Sellerboard Unveils Four-Step Strategy to Help Customers Run Profitable Amazon Businesses

STUTTGART, GERMANY / ACCESSWIRE / February 13, 2023 / Sellerboard, an online platform that uses analytics and automation to help Amazon sellers has unveiled a four-step strategy to help Amazon sellers, especially those who use its FBA (Fulfilled by Amazon) services to optimize their profits.

While Amazon, which is the largest retailer in the world, can be highly profitable as a distribution channel due to the brand recognition it offers, Amazon sellers need to plan their strategy carefully in order to get maximum profit from their efforts. An increase in sales and the number of units sold need not necessarily translate into profits if costs are high.

1. Track your profitability: The first step is to calculate the profits correctly. Sellerboard offers tools and analytics that can help sellers to get a detailed breakdown of their selling and distribution costs in real-time so that they can correctly calculate their profits. Different sellers have different approaches to calculating. The most conventional method is to calculate the average profit per unit. But this does not take all the factors into account. Waiting for detailed reports from accountants can take a lot of time and can have an impact on decision-making. The Amazon Seller gives details of the number of units sold and the sales amount but does not give details of profits. The best way to tackle this is to use a platform like Sellerboard that uses proprietary tools to provide sellers with data-driven insights into profits by product sold, takes taxes into account, and facilitates proper decision-making.

2. Keep an eye on returns: The second step is to keep a close watch on the cost of returns, analyze correctly the reasons for the returns, and to take proactive steps to reduce the number of returns. Amazon has fairly strict policies with regard to returns and the buyer is reimbursed the full amount when a purchase is returned. The reimbursement is made as soon as the buyer informs of his desire to return and there is no reimbursement of the FBA fee. In some cases, the returns are not made or the goods are returned in a condition where the packaging or the product is damaged to the extent that it cannot be resold. Shipment cost back to the Amazon warehouse and possibly a refund processing fee needs to be covered by the seller. All these factors need to be taken into account by the seller correctly. Sellers on Amazon need to have the same customer-centric attitude that Amazon has. In order to minimize the likelihood of returns, sellers should ensure that product details in the description of the product are always accurate and that the product images used depict the correct color and size of the product as in the case of garments. Through the profit dashboard, Sellerboard offers tools to break down the return costs and the reasons for the returns so that sellers can take corrective measures. The analytics tools also make it easy for sellers to track products marked as returned or refunded and reconcile inventory so that they can crosscheck any discrepancies with Amazon seller support.

3. Watch out for hidden fees and costs: Sellers need to pay close attention to the fine print when it comes to Amazon’s FBA profitability calculation. There are many small fees that can add up and have a significant impact on a seller’s profit. While there is a base fee known as the FBA fee that Amazon charges sellers for shipping goods to customers directly from the company’s warehouses, this can vary significantly. The FBA fee displayed in the Seller Central is only an estimate. There are many other fees that Amazon charges sellers like the Disposal Fee or the Inbound Defect Fee, which are charged on a case-by-case basis. Sellers might not take these fees into account and this is where their profit calculations can miss the mark.

4. Be aware of variations in storage fees: Storage fees charged by Amazon can vary based on the average volume of products stored at any given time. For greater accuracy with regard to the calculation of storage fees, Sellerboard provides a comprehensive storage fee report, breaking down the fees by product.

Says Vladi Gordon, Co-Founder, and CEO of Sellerboard, “In order to become successful as an Amazon seller, it is not enough to just have good products and good sales. It is vital to ensure that you closely monitor all costs and fees so that the business is profitable. Sellerboard takes all the Amazon fees into account and breaks them down by product, variant, brand, time period, etc for better tracking and profitability. With SellerBoard, you can do a comprehensive Amazon FBA profitability analysis and detect any avoidable losses early. Sellerboard also includes additional tools for Amazon sellers: follow-up mail campaigns, inventory management, PPC and bid optimization, and listing change alerts.”

About Sellerboard

Sellerboard is an online platform that makes it possible for Amazon sellers to optimize their profits with the tools they need to automate several functions like review requests, inventory control, and profit calculation.

Media contact:

Name: Vladi Gordon
Email: [email protected]

SOURCE: Sellerboard