So, you did it. Your Amazon FBA business is doing well. You might have few products that are already selling well. A constant stream of money makes you wonder: “how can I get more of it?” The answer seems obvious- you need to scale your product line. If you have more to offer, there are more potential clients to buy from you. Easy enough, right? Well, be careful because it can get tricky. Many new sellers after initial success decide to expand their offer. Surprisingly after some time, they find themselves losing money, instead of earning more. Why is this happening? How to avoid it? This article will show you a few tricks and tips on expanding your product line on Amazon while minimizing chances of loss.
Before you dip into the new and exciting product, you should ensure that what you already sell is taken care of. While your new ideas and possibilities are tempting, don’t just drop what you started with. Remember that your new product line on Amazon can be funded off the profit you made on your current products. To achieve that, you need to make sure you won’t run out of stock. Look for room to upgrade- maybe there’s space for it in branding andbrandingand design of your products? Your new and exciting product might be a success, but you can’t ever be 100% sure. Your current stock is a sure shot- you know it sells and makes money for you. Make sure you have something to come back to in case your new project won’t be successful!
It’s tempting to enter the market with a new product, but first see how your current one is doing. It’s recommendable that once or twice a year, you check the status of each of your listed products. Is it selling well? Or maybe there was no purchase in a long time? If so, maybe it’s time to cut off this product. Don’t waste money paying Amazon warehouse to store products you won’t sell.
Now to the core. How to scale your product line? What should you add to the offer? While your possibilities are limitless, there are few rules you should consider following. Whatever category you sell in, make sure you know it well. Before adding a new product spent some time on heavy research. Don’t assume what people need. Instead, try asking them directly. Your assumptions could lead to failure, while the authentic opinion of customers is worth a lot.
After your research, you might see that some products promise a lot of potential. It might be tempting to immediately start selling it, but ask yourself- is it connected to your base products? Having an Amazon business selling different things from different categories barely work in along term. Think like a customer. When you go to Amazon, you probably look for a specific thing. If you sell many different, unrelated to each other items, you won’t be a good place to stop by.
Look at the products you already sell. Can they be modified? Maybe offer different colours, functions, or quantities? Expanding your existing product line by adding small modification has two main advantages. First, you will give more choice to clients you already have. Second, good ratings on your current items are going to attract new clients for your new, diverse product line. Don’t waste this opportunity!
Let’s say that you’re selling t-shirts. Depending on their style, colours, and patterns, you will attract different age groups. If after analysing your product you’ll see that you mostly attract older customers, why not expand your Amazon business by adding products for Gen-Z? Each generation acts differently, so make sure you know your audience. You could include many different categories to your targeting: people of different gender, lifestyle, nationality, and age look for different things. Each of these groups is a chance for your Amazon business!
Amazon offers you a unique opportunity. Since they already exist on almost every continent across the globe, why not use them? Don’t limit yourself to your home country. Go big or go home! Entering completely new markets with your product might require some work. Your research must be done from scratch again. While it will take some time, the results are worth it. Each new country represents new potential chances. Your product line may require some scaling, but that’s why you’re here, right? Broaden your horizons and expand your Amazon product line to different countries- it’s worth trying!
While all those new opportunities are exciting and promising, you need to keep your head cool. Numbers don’t lie-make sure you listen to them. If your new product brings more costs(production, shipment, marketing…) than profits in a long run, maybe it’s time to make a few changes or resign completely? Take your time to check what’s good for your Amazon business. This way nothing will surprise you.
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