5 Fundamental Ways to Scale Your Amazon Business
Scaling an Amazon business goes beyond simply growing sales or expanding your product offerings. It involves strategically deepening your brand’s presence and optimizing your operations to maximize profitability and sustainability. But what does scaling actually mean?
At its core, scaling is about increasing your capacity to handle growth while maintaining or improving efficiency. This can be achieved through vertical expansion - enhancing the depth of your current product lines and optimizing your existing processes - or horizontal expansion, where you introduce new products or enter new markets.
While horizontal expansion can lead to rapid growth, it often stretches resources thin and complicates operations. That's why, for many sellers, the first step in scaling should focus on depth—optimizing your existing business to its fullest potential before branching out. This involves refining your Brand’s presence, creating SOPs, delegating work, leveraging advanced analytics, and enhancing supply chain management.
In this post, we’ll explore five fundamental ways to scale your Amazon business both vertically and horizontally.
1. Optimize Your Listings
Optimizing your product listings is a foundational step in scaling your Amazon business, and it all starts with getting back to the basics. Ensuring the fundamentals are in place—like a well-crafted title, bullet points, and descriptions—lays the groundwork for sustainable growth.
Increasing CVR on one of your best sellers can translate to thousands of dollars of growth. Begin with your product title, keeping it concise yet informative, ideally within the 150-200 character range. Include essential details such as size, color, and key features, following a structured format: [Brand] + [Product Name] + [Key Feature] + [Product Type] + [Color/Size/Variant].
Your bullet points are also critical; utilize all five and keep each under 500 characters. These should clearly emphasize the primary features and benefits of your product, using short, impactful sentences for easy readability. Integrate relevant keywords naturally within the content, and for those that don’t fit seamlessly, place them in the backend to ensure your listing remains optimized without sacrificing quality.
When it comes to your product description, leveraging Amazon’s A+ Content feature is key. A+ Content allows you to enhance your listing with comparison charts, high-quality images, detailed descriptions, and videos. This not only enriches the customer experience but, according to Amazon, can lead to a 3-10% increase in sales. A+ is not an “extra” feature nowadays but rather a necessity.
High-quality lifestyle images, detailed infographics, dimension images, and videos are crucial for conveying your product’s value quickly and effectively. Given that many shoppers skim or even skip textual content, your images often play a decisive role in converting views into sales. By ensuring these fundamental elements are solid, you set a strong foundation that allows your business to scale effectively.
2. Optimize Your PPC Performance
Amazon is a discovery-driven marketplace, with 75% of shoppers using the platform to find new products and 68% browsing without a specific product or brand in mind. This creates a significant opportunity to capture attention and drive sales, particularly through Amazon’s PPC advertising. For any serious Amazon seller looking to scale, mastering PPC is not just an option—it’s a necessity.
PPC on Amazon is distinct from other advertising platforms like Google or Facebook. Unlike those platforms, Amazon’s PPC targets consumers who are already in a buying mindset. This approach contributes to their impressive 9.44% average conversion rate—seven times higher than ads on non-Amazon sites—and their cost-efficiency, being about 44% cheaper than Google or Facebook ads.
To maximize the effectiveness of your PPC campaigns, ongoing optimization is crucial. Regularly monitor your campaign performance to identify high-performing keywords and ads, and adjust your bids and budgets accordingly to achieve optimal ROI.
Given the complexity and time investment required to manage PPC effectively, partnering with a professional agency like Enso Brands can be highly beneficial. As a full-service Amazon agency, Enso Brands offers expert PPC management, along with comprehensive services, including listing optimization, A+ Content creation, infographic design, inventory management, bookkeeping, and Seller Central support.
3. Delegate To Amazon Experts Who Can Handle SOPs and Daily Tasks
As an advanced Amazon seller, you're aware that maintaining success requires constant market monitoring, diligent sales tracking, and effective ad management. The day-to-day demands can be overwhelming, making it crucial to streamline operations. Hiring a skilled Amazon marketer, however, is a strategic move that not only optimizes your current processes but also lays the foundation for future growth.
A skilled Amazon Specialist can manage daily tasks across the key pillars of your Amazon business:
1. Amazon Catalog Management: They can handle FBA reimbursements, listing suppressions and errors, inventory management, and much more, as well as managing communications with Seller Support, ensuring your catalog remains accurate and compliant.
2. SEO and Content: They assist with keyword research, optimize product listings, and update content to boost visibility and conversion rates, keeping your products at the forefront of search results.
3. PPC Management: They can monitor and optimize your PPC campaigns, adjusting bids and budgets to maximize ROI, ensuring your advertising efforts are both effective and efficient.
4. Overall Operations: They track sales analytics, monitor competition, and assist with overall business management, freeing you to focus on strategic growth.
4. Expand into New Markets
In addition to your regional marketplace, Amazon provides access to 21 international marketplaces where you can expand your sales. You can select your target markets based on monthly traffic data. As of 2024, the top marketplaces include the USA with 3 billion visits, Germany with 605.38 million, the UK with 569.64 million, and Canada with 231 million.
Before expanding into a new region, it's crucial to verify that there’s demand for your product. Once confirmed, your next steps will depend on your location.
For US-based sellers, joining the North American Remote Fulfillment (NARF) Program is the easiest next step. NARF allows you to sell on Amazon Canada and Amazon Mexico while storing your inventory in US fulfillment centers. When customers from these countries place an order, Amazon handles the cross-border shipping. Additionally, NARF provides automatic access to the Build International Listings (BIL) tool, which replicates your US product listings on Amazon Canada and Amazon Mexico without requiring manual input.
Expansion into the UK and EU can seem daunting, but if you see potential and an opportunity to gain market share, take it! The UK and EU markets can easily account for 50-70% of your US sales.
5. Launch New Products
While many view launching new products as the first avenue for expansion, it's important to recognize that this strategy often carries significant risks in terms of time and capital. Therefore, it should be approached strategically, typically after the previous growth opportunities have been fully facilitated.
One highly effective and lower-risk expansion method is introducing new variations of your best-selling products. By leveraging existing demand, you can extend your product line with variations such as different sizes, colors, flavors, or styles. This approach allows you to capitalize on what already resonates with your customers, minimizing risk while increasing market share within your category.
In contrast, launching entirely new products should be considered further along in your business lifecycle. This approach makes sense when you’ve already optimized your existing product lines, exhausted cross-selling opportunities, and have a strong grasp of your market. At this stage, introducing new products can provide a fresh revenue stream and attract new customer segments. However, it requires thorough market research and careful planning.
Accelerate the Growth of Your Amazon Business
Scaling your Amazon business involves more than just expanding product lines; it requires strategic growth that enhances your brand's presence and operational efficiency. This blog post delves into five fundamental ways to scale effectively, focusing on both vertical and horizontal expansion.
The first priority is to optimize your existing business, starting with refining product listings and PPC performance, followed by delegating daily tasks to virtual assistants to streamline operations. Once your foundation is solid, consider expanding into new markets through Amazon's international marketplaces.
Finally, while launching new products is often seen as a primary growth strategy, it should be approached cautiously, ideally after other avenues have been maximized. Each step is designed to boost profitability and ensure sustainable growth.
Drive Your Amazon Growth with Specialized Experts
To truly accelerate the growth of your Amazon business, it’s essential to tap into the expertise of Amazon specialists.
Connect with remote experts through remote staffing experts, like MultiplyMii! We can help you confidently navigate Amazon's complexities and achieve the success you’re aiming for.
By hiring specialized talent rather than relying on general virtual assistant services, you can ensure your Amazon business scales effectively and efficiently.
Ready to take your Amazon business to the next level? Get started with MultiplyMii today!
