Amazon Marketplace - Get Highest Profit
Garnering highest profit is the ultimate goal of all the sellers and it should be, for this is something that draws most sellers to Amazon Marketplace. There are two key parameters in the formulation of a profitable business. They are −
- Demand for your product, and
- Margin on the sale.
Demand for Your Product
You can sense whether the product you are investing upon is worth it or not by gauging its demand. Try looking at how many people are exactly interested in buying the product you are going to sell. What is the need for the same? How many other sellers are in line to meet the demand and with what quality product?
Margin on the Sale
The margin you are getting on your sales is equally important. Something a lot of people are selling does not necessarily mean is going to sell well with high profit. There is no standardized benchmark for what exactly is a good margin. Margins depend to a great extent on the quantity. If the demand is high and you are getting a lower margin on the product, even then the sale will automatically become a profitable one.
Following are some tricks to target high sales −
Target the Buy Box − Winning the Buy Box is more than just price. Pricing down to beat a seller with a poor rating is of no worth in comparison to winning the Buy Box otherwise.
Compare your prices against condition with competitors − Compare your prices with competitor’s new product against a new and used product and then list your price.
Do not follow the flock − Avoid pricing against merchants with low rating. Buyers do not like to purchase from a seller with low rating. If a couple of merchants are lowering down their prices to fight it out, don’t be a part of them. Simply stay away and focus towards different goals.
Try getting the highest rating − Your customer is undoubtedly your greatest asset! Supply quality product to your customer at reliable rates and good shipping service. Look at the post-transaction grievances and try settling most of them. Keep a constant check on your price and quality. Give due consideration to the customer’s feedback and reply to any query. All this finally enters you into the zone of highly rated seller.