Tips to increase Amazon profit margin
Amazon is growing and with it the sellers are also having bright chances to boost their sales and get more profits. There are several ways marketers can continue to boost their sales but when it comes to growing profits, it is a challenge.
Forbes contributor Kiri Masters has shared three ways to help marketers increase their Amazon profit margins.
Masters says, “While Amazon has become a significant sales channel for many brands, the growing multitude of selling and fulfillment fees narrow profit margins, making Amazon more and more costly as a sales channel. Fortunately, many brands have found ways to increase their profit margins when selling in this mega-retail marketplace. Here are three ways brands can reduce fees and other costs to increase their profit margins.
1. Make Sure Amazon Isn’t Charging You Incorrectly
One of the easiest ways for brands to increase profit margins is to identify inaccurate charges by making sure Amazon is charging correctly for shipping costs. For example, FBA (Fulfilled By Amazon) shipping fees vary based on package sizes, but automatic categorization or human error can dramatically impact Amazon charges.
There are cases of one item having two shipping weights simply because an order was filled at different Amazon fulfillment centers. Sometimes, a color variation on identical products results in disparate descriptions because the weight information is input separately, also leading to variable shipping costs”.
Comments are closed.