Running an Amazon business can be a lucrative venture, but you need to get there. It’s a journey full of challenges and obstacles, so you need to scale before you can grow.
In other words, it’s essential to crank up your operational efficiency, promotional activities, or product portfolio, and generally speaking, take it up a notch.
But that’s easier said than done. So, let’s discuss some of the best and most effective ways to scale your Amazon business by boosting sales while minimizing costs. Also, check this amazon sales rank calculator.
1. Start Delegating and Outsourcing
Trying to cut operational costs is a good idea while you’re getting your business up and running.
But at some point, when your business starts to expand, you need to think about spending more.
By outsourcing or automating repetitive or low-level tasks, you’ll carve up more time to focus on creative, high-impact activities. For example, inventory management, fulfilling orders, or customer support are time-consuming and important in the great scheme of things. But as a business owner, you shouldn’t deal with all these tasks.
In addition to that, as the number of your customers and orders grows, it will be more difficult for you to wear multiple hats and rely on yourself solely.
It’s true that automating workflows, delegating some of these activities to your team, hiring additional employees, or outsourcing things like accounting, means spending more initially, but it’s a worthwhile investment.
2. Leverage Amazon Advertising
Scaling your business is impossible without amplifying your advertising.
Luckily, Amazon offers multiple options that will allow you to reach your target audience and drive traffic to your store.
You can choose among various types of ads, such as Sponsored Product Ads, Sponsored Brand Ads, Sponsored Display Ads, video ads, or custom ads, to name just a few. All these ads come with granular targeting, which means that you can select your audience based on different parameters and display a relevant, tailored offer to your customers.
Although organic marketing strategies are also available, paid advertising is a must if you want to see some serious results.
To make sure the money you invest in Amazon Advertising is well spent, hire a seasoned Amazon PPC management agency that will create a personalized strategy for your store.
3. Go Multichannel
Amazon is one of the biggest and most popular eCommerce marketplaces. But it’s also the second-largest search engine, right behind Google.
Still, you shouldn’t limit yourself to this platform and its tools. It’s much better to diversify your activities and build your brand on other channels.
Here’s what you can do:
- Build your eCommerce store on Shopify or WordPress
- Implement Google SEO to bring traffic to your site
- Run Google’s paid ads
- Expand to other marketplaces such as Etsy, eBay, or Rakuten.
Your Amazon store will also benefit from growing a strong presence on other channels and platforms, as this will help you boost your credibility and brand awareness.
4. Consider Selling Wholesale
Selling wholesale could provide a new avenue for scaling your business.
This way, you can team up with consigne businesses or third-party vendors that could start selling your products in their stores.
The benefit of this model is that it’s possible to generate repeat sales by establishing partnerships with other online and offline stores, as well as dropshippers.
The trick is in keeping enough items in stock and identifying the most popular products that customers like.
5. Start an Affiliate Marketing Program
Affiliate marketing has become an increasingly popular method of customer acquisition. Statistics say that the affiliate marketing spend will reach $8.2 billion in 2022 in the U.S.
How does affiliate marketing work?
Essentially, you agree to pay a certain commission to other businesses, influencers, thought leaders, and marketers who promote your products, send traffic to your website or provide you with referrals.
By implementing an affiliate marketing program, you can tap into third-party businesses’ audiences and expand your reach tremendously. Besides that, you don’t have to put a lot of effort into this outreach. Affiliate marketers will do that instead of you.
This approach also allows you to plan your budget and decide how much you want to spend. For example, you can allocate $500 a year for the affiliate program. This investment will quickly pay off if affiliate partners do a good job.
Final Thoughts
These five tactics can help you scale your Amazon business without spending too much money. Make sure to monitor how each of them performs to determine which ones work best for your eCommerce store. Don’t focus on all of them simultaneously – it’s much better to try out one at a time and coordinate your efforts.