Monday September 20, 2021

updated - September 20, 2021 Monday EDT

How to Save Money as an Amazon Seller

Dec 14, 2020 10:11 AM EST | By Ernest Hamilton
How to Save Money as an Amazon Seller
(Photo : How to Save Money as an Amazon Seller)

Amazon sellers have enormous hurdles to overcome and the worst competition to deal with.  No business owner needs to deal with low-profit margins on top of all of these other stresses.  When you're selling as a small company, you pay nearly a dollar per sale, but you can go up to forty dollars a month for total units sold.  This cost may seem small in the long run, but on top of production costs, taxes, and shipping expenses- there's a lot to look out for.

Be Smart With Returns

Amazon has a massive push towards questionless returns.  This plan means customers can buy products like cat food and then scam their way out of payment by making false claims.  Often, if the buyer claims that the product isn't what they wanted and over a certain weight, they can get a full refund or full credit for its cost without returning it.  This loophole could mean that some customers lie into getting an entirely free cat food case for twenty-five dollars or more and then spend that money on other things.

Review your company's return policy closely, and ensure the measures you take are ones that will help keep your returns to a minimum.  Of course, if customers have legitimate issues with the items you receive, you should refund them or offer an exchange, but don't let your company lose money just because buyers find loopholes.

Using Amazon Fulfillment

Fulfillment by Amazon, also known as Amazon FBA, is a fantastic way to save space, workforce, and time.  In the end, these steps are quickly translated into money-savers, offering up the chance to spend more time creating and shipping products instead of fulfilling orders.  Although this does have its downsides, like hands-off returns and a loss of feeling like you're running your own business, the perks can often outweigh these feelings.  Your customers will benefit from choosing Prime shipping, which most shoppers want, allowing them to receive your item far faster than you could have shipped it to them.

Personal Customer Service

Lost money is a lot, like spending money.  There's capital that could have been yours if a decision was made differently.  With Amazon, often, that decision may be in the customer service.  Even though you may decide to go through Amazon Fulfillment, your business still needs to stay on top of customer communication.  One bad review can make or break a company, and you don't have to do much to remedy it.  Instead of letting bad reviews ruin your business, reply publicly to the reviewer and ask how you can fix their problem.

Often they'll be able to ask for reasonable fixes (replacement parts or information on how to put something together or properly use an item), and they'll fix their review after.  Don't get combative with bad reviewers, instead work to repair your relationship with this customer, and take the chance to show that you care and want to make the most of their feedback.

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