It’s always better to sell more, isn’t it? But maybe not always. Your sales numbers may be increasing, but, in terms of profits, you may still lose money. This means that the more you sell, the more you lose. This is why it is important to distinguish between a large market and a profitable market.
There are many costs associated with selling online that need to be considered. Otherwise, sellers may overstate their profits.
Here are 4 marketing tips to help you understand your true value numbers.
- Track your profits
This can be done with a simple sheet or, even better, a special tool like a trading board that calculates profits and losses immediately.
When marketers subtract their monthly expenses from their total sales, they may be surprised when they finally look at the results.
- Consider all selling prices
Product pricing isn’t the only cost to sell on Amazon.
Consider the following:
- FBA fee
- Security costs
- And more than 70 Amazon fees can
- Don’t underestimate Amazon’s comeback
Returns are not just the loss of the original sale. There are also any fees associated with the sale and the original refund, plus the fact that the item may not be available again.
One of the reasons the seller board shines is because it helps you analyze why customers return products. If you are selling duplicates of the same product, this can help you spot problems with the listing or the product.
Finding the cause of frequent returns can help you adjust the list to reduce future returns.
- Watch out for Amazon FBA errors
Amazon fees are not always 100% accurate. Sometimes mistakes happen in the warehouse, and it can cost you money.
When an error is detected immediately, you can ask the seller’s support to review the issue and fix the error so that you can get your money back.
Some common mistakes that can cost you money:
- Lost and damaged products
- Returns that Amazon has not yet received
- Registration error for incoming shipment
- Charge error for incorrect weight/size
As you can see, it is important to always keep track of your numbers and watch out for any charges that may escape your notice.
Using a service like a sales board can help you stay on top of all your profit numbers and can see areas of your business that need immediate attention.
There is another thing. Sellerboard offers additional tools for Amazon sellers:
- Follow-up email campaigns
- Inventory management
- PPC optimization and call automation
- Media exchange
You can get all these features from just $15 per month.
There’s even a 2-month free trial so you can test out the best seller board and learn how it can help you calculate your Amazon profits better!