How To Increase Margins In Your Amazon FBA Business

In this blog post, I am going to be telling you how you can increase margins in your Amazon FBA business, even during a recession, and how you can have compounded growth during these times, instead of just focusing on survival. How can you thrive during these times instead of just surviving during these times? How can you step up, take massive action, be the leader of your business, so that you can come out at the other end of this having a more optimised business, a more systemised business, a more streamlined business, having a great, experienced team who is competent, with you, and taking massive action in your business. How can you know more and more about your business coming out of a recession, rather than potentially going into a recession. This is the time where recessions force businesses to evolve, to adapt, to be resourceful, or they won't make it.

So this blog post is going to share with you at leas 12 areas within your business, which you can focus on today right now today, which can actually pull the needle forward, which can have a compounding impact on your business, so that you can come out the other end of your business, thinking that was the time that made you. 

How To Increase Margins In Your Amazon FBA Business 

This is going to be covered in two areas, where you currently are, where your business currently stands, then what you would consider doing. It is so important to consider being adaptable, flexible, and be able to move swiftly. 

Review Everything Which Is Happening Within Your Amazon Seller Central Account

So, what do we currently have? First and foremost, review everything that is happening within your Amazon seller central account - it is like the black hole - Amazon's black hole. Amazon can sometimes feel like it is a pipe which is blocked. You are pumping things in, you are pumping money in, your pumping your products in and nothing comes out. This is because there are various places within Amazon which they make available to us, but if you don't know about them, Amazon are not going to come out and tell you about them. So, make sure you have a good look at everything, and understand Amazon's platform right now is better than anything you have ever done before. Know where to action unfulfillable products, know where to action inventory adjustments, shipment reconciles, know what is happening in terms of storage, your old products, what the age of your products are, know what is collecting dust, and know what you are being charged for and where money is being lost. That is just one thing which you can do over the next couple of days. 

Review All Your Investments In Your Business

secondly, review all of your investments in your business, review necessities versus luxuries. Usually during times of summer, when business is thriving and you're doing really well, having record day sales, everything is looking great, last month was really profitable, this month is even more profitable, you're growing, and all of this is amazing; However, sometimes during those times you can start to get a little more weight than you would like. What I mean by this is start reviewing tools, resources, softwares - just start reviewing things. For example, if you currently have four softwares doing the same thing, then it is time to start reviewing which are your necessities and which are your luxuries. Start to go deep into the tool that is doing the work for you, and anything that is on the side, anything you think you need to get to. It is time to start streamlining and getting on the treadmill again. 

Negotiate With Your Suppliers

If you have got suppliers right now which you are in contact with, get closer to them, speak to them, and share with them what is happening. You can explain to your supplier the difficulties which you are facing, and ask them what you can do. If you have been working together for possibly quarters or years, they may want to listen to you, and go through these times as much as you do. And when the blizzard comes in, it's better to be together. So, have a conversation and try to negotiate. 

What Is the Performance Of Your Current Stock

What is the overall metrics of your current stock. What I mean by this is, in general, how fast does your stock sell, what is the average sell for price for your stock and just have an overview approach and think about how you can potentially increase the average performance of your stock so that it sells quicker, how on general can you find better product, and challenge your team to find better products - a better criteria and selling better. Or you could also look at how you can increase your average sell for price, your average selling price. 

How Optimised Are You In Terms Of the Quantity Which You Are Purchasing? 

Everything you do in your business from sourcing, reviewing, trying to find the products  - everything you do to get to the purchasing point, how optimised are you with the purchase quantity which you are currently doing. There is no difference between you purchasing 2 products or 222 products, you have got to do all the same things - you have got to find the product, review the product, and check everything out, and then you have got to place an order. And at this point, it makes no real difference of placing an order of 5 units or 50 units. You are doing all the legwork already, you and your team are taking massive action.

Optimise Your Replenishing 

Are you running out of stock too quickly? Be aware of how you are purchasing, what are the systems you are using? Are you able to replenish at scale, or are you doing things manually, is it taking time? Is it taking a lot of energy to complete a task? If you haven't got any sales, learn from that - understand why you have put money into products and why they have not sold.

How Can You Leverage What You Already Have?

If you are working in your office block, how could you maximise the use of the office block. Can you use your knowledge to help other people? Can you use your experience to help other people? You could spend an hour of your time meeting and building great relationships, and you could even turn that into an income stream if you wanted to. Another thing you could do is start putting on events. If you have a warehouse, you could schedule visits and events to leverage what you have.

How Can You Expand Into More Categories Or Markets?

If you're in the UK, can you expand to the EU or US? If there are categories which you have never sold in before, start looking into the categories - go wider. The same business model which you are doing right now, try possibly on a different marketplace. 

Evolve Your Business and Go Deeper And Expand Into Other Models 

For example, you can go through online arbitrage to wholesale, wholesale to exclusive brand deals, you could look at how you can add more FBM in your business, and how you can go into bundling in your business, and working with brands.There are other opportunities which you could explore and add to your current business. 

You Could Become An Affiliate For the Tools and Services You Are Using

You could be an affiliate for different tools which you are benefiting from, you can recommend it to others, you can promote to others, and you can add revenue to your business which has no cost. 

Start to Package Up Into Digital Products, Information Products, Template Products, and Leverage the Knowledge and the Experience Which You Already Have

This is an incredibly way which you can monetise your experience and your knowledge. For Kev, this is the most fulfilling things which he has the pleasure in doing - being able to create YouTube videos, sharing his experience, thought processes, being able to work with partners, and sharing things that he is learning.

Further reading:

3 Tips To Ensure You Achieve Your Goals

How To Achieve Goals - 3 Tips To Ensure You Achieve Them

How You Can Open 3 Wholesale Accounts In 24 Hours