Whether you are trying to set up your FBA sales business or looking for new ideas on how to increase sales on Amazon FBA, this is your go-to guide to make yourself a brand and become successful.
Amazon has empowered many online retailers by providing them with a steady stream of traffic. Its program Fulfillment by Amazon (FBA) lets users sell their own merchandise on Amazon platform and make millions. With FBA, merchants don’t have to worry about warehousing, packaging and shipping, and customer service. The fulfillment program by Amazon takes care of all that.
What the users have to do, is to simply select a product, list it on Amazon and send it to their nearest fulfillment center and Amazon will do the rest. Due to the convenience it offers, this single distribution channel has become a bread and butter for many ecommerce players in the USA and abroad.
In fact, data shows that 48% of online shoppers in the USA start their shopping on Amazon versus anywhere else on the web.
Table of Content
- What is FBA Sales?
- How Is It Helping Ecommerce Businesses?
- Limitations of FBA Business
- Creating Your Ecommerce Store
- Summing It All Up!
Let’s dig deeper and see if we can turn this single distribution channel into a multi-distribution channel so that those who are learning about how to increase sales on Amazon FBA can increase theirs with ease.
What is FBA Sales and How Can it Help Ecommerce Store Owners?
Fulfillment by Amazon (FBA) allows an average Joe to sell his products on Amazon ecommerce store. You don’t have to have an ecommerce store or prior experience of sales to start your business. FBA is pretty straightforward to set up and one can do it easily by watching the official videos provided by Amazon.
How Is It Helping Ecommerce Businesses?
To know how FBA is helping ecommerce businesses make hefty profits, let’s read a few statistics.
- Half of the products on Amazon estore are FBA products
- Amazon made $22 billion in sales in 2016 and 50% of the revenue went to third-party sellers
- Four times more FBA sellers have earned US$ one million in sales in comparison with Ebay sellers in 2016 alone
This shows how FBA is empowering people who had never thought of establishing their online business before.
Limitations of FBA Business
The problem with FBA is that it limits merchants to a single platform. This means they can’t promote themselves as a brand and become an Amazon-only seller. Here are a few drawbacks of FBA for sellers.
1. Lack of Brand Equity
Amazon fulfillment program allows users to sell their own merchandise online. But while doing that they don’t get any recognition on the platform. This decreases their brand image and reduces them to the title of an ‘FBA seller’ alone.
Just see how much space an Amazon FBA seller gets on the product page.
Not much right?
This is because the platform belongs to Amazon and it isn’t going to give you a level playing field unless you are sponsoring your products through them. There are many more major issues, like…
2. No Customer base
Another problem with Amazon FBA is that you can’t build your own customer base. Most of your orders are coming from Amazon itself or the search engines. Both of these are great ways to get more orders but they don’t guarantee recurring orders. Do you know why? Because you are not collecting leads. When you don’t collect leads you can’t build a customer base.
3. No Conversion Tracking
Amazon also doesn’t allow merchants to track their conversions. They only know the amount of products users have purchased – this isn’t enough to create a proper customer journey.
4. Lack of Paid Campaigns
Another problem is that you can’t run paid campaigns directly on your Amazon store. So, you either have to sponsor your products on Amazon or create a landing page to drive people to Amazon product pages. However, this is a clumsy strategy especially because many people don’t like landing pages unless they have an ecommerce store.
But is there a Better Option?
Yes, there is.
While fulfillment is great for most businesses, it is not the end of the journey for online sellers. Businesses can create their own ecommerce stores and use FBA for logistics and shipping to make even more profits. An example of a estore that is already doing this is Maple Holistics. We have published a ecommerce success story of Maple Holistics ecommerce store detailing its journey and the business model that it uses.
Creating Your Ecommerce Store
The best way about how to increase sales on Amazon FBA is by creating your ecommerce store and promoting it.
Note: You won’t be creating a separate checkout process for your ecommerce store. Instead, you will be just creating a new channel for getting traffic. A channel that you can control without restrictions.
See how the checkout process will work on the new store. This will not limit ecommerce stores to a platform and store owners can promote their products through all media (organic and paid) easily.
When someone will click on the ‘BUY’ button, they will be automatically directed to the Amazon product page.
Benefits of Turning FBA to an Ecommerce Store
1. You Build a Relationship
The best and the most obvious reason for turning your FBA business into an ecommerce store is to build real relationships with your customers. This way not only will you be gaining their trust but you will also get repeat customers.
2. You Nurture Repeat Customers
As we were already talking about repeat customers, this is another obvious reason for converting an FBA business to an ecommerce store. Your customers will not only be Amazon buyers now. The world is open to you. You can promote your store through social media, search engines, and what not. Simply start marketing it like a pro!
3. You Can Build Customer Email Lists Easily
Now that you have an ecommerce store you can easily create a customer list. This option was not available to you before because Amazon doesn’t allow you to do that. But now, that you have a separate ecommerce website, you can collect the emails of your ecommerce customers by offering them goodies through giveaways, free e-books, and gift guides. You will soon have a list of customers whom you can market to easily.
4. You Can Track Conversions
Another thing that was previously untraceable with Amazon FBA is conversions. Improve your Google Analytics skills and you will soon have the whole customer journey in front of you. Find out how and where your customers are coming from. Where are the abandoning the carts, and bouncing off your website?
5. You Can Run Paid Ads
One of the best options to promote your ecommerce store is through paid ads. You can list your products on the ecommerce store and promote either the product pages or landing pages. When users click on the checkout button they will land on the Amazon product page of that product, from there they can easily buy it.
How to Convert FBA to Ecommerce Store?
Now, you are ready to start your ecommerce store. Let’s learn what things you need to about how to increase sales on Amazon FBA by getting a store of your own.
1. Select a Reliable Host
First and foremost, select an ecommerce hosting solution that is reliable and scalable. This means you need to either go for a virtual server or a cloud solution. Virtual servers are expensive and cannot scale, but cloud solutions are scalable and are available at a reasonable cost.
In fact, at Cloudways you can get a cloud solution for as low as $10 per month.
2. Choose a Trusted Ecommerce Platform
Next, select an ecommerce platform that is easier to set up and highly scalable. This is possible with all self-hosted ecommerce platforms including Magento and Woocommerce. Both of these are beginner-friendly and easy to set up.
3. Optimize for Search and Social
Now that you have an ecommerce store, it is time you start marketing it. Because if you don’t, your ecommerce store will not generate any sales. So, what do you do? You optimize your ecommerce store to get favorable on-page and off-page search engine results.
Lastly, advertise your ecommerce store using paid campaigns both on social media and search engines. This way you will be able to get targeted traffic to your website. Hence, more conversions.
How Much Will This Cost You?
Hardly $10 per month for a basic e-store. You will need the following to turn your FBA store into an ecommerce brand.
- A proper domain name that costs around $10 per year
- Reliable Cloud Hosting that costs $10 per month
- An ecommerce platform like Magento or WooCommerce (both are free)
- Lots of relevant and optimized content. You can write this content yourself or hire a dedicated writer for your website.
- [Optional] Budget for paid campaigns. You can initially keep $50 for testing paid campaigns through social media and search engines.
Summing It All Up!
There comes a time when your FBA business will become flat. It won’t get any more traffic or orders. This is the best time to start your ecommerce business because now you can increase your sales on Amazon by making your store into another revenue stream for your FBA business.
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