As the holiday season approaches, the top Amazon sellers start preparing for increased online shopping. The months leading up to the holidays often include a surge in demand for a wide range of products, from toys and gadgets to clothes and kitchen accessories.
Preparing your business for the holidays allows you to capitalize on increased consumer spending. However, getting ready for big sales numbers involves more than just increasing the inventory at your Amazon warehouse.
Use the following guide to get ready for the fourth-quarter holiday period.
Become an Amazon FBA Seller
If you are not already part of the Fulfilled by Amazon (FBA) program, sign up. Amazon FBA Australia allows your products to reach customers faster and simplifies inventory management.
Yet, the biggest advantage of the FBA program is increased sales. When multiple sellers offer the same product, the sale typically goes to the seller who appears in the “Buy Box” on the right side of the product detail page.
One study showed that 82% of Amazon sales go through the buy box, instead of customers comparing prices and shipping from multiple sellers.
Winning the buy box depends on specific seller performance criteria and how quickly your products can reach customers. Joining the FBA program allows you to maintain inventory at Amazon warehouses across the country or a third-party Australian FBA prep center.
Pick the Best Products to Sell on Amazon
Now is the best time to start selecting products for the holiday season. You should begin choosing your inventory several months before the holidays arrive to give yourself time to stock inventory and set prices.
The following steps can help you decide which products are likely to become best sellers:
- Look for high-demand products
- Avoid products with high competition
- Review current sales trends
- Analyze past sales data
Start by looking for the most in-demand products. Some categories remain popular throughout the year, including electronics and clothing.
You can review current sales trends to find high-demand products with minimal competition. Available resources include the Amazon Best Sellers category, online Amazon product research tools, and your own sales data from previous years.
For example, if you had a product that sold well last year, similar products may sell well again this year.
Ship Items to an FBA Prep Center
After choosing products, it is time to prep your inventory. As mentioned, Amazon FBA Australia helps streamline inventory management, especially when working with a dependable prep center, such as Easy FBA Prep.
Start building up your inventory of items and shipping them to your FBA prep partner. You should start stocking products at least two months before the holidays to stay on top of demand.
Working with an FBA prep center makes it easy to manage and track inventory while complying with Amazon’s detailed FBA requirements. Instead of worrying about selecting the right boxes and packing materials, you can focus on inventory numbers and pricing.
Update Your Pricing to Maximize Sales
Update your pricing about four to six weeks before the holiday shopping season. As the holidays approach, sellers start lowering prices and offering deals to increase sales.
Amazon allows sellers to set minimum and maximum prices. Setting a minimum price ensures that you maintain certain profit margins for your products.
When adjusting the price of your products, you can also choose to match the current low price. Matching the low price increases your chances of “winning the Buy Box” but also limits your profit margins.
To set the right price, break down the cost of selling online, including product cost, Amazon fees, customs duty, and GST. Understanding where the biggest expenses come from can help you determine whether selling on Amazon Australia is worth it.
Start Advertising Your Product Listings
Ramp up your advertising spending a few weeks before the holiday season begins. You have several methods for online advertising:
- Paid ads on Amazon
- Google pay-per-click (PPC) campaign
- Social media advertising
All three options allow you to increase the visibility of your brand and products. However, paid ads on Amazon tend to result in better conversions, as shoppers often visit Amazon ready to buy.
Summary
The holidays are a great time to sell more items on Amazon. Here is a quick review of the steps needed to prepare for the holiday season as an Amazon seller:
- Become an Amazon FBA Australia seller
- Pick the best products to sell on Amazon
- Ship items to a third-party FBA prep center
- Update your pricing to maximize sales
- Start advertising your product listings
Joining the FBA program saves you time and money, making it easier to manage your inventory and deal with the coming holiday season. The time that you save can be used to review sales trends and select the right products.
Start shipping your items to a third-party prep center to ensure that you are ready for increased ordering. Third-party FBA prep centers help streamline your inventory management and compliance with Amazon packaging requirements.
You should also update your pricing and increase advertising spending as the holiday season approaches.
As a final tip, consider setting up deals for after the holidays. After the start of the new year, returns and gift cards lead to the second wave of online shopping. Use this period to sell off more of your inventory. For additional recommendations and help managing your inventory, contact the logistics experts at Easy FBA Prep.