Guest post by Victoria Sullivan from Payability
Have you been having a successful run with your part-time Amazon business? If you’ve been earning high margins and experiencing steady growth, you might be ready to go full-time. Of course, that would mean giving up a more reliable source of income for one that can be risky, but with the right approach, it can all be worth it.
After all, Amazon’s third-party sellers sold nearly $140 billion in 2019. Needless to say, the market is huge and it’s growing. To take full-time advantage of the opportunities and finally be your own boss, you need a sound ecommerce strategy.
Chances are, you’ve already got one in place, otherwise, you wouldn’t be considering the switch to full-time. Nevertheless, by following these six tips, you can confidently turn your Amazon side hustle into a successful full-time gig:
1. Know the Rules
Amazon has strict selling policies as well as a seller code of conduct to ensure that the marketplace remains honest and free of fraudulent activity. And they are serious about enforcing the rules. That means you never want to be at risk of suspension, so learn the rules inside and out and be sure you don’t conduct any of these prohibited seller activities.
While knowing and sticking to the rules is key, you may want to give yourself an extra layer of protection by selling on another online marketplace. That way, if you do get suspended from Amazon (or if your account is put on temporary hold), you’ll have other income to fall back on.
2. Sell the Right Product(s)
This one’s a no-brainer: stick to listing products that are actually in demand and have a strong selling history on Amazon. The last thing you want to do is invest a large amount of money in items that will sit on your shelves collecting dust.
There are a few ways to ensure you’re making wise inventory investments, so as you’re looking to expand your storefront, consider one (or all) of these tips:
- Amazon scanner app: If you see an item that seems promising, scan its barcode to get a sense for its selling and price history on Amazon. The results will give you a good idea of its potential (and could also help you calculate expected margins).
- Third-party product research tools: Consult a third-party product research tool to see what’s most popular, how you should market/list (i.e. what keywords to use), plus how to price (more on that in #3 below).
- Supplier insight: More often than not, your suppliers work with other Amazon sellers, so they may have some “insider info” on what works and what doesn’t. Don’t be afraid to ask!
After you’ve narrowed down a list of potential new items, be sure to check on the competition. If too many other sellers already list the item, it will be more difficult for you to win and keep the Buy Box.
Related: 7 Amazon Product Research Tactics You Need in 2020
3. Set the Right Price
To lock in your success as a full-time Amazon seller, you need a solid pricing strategy — one that helps you win the Buy Box and maximize your margins. Otherwise, you could lose sales and be stuck with stale inventory (if priced too high) or sell out faster than you can restock (if priced too low).
Crunching numbers and testing prices is one way to determine the right price. Or, you could save a ton of time by using RepricerExpress, which offers a full suite of repricing tools so you can confidently adjust your pricing and grow your business with minimal effort.
In fact, RepricerExpress users have seen 86% higher sales, a 36% increase in gross sales, a 37% increase in Buy Box share, plus 23 hours saved each week — that means you’ll get a full day back each week that you can devote to other growth strategies.
4. Master Inventory Management
Whether you’re a part- or full-time Amazon seller, the last thing you want to experience is an Amazon stockout. But if it happens when you’re selling full-time, you could have serious problems, including lost sales and even account suspension.
To prevent this from happening and make sure you always have a steady stream of income, you need to understand how much inventory, at a minimum, to have on hand at a given time, plus how much and when to reorder. Because sales often fluctuate based on seasonality and major shopping events like Prime Day and the Q4 holiday season, you’ll want to also consider the changes to your sales velocity over the course of a year.
Sounds like a lot to keep straight, right? Luckily there are inventory reports in Seller Central as well as third-party inventory management tools that calculate all this information for you. Once you’ve got it figured out, share the information with your suppliers — not only will they appreciate a heads up on when and how much you’re likely to reorder, but it’ll save you time in the long run and you’ll always have the optimal amount of stock on your shelves. An added bonus? You’ll also never order too much or have all your cash tied up in stale inventory.
5. Generate Positive Customer Feedback
Your existing customers are your best advocates — after all, your seller and product ratings could make or break a buyer’s decision to shop with you. The more positive reviews you have, the more likely you are to get more business and thus, make more revenue.
To generate positive reviews, you first need to provide a stellar shopping experience that mirrors what Amazon itself offers its customers (such as competitive pricing and fast shipping). Additionally, your listings should accurately portray the products you are selling (the last thing a customer wants is something that doesn’t meet their expectations) and be in new/high-quality condition (unless otherwise noted).
From there, you need to ask your customers for their feedback, but you don’t have to manually check-in with each one after they’ve received their shipments.
6. Get Paid Daily
You need cash to sell on Amazon — whether it’s to buy inventory, expand your product line, fund purchase orders, invest in growth tools, hire additional help, etc. But waiting two weeks for payment makes all of that much more difficult. Not to mention, it results in cash flow gaps, inconsistent sales and staggered growth — none of which you need if you’re going to start selling full-time.
With Payability — a financing company for high-growth Amazon sellers like you — you can get paid daily, turn more inventory more quickly, and achieve consistent if not rapid growth. As a customer, you’ll get your Amazon income one business day after making a sale, allowing you to really turn that side hustle into a growing full-time gig.
