Selling more of your product is 1 way to grow. But there are lots of other ways to increase your business and profits. In this article we cover our top tips on how to grow your Amazon business.
Tip 1 More Products
If you’re selling 2 items on Amazon the easiest way to double your profits is to add 2 more new items.
Having four items also stabilizes your sales because some may be seasonal. Either save the money from your profits or find another way to get cash to buy new products.
Now your profits will be split roughly 25% from each product. You are less affected by a slowdown in sales of 1 item.
Sometimes it is hard to grow the sales of a single item. If the top 10 products in a niche are selling $50,000 a month it will be hard to sell more than that. But, if you target a new niche then you can reach a overall higher sales revenue.
Tip 2 Investment
If you’ve successfully launched products on Amazon, you can use the high returns to attract investment from friends or family.
Remember, if things go wrong you could lose the money and the friend. So only take cash from people who can afford to lose it and clearly tell them up front there is risk and they can lose everything.
I recommend starting small and scaling up with an investment partner. It’s better to use your own profits and keep 100% control if you can.
A successful Amazon product can make back 50% to 200% or more per year on the initial investment. Once you have proven you can do this with 5 to 10 products then you can consider raising capital to grow your business further.
Tip 3 Partnership
You could consider a partnership with someone who has different skills to you.
You might be a great marketer, so partnering with someone who has experience dealing with factories could boost your business. It makes sense to partner with someone if the partnership will make 200% or more faster, because now you have to split half the profit with them.
Don’t pick a partner with the exact same skills as you. It is better if you have overlapping skills that can help grow the business.
Tip 4 Sell Other People’s Products
You could approach shops in your area and ask if you can list their products on Amazon.
You could do a deal where you get 10% of the sales. They already have the inventory anyway, so it’s a win-win scenario.
Or you can contact new brands and ecommerce shops and help to list their products on the Amazon platform. This way you can grow with very little risk to your business.
Tip 5 Set Up an E-commerce Shop
You can expand off-Amazon and build your own e-commerce shop to help diversify your income. The Amazon marketplace is a great way to get going and you can use the cash flow from it to scale your e-commerce shop.
Tip 6 Hire a Team
You can hire great staff from $500 to $1000 a month in Southeast Asia to deal with a lot of the daily routine admin tasks.
For example, you can give them templates to use when answering customer service emails, freeing up your time to expand your business.
Tip 7 Full-Time
If you are not running a full-time business on Amazon yet, consider using the initial profits you’re making to pay yourself a small wage and go full-time.
I recommend only doing this when at least the last three months earnings have covered your expenses and left additional profit you can reinvest. If you use all the profit just to pay yourself, you won’t be able to grow your business.