6 Ways To Start Scaling Amazon FBA Businesses
After selling on Amazon for a while now, you’ve got grand ambitions to expand your business and income. You know the ropes, launched a product or two and revenues are steady but are not certain to know what to do next to make it larger.
A number of FBA (fulfillment by Amazon) sellers find themselves in this situation where they’ve tasted the fruit of success and are ready to scale their businesses to the next level. They ask how to achieve it without increasing their workload. As a matter of fact, most of them want to scale their business while avoiding the labour.
In reality, it’s more straight-forward and less work to scale a FBA business than it seems. By leveraging your existing assets, experience and customer base, we can manage to scale your business and increase your revenue.
Here are 6 ways to upgrade a humble FBA business into a big one.
How to grow your Amazon business
Following is a list of the top 6 ways to scale an Amazon business. These methods are tried and tested which have had an positive effects on their revenue and profits. You can decide if you want to choose from 6 of them to help you enlarge your business game.
1. Launch More Products
Gaining a good understanding of your customers, now you can continue to build your brand to cater to them more!
You should select your additional products carefully so you can provide more products that your existing customers are interested in. To start your research, you can look at:
- Sub categories within your current main category
- “Sponsored products related to this item” from product listings
- “Customers who bought this item also bought” from product listings
- Your competitor’s Amazon Store
Next you need to look into supply and demand and pick your products with great potential according to it to boost your revenue. Higher value products, higher margin products or low margin high volume products should be in your consideration.
When sourcing, you should go the extra mile to source high-quality products. Canton Fair is a great event to discover new products, experience them first hand and build relationships with suppliers.
Launch in existing categories:
The advantage of launching new products in the same category of niche as the one you are already successful in is that it usually meks for less product research to build out your listing, and you can use the same trademark in the same category if you’re in the brand registry.
Finding new categories:
Launching new products in new categories is a solid approach as well, which means you’re less prescriptive, and therefore tend to find the best chances with high demand and low competition.
2. Add Product Variants using Child ASINs
It can be an easy way to increase revenue by piggybacking off your established ones instead of launching similar products under a totally new listing.
It takes time to launch a new item under a new listing, which needs to gather reviews and drive sales to make the ranking high. By adding a child ASIN to a high performing listing, you’ll get an easy way to expose the new items from the get-go.
Here are some ideas of how you might leverage child ASINs to drive more revenue:
- Larger or smaller sizes
- Different colors or designs
- Cross-sell similar products and variants
If you want to rank for different keywords or take up some real-estate space on search results, you can consider a separate listing. A good launch strategy in place to gain momentum is needed.
The Jungle Scout Million Dollar Case Study used this strategy, and launched several variants of the publicly launched Baby Hooded Towel. We discovered designs and colors that sold well for competitors and added similar variants using our existing supplier.
3. Expand into More Amazon Markets
It’s worthwhile to expand into the other leading markets while Amazon US leads for net sales. Amazon will assist you with shipping existing stock too their international warehouses.
Other markets like Germany, the UK and Japan that vary levels of supply and demand, customer demographics and competitors, can provide great additional streams of revenue. Research of these markets can help you find the best chance for your business in different regions.
Amazon Global Selling explains more about how to expand into new markets:
- Expand to Europe
- Start Selling in Japan
Also, check out this Million Dollar Case Study Europe edition, for a full step-by-step view of expanding into the European market for inspiration.
4. Optimize Existing Amazon Product Listings
Maximize your existing assets before expanding into new territories. In addition, optimizing your product listing will have a strong effect on ranking, exposure,click-through-rates,conversion and resulting revenue.
Working on improving your Amazon SEO could greatly increase your exposure and attract more customers.
There’s a whole bunch of factors that can be tweaked to optimize your Amazon listing.
- Backend Keywords
But the biggest issue is being able to track these changes and tie them to increased profitability.
That’s why we use split-testing, so we can confidently make changes based on clear evidence. Measuring the effects on sales and ranking help you optimize listing.Read more about split-testing amazon listings for profitability.
On top of that, optimizing your pricing is usually the single most impactful thing you can do to move the needle. As a private label seller, you are not able to use the countless “repricer” tools out there, which are designed to help Wholesale sellers who are competing for the buy box. This is why Profit Peak was created at our sister software, Splitly. This tool harnesses machine learning to give private label sellers the power to keep their pricing optimized at all times for higher profits.
5. Branch Off From Amazon – Go Multi-Channel
The biggest benefit of selling on Amazon is leveraging their massively popular marketplace, putting your items in front of uncountable hungry shoppers every day.
Amazon is not the only great place to launch products and make impressive revenue. If you’re looking to build a well-rounded, more secure business, you need to stand on your own two feet too.
If you’re interested in diversifying by growing outside of Amazon too, here are some ideas for getting started:
- Set up your own e-commerce website using Shopify or WordPress
- Work on SEO (for Google instead of Amazon) and generating your own organic traffic
- Run paid advertisements to your website using Google AdWords or Facebook Ads
- Set up affiliate deals and promote other products alongside yours
- Leverage influencers to increase traffic and exposure for your products
Or if you would like to jump on another existing marketplace, considering looking into the following:
With the most opportunity to scale and run a hands-off business through the use of their fulfillment service, Amazon is the largest marketplace by far. In addition,it’s the lowest barrier to entry while has a biggest number of potential shoppers.However, some sellers still want to put their business into different baskets, selling their products on different channels.
6. Combine Business Models
Another great way to leverage your existing assets and strengthen revenue is to incorporate multiple business models.
It’s more likely for an FBA (Fulfillment by Amazon) to follow the Private Label business model. However your business as a whole can grow to become so much more. Following are some ideas of how business models diversify from each other can help you grow your business.
- Establish wholesale agreements with retailers or brick-and-mortar businesses
- Become an Amazon affiliate and promote additional products on your website to increase revenue
- Become a supplier for dropshippers by offering wholesale pricing
- Offer sale commissions to affiliate marketing networks and have them promote your products
Start Scaling Your Amazon FBA Business Today
Now let’s get to roll and take steps to scale your business as we already have numerous ways to do it, plus solutions to common problems.