why many brands decide to work with an Amazon consultant – here’s a quick look at some of the main elements we review and refine to maximize profit margins.
Analyze the Current Scene
First of all, we analyze the current performance of your Amazon business. Now you might not want us snooping too far into your sales figures, Amazon seller fees, total revenue, and so on, but it is necessary for us to gain the full picture.
Most importantly, we take a close look at the products you offer and your brand in general. By doing all of this, we identify opportunities to improve performance, lower the cost of goods sold (COGS), increase sales figures, and ultimately boost your company’s profit.
Product Listings That Get Results
When a business decides to sell on Amazon, one aspect that is often overlooked is the product listing. However, the listing can be key in not just convincing the curious to become customers but also for your products to show up in relevant search queries.
Our holistic approach to these product listings means we don’t just take a few aspects and put them together. We conduct a complete analysis of the product category, understand what customers are seeking, and we nurture any new opportunities that become present. By putting in all of this groundwork, we understand what’s necessary to push your product listings in the right direction.
Listen, we know the type of product listing structure that works with customers. We realize the type of information they want to learn about your items. We also understand the importance of effective keyword implementation. Yet without that foundation gained from comprehensive research, these listings won’t hit the heights we seek – and that’s maximizing those profit margins.
As touched upon in the previous point, one of our tasks is to analyze the category – or categories – your products reside in. This is done to learn more about the competition. Ultimately, it’s essential to know what you’re up against. Why are certain products ranking above others? What type of price are they selling at? Which keywords are they targeting with their listings?
With this research under our belt, we gain the knowledge required to understand why certain products sold over yours. In some cases, it might simply be due to the product being superior and better priced. In other cases, however, the key difference could be that all-important product listing.
Following the research, we’ll make the necessary tweaks. This could be everything from revamping the product title to changing the price. Whatever changes are made, these are done with your brand’s best interests at heart.
Lower Your Expenses
It’s true: running an Amazon business will typically have fewer ongoing expenses than a standard business. With that said, there are still Amazon seller fees that can seriously cut into your profits. This is why it’s important to reduce your expenses when possible – and that’s where we help.
As an expert Amazon consultant, we can advise on what products you should – and shouldn’t – be sending to the Amazon fulfillment center. Those fulfillment fees can quickly mount up, especially when you factor in that storage fees are based on the product’s size and weight. Due to this, it doesn’t make sense, for instance, to send heavy yet inexpensive items to Amazon – and you should handle the shipping rates and delivery on your own.
There are also long-term storage fees to factor into the equation. With numerous Amazon seller fees to navigate, we pay careful attention to spot opportunities to lower your seller fee expenses – and ultimately enhance your net profit margin as a result.
Continue to Measure & Refine
A strong, successful Amazon SEO campaign isn’t a one-and-done thing. It is a continual effort that requires constant analysis, measurement, and refinement. Because of this, our expert digital marketers don’t slow down with your campaigns – even if they have seemingly cracked the maximized profit margin formula.
They test out different product listing descriptions. They find out the sweet spot for the cost of goods sold. They see what changes other individual sellers are making to improve their own sales numbers.
Another important step we make is to react to the latest eCommerce marketing strategies. The marketing world, from SEO to paid ads, is constantly evolving. There’s no time to slow down, particularly when those maximized profits are on the line. The result: we always incorporate the latest tactics when appropriate, ensuring your brand stays ahead of the competition.
Furthermore, our marketing team pays close attention to changes in the markets you’re targeting. Certain products could grow in popularity, others might experience a temporary dip, while others could no longer be worth focusing on. The expected prices for these items may also fluctuate. By being able to react first to these changes, it’s possible to significantly improve the overall performance of your Amazon marketing campaign.
Ryan Flannagan is the Founder & CEO of Nuanced Media, an international eCommerce marketing agency specializing in Amazon. Nuanced has sold $100s of Millions online and Ryan has built a client base representing a total revenue of over 1.5 billion dollars. Ryan is a published author and has been quoted by a number of media sources such as BuzzFeed, CNBC, and Modern Retail.