At the 7th annual Prosper Show conference in Las Vegas, Carbon6 collaborated with a number of ecommerce experts to collect the best Amazon seller tips for staying profitable in 2023.
As everyone in the Amazon seller space is aware, Amazon FBA fees and ad costs have gone up significantly in the last two years. Consumer preferences drastically shifted from shopping online to offline as businesses reopened after the COVID-19 pandemic, resulting in sluggish ecommerce sales growth in 2023.
At first, many Amazon sellers unfortunately had very limited flexibility to adapt to these changes. They could not see any other solution but to take on the additional fees that Amazon imposed. However, if lessons from this year’s Prosper Show taught us anything, it’s that sellers can find ways to maximize profits while minimizing costs.
Here are four Amazon seller tips you should focus on to boost profitability, according to Prosper Show experts.
Successful Amazon sellers have one thing in common: they’re able to think small and big simultaneously.
Abe Chomali, Founder of XPStrategy, said, “Focus on your best sellers.”
By finding a profitable niche, sellers can boost their profits with high-quality listings.
At the same time, expanding into global markets can enable sellers to tap into new, revenue-boosting customer segments. “Global sourcing helps avoid the race to the bottom,” said Sebastian Herz, Managing Director at Zignify.
No matter what you sell or where you sell it, it’s critical to have a profit-focused inventory management system. Million-dollar Amazon seller Paul Baron advised, “Simplify success by focusing on one thing at a time, starting with stock and inventory management.”
After all, maximizing profitability means ensuring you have enough inventory to meet demand without stocking out or overstocking, which can tie up your capital and increase overall cost.
Consider planning inventory six months out and being mindful of how Amazon storage fees are impacting your profitability.
Want to learn more about how to avoid overstock and stockout? Check out SoStocked, Carbon6’s inventory management tool that allows sellers to access a customized dashboard to automate forecasting, track orders, and get alerted when inventory level is low.
Shipping delays and lost items can be financially costly for Amazon sellers and hurt customer loyalty. “Amazon is unpredictable,” said Aahron Zerbib, CEO of AIA Assets, “ You must monitor your account health and always be prepared for the unknown.”
But it’s not just about customer orders.
Each year, Amazon owes sellers millions of dollars in misplaced or damaged items. Don’t let that money simply vanish. Instead, stay on top of reimbursement claims to ensure you get your money back.
Better yet? Let a trusted service do the heavy lifting for you.
With Seller Investigators, sellers have access to the industry’s most transparent reimbursement dashboard and a dedicated team of expert caseworkers. Its Proprietary Refund Search Engine will help you locate, track, and file claims for refunds at no cost until the reimbursements hit your account.
99% of sellers are owed money; stay profitable in 2023 by staying ahead of fees and on top of reimbursements.
“To boost profits, focus on conversion-driving pay-per-click (PPC) ads,” said Etienne Ameil, advisory board member for Million Dollar Sellers.
Running effective, keyword-rich PPC campaigns can help drive traffic to your listing and increase your conversion rate. Moreover, increasing the effectiveness of your PPC ads can also improve your organic rank.
“You have to understand how much it costs to buy the product, and how much it costs to move the product, and much of that comes down to advertising,” said Tyler Jefcoat, Founder and CEO of Seller Accountant. By continuously monitoring and adjusting your campaigns, you can ensure they’re performing well and delivering a positive ROI.
Optimize your product listings with PixelMe. This tool is able to find keywords with a good amount of search volume and low competition. This balance is essential for successful product listings.
PixelMe also enables sellers to generate new revenue streams and take advantage of Amazon’s brand referral bonus to earn up to 10% on sales generated from non-Amazon marketing efforts.
According to Prosper Show experts, sellers shouldn’t focus on keywords alone when optimizing product content and ad campaigns.
“Use new techniques to stay ahead longterm,” said Joe Sherelud, CEO of AdAdvance.
“From advertising to listing optimization, there are always new ways to try to create return customers.”
High-converting product listings also include high-quality images and descriptions tailored to customer needs.
The secret to this success, though?
Real-time data and insights that enable sellers to truly understand their target audience, their profit margins per ASIN, and all other aspects of their sales and marketing initiatives.
“You can’t improve what’s not tracked,” said Andrew Morgans, CEO of Marknology.
Being able to focus less on gathering data and more on acting on data is key to maximizing profits. A tool like D8aDriven, for example, empowers sellers to calculate their margins, identify which products are most profitable, and adjust their strategies accordingly.
All of these expert-driven Amazon seller tips boil down to a central takeaway:
To boost profitability in 2023, sellers need to adopt the tools that enable them to automate repetitive tasks, gain data-driven insight into their sales, and streamline all areas of their business, from inventory management to keyword optimization.
This year’s Prosper Show underscored the importance of using the right tools at the right time to improve the right business areas. So whether you’re tracking inventory, managing customer data, or anything in between, get the right automation tools to help you make informed decisions — and increase your bottom line.
Ready to start simplifying your success? Check out Carbon6’s suite of tools, designed by some of the brightest minds in the Amazon seller space.
Want to hear from the experts directly? Check out our interviews at this year's Prosper Show.