When it comes to running an eCommerce store, most people confuse growing and scaling it to be the same.
Growing and scaling a business is not the same thing.
Growth of any business comes with increasing resources and the result is the increase in revenue.
On the other hand, scaling means exponentially increasing revenue without increasing resources.
Today we’ll discuss how and why you should scale Amazon FBA business.
Most third-party sellers on Amazon marketplace, even those who have tasted the success of running and managing a successful Amazon business, find it difficult to scale.
In reality, scaling an FBA business to the next level can be less complicated, less work, and more straight-forward.
Unless you know how you can leverage your existing growth, resource, and experience to gain profit and increase revenue.
When should you start thinking of scaling your Amazon FBA business?
When your Amazon FBA store is constantly making you enough profits that you want to take it to the next level.
When you are serious about running and managing the store and want a good future and more profits.
That’s when you know you should start thinking about scaling your Amazon FBA business.
But before that, there are some initial steps that you should keep in mind. Here is a list of checklist of things to consider before scaling up:
- You have found at least one right product and launched it on the Amazon marketplace.
- Your product is ranking good on Amazon search results.
- You have got some good reviews and have already started making some profits.
How to Scale Amazon FBA business?
Implement a Marketing Plan
A great marketing strategy is what works always when you want to grow your Amazon FBA business and scale it extremely fast.
Below are some effective ways you can implement in your existing business:
Skew Widening Formula
This formula means launching new products to your existing customer base or new demographics.
You can then upsell new products or introduce as complementary or extension to the existing one.
This strategy works because you have established your brand and your customer base already knows your brand and have used your products.
Implementing SOPs (Standard Operating Procedures) in your business will make sure you do not have to waste your time micromanaging things.
You can develop and create a checklist for each process, for finding manufacturers, product research, and launching new products.
You can hand over the SOP to your employees or can use yourself to handle day to day operations and run the business smoothly.
Since time is a great resource to leverage in scaling the Amazon FBA business.
SOPs not only make your workload light but give extra time and effort needed to invest in scaling your business.
Optimize your listing
Amazon product listing optimization is the process of updating and upgrading the listing to improve search rank, increase conversions, and boost organic sales.
The process includes finding the right keywords, optimizing product description, adding multiple high-quality images, and increasing positive reviews.
Not every seller put much effort into product listing optimization so using these tactics would help you to outrank the competition.
Following are the key approaches for product listing optimization:
- Keywords: Find a list of target keywords to rank the products on Amazon search results.
- Product Title: Add catching title with the right keywords.
- Product Description: Include all essential information in the description. Here you can add more keywords but it should come naturally. Add bullet points to make it more informative and attractive.
- Image: High quality and multiple images convert better.
- Review: Every customer checks reviews before purchasing any product. Customers are willing to leave positive reviews only if they experience excellent service.
- Questions & Answers: Not answering customers’ questions will disappoint them and can lead to bad reviews.
Amazon PPC ads are one of the most powerful tools to increase the visibility of the products to your target audience.
But there are other advertising channels that you can leverage to boost sales and conversion.
You need to build your brand image outside Amazon using Facebook and Instagram ads.
Facebook ads are affordable and one of the most targeted forms of advertising.
An increase in brand visibility, improving conversion, and push to Amazon product ranking is the best possible way of scaling the Amazon FBA business.
Get External Help / Hire Rockstar Employees
Scaling a business demands more time to invest in the marketing and growth processes of the business.
Listing the products on the Amazon marketplace and running the ads is not enough to increase sales and build a sustainable business for the long term.
You are going to need excellent copywriting skills, photography, and editing, scaling ads to the next level, and many more.
If you do not have experience and skill you can outsource it to experts or agencies. These investments will produce professional results.
Find a competitive advantage
Every bestseller on Amazon has some competitive advantage over others that is what makes them a huge profit and their brand name.
Some sellers have better marketing plans or are using influencer marketing to make it to skyrocket their business.
You have to do extensive research on your competitors and find out what their strengths and weaknesses are.
Analyzing and taking advantage of a competitor’s weaknesses will help you to win the race.
Elevate the Customer Experience
As soon as you start growing your business, and start getting popular, your competitors will come swooping in.
Building a good relationship with your customer, and excellent customer service is going to weed out your competition and will always keep your customer base loyal to you.
Provide great value to your customers even after they have made a purchase. Sending emails with product guides, testimonials of your customers, and even discount coupons.
Discover new opportunities by expanding to the international amazon market. Amazon provides shipping assistance to international warehouses as well.
You have to do your research and find out which markets are better and have a demand for your products.
Start scaling your Amazon FBA business Now
You have found multiple ways to scale your Amazon business and skyrocket your sales.
Now what is left is to analyze your business very closely and start implementing those strategies.
If you make your business an asset rather than a full-time job for you, you will have enough time and a free mind to expand your business and maybe invest in multiple businesses.
If you want to share your experience of scaling your business or have any more ideas to add, we’d love to hear from you in the comments.
If you are just starting out then watch this video on how to start your Amazon FBA business as a complete beginner: