Whether you’re a new entrepreneur wondering how to launch a product on Amazon, or a seasoned business owner looking to earn a little more passive income, fulfillment by Amazon (FBA) is a service worth considering. The Amazon FBA business model ensures safe storage for precious products, but it can also free individual sellers from the burdens of packing and shipping items.
Furthermore, when combined with other rank-boosting plans, like pay-per-click (PPC) marketing and rebate strategies, the FBA service comprises an ultra-convenient, optimized method for selling products.
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Getting Started With Amazon FBA
Amazon offers an assortment of services for businesses, from demand-side platform advertising to its “Seller University” training videos. FBA is simply another service designed to make it more efficient for companies to sell their products with Amazon while ensuring customer satisfaction through safer, more reliable storage and delivery.
Let’s break down the selling process to understand the benefits Amazon’s FBA marketing provides. Imagine you’ve created an awesome product; you spent time and money on R&D, you found the right manufacturer to assemble your vision, you calculated how many units you need for your first launch — so far, so good. You still need to find the space to store the units and the materials to pack the items for shipping safely. Plus, you might want to build a customer service platform in case any issues arise after delivery. This is where FBA comes into play.
Through FBA, you mostly tell Amazon which product you want to sell and then ship it to its enormous warehouses. From there, Amazon handles the storage, picking and packing, and can even provide specialized packing materials like shrink wrap or labels. FBA can follow up with customers, as well, to ensure your product arrived safely. All that’s left for the seller to do is reply to any customer feedback, keep inventory in stock and get paid.
Doubling Down With Amazon FBA & PPC
Let’s reflect on your product’s journey. You’ve shipped it to a nearby Amazon storage facility, and it’s now ready to be sent out to customers. But how can you guarantee shoppers will find your product? Once again, Amazon has tools available; it offers a PPC marketing service to maximize your selling potential.
Amazon FBA PPC works by showing products on an Amazon search results page in the form of an advertisement. The more money you bid on this advertising space, the more likely your product will rank somewhere on that first page of listings. A comprehensive blog post from Signalytics describes how this happens; essentially, the higher your budget, the more relevant keywords the Amazon AI can apply to your product, which results in more impressions.
Signalytics recommends that sellers launch products with an aggressive PPC campaign right from the start. This is because Amazon’s algorithm slightly favors new products by assigning them a greater number of keywords than older products. Over time, these keywords are adapted to become maximally relevant. It’s critical, then, to take advantage of this service in tandem with your FBA approach to see the most revenue with your new product.
Utilizing Amazon Rebates For Higher Product Ranking
While these two Amazon services are beneficial for sellers, there are new, external ranking strategies circulating all the time. Some of these have proven quite effective at triggering the Amazon algorithm to boost a product’s ranking. Let’s briefly discuss one such method: offering rebates.
When customers purchase a product at full price, without any discounts applied, the Amazon algorithm responds by giving more authority — and subsequently, a higher ranking — to that product. A full-price sale implies that the product is so good, buyers will forego discounts to acquire it. But for new products, sellers may find it advantageous to do giveaways or discounts to achieve higher brand awareness. This becomes a paradox; how can you guarantee full-price sales while giving away your product at a discount?
The good news is that when implemented correctly, offering rebates can achieve both of these objectives. You simply need to make customers aware of your rebate offer, then direct them to your Amazon listing, where they purchase your product at 100% cost. You can use third-party rebate software to manage your product’s price and how you reimburse customers.
One suggestion is to request that customers leave a reply on your Amazon listing, which is usually a reasonable ask, considering you’ve offered your buyers a sizable rebate.
Putting it All Together
Managing your Amazon listing is a complex process, and there are a daunting number of services to consider. As we’ve seen, though, some key choices can make the entire process easier, more convenient, and lucrative.
Think of your approach to the FBA business model, like mixing a classic cocktail. FBA is the glass, the ice, the high-quality spirit of choice — the foundation. PPC marketing is the flavoring components that accent and shape the drink into something recognizable to potential buyers. Simultaneously, the rebate offer is the flashy garnish that entices customers to take a sip. Including all of these strategies in your Amazon endeavor will yield a listing that ranks at the top of the menu.
To learn even more about optimizing your Amazon listings, please visit https://www.signalytics.ai/.