Worrying as it is to admit, Inflation is reaching new heights. The shopping habit of buyers has been affected and third-party sellers have to worry about increased storage costs along with Amazon introducing fuel and inflation surcharge earlier in April.
What are sellers expected to do to keep their accounts from tanking and still cut their profits?
If you have concerns as a seller about the effect of inflation on your business, here are a few suggestions to navigate inflation while selling on Amazon:
- Reprice your product catalog: Repricing your stock according to the ebbs and flow of the market is the sole way to ensure you are keeping your profit margins. You’ll be shocked at how little effect a simple $1 raise will have on your BSR. This can be done manually or you can opt for Amazon’s automated pricing tool, define the parameters, and setup minimum and maximum price boundaries. Prices on Amazon need to be adjusted regularly to ensure that the seller is making a profit and products are not becoming over or underpriced and losing appeal to customers.
- Adapt to consumer preference: Track your pricing and sales data performance regularly to see when products are doing well, which are your best sellers, and when an opportunity for a price increase presents. You will want to use this data during shopping seasons to guide you on stocking up on inventory.
- Take Advantage of Amazon’s Small and Light program: The key benefit of FBA small and light is that it reduces fulfilment costs for sellers. FBA Small and light program is the best way (and for some sellers, the only way) to be profitable if you’re selling small, cheap, and fast-moving products. Check out One Good Deal for a list of available OA deals eligible for Amazon’s small and light program.
- Confirm all your product sizes are accurate so you aren't overpaying for shipping or storage. Every centimetre matters and every dollar counts when it comes to inflation.