While some people may be saddened by the end of Q4, Amazon FBA business owners are busy gearing up for the next big retail holiday.
Even though the Cyber Five takes place during Q4, there are several other retail holidays throughout the year to plan for beginning with Chinese New Year, and then heading into Mother’s Day, Amazon Prime Day, and Back to School, to name a few.
Q4 in 2021 was unlike previous years, and as Amazon FBA business owners navigated the added challenges with logistics and inventory, it only prepared them for what’s to come in 2022.
This article will outline the top 5 ways to supercharge your Amazon FBA business before any retail holiday rush starts and after it ends.
Let’s dive in!
#1 Inventory, Inventory, Inventory, and more Inventory
By far, the biggest challenge right now is inventory and how you ship your inventory- logistics. Hopefully, you’ve considered the challenges with inventory you may have faced earlier in the year and planned as early as possible.
Monitor your ASIN level limitations, activate a robust 3PL plan, and prepare your freight forwarding needs as early as possible. Remember that Amazon fulfillment centers may also experience backlogs which may further delay the check-in process. Inventory planning and delivery will be everything.
Logistical impacts are being forecasted to be felt well into the new year. While your pre holiday inventory planning is critical, you’ll want to take a close look at what excess inventory you’re holding post holiday. It may be time to ask yourself difficult questions, such as if your products are meeting demands and profitable.
#2 Increased Marketing Strategies
Any holiday rush isn’t the time to decrease spend on marketing. With the largest holidays jammed into Q4, it’s important to focus on multiple marketing efforts to ensure your product and brand get the attention they deserve.
Luckily for Amazon FBA business owners, a few on and off Amazon tricks can help sellers elevate their marketing plans ahead of the holiday rush.
TikTok – If you’re a brand owner, sites like Tiktok offer massive marketing opportunities with little associated costs. Whether you choose to create a branded product-based account or have influencers support your brand, Tiktok is a great way to vamp up your marketing ability amid the most highly competitive time of year.
Content Sites – Yes, back to blogging and building content authority. While these niche websites are for content marketing monetization, they can also be used to help gain credibility, authority, and SEO ranking for your Amazon FBA business. Traffic online will be at all-time highs during most holiday rushes, and since Amazon prefers traffic from multiple avenues, content sites are a great option to leverage. Be sure to get started well ahead of the holiday.
Amazon Posts – We keep saying it, but not enough sellers take advantage of the free marketing space Amazon posts offer. Like Instagram, Amazon FBA business owners can create engaging and compelling posts to capture Amazon shoppers’ attention. Like other social sites, customers can follow your brand, making Amazon Posts a clear frontrunner in your Amazon FBA marketing plan.
Pay close attention to content trends just ahead of the holiday, and make an implementation plan so you can wow your shoppers on and off the Amazon marketplace. Your Amazon FBA marketing funnel should be an evolution and a powerhouse that exemplifies its biggest strengths during the most significant time of the year.
During the rush of the holiday, sellers may opt to increase Amazon pay-per-click advertising spends to gain more visibility while more shoppers are on the site. Following the holiday, you’ll want to review your ppc data to discover which campaigns were effective and those that were not. You may need to pause specific holiday keyword campaigns and re-target new campaigns at the start of the new year.
#4 Evaluate Your Pricing
Pricing on Amazon can be ultra-competitive, especially at crucial times of the year. You want to be flexible with your price plan but also understand your margins.
Use coupons and promotions that make sense for your business, and monitor your listing more closely at high traffic times like Black Friday, or Chinese New Year. These high traffic times can see an increase in unknown sellers winning control of your listing’s Buy Box.
Adding a small bonus gift or surprise freebie during holidays can increase customer satisfaction if the quality is maintained. Decide if such offers are within your margins and strategize to increase perceived value and garner more attention outside of competitor products.
Amazon pricing should be strategic, avoid making rash pricing decisions that could negatively impact your business.
Start by reviewing your numbers and creating a list of takeaways to improve your pricing strategy better. Did you have coupons listed at critical times, did you notice you lost the buy box to other sellers, or were you priced right for your offer and market?
The goal of pricing is to stay competitive but be profitable, so calculating your floor price is always a good idea ahead and following the holiday.
#4 Wisely Control Your Cashflow
Remember those inventory problems we mentioned earlier? Well, cash flow can help Amazon FBA sellers navigate stressful inventory crises and better logistical planning.
Solutions such as working capital, daily payouts, and a digital wallet are great options to help alleviate cash flow, but there may be a hidden gem that sellers often overlook.
Amazon FBA reimbursements are a great way to recover funds to increase your liquidity, especially during peak times and added challenges.
FBA reimbursements are reimbursements owed to sellers by Amazon for discrepancies. Discrepancies can range in type from overcharges in FBA fees, lost, damaged, disposed, or destroyed inventory.
Performing an Amazon audit will outline the discrepancies on an account, so the next step is filing the Amazon claim. Amazon claims can be filed at any time to recover Amazon FBA reimbursements, so just ahead of the holiday is a great time to get started.
Gaining a solid grasp on your cash flow ahead of the holiday is essential so that sellers can use their money to implement strategic holiday planning and execution.
Monitoring cash flow in your Amazon FBA business is always a good idea, but following the holiday, you may want to evaluate if there are any high-interest loans or credit cards that are hurting your bottom line.
Opt for Amazon-specific funding or accelerated payouts if those are an option to stay on top of your cash flow.
Keep a keen eye on those foreign transactions and make the switch to a funding provider that can meet the demands of your Amazon FBA business. Sellers often think the only option is to negotiate with banks, but that is simply not the case.
#5 Optimize Your Digital Shelf
Ah, but what is the digital shelf, you’re wondering? Well, in this case, it’s your Amazon listing. While Amazon listing optimization should be effectively managed throughout the year, it should become a solid focal of the holiday.
In the months leading up to the holiday, you’ll want to review your competitor listings and stay on top of holiday-specific trends. Are your images compelling, and do they stand out from the other private label brands?
It’s also an excellent time to perform a listing evaluation and review your keywords along with backend search terms.
Another great tip is to add some holiday-specific creative assets to your Amazon storefront and your A+ content. Does your video have a holiday theme or seasonal touch? These are just a few ways to optimize your Amazon listing for the holiday.
You’ll want to remove and replace creative assets that were seasonal or holiday-focused. If you added any special bonuses to your product offer for only the month of Dec, you’d want to ensure your listing post holiday reflects the correct offer.
Take some time to review customer reviews and feedback and take notes on things you may be able to address in the new year.
These times may be a little unique, but as Amazon FBA business owners, you’re an innovative and determined group of savvy ecommerce business people. Hopefully, you found this guide helpful and can test out some of these tips.
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