When you move an impressive amount of product on the Amazon marketplace, it can surely feel like a blessing and a curse. On one hand you’re making a ton of money, but on the other you’re scrambling to keep customers happy and maintain a decent seller rating. With a higher number of orders comes a higher chance for mistakes, and that can hurt the odds of winning the coveted Buy Box.
To mitigate the risk of selling hazards, many sellers turn to fulfillment by Amazon (FBA) to protect their accounts from any hiccups they may have encountered when fulfilling orders themselves. Even if you’re skeptical, here are a few reasons why FBA could be the way to go for high-volume sellers.
The first area you should allocate your focus is your products’ pricing. The Amazon marketplace is known for hosting some of the lowest prices on the web, and you have to make sure your price fits the shopper’s perception. Plus low prices are one of the biggest qualifiers for the Buy Box, so you have to be competitive if the Buy Box is on your mind.
One complex thing about the Buy Box is that the lowest price alone will not get you in. In fact, it’s just one piece of the complex puzzle that makes up the unknown Buy Box algorithm. If you’ve signed up for FBA, then you should consider investing in dynamic pricing software to make sure your pricing bases are covered. Dynamic pricing software takes each of those puzzle pieces into account to make sure you have the right price. However, that doesn’t mean you’re completely off the hook when it comes to your inventory.
With FBA, Amazon is not in charge of re-ordering your inventory, they just ship it out and handle the customer service behind it. Since you’re in charge of your own inventory, you have to make sure you keep your inventory levels smooth and steady to win the Buy Box.
A rocky inventory level can easily disqualify you from Buy Box eligibility. The last thing you want to do is wait until your stock is remarkably low to re-order your products. When Amazon is choosing retailers to place in the Buy Box, they’re looking for inventory levels that are smooth. Establish a minimum stock threshold to make sure you never experience an out of stock situation, it looks bad to your potential customer and Amazon.
Inventory management software, when paired with FBA, keeps you from sweating about inventory and fulfillment. It will automatically re-order your products for you when they hit a certain threshold, freeing you up to master the Buy Box algorithm with flying colors.
But aside from the Buy Box, FBA just gives you the ability to sell more. It opens the door to Prime eligibility, a huge benefit that nearly 40 million customers take advantage of. When you’re Prime eligible, shoppers can receive your products in mere days at no additional cost to them. Tapping into that customer segment can do wonders for your business.
When you’re moving a ton of product on Amazon, every day can feel like a whirlwind of inventory orders, repricing, fulfillment, and more. When you use tools like inventory management and dynamic pricing software, you can get the most out of your FBA experience.
Contributing writer: Brian Smyth