25 Tips for Running a Successful Amazon FBA Business

Amazon’s digital marketplace has grown exponentially over the past decade. By the end of 2020, it was reported that third-party sellers were responsible for 55 percent of sales. This level of growth opens the door for greater opportunities for brands and businesses that want to succeed online.


Making a profitable Amazon FBA business is a trend nowadays. That’s because you can make money at home or anywhere, even without having a physical store. The concept of Fulfillment by Amazon (FBA) is that you can sell anything on Amazon’s platform, while Amazon fulfills the shipping process for you. This can be a great advantage especially if you’re just getting started with your business.


With growth comes increased competition as everyone makes a play for positioning within Amazon’s algorithm and consumer confidence. Here is an extensive list of tips and suggestions on how you can optimize your chances as succeeding as an Amazon FBA Seller:


#1: Create Consumer-Friendly Listings

Set a solid foundation by implementing consumer-friendly listings. This starts with creating clear, concise titles, bullet lists, and descriptions that are easy to read and engaging for consumers. Make them informative, and adhere to the character count specifications Amazon provides. Additionally, use hi-res photos of your products and provide multiple angles to show functionality and size.


As people search online for products in your category, beautiful, crisp imagery and well-formatted titles and descriptions make a difference in how professional your brand appears online. Even as a seasoned Amazon FBA seller, it’s always a good idea to review these basics periodically to ensure the foundation is as good as it can be.


#2: Sell Within Core Categories

Unless you’re an established brand, it’s difficult to enter the marketplace on Amazon with fad or trendy products. It’s better to meet the high demand of built-in audiences by selling products within enduring consumer categories, such as health and wellness, home and kitchen, and pet accessories and toys.


These types of categories represent areas that are core to everyday life, which creates more stability when selling these products. Diversifying product offerings within one of these main areas can build customer loyalty and attract repeat sales.


If you want to learn more about top amazon categories, read our article “what sells best on Amazon fba”.


#3: Manage Inventory

As companies begin to grow, managing FBA inventory becomes more of a challenge if there isn’t a set management system in place. Efficient inventory management keeps you from overselling items you don’t have in stock or paying extra storage fees for a surplus of items that aren’t going to be sold anytime soon.


Managing your FBA inventory levels not only helps to save on costs but also preserves customer satisfaction. Review your Inventory Performance Dashboard regularly to check your Inventory Performance Index (IPI) score. A low score may result in overage fees and inhibit your ability to send more inventory through the Amazon FBA platform. The performance dashboard allows you to mark down or move products to avoid extraneous storage fees and create new opportunities to increase sales.


Using the tools available keeps your listings active and alerts you to any errors that may be “stranding” your inventory. It’ll also help you reduce out-of-stock inventory, protect your sales ranking, and receive more one-day and same-day orders.


#4: Use Automated Pricing

One of the best tips for Amazon FBA sellers is to automate activity, when possible. Much like monitoring your inventory, regulating your pricing to maintain competitiveness is important.


When first launching your online business, you may individually price each product. Once your company begins to grow, with multiple orders and thousands of dollars in monthly revenue, automating this process makes it simpler and more cost-beneficial to your business.


Automated pricing allows you to create rules for specific product SKUs to adjust to a certain activity, such as competing with the Buy Box. With automated pricing, you can set a rule that lists your pricing $.10 below the Buy Box price. There’s also the option of choosing from pre-defined rules set by Amazon as they fit your current needs. For example, the Competitive Price rule offers a recommended price configuration to increase your likelihood of becoming the featured offer.


Getting your products in front of more people is always a goal of Amazon FBA sellers. Even if you have a steady percentage of repeat buyers, growing your business requires inviting more people to view and buy your products. Enticing them with competitive pricing is one effective way to achieve this.


#5: Review Performance Metrics

There are multiple tools available through the Amazon FBA seller platform that are geared toward your success. Taking time to review performance metrics on at least a monthly basis will help you scale and grow your Amazon business. Your performance as an Amazon FBA seller impacts your ranking on the platform and opportunities for growth.


Among the many metrics to consider are: order defect rate, late shipment rate, and conversion rate. Identifying a problem early on can prevent the loss of multiple sales in the future. It can also show where changes may be necessary regarding your listings, pricing, and variety of profitable product offerings. Using data to drive changes within your selling strategy can also lead to improved solutions for shipping and tracking management.


Boosting brand performance allows you to earn a reputation as a top Amazon seller. Without reviewing performance metrics to analyze operational effectiveness, it can become costly to your business.


#6: Focus on Customer Reviews

Customer satisfaction drives business growth and helps to increase Amazon sales. Handling customer responses effectively will allow you to reach the next level of success. Nearly everyone reads online reviews before making a final purchasing decision. Furthermore, customer satisfaction is a major factor in qualifying for Amazon’s Buy Box.


The Buy Box feature is displayed on the right side of a product page and is highlighted in a way that sets it apart from other listings, enticing shoppers to Add to Cart. Having your product in the Buy Box area elevates your presence and trustworthiness as a high-quality brand.


Follow up on requests for product reviews and personally reach out to gauge how satisfied customers are with your products. This will provide insight into areas where you can improve and give your product listing a brand lift when you increase the number of positive reviews received.


#7: Optimize Product Descriptions

Another way to improve sales is by identifying Amazon listing optimization opportunities for your product descriptions to elevate visibility. Provide details and benefits that are informative, unique to your products and brand, and incorporate keyword-rich language.


This content should align with but not repeat information provided in your bullet points. Show potential customers how your product works and ways it can be used. Then, take a final look to ensure your product descriptions are free of misspellings and typos.


#8: Produce A+ Content

Enhanced brand content, now known as A+ Content, gives you the opportunity to tell your brand’s story with eye-catching, customized imagery and text that promotes your digital storefront. A+ Content goes beyond the informational portion of your product listing and provides a more promotional overview of what makes your products special.


It allows you to highlight campaigns and products in engaging ways to decrease your bounce rate and increase conversions. Creating fresh, A+ Content also supports imagery you may be using on social media and in consumer newsletters to create brand familiarity as part of a holistic online strategy.


#9: Invest in Advertising

When learning how to increase sales on Amazon, take advantage of advertising opportunities to initiate growth. Sponsored Products, Sponsored Brands, Sponsored Display, and Stores all help increase your visibility on the platform and allow you to reach shoppers that are more likely to buy your products.


Each is an effective approach to your online growth strategy. It’s easy to control costs with pay-per-click ads, which allow you to work within a set budget and track spending to optimize your advertising campaigns and maximize results.


#10: Expand Audience Reach

Once you’ve reached a level at which you can better predict sales and customer interactions, expansion may be the next step. This could mean expanding globally and/or offering new products or differentiations within your chosen category.


Mirror the steps of your previous success to reach new audiences and gain more customers. Continue to build upon the strategy proven to work and scale in a way that’s manageable. Once you’ve established yourself as a premium Amazon seller, reliable brand, and competitive business, expansion will guide you to the next stage of financial growth and opportunity.


#11. Stay Organized in Bookkeeping and Accounting

Other than being the answer to the riddle “What word has three double letters in a row?’”, bookkeeping means being organized and on top with your numbers. And when you know exactly what’s coming in and going out, it’ll be easier to see where to trim fat and where potential revenue goldmines are.


#12. Keep on Top of Your Inventory

Having lousy inventory management sucks. Running out means losing customers and sales while carrying too much means super high long-term storage fees. But that Goldilocks spot right in the middle? That means you’re able to meet buyer demands and capitalise on competitor mistakes. Invest in a good inventory management system and develop smart strategies to put yourself in the sweet spot.


#13. Get Tools to Do the Work for You

There are very few reasons why you should put things like repricing, keyword research and product sourcing on the backburner. But if you’re feeling stressed at the idea of ramping all that up a level, then use software to take the load off your shoulders.


Your Seller Central account can help a lot, but things like repricing software, feedback software, project management software and inventory management tools can save you time and help you keep on of things.


#14. Hire, Subcontract and Delegate

In the beginning, it’s fine to wear all the hats yourself. But as you grow and expand, you’ll need to take on skilled help in different areas like marketing, customer support, sourcing, fulfilment, accounting, legal and more.


It’s not to say you should totally separate yourself from these areas, but you should not be working half a dozen skilled full-time jobs when there are pros out there that can help.


#15. Stay on Top of Arbitrage Restrictions

These days, it might seem like online arbitrage is getting tougher to carry off. For example, if you ship to the U.S., then you’ll need to make sure your products are in line with California’s Prop 65 guidelines.


And that’s only considering one state in one country — each marketplace and country has its own list of rules and restrictions you need to follow. Not doing so means you can lose out on potential sales or, worse, get your account suspended.


#16. Develop Smart and Efficient Systems

What we mean by this is creating schedules and habits that lead to an overall ecosystem that helps your business thrive and grow. Start with little things, then snowball them big systems, working from the bottom up. Look at this way: pretend you’re an investor looking to buy a company.


Would you choose the one that operates in a freewheeling, haphazard way? Or would you chase the one running a tight ship that can account for everything?


#17. Don’t Forget the Past, Live in the Present, and Look Ahead to the Future

Before you dismiss this as New Age hooey, give it a chance.


Do the following:


Write down the top five things you’re proudest of accomplishing in the last year. Seeing this in black and white will help solidify just how far you’ve come, as well as point out areas you need to improve in.

Give yourself a pat on the back for what you’ve done so far — it’s important to not forget to reward yourself.

Write down the top five things you want to achieve in the coming year, and the steps you’ll need to take to get there.

People who make goals and hold themselves accountable are far likelier to accomplish what they want, and faster, than those who don’t.


#18. Keep the Lines of Communication Open with Brands

If you’re looking to go the private label route, then sticking with just suppliers and manufacturers will do the trick. But if you’re looking beyond that, then developing good relationships with brands is a must.


Pretend you’re Apple for a second and there are two businesses on your radar. One is trying to mimic your products, which means you have to devote attention to fending that off, while the other is offering to sell your products in their store. Which company do you like better? Now, go be that better company.


#19. Never Stop Learning

When you first start out, the gap in knowledge can seem overwhelming and you can get a bad case of impostor syndrome. But as time goes on, you feel more comfortable — and it’s in this comfort that complacency can breed.


Don’t let that happen to you by keeping yourself open to new ideas, working with a mentor, attending workshops or conferences, or listening to relevant podcasts.


#20. Keep Your Team Learning and Growing

Investing in yourself is a great place to start, especially because it sets a fantastic example to your team. You’re showing them it’s important to keep learning — but you’ve also got to walk the walk by helping them learn and grow, too. Bring in trainers or send them to workshops so they, too, can keep improving. When they get better, your business gets better.


#21. Know How To Choose Your Product Niche

Before setting up an account, you must already have a product niche in mind. Your profitability relies on the products you’ll sell. You have to consider the overall costs to startup your business, doing so may help you generate the selling price of your product, as well as the estimated profit. Here, you may have to list down all the related startup costs of selling products such as packing, shipping, and other fees you might need to incur. By doing this, you can price your products better without the possibility of losing profits over unknown expenses.


That being said, you must choose products which may yield more profits. You can do this by conducting an objective analysis of the niche. You can start by searching the product on search engines to identify the number of brands selling such items. If it shows more than 30 large retailers in the market, it may be too saturated. Thus, you may want to reconsider such a niche.


Moreover, you need to check the seasonality of the product. Some products are only in demand during specific times of the year, such as Christmas or other holidays. This means you may have to apply a different approach to products on demand throughout the year.


#22. Find A Supplier


Once you have found the right product to sell, the next thing is to find a reputable supplier. They should be responsible for both providing and shipping your products to customers. In doing so, you need to ensure that the supplier has the following qualities:


Follows the rules and regulations, such as the Trade Control Laws (including US and Non-US)

Willing to welcome third-party inspections

Maintains open communication

Produces high-quality product


You can source a supplier on online search engines, wholesale directories, professional networking platforms, industry associations, or trade shows. Then, make a list of potential suppliers that you want to contact. Here, you may need to ask them questions related to the qualities above. It’s also best to ask for quotes that you can use to compare which ones will fit your budget.


#23. Advertise Your Brand

Another good thing about Amazon FBA is that it provides an advertising platform for its sellers. You can find and use the ‘Sponsored Ads’ feature in this platform to boost your sales, especially for newly launched products. You don’t need to use these paid ads all the time, but increasing your products’ visibility from time to time is a good marketing strategy.


With such, you can increase the ranking of your products or gain reviews. That’s because paid ads appear on the first pages of Amazon. This can help you generate traffic to your products. When more people check your products, there are more chances of converting them to buying customers.


#24. Maximize Social Media

Even if there’s an embedded advertising feature on Amazon, it’s wise to use other platforms like social media. Thus, you may have to create a social media account or page for your business. Here, you can post informational photos or videos about your products. That way, you can entice social media users to check on them.


Alternatively, you can use it to show that you have a good following. A social media following may strengthen your brand because it may imply that you’re providing good quality products.


#25. Track Trends

Most importantly, always be in the loop of what’s trendy. Every day, there are new product releases from Amazon stores. Knowing what’s in and out will help you stay ahead of the competition.


You can use the following to check trends:


Amazon product research tools

Current ‘Movers & Shakers’

The ‘Best Sellers’ Section

The Amazon Trend Report


By knowing these updates, you can acquire some ideas on what products are selling the most in your niche.


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25 Tips for Running a Successful Amazon FBA Business
25 Tips for Running a Successful Amazon FBA Business