165 Common Amazon Profit and Loss Mistakes with Shane Stinemetz Part 2 of 3
Once again we are joined by Shane Stinemetz to discuss more ways to use Fetcher and improve your Amazon listing.
The best way of managing sales is being in touch directly with your customers. You can send emails to your buyers to ensure they are satisfied. This gives you an opportunity to understand the consumer demands as well as grants you the opportunity to intervene with problems before they happen. It also helps discover quality issues that you can take to your supplier. This will, in turn, boost your Amazon profit.
If a customer is not satisfied with their product, it’s better that you ship them a new, free product rather than them getting a refund through Amazon. This will also help prevent the buyer from leave negative feedback. This is huge. If you get over 1% negative feedback, you run the risk of having your account suspended.
How Fetcher can Boost Amazon Profit
Fetcher is currently the best solution for those who do not have an accounting background and that need to keep their profit and loss numbers in check. Fetcher is suitable for those who tend to have a general understanding of accounting, but not super high-level. It was built because 80% of people who sell on Amazon stated are not confident in their Amazon profit and sales reports. The software helps make raw data available for the average sellers who are struggling with their accounting information. They need to be looking for ways to improve their business. Fetcher, therefore, takes raw data and simplifies it.
The software helps Amazon sellers make better business decisions that will improve their Amazon profit through their knowledge of transactions. Fetcher integrates a seller’s account with Amazon’s API to help the users handle complicated calculations that strain their understanding of how to maximize their Amazon profit and sales. Fetcher helps you understand your sales numbers so you can better compete with these larger companies.
How to Set Targets to Maximize Amazon Profit
The discussed matrix are crucial in setting targets. This begins by first understanding where your business has been and where your business currently is. This gives you an understanding of how your business is currently performing. It is very important to have historical data. In setting targets, you need to assess if there is an upward trend in sales. In the case there is no upward trend, then you needs to analyze what needs to be done to increase sales by setting quantifiable goals. It’s not enough to set a goal that you will increase sales by 5%. It needs to be a measurable goal to get you to that 5%.
One of the best places to set the targets is recurring fees. Recurring fees are very much about inventory management. After 6 months, Amazon hits you with a long-term inventory fee. Fetcher has an inventory tool that can assist with preventing overstock. By knowing how much inventory you hold and how much you’re selling, it is easy to tell when the inventory will run down. This helps in reducing the inventory fees. This is unique because it involves setting goals for expenses rather than for sales. It makes sense to create targets based on things that is easy to have control over. Inventory is easier to control since sales are sometimes unpredictable.
It is great to have long term goals for sales but still important to set short-term, achievable goals. The best way is to understand how to fix refunds by having automated emails and communicating with customers to reduce the number of refunds. This helps in understanding margins in the end that can help you make targets that are quantifiable. Therefore, in setting targets, you should set targets over factors that they can easily control and forecast. It is easier to influence your costs rather than sales.