Selling Products Strategically on Amazon
Strategically planning sales campaigns around each ASIN is the most effective way to achieve strong sales on Amazon. Wholesalers with thousands of ASINs in their catalog are better off focusing special attention on their top-selling products. The strategy developed around each ASIN should be based on the products generating the highest profits. Segmenting a wholesalers' catalog down to sub-categories helps, but assessing each ASIN independently is the most thorough approach for building a strong sales campaign on Amazon.
Evaluating the ASIN
Determining whether a low profit margin or high profit margin for each item is more viable should be the first step in planning campaigns around each ASIN. Considering a realistic sales volume is also important in developing a strategy around each ASIN. Understanding seasonality cycles affecting your product is also imperative for building an effective sales campaign around your different products. Evaluating turnaround times and the rate of replenishment you need is also imperative when framing how to make decisions concerning the sales strategy for each Amazon listing.
ASINs and Sales Cycles
Understanding the cycles each ASIN is susceptible to, and allowing them to fully complete their cycle organically is also essential for developing individual sales campaigns. Holiday peaks and seasonality are key factors to consider before pulling any ASIN from your listings. Depending on the product, the sales cycle could take as long as a year to complete, or it could just be a particular quarter or two. The first sales cycle and the product's seasonality can serve as the initial learning curve for setting up a campaign around any ASIN.
ASINs and Inventory Management
Once you have a better idea of what to expect with the specific ASIN, it's time to start evaluating how to manage that inventory. The long-term storage fees associated with the ASIN should also be factor in deciding how to handle the inventory. Items with poor sales numbers throughout their cycle may need to be liquidated sooner than later. Amazon actually charges FBA sellers excess fees in February and August for any items that have been in the inventory for at least six months. Completing a comprehensive review of the inventory can help FBA sellers develop a strategy to avoid paying these excess fees each year.
Analyzing ASINs' Performance
Being proactive with liquidation, opposed to reactive, can be an effective strategy for achieving quicker sales. Investing in an algorithmic repricing system can help you maximize ROI, while helping you meet the out-of-stock date that you have set. Adopting revenue intelligence applications can help sellers identify how well ASINs are performing and how the inventory may be effected going forward. These monitoring systems help sellers determine the right time to send traffic to a particular ASIN, when to liquidate existing inventory or whether it is wise to continue carrying a specific product.
The benefits of meticulous attention spent managing ASINs and inventory is certainly worth the effort. However, with a measured approach, there are applications that can handle most of the analytics and heavy lifting that can seem overwhelming to the average seller. Identifying the top performing products and any potential headwinds in inventory management are the first steps in setting up effective sales campaigns around individual ASINs.