Amazon continuously is the most predominant marketplace out there. With nearly 200 million users as of September 2020 and above 110 million memberships on Amazon Prime, there are a lot of possibilities to consider if you are a seller because, with a few advancements or slight changes to your business, it’s simpler than ever to take advantage of Amazon’s customer base. 

Therefore, if you’ve decided to start your Amazon FBA business in 2021, these must be exciting times for you. But, while you’re probably keen on making a decent start, you should be aware that preparation is principal. Read on to find out 5 tried-and-tested tips to prepare you for your Amazon FBA journey.

It’s Crucial To Insure Your Amazon Business Assets

When they first start their Amazon FBA business, some sellers don’t understand that Amazon requires you to possess liability insurance if you’re a pro merchant. Therefore, if you’re a seller on Amazon, you must treat it like every other business, and having proper insurance to protect you and your business assets is part of it.  

As a matter of fact, Amazon, at one point, will require you to have Amazon pro merchant insurance as your venture gets bigger and bigger. You might be thinking, “If something goes wrong, Amazon will have my back.” Nevertheless, that’s not the way it works. Amazon doesn’t want the duties, plus it’s up to you (as an Amazon seller and business owner) to own a proper insurance plan. 

The reasoning behind this rule is simple, as you’ll need to have an insurance policy in place to protect yourself and your business assets and cover some financial charges resulting from injuries, accidents, or litigations. While the chances of a consumer suing you might below, it’s always better to favor and stick to Amazon’s rules.

Provide Excellent Customer Service

Amazon prioritizes customer care, and so do your buyers. Actually, the majority of customers say customer service matters more than the product and pricing. Consequently, it’s super important that you don’t skip this fragment or choose to handle it in the future. It would be best if you sorted that out before you begin selling.

It comes as no surprise that the quality of customer service affects your selling and your Amazon best sellers rank as well. The more good reviews you have, the more likely it’s to make more sales. Furthermore, when you sell more, your products rank higher.

Customer service may be as easy as responding to feedback and reviews (even to the negative ones). Besides, reacting to negative reviews is frequently more important than responding to positive ones. It’s essential that you don’t argue with your customers but rather show sympathy and understanding.

On the contrary, customer service shall extend to things such as your return policies (very significant to customers) and your shipping speed. Quick shipping is fundamental to good customer service. If you fail to achieve that, customers won’t give you good reviews, and they won’t come back to buy again. In other words, you have to make efforts to get your seller response management just right.

Apply A Flexible Pricing Strategy

Pricing is among the keys to increasing your sales and exposure. So, making a flexible pricing strategy is essential. There’s no doubt that pricing is a significant factor in becoming or staying competitive in the Amazon business. You can go for a rule-based, manual, or algorithmic strategy. 

  • Rule-based pricing changes the price in reply to your competitors. This pricing technique is considered the technique that allows you to obtain the most competitive price.
  • The manual pricing strategy is almost self-explanatory. This kind of pricing is most efficient for sellers with several items to sell. Considering the time it will take to reprice each item, manually.
  • The algorithmic pricing method allows sellers to determine the ideal price by applying computer algorithms in accordance with all known market circumstances. One of the main benefits of algorithmic pricing is that it’s not biased (like humans) and is, in fact, based on real-time data.

Nail The Branding And Packaging

Amazon product packaging is usually a second thought for third-party sellers, and we’re not 100% sure why it’s like that since product packaging is indeed really important. If you don’t get that side of your business right, your orders (already shipped) may not make it to the customer who ordered them. 

How can it be? Customs. As you already know, Amazon is open to the world. More or less, anybody can order from anywhere. It means that you may wind up selling a piece of your stock to Japan, Columbia, Austria. 

The problem is that every country has its own product packaging requirements. If you fail to achieve them, customs may cease your packages. At the same time, branding is vital for connecting with your customers. Once they become familiar with your brand, the chances they remember it are higher, and probably they will come back, again and again, to buy more from you.

Always Tell A Story With Your Item Descriptions

Always explain how your potential customers may improve their lives by using your products. Once you take a look at product listings on Amazon, you can spot similarities, especially in the way product descriptions are provided. They’re generally written to persuade someone to buy and choose to list the product’s top features and specifications, all in one lengthy paragraph.

If you want to stand out from your competitors, you must adopt a new method. Design your product detail page in a way that gives buyers more convincing reasons to buy your products. Give clear examples of how your product can be used to better their lives or solve the problem they have.

Final Words

Selling on Amazon is an excellent way to make money on the side, plus it can turn into a full-time job if you do it properly. So follow the tips in this article to prepare before you start your Amazon business. After you set everything, you can finally begin.


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