In the last few years, Amazon’s sales have changed drastically. Now the count of third-party vendors on Amazon has reached 10 million from the couple thousand. And every seller is giving their best to earn more profit and generate high product demand. Because of this high competition, it becomes difficult for sellers to differentiate themselves and their products to stay ahead of the competition.
To succeed as a seller in the ever-growing e-commerce platform, usingAmazon FBA business tools becomes imperative. However, various options are available, and choosing the right one is pretty daunting. So, first, list your specific goals and then map them with the top Amazon seller tools to make the right decision. These software offers endless benefits, out of which three are highlighted in this article
- To Calculate Profits
Nothing can be more complicated than calculating profitability when running an online business on Amazon. However, it is indispensable to calculate the profit potential of a product before putting it on sale. Although some product categories are highly in demand and extensively profitable, still investigating shipping costs and services costs required to determine exact money that will be earned by selling the product. After calculating the selling cost of the product, don’t forget to compare the results to the potential selling price and look at whether a positive margin is obtained or not.
Many Amazon tools are available to predetermine the profit margins associated with the product. Some of them are Scale Insights, Junglescout, Repricerexpress, and Udemy. Aside from these, Amazon itself provides a probability calculator tool to the sellers. It is called the Amazon revenue calculator.
All you need to input is the product’s UPC or ASIN number together with packaging dimensions to identify the profit margin on a specific item. With the help of Amazon’s revenue calculator and other profit calculating software, you can identify profits for a large number of products in a fraction of a second.
Although some calculations are not very difficult, doing thousands of calculations at once is pretty much impossible. This is the most prevalent issue Amazon wholesalers face dealing with hundreds of products and tons of suppliers. However, investing in a profitability calculator can make things quite easier.
- Sales & Inventory Forecasting
The other most common difficulty that Amazon FBA sellers face is forecasting sales as well as building up inventory. These two factors are vital to increasing sales and profit. To sell efficiently on Amazon, it is required to have sufficient stock. However, it is tricky to determine how much to order. The order is too little; the chances are you run out of stock.
Similarly, if you order excess stock, it leads to wastage of money. The Amazon forecasting tool can help in solving this issue. It figures out the appropriate number of products to serve the customer demand along with storage optimization cost.
In former days, sellers used a hit and trial method to predict inventory needs for the future. They ask suppliers to send” x” number of products, see how selling goes on, and reorder the stock based on the performance of past sales. However, this method was ineffective because it does not consider other vital factors like seasonality, time-sensitivity, etc., that can impact the sales. Fortunately, the emergence of sales and inventory forecasting tools solved this problem for Amazon sellers. They perform real-time analysis to optimize the inventories.
- Perform Competitor Analysis
While Amazon profitability calculators cut down the time to find profitable products, it still takes hours to accomplish this process. A new tactic has emerged from the seller’s side and called super targeting to simplify the search for trending products on Amazon. It alleviates the product research time extensively. Super targeting refers to analyzing the competitor’s inventory in lieu of starting from scratch. This type of method saves you a lot of time.
Rather than analyzing tons of products, find another Amazon seller like you and review their profile and the items they are selling. Instead of searching for a new product, you can also offer the same product as your competitor. Also, you can find and connect with the supplier of the other sellers to make the product research easier. Many Amazon softwares are available to monitor top vendors and their strategies in seconds.
The Bottom Line-:
Now that you have good reasons to invest in Amazon FBA Seller Tool don’t wait and find the best option to grow your online business.