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It all begins with the product, and this is often the dream that encourages someone to launch an Amazon FBA business. Being competitive on Amazon FBA today means doing plenty of research about who else is operating a business and how to stay ahead of the trends on Amazon FBA.

One other aspect of operating your Amazon FBA business is remaining mindful of the fees and costs associated with managing your company and growing your profits as effectively as possible while keeping that in mind. Selecting the right products, however, will set you up for success and doing a comprehensive sourcing and research process to identify the products you intend to offer will steer you in the right direction as you need to make adaptations as your business grows. It can be a mistake both to source low quality products and to source expensive products with that market.

Watch Out for Low Quality

First, let’s dive into the dangers of low quality products. If you are intending to sell a private label product, you need to ensure that it is high quality. Your Amazon FBA business could be compromised from the start if you source a low quality product. It’s very difficult to generate reviews on Amazon and all it takes is a handful of negative reviews to sink the entire listing and your newly launched Amazon FBA business.

Take the time to look at samples and evaluate carefully for functionality, durability and overall quality of the product to address concerns that would likely be the top sources of complaints from buyers. Furthermore, look into your competition to see what complaints have already been filed about this particular product or other products. This will give you a window into the types of issues that you can improve on.

You might even want to look at some of your competitors’ products and order them directly so that you can get a sense of what you’re looking for in your own product. It goes without saying that selecting a low quality product dooms your business from the beginning and can make it difficult for you to ever find your footing again.

It’s well worth the effort to invest only in high quality products that stand to meet a customer’s need while also possibly improving on problems with your competitors’ products. Choosing an expensive product for your market can also be a mistake. This is because of the hidden costs of operating a private label business.

Don’t Start Without Proper Help

Getting started with a selling process too quickly means that you might overlook some of the expense related issues in running an FBA business. Whether it’s Amazon fees, shipping, sourcing, listing creation, promotions, or PPC advertisement costs, there are so many different costs you must be aware of before you even get started with running your business.

It’s always good to have a high quality product, but if you’re not able to be a match for most of your competition on a price level, you’ll struggle. Schedule a consultation with the experienced brokers at Website Closers before getting ready to sell your business today.

 

If you’re an online retailer selling on an e-commerce site like Amazon FBA or your own website, you’ve probably already encountered and struggled with the problem of shopping cart abandonment, which happens when a customer adds an item to their cart but then leaves the site prior to checking out. This is known as cart abandonment on Amazon.

Can You Fix Cart Abandonment?

Since you can’t always tell how long or why a person put your item into their shopping cart but never checked out, details you glean from your own website can help you address these issues on Amazon. As an Amazon FBA seller, you must me mindful of cart abandonment on Amazon even if you cannot address all the causes behind it.

E-commerce businesses of all sizes and shapes experience cart abandonment, and there are steps that you can take to increase the chances that the person will become a converted buyer and check out with the items in their cart. Your cart abandonment rate is something you should calculate and better understand, especially if you operate your own website.

How to Determine Cart Abandonment Rates When You Have Data Access

Your cart abandonment rate equals 1- {the total number of shoppers who checked out with their transactions divided by the total number of shoppers who added something to their cart}. Any e-commerce merchant will be familiar with cart abandonment and understand that it’s a major pain point that keeps you from being able to grow your profits. It’s simple, however, to ignore how much of a major impact cart abandonment can have.

It’s anticipated that more than $4.6 trillion in sales on e-commerce website are lost every single year due to cart abandonment. The most likely items to be abandoned in a cart are clothing, tech and housewares, and nearly half of all shoppers admit to abandoning something during a check out in the past year. That’s compared with only one-quarter of people who walk away from a purchase in an actual brick and mortar store.

Average cart abandonment rates across all industries are over 75%. This happens every single day, and mobile drives a tremendous amount of e-commerce traffic, but has even a higher average abandonment rate of 80%.

Some of the most common concerns that lead customers to abandon their car include:

  • Issues related to security
  • Complex check out procedures
  • Required registration
  • Hidden fees and costs
  • High shipping costs

There are things you can do to evaluate your current cart abandonment statistics and work to improve them. This will not only enhance your profits but the overall experience that customers have in working with you, and this process is instrumental in protecting your business if you are an e-commerce site operating on your own.

If an average check out form contains 15 fields, for example, you can simplify a check out by reducing this. Showcase your security credentials, be upfront about any fees and costs and offer affordable shipping. All of these can entice a buyer who is already on the edge of checking out with your product in their cart, to taking the next step.

 

Resourcing and selecting the right product to sell on Amazon FBA is half the battle for being successful with your Amazon business. You can get stopped before you’re even started with your Amazon FBA business by not selecting an appropriate product that is something your customers will enjoy and provide positive reviews on, but you can also find yourself dealing with legal entanglements if you don’t carry out the right research. Let’s start first with the discussion about the dangers of sourcing a patented product. When selecting the right label product to sell on your Amazon FBA store, you must have a basic understanding of patents.

In certain cases, sellers will have a product that is manufactured even though that product could actually be under a patent. More than likely, manufacturers you might connect with and buy from won’t know whether or not the product is patented. They might not realize the work that they should do to research whether or not the product is under a patent and are simply motivated in finding anyone who will buy the product.

Carrying out business in this manner on behalf of the manufacturer, however, doesn’t necessarily mean that it’s legal. You could find yourself in a significant mess if you invest most of your capital in product inventory only to shortly thereafter receive a lawsuit or cease and desist letter from the patent holder. Make sure you do your research about the product that you’re working with as well as the supplier. All of the elbow grease put in on this end of your business transactions can have a positive impact.

The second mistake you can make with a product is in not inspecting it fully. This goes along with some of our mistakes we’ve discussed in the blog before, such as sourcing a low quality product. The product must come off the manufacturing line in the way that you expect, and it must be provided to your customers in good quality and in overall good shape.

Many successful Amazon FBA sellers will even hire an inspection agency that is involved in the manufacturing process. The purpose of the inspection agency is to go in and look at the manufacturing process on site and monitor for any flaws or defects that could cause a problem on your end.

Even if it’s not geographically feasible for you to do this yourself, investing in this effort can save you a lot of money and time in the long run because you’ll be able to identify mistakes well before that inventory is sent to you in the United States.

Make sure that you understand all of the various aspects of running your business that intersect with the selection and manufacturing of products.

Doing your homework on this and building your business effectively will help you generate profit sooner rather than later and enable you to sell your business successfully in the future with the help of an experienced and knowledgeable business broker.

 

Launching your new business is an exciting prospect, but if you fall for some of the most common mistakes that plague new sellers of Amazon products, you could wind up making critical errors that could cost you in terms of profitability or the speed at which you are able to accomplish your business goals.

Paying too much attention to Amazon FBA trends could backfire.

When is a Trend Not Worth Following?

Understanding trend markets can be powerful as well as dangerous for a new Amazon FBA sale. You’ll want to be careful about chasing trends, particularly as a newer seller on the Amazon FBA platform. Putting too much of your energy into a trending topic or idea while letting other areas of your business fall short sets you up for possible long-term losses.

Trends are only truly profitable for those who are early to the party and by the time you’ve learned about it, the trend may have already passed. If you hop into a market that becomes over-saturated quickly by other Amazon FBA sellers who are catching on to the same trend, the trend could pass entirely by the time that you begin to cash in.

Amazon FBA trends are constantly changing, so it’s hard to stay ahead of the curve.

Who Succeeds with Trends on Amazon FBA?

The people that profit from trending markets on Amazon FBA either became extremely lucky with their timing or are a manufacturer, so they benefit from low costs. While some have chased in on Amazon FBA trends, that’s not true for everyone.

If you have a significant amount of capital to pour into a product in order to hold your ranking, you may be successful with investing in trends, but everyone outside of these parameters will end up taking a financial hit. The other major mistake that many people make when it comes to Amazon FBA is failing to appropriately research the barriers and restrictions of your target market.

Not all Amazon FBA trends are short-lived, and solid research will never go out of style.

It is hard to get started with the target market if you’ve never been involved in Amazon FBA before and if you haven’t done the appropriate research to determine what is most likely to be successful. There will always be some trial and error involved in starting your business, but there are several different categories on Amazon that have a required approval process to begin selling and you should know these ahead of time.

You might have to submit invoicing and formal documentation or even pay a fee upfront to be allowed to sell in that category. If you’re hoping to gain traction quickly and start gathering profits sooner rather than later, this could be a big mistake if you don’t carefully vet your market. As you do your research, keep track of every requirement necessary on Amazon’s end for you to become an active seller right away.

Make sure that you understand every category you’re thinking about selling in and look at Amazon’s approval process for those individual categories. There are also several other products that might have restrictive barriers to entry and you should keep note of these and start your process sooner rather than later, so that you can ensure you have all the information you need to launch your Amazon FBA business successfully.

The most long-lasting of Amazon FBA trends is to build your business to be sold.

 

Remember the most recent time you purchased something, and the product didn’t show up, showed up late or was damaged. Did you ever make a purchase from that seller again? According to some research, nearly 40% of customers say they’ll never shop again with a company after they’ve had a bad delivery experience.

Most people choose to work with Amazon since the company already has a solid structure in place for accepting and shipping orders in a timely fashion. This can be a problem for someone who has to handle the shipping on their own, but Amazon FBA makes sure that is taken care of from Amazon’s end.

Keep this in mind as you choose to structure your own online business. More business owners than ever are turning to Amazon FBA because the fulfillment is handled completely by Amazon, taking these delivery concerns off of your plate. Order fulfillment refers to the process of getting, packaging, processing, picking and shipping orders.

A third-party fulfillment services provider or partnering with Amazon FBA is critical for developing an effective order fulfillment strategy. This builds customer loyalty and causes people to feel trust in your business.

There’s no way to determine a one size fits all fulfillment strategy, but there are numerous important things to keep in mind when deciding how to scale fulfillment for the online store.

Many people turn to Amazon FBA for selling a high volume of orders because doing the research on your end means you can hand over much of the fulfillment to Amazon’s processes.

The total volume of products you sell and your total monthly volume of orders plays a significant role in identifying the fulfillment solution right for you. Low order volume can assist with the cost effective nature for you to maintain your fulfillment inhouse instead of outsourcing.

If you can sell a limited volume of products and only handle shipping a few orders each week, you likely don’t need a warehouse system for management or a full inventory.

However, if your order value is slowly increasing or if your business is growing quickly, you can tap into the power of the customers already visiting Amazon’s website and use this to your advantage in selling your products.

Order fulfillment management that already works with your existing e-commerce platform makes things much easier, which is why Amazon FBA is a leading way for third party sellers to get involved.

When partnering with Amazon FBA, you can ensure that the fulfillment options are aligned specifically with what customers have come to expect. Since many people are familiar with the Amazon brand and have a high level of trust in it, when it comes to sell your business you can leverage the power of experienced and knowledgeable business brokers to list your company for sale and obtain a buyer request sooner rather than later.

The support of an experienced business broker is instrumental in outlining a strategy for you to sell your company as soon as possible and receive maximum compensation for the profits you have worked so hard to build.

 

As an Amazon FBA business owner, you probably have numerous items on your to do list and it can be difficult to keep track of all of them, and to prioritize what is most important. However, you should realize that positioning of your Amazon sponsored ads can have significant impacts on your outcomes.

Do I Need to Spend a Lot of Time with Ads?

You should always dedicate a significant portion of your time working on your business to tracking as well as improving your Amazon sponsored ad campaign overall performance.

Identifying concerns and correcting them before the campaigns begin to suffer in terms of performance can save money as well as effort in the future from having to go back and try to fix things all over again.

The Most Common Mistakes Made with Amazon Sponsored Ads

Amazon’s algorithms can be complicated to figure out, and we’ll never truly know all of the details, but in general, these details are designed to reward products that perform well. Even one day in which you experience a low sales volume can have a negative influence on your total sales.

Your paid rank and your organic rank will suffer as a result. Always pay attention to every movement in your ranking. This means that you’ll know the indicators for when your ad is performing well. This leads to a well-performing campaign and can also assist with gaining organic positions for your promoted listings.

What Ad Strategy Should You Be Using?

The sophisticated algorithm used to determine Amazon sponsored ads is unlikely to be figured out on your first attempt.

Even if you have some prior experience running campaigns on different types of advertising platforms, there are so many moving parts that it’s hard to figure out which of the pieces is most important. Most people assume that if they run campaigns before in Google Ads, then they can transfer the same experience over to Amazon sponsored ads. Sadly, this is not the case.

What Makes Google Ads Different From Amazon?

Google Ads are designed to take traffic from various trap channels to optimize these based on the goals that you identify, such as viewing a key page, drawing in a lead, or making a purchase. However, Amazon’s algorithm specifically targets ads that make Amazon more money, which is a totally different approach altogether.

Your campaign performance for Amazon sponsored ads will only be as effective as you are at managing your overall performance. The biggest mistake that most people make with sponsored ads is to focus solely on ACoS. You have to know the break-even point, including your product’s cost per click conversion rate and the maximum amount of money you are willing to spend to acquire a customer. Then you can generate the maximum cost per click that you can afford to pay while still remaining profitable. Other elements that should be included in your consideration are the listings’ current conversion rate, your max CPA, and the cost of the goods sold, including Amazon fees in any of your manufacturing cost.

The keywords that you are currently targeting might not be the best performing, which means that you need to come back and tweak these in the future. If you’re going to dedicate time to any one thing in your Amazon business, it should be sponsored ads and leveraging these to be as effective as possible.

Having a clear system for addressing these issues and being able to pass on your system to a buyer when it’s time to sell your company, can be instrumental in making the process that much easier and in leading to a better sale price of your company overall.

 

Have you already heard about Amazon’s relevancy score but are not truly sure how it actually works? Unfortunately, like plenty of information given out on Amazon, there are various complexities involved in Amazon’s relevancy score, and it might not be possible for you to get all of the details.

Basics of Amazon’s Relevancy Score

This metric comes directly from Amazon and it measures how relevant a particular keyword is to a specific ASIN. The relevancy score is based on where the keyword appears when keywords are found in titles and if multiple keywords are present, and how often the keyword appears in the description.

Why Should You as A Business Owner Care About Relevancy Score?

Making any decision for your Amazon business is one that must consider that Amazon wants to create a healthy market in which shoppers can always find what they want and will continue to return based on their individual experience.

Amazon wants individual merchants to assist them with doing that, and for that reason, will reward listings to that end. If you are running advertising on a pay per click method through Amazon, you know that it is not as simple as setting up a budget, walking away and crossing your fingers to hope for the best.

Amazon tends to reward advertisers that create advertisements that users interact with and make purchases through. Campaigns that are not directly relevant to the shopper’s overall experience, under Amazon guidelines, might not be shown to a shopper at all, regardless of the budget or bid. Amazon can sometimes even deliver ads at a lower bid if they are perceived to be more relevant to the keyword.

The Determining Factors Behind Amazon’s Relevancy Score

Relevancy scores are initially framed by the product category. Then these will adjust based on many different elements, like competition and how other products are behaving for the same keywords, how shoppers identify the product through paid and organic methods, and where and how often a keyword appears in a listing. As soon as you generate an ASIN, the initial relevancy is identified.

Amazon evaluates the sub-category and category, as well as other factors, to set the relevancy table, and then looks at how frequently that word and other words appear in the bullet points, title and description. When a listing is relatively new to the table, it is easier to identify relationships between the relevancy score and changes you make to your listing. You can also describe your product in any way that you like, since Amazon will trust your words until more details are collected from users through traffic.

Once a listing becomes active on Amazon’s website, you will identify a relevancy score change every so often without any change to the listing. This can make it difficult to tell what you need to do or any updates you need to make on your end. Keeping a close eye on these tools can be extremely helpful for articulating a relevancy score that is most in line with your individual goals. When it’s time to sell your Amazon business, schedule a consultation with an experienced business broker like those working at Website Closers.

 

Are you interested in selling your e-commerce company, but you are not familiar with the process that you need to consider? Selling any e-commerce company doesn’t have to be difficult when you retain the services of a business broker. But the first decision that you’ll consider in this process is whether or not to sell your e-commerce company via a marketplace or a website.

There is no doubt that there are many different benefits to selling products online, which is probably what drew you into the process of doing it yourself. Reaching more customers than a traditional brick and mortar store and being able to sell at all hours the day greatly expands your potential to make profit. There are so many different e-commerce options, and as a result of that, people are looking to cash in and tap into the power of selling on an e-commerce website. Some merchants must consider this initial decision of selling on their own websites, such as an independent e-commerce website or selling through another company like Walmart, eBay, Etsy or Amazon. Determining what is most appropriate for your business involves thinking about the benefits and downsides of each.

There are many different advantages to selling on a third-party marketplace and this is a top reason why plenty of sellers use this option. First of all, it is simple to get started and maintain a business when launching on a third-party marketplace.

An online marketplace can simplify the process, particularly for new sellers. This is because the infrastructure is already established, and this saves the hassle and time associated with building your own website from scratch. Since no one individual seller owns an online marketplace, the payment and transaction details are handled by the marketplace.

This removes a lot of things from your to-do list and can make the process easier overall. Since many of these marketplaces already have established forms of traffic and plenty of people visiting their website, there are millions of shoppers already leveraging them to find the best deal. You can make an impact by tapping into the power of the traffic already established on the marketplace.

There are downsides, however, to selling on a marketplace. Since there are multiple competing brands on the same site, you must always be aware of how to stand out from everyone else who is trying to accomplish the same goal of stealing their market share. Your competitors might target shoppers who visit your individual listing and then place advertisements for their own products on your pages.

Whether or not this impedes your ability to do business, depends specifically on the competition intensity in any product category, which means that you might not get the easy sales or exposure that you are intending. Furthermore, people who purchase your products might never realize that you, as the third-party seller, truly exists. Most people who shop from these marketplaces, such as Amazon FBA, assume they are buying from that marketplace, even when it is relatively clear that they are purchasing from a third-party seller.

Because of these disadvantages, it is important to realize that you might want to do some additional steps to build a niche site and create your own brand awareness.

 

 

Selling your small business for the highest possible price is likely the result of many years of persistence and dedication. In fact, this might have been the dream when you launched your company.

But it can be very hard to find buyers for your business if you are not in a position to collect solicited offers or in a hot and popular niche.

The best way to gain access to a larger pool of qualified buyers and a more structured and efficient selling process is by working directly with an experienced business broker.

Much like a real estate agent, a business broker serves as a sort of matchmaking service to bring together sellers and buyers. The expertise of the right business broker can help you to get the highest possible sales price and make the process easier for you. There are several different ways that you can find a business broker.

Practice Your Own Due Diligence

Just as any prospective buyer of your company will do their own due diligence to complete research, you should too. Look at the broker’s experience, background and credentials. Have any complaints been launched against the broker, review the business bureau website and investigate the references provided by the business broker company. Make sure that you ask direct questions about whether or not they have handled this kind of business before.

Keep the Sale A Secret

If you are the chief person in charge of the company, avoid losing key suppliers and staff. Do not tell them that your business is for sale until you and the business broker are ready to move forward. The sale of your company is a very confidential matter and your business broker should have the same approach by ensuring all necessary safeguards are in place to protect the value of your company. One slipped word to your employees, supplier or customers that you’re selling could have negative repercussions for your business operations.

Be Aware of Upfront Fees

Business brokers charge fees ranging from 10% to 15% commission, based on the sale price of your company. But be aware of any broker that is asking you for a significant fee upfront just to complete a business valuation or start any application process. Your business broker should be able to explain their individual process to you before you get started.

Consider the Marketing Plan and How This Will Influence Your Business Sale

Appropriately positioning the sale of your company to motivate and attract the buyers should be your top goal. Make sure that your business broker has a thorough marketing plan, including explanations about marketing strategies that could bring in a number of different types of valuable leads. Your broker should be able to walk you through how they’ve been in situations like this before and have helped people to prepare as effectively as possible. You should have a high level of confidence in your business broker’s ability to sell your company.

Since it’s such a personal issue, but also one that touches on your professional boundaries, you need to retain the services of someone you can trust and someone who has extensive experience in this field. Don’t hesitate to ask questions of the business broker during your initial conversation. You should feel confident and excited about the opportunity to work directly with a broker who knows exactly what they’re doing.

 

 

Some people have gone through the process of creating their first product on Amazon and then also launching a niche site in the same space.  When the niche site begins to grow, you can also use direct links on that page to sell on Amazon associates.

This skill of building niche sites could help you rank your company more effectively in Google.  And then also tap into the power of that tool to grow your Amazon FBA business even more effectively.

Referring a high volume of outside traffic can help to grow your Amazon FBA business. Most of the sales of your products should come directly from the traffic on Amazon in order to be effective.  The niche site, however, definitely should send additional traffic and help you to grow the business.

This additional aspect of your company can be instrumental when it comes time to sell your business because this is a bonus selling point to potential buyers showing that you have already established a site that has powerful search engine optimization tools and is already driving traffic to the Amazon FBA business indicates that you have significant knowledge and a tool that can easily be passed on to the other buyers.

After running this business for several years, you might decide that you would wish to invest your money in other ventures. Furthermore, the particular products that might have inspired your Amazon FBA business and development of a niche site might no longer be your key area of interest.

Many business owners identify that where they are most passionate at that point in time, things will tend to be most successful.  While this isn’t a rule of thumb that every single person should follow all of the time, it’s a good idea to pick products and businesses that you’re passionate about.  This will be reflected in the overall development of your business and your ability to sell it in the future.  The support of online business brokers can be extremely helpful in developing a plan to address how to sell your business sooner rather than later.

The support of a business broker helps you to understand business valuation, tools and tips that you can put into place now that will help sell your business more effectively, the power of the business listing and the value of working directly with a company that already has established buyers who are interested in purchasing your product.

The more work you have done on the back end to make your company as competitive as possible, such as establishing a niche site, will make your company more appealing when it comes time to list it for sale.

Discussing your options with a business broker prior to deciding to move forward can help you identify whether or not now is the right time to sell your Amazon FBA business and all of the related collateral, such as your niche site.  The sooner that you can identify a broker who has plenty of experience and talent in the field, the easier it will be for you to sell your company.