Sellers are constantly looking for ways to boost their ROI while selling on Amazon. A well-planned strategy needs to be in place. While there’s always room for error, you can minimize it by constantly checking on what needs to be improved. How do you calculate your ROI? ROI = Profit/cost of goods sold x 100
Would you like to know some secrets from Amazon selling experts that will help boost your ROI?
Here are some tips on how you can improve your sales and ROI:
- Amazon seller fees
While selling on Amazon FBA, there are several fees that sellers have to pay. These fees cover the cost of storage, packing, shipping, handling returns, customer service, etc. It is difficult to ascertain if you’re being overcharged or charged wrongly sometimes which could reduce your ROI. Especially when you’re selling different types of products that fall under different categories you should calculate all the fees correctly using an advanced FBA calculator.
Verify all the charges according to what Amazon has officially published. Amazon has an outstanding system in place for everything but there can always be some errors. You should constantly check up on what you’re being charged and claim reimbursements when you find discrepancies. Using a more streamlined method of monitoring your FBA fees backed by data intelligence tools will help you recover unnecessary costs which reduce your ROI.
- Boost ROI by advertising to the right audience
You can run as many PPC campaigns as possible but to make the most out of them, you need to know who your target audience is. Only when you know what kind of audience you’re looking to target can you decide on other crucial things that you’re spending money on. Ask yourself which of your products attract what type of audience? Accordingly, you can curate a list of keywords that you need to target with your campaigns.
Your campaigns need to be engaging enough to drive customers to click on your ads and thereby increase your conversion rate. But the timing during which you will run these ads also matters. This again depends on who your target audience is. If they are regular employees who work 9 to 5 jobs then you should run your campaigns in the evenings. At a time when they are most likely to be browsing for items, these campaigns can generate the most sales and give you the best ROI.
- Optimize your listings
Running ad campaigns for products that don’t have well-optimized listings will do you no good. Your listings have to be well crafted and capture the attention of your audience. You must use as many product images as is allowed and they need to be of high quality. They should showcase your products well and from different angles.
Images of the product in use should be displayed so that customers have a clearer idea. Use comparison charts and bullet points along with A+ content to highlight the USP of the product. All this works towards convincing the customer to go ahead and complete the purchase. Captivating ads that direct customers to product listings that are attractive and can convert customers are a sure-shot way to boost your ROI.
- Advertise the high-performing products
Advertising just any product on Amazon will not give you a good ROI. Advertise only those products that are performing well or that need to be advertised the most. You have to check the profitability level of your product. This refers to how much revenue it generates along with how much it costs the seller to make a sale on it.
You have to check the product level profitability for each product in your Amazon store and pick the ones that will give you the best profit margins. These are the products that you need to advertise as they will boost your ROI. This works towards preventing you from draining your resources on products that generate lesser profits and don’t sell well. These are vital tips to consider when running a selling amazon business.
- Monitor all aspects of your Amazon business
Earning a good ROI is important to sustain your Amazon business. You have to be proactive and constantly monitor everything from your inventory to advertising and marketing costs, listing optimization, keyword research, product sourcing from the right vendors, etc. Staying on top of all these aspects will help you maintain a good ROI. Of course, it can fluctuate every now and then but you must stay consistent with your strategies and practices with systematic monitoring.
Adopting the above strategies and diligently following them will work wonders for your Amazon ROI. Selling and advertising on Amazon can be expensive and you may not achieve a good ROI right away but patience is key. Not making too many changes often and sticking to the strategies that work for you will give your Amazon profits the boost that it needs.
Arishekar N has over five years of web development experience and is the senior digital marketing strategies at SellerApp, a Specialist in SEO, SEM, and best conversion rate optimization strategies that deliver industry-leading ROI. Arishekar has helped companies through more effective search engine marketing and SEO strategies. He is most passionate about working with e-commerce companies.