Selling on Amazon can prove to be expensive for Amazon sellers. Apart from time and effort, sellers must invest their money into other areas of their business, such as inventory management, sourcing, and using a repricing tool to get maximum sales in return. For sellers trying to make a profit on Amazon, all of these costs can be daunting. There are, however, a variety of ways for e-commerce sellers to minimize costs on Amazon in order to earn revenue.
Here are a few recommendations for reducing your Amazon selling costs:
1. Offer bundled items
Examine all of your items to see if there is a potential way to pair them up and offer them in a bundle. Amazon sellers often have to pay FBA shipping fees separately for each product they sell. Although, when you combine two products into a bundle, your shipping costs will only increase by a small percentage. By combining the two items into a single deal, you can avoid paying twice. Shipping costs will be determined by the size of your bundle and its dimensions.
2. Find the appropriate Amazon category
The Amazon referral fee is a huge turn-off for sellers. An Amazon referral fee is determined by the product category you pick. It is critical to carefully select your product categories and only pay for what you, as a seller, can afford. For example, the referral fee for watches is up to 13%, fashion-related items are up to 20%, for cosmetic products it is up to 6%, and for bags, it is 3%. In short, you get to choose how much you are willing to pay for a particular category.
Make sure to be smart about the whole situation by choosing a better option to avoid the extra cost of the Amazon referral fee.
3. Work out a deal with your chosen courier service
If you usually send out larger shipments regularly, you can try bargaining with the courier with whom you are associated. Cracking a deal with them can save you a lot of money. If you utilize a courier frequently, they should be willing to negotiate with you, and why wouldn't they? They want to retain their customers. You may also save extra costs by getting reduced shipping charges. It's a win-win situation for both parties.
4. Print your labels
Most of the sellers choose to outsource the printing of their labels. There are a few companies over the internet that provide easy label printing services. However, you can take the initiative of printing your brand labels to reduce extra costs. It's a great approach to come up with something fresh and be creative with the brand labels. Plus, it's an easy, crafty way of cutting down on unnecessary expenses.
5. Free packaging materials
You don't have to use brand new boxes or packaging for your orders all the time. Sellers may look for old boxes and reuse them. How? Well, you can easily find recycled or reusable boxes at local stores. The same goes for packaging materials. You can pad your products by using old magazines and newspapers to protect them from getting damaged. It doesn't matter whether you sell online or in local shops, make sure to stay cost-efficient. However, be certain that it does not jeopardize your presentation. Customers should not feel as if they are receiving rubbish. Make sure your packaging leaves an impact on your customers.
Want to know how you can ship your products in a better way? Click here to find out!
6. Get your hands on exclusive items to sell
Exclusive products might also assist Amazon sellers in cutting costs. Acquire an exclusive license from certain suppliers in order to become the sole distributor of their products in the market. When you are the only one selling unique products, you can set your product prices without having to worry about competition. Moreover, make sure you are selling items with a good profit margin. Attempt to sell those items that cost you up to 35$ or even more.
Additional tip: You can always consider switching from manual repricing to Automated repricing to save extra costs. Manual repricing can be a waste of money especially when time is money or when you have to hire someone to reprice your products on Amazon. They can never be accurate and the chances of human errors are extremely high. An automated repricer reprices for you and ensures your prices don't drop. There are many repricers available in the market. Go for the best amazon repricer that will help you boost sales and save costs in the long run. You can go for an affordable repricer that does the job just right.
Sellers can save money and increase profitability by following the tips mentioned above. Make the most of these recommendations to adapt and save money in the ever-changing e-commerce industry. For more useful information, stay tuned.