Setting a store and selling on Amazon can certainly enhance your chances of creating a good brand image. Having a store on Amazon adds value to your business, as people can have that added authenticity of Amazon on your products.
One can surely add value to one’s commercial endeavors by setting a store and adding some quality content to promote. Remember setting a store is not the only thing you require to do, but you will also have to go a step ahead and will have to promote it straightaway. Since promotions require spending some bucks so here, we are offering some ways to remain cost-effective while selling online. You can visit website that is giving out information on Amazon related topics to learn the real-time strategies regarding saving money on Amazon selling. Now let’s try to figure out how Amazon charges sellers.
How are Amazon seller fees calculated?
Amazon charges sellers based on their location. That means different fees will apply to sellers from different regions. We need to understand the basic criterion to figure out how Amazon seller fees are calculated? Some more relevant factors that count are:
- Order handling
- Picking and processing orders
- Outbound shipping
- Inbound shipping
- Prep service
- 30-day storage
- FBA (if applied)
Amazon usually uses the above-described factors to define seller charges for the merchants in general. But if you are handling the fulfillment yourself, then storage and shipment costs are never going to embrace your accounts sheet.
The following tips can also help you save a useful amount of cash while selling on Amazon.
- Select the right product category
Selecting the right product category is key to saving money while selling on Amazon. There exists a specific referral fee that you must pay while selling online. The referral fee is, however, different for every different product category. For example, it is 17% for the apparel category while just 13% for watches. Similarly, it will be different when you would try placing your watches in the leather category. Hence it is always wise to choose the most relevant category as it will not only help you rank your products properly but also will save a substantial amount of cash on sales. It is always good to choose a more relevant and very specific category instead of throwing a product in a general category.
- Sell items in bundles
Selling items in bundles offer two unique benefits. It will save shipment costs while it will be saving the closing fee for you at the same time. The sellers that have subscribed to FBA will have to pay separately for two different products. Hence, selling a pack of two can certainly help. But it is important to mention that the dimensions and size of the package will matter while deciding the cost and relevant fees. It is good to consider the policy and rules instead of simply doubling up everything. The shipping fee is likely to increase by a certain percentage, with every substantial increase in the package size. An amazon agency can surely help you out on bundling the right products so you can squeeze the maximum benefits of this technique.
- Take stock of stranded inventory
Stranded inventory is a broader term as it will cover the outdated listings, delisting, and expired goods in stock. All of the previously described categories cause a dent in the selling efforts. It can keep charging a seller for absolutely nothing. One could be paying the fees for products that are not there to be sold. This is why an in-depth analysis of product listings and the inventory needs to be carried at regular intervals.
- Rely on social media instead of paid ads
Promotions are a necessary part of every business. You cannot sell on Amazon without promoting your products either. It requires doing some digital marketing to keep the customers coming to your virtual store. You can do it with Amazon SEO and paid ads. But it is always advised that choose social media ads instead of using search engine paid ads. You can target more specifically by using the social media paid campaigns compared to search engine ads that open on top aimlessly. You can also save money and can make good use of the money spent on paid ads by choosing the age and region of the viewers. Social media advertisements can also be run with a specific budget and for a specific period. And, that’s not all; you can choose the time when to showcase your Amazon stuff before the customers.
- Be selective with product price
Simply Amazon will charge you a specific fee regardless of whether you sell a $5 book or $150 watch. But, notably, selling high price products can save you a certain amount of cash. You are likely to sell at a low profit with low price products, but a relatively high price item can save you more bucks while selling on Amazon. Similarly, you should also keep an eye on the plan you use for your store.
Cut your Amazon costs today!
Amazon is a wonderful selling platform, but you are always selling for profit. Profit, however, depend on lowering the costs. To remain at a profit, you always require cutting the undue costs.