AMZ Seller Financing • September 24, 2018
What does scaling an Amazon business mean? Simply put, it means to get bigger.
There is an old saying that a business can either go up or down, because there’s no such thing as staying in place. And this is true. Although it might seem to you that it’s “business as usual”, if you’re not going up – you’re actually going down.
The competition on Amazon is fierce. Every day, there are thousands of new sellers, all ready to jump in the game and take as much of your target base as possible. Remember that your business is as good as your long-term strategy. And scaling is inseparable from it. That is why you shouldn’t think of scaling as a one-off thing. It is a process of gradual business development.
Here are 5 essential steps to scaling an Amazon business.
Steps for Scaling an Amazon Business
1. Improve Your Seller Ranking
You cannot really scale if your Amazon ranking is poor. This is why it’s necessary to work on your ranking until you reach the top. Obviously, you don’t have to be #1 in your product category (although it wouldn’t hurt). For starters, focus on entering the top 20 or top 10 in your product category. This is easier said than done, but the key thing is that – it can be done.
There are several factors you need to take into consideration here.
- First of all, you need to include appropriate keywords in your product listings.
- Then come the product descriptions, which have to be clear and effective.
- And finally, there are the reviews. Be sure to encourage customer reviews, so that you build your seller credibility.
By improving your seller ranking, you will be in a position to sell more (and eventually, to outsell your competitors, or the majority of them).
2. Have a Competitive Advantage
The best way to outsell your competitors is through having a competitive advantage. Basically, this means that you should find an “angle” that will enable you to sell more. What sets businesses apart is their ability to provide customers with an exceptional product. And a good competitive advantage usually means – finding a good business partner.
In today’s world, it is easy to find business partners. It‘s easier than ever before. For example, if you’re selling a certain type of clothes, search social media platforms and find an influencer in your niche (shoes, jackets, etc.). Or, contact a manufacturer and discuss potential collaboration. Basically, you need to find a person that can generate a lot of visits to your Amazon store. By having someone that will refer customers to you and offer them discounts, you will be able to skyrocket your sales.
3. Launch New Products
It’s not recommended that you branch out too much, because you wouldn’t be able to control the process and your business would suffer greatly. However, you should definitely think about including new products in your Amazon store. Having more products means giving your customers more to choose from. Therefore, it is crucial that you research your customer base before deciding which new products to include.
You should add products that your customers are likely to buy along with the products you are already selling. Research the subcategories within your main product category, and see what customers like. Also, check to see what other products your competitors are selling. Then, you will be able to add the best products to your Amazon store. And when the customers see the famous title “Customers who bought this item also bought…” – it will be so much easier for them to make the choice and purchase more.
4. Build a High-Quality Website
Relying solely on your Amazon page is never a good idea. There are too many online sellers out there; and so many of them use additional selling channels. Some use only social media platforms, but there are also those who have high-quality websites. And these sellers do great business.
Therefore, make sure that you have a high-quality website to accompany your Amazon store. Investing some of your earnings into a website will pay off in the months and years to come. Remember, you are in this long term. Having a website will enable you to establish yourself as a reputable Amazon seller and help you scale your business. Your website should include:
- a webshop page (where you list all your products, with detailed descriptions and links to Amazon.
- an “about me” page (where you allow visitors to learn more about your background and experience)
- a contact page (with a contact form, so that the customers can easily reach you)
Once you have a website, you can add social media buttons and link them to your social media platforms. Now, you will have a trilateral online store: an Amazon page, a website, and social media platforms. You will be able to promote your business much better, attracting new customers and making more sales.
If you really want to scale your Amazon business, there is no way you can do everything alone. You will definitely need help. Many Amazon sellers fail simply because they refuse to allow extra staff on board. Mind you, there is no need to outsource everything, but make sure that you find help for those areas that take up too much of your time.
Here are some of the areas you might need help with:
- customer support
- inventory and delivery
- website and social media management
You will definitely need help with at least two of these, and on a regular basis. Maybe you enjoy working on your marketing strategy, but you have no time for solid customer support. Maybe you like spending time on your social media platforms, but that takes you away from keeping track of your inventory. Find your “weaknesses” and outsource them. You will have more time on your hands to work on your vision and scale your Amazon store.