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Expanding your own online business on Amazon: Tips from experienced FBA sellers

Anyone who wants to set up their own e-commerce business via Amazon FBA is initially confronted with many tasks in different areas. Whether it’s familiarising yourself with Amazon tools, researching a suitable product or looking for a manufacturer – each area requires specific knowledge that you first have to acquire as an FBA seller. The great advantage is that many successful sellers share their experiences with Amazon FBA free of charge on the internet and thus help other young founders to become successful on the platform.

For all those who are not yet familiar with Amazon FBA and are basically looking for suitable sales channels, here is a brief summary of the most important advantages: Amazon FBA stands for Fulfillment by Amazon and is a way to sell your own products via the platform and have Amazon store, pack and ship them via Prime. Amazon thus takes care of the tasks that are very expensive and time-consuming when you have your own online shop. There are already millions of customers on Amazon who are willing to buy and who only need to be shown the right products. In 2020, the monthly number of visitors on Amazon was around 500 million.

Amazon FBA makes it possible for even small sellers with one product to present themselves as a serious company and generate high sales. Because while the conversion rate for ordinary shops is often well below 5 %, figures between 10 and 30 % are not uncommon for Amazon. Such figures once again confirm the value of an Amazon visitor and the great potential that lies in setting up an Amazon FBA business.

This article is aimed at all those who are thinking about starting with Amazon FBA or are already in the process of doing so. The following 5 tips all come from successful Amazon FBA sellers who have started with one product, even without much start-up capital, and built seven or eight-figure businesses from it.

Tip 1: Make data-based decisions

Making data-based decisions is one of the most important criteria for success in Amazon FBA. From product research onwards, pretty much every decision can be made based on the data available. Whether a product becomes successful or not depends first of all on existing demand. Then it must be checked whether the demand corresponds to the current start-up capital. Otherwise, it happens that one is sold out and has no money for reordering. Working out USPs also works in a data-based manner by analysing the bad reviews of the competition and ironing out the flaws mentioned in your product.

Tip 2: Optimise touchpoints with customers

When it comes to branding on Amazon, the founders of the SNOCKS brand (Felix & Johannes) are exactly the right people to talk to. In the meantime, the two employ a large team, run an online shop, an agency and a café, and generate millions in sales. According to Johannes, one of the key success factors was the optimisation of touchpoints with customers on Amazon and branding. The customer comes into contact with the brand on Amazon through the listing, the order and the invoice email. These contact points should be attractively designed and emotionally charged in order to strengthen brand loyalty. In concrete terms, this means presenting the brand as a start-up, for example, and telling customers a story in addition to the product details. This can be implemented in the form of A+ content, a flyer and social media.

Tip 3: Build a network and knowledge

Marc Staller, Amazon Seller and Managing Director of Rep Ahead, cites networking and knowledge building as a key success factor in entrepreneurship. The more knowledge you build up in different areas, the faster you progress, recognise potential opportunities and can implement them directly. This also includes building up a network of like-minded entrepreneurs who, in the best case, are already further along and can help you with questions. Knowledge and networking can often be done at the same time by visiting trade fairs or Amazon events, where you can meet exciting people as well as exciting lectures.

Tip 4: Focus on product quality

Product quality is the be-all and end-all if you want to run a successful Amazon FBA business. If the quality is not right, there will be a lot of customer returns and bad reviews, which means fewer and fewer customers will buy the product. So poor quality causes a downward spiral that you can’t get out of. Jens Lindner, a veteran of the German Amazon FBA sellers, even tells us that his product was permanently blocked by Amazon due to a defect and thus had to be disposed of.

Tip 5: Don’t reinvent the wheel

The last tip comes from Gil Lang and adds to the topic of data-based decisions. To become successful on Amazon, you don’t need completely new product ideas or inventions. The secret is to use data to improve existing products and market them better than the competition. Launching products that do not yet exist on Amazon is a high risk because there is no data available for decision-making.

Amazon FBA therefore offers a lot of potential if a few essential aspects are taken into account. Much more important than speed is a focused implementation based on data-driven decisions. If you stick to this principle, you actually can’t go far wrong on Amazon. The right mix of knowledge acquisition and implementation ensures a long-term entrepreneurial upward spiral.

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