Build Your Brand on Amazon with Short Product Videos

Posted on November 4, 2022 by adminoo

Product videos are a great way to display your products in reality and educate potential customers on what they’re buying before they buy. With over 2.5 billion sellers on Amazon, it has become even more difficult to stand out from the competition with your product, but this is where an effective video can help you capture potential buyers’ attention and convert them into customers! The Amazon Product Videography will ensure that people see what they’re looking for in just seconds, so all those hours spent filming footage pay off when there are sales made by viewers like yourself who found something worth buying right away.

PRODUCT VIDEOS: THE ULTIMATE FRIEND OF AMAZON PRODUCTS

Video marketing is unquestionably one of the most powerful marketing strategies you can employ. It gives your customers an immersive experience with every detail, allowing them to better visualize themselves using it and increasing conversion rates! Not only will this make people more likely to purchase from YOU instead if their current supplier doesn’t have any product videos up yet (as seen by how quickly those buyers clicked away), but also because we’re so used to adult entertainment these days, no matter what kind of personality or mood someone may be in when browsing online stores, we want something visually stimulating before making decisions regarding.

AMAZON PRODUCT LISTING OPTIMIZATION:

Videos help sellers build relationships with customers by explaining more about the benefits of the products they sell. By highlighting all important details such as values or USPs! And answering all those questions you might be wondering about before making any purchases, a product video can change how people view one of these products!

Amazon has made it easy for sellers with innovative tools such as Amazon Product Videos, which provide excessive information so that viewers do not need to go elsewhere when they watch them. The Amazon Product Video is a good way to optimize your product listings.

AMAZON PRODUCT VIDEO CONVERSIONS:

Promoting your goods on social media or an e-commerce website is an excellent technique. Customers are much more willing to make purchase decisions as they find videos more helpful than reading text on a page, which may be difficult for some individuals with vision issues. In addition, they are much more likely to buy something when they see the video than when they read a text about what you have for sale! With these statistics, conversions will increase by up to 80% with a well-made product launch video.

360-DEGREE PRODUCT VIDEOS:

360-degree product videos are the perfect way to boost your sales. These immersive and accurate visuals can show off the true beauty of each item. And with complete transparency comes confidence in customers who have every right (and expectation) that they will get an honest assessment on whether or not this purchase makes sense based on viewing only one angle from their perspective—but now there’s no excuse because all angles are displayed equally throughout these short films, so nothing goes unnoticed.

PRODUCT DESCRIPTION VIDEOS:

Product descriptions are a great way to make your products stand out. They can be seen as an extension of what you would say in person, so they’re bound to engage customers more than just text alone! These videos should highlight all the amazing features and benefits of using this particular item or service; after watching them, consumers will feel like experts because their knowledge has been extended by watchful professionals who know exactly what they say.

HOW-TO VIDEOS:

How-to videos are a great way to show off your product and make it easier for customers. By demonstrating how simple or effective the item is, you can reduce customer service calls by eliminating confusion about what they need help with and instead creating confident buyers who will rave about their purchase!

CUSTOMER TESTIMONIAL VIDEOS:

Include customer testimonials in your product video for a professional, trustworthy image. The best way to do this without breaking any Amazon rules is by using footage from recent reviews that were published within the last year and included only verified positive comments about your company’s products or services to avoid being disqualified, as fraudulent activity often occurs these days with people creating fake accounts so that they can post bad stuff online!

VIDEO SIZE AND QUALITY:

For a video to be successful on Amazon, it needs the right length. Data suggests that viewers click off after 60 seconds of watching and will only stay tuned if your product or service has some entertainment value in its content, which can make things difficult when trying to set up an informative seller account! If you’re looking for ways around this problem, consider shortening any future promotional clips by 45%. In addition, the Amazon provider recommends videos under 5GB in size, so don’t worry about going over capacity! Finally, the resolution should also be at least 1920 x 1080 pixels since this higher standard makes for better viewing quality when browsing products on their website or app store listings.

PRODUCT COMPARISON VIDEOS:

Is your product better than your competitors’? Show it with a comparison video. It’s as basic and straightforward an idea to shoot, edit, or create for marketing purposes: show what features they offer that you don’t have on yours, along with any improvements over theirs (if applicable). If not having all those extra bells and whistles doesn’t matter, then make sure this type fits the bill; otherwise, try another one.

Non-brand registered sellers can now upload videos to their listings!

Yes! Amazon has now officially allowed non-brand registered sellers to upload videos on their listings. In September 2020, these new guidelines were sent out via email, saying that you could indeed use this feature if your account is eligible for it—so make sure and check under the Inventory tab, just above where the products are listed at all times, because there might be some extra steps involved, but don’t worry too much about them since everything should go smoothly once we’ve figured our way through these hurdles together.

SHARING CONTENT EXTERNALLY:

Amazon is making video content easier to find on its platform by adding the ability for users and brands to search, regardless of their size or popularity. With TikTok being such a popular app among millennials, it’s no surprise that they would take advantage of this form of media while building up an audience base that can then be marketed towards more mature consumers who may have grown out of social networking sites like Instagram but still want access to quality products from smaller businesses locally based near where you live!

Product videos are a great way to capture attention, especially on YouTube, where people love watching them. Uploading your Amazon product videos so you can share them on other platforms will expand their reach and increase awareness of what’s inside!

UNBOXING VIDEOS:

The new trend in online shopping is to have a video that unpacks the product and shows viewers exactly what they will get. This kind of informative clip can give customers satisfaction when their purchase comes without having seen it before, as well as allow them an opportunity for a vicarious experience with tips on whether or not this would be worth buying!

CHOOSING VIDEO OVER TEXT:

The next generation of consumers has spoken and is choosing video over text or images. This is apparent in the rise in popularity of TikTok, which now dominates America’s Snapchat-sized WhatsApp demographic (WhatsApp had around 200 million monthly active users as opposed to Instagram Stories’ claimed 100). Amazon also saw this trend coming when it launched its “Video Ad” feature on storefronts last year; these ads can be up to 1 minute long, whereas others may only show 15 seconds at most before automatically fading out–a much.

AMAZON VIDEOGRAPHY GUIDELINES:

Keep your videos short to keep people engaged! Avoid fluffy or unnecessary information that could turn off potential customers; we recommend keeping them under one minute in total length (including titles/logos).
To make sure all our sponsored brand ads look professional on film with clear sound during voiceovers, we must use excellent audio quality when shooting these.
You can use a comparison or product highlight video to address your customer’s problem quickly and efficiently.
The key to creating high-quality videos for your product is ensuring that you have professional equipment and know-how. If not, use free video editing software like iMovie or Windows Movie Maker.
If you want to create a video for your product, ensure the lighting is good and easy to use.
The best way to ensure your customers get the most out of watching a video is by focusing on its main features and benefits. Customers are much more likely to watch product videos if they can see what’s being demonstrated.
To make your video more engaging and aesthetically pleasing, use on-screen text to point out important features or benefits of the product. This is especially helpful if someone watches it with the sound off.
You should also provide royalty-free music for viewers with preferences that don’t match this tone but still want some ambiance. At the same time, those watching will be able to get their desired effect from it too.

What’s An Amazon FNSKU? How To Create An FNSKU For FBA Sellers?

Posted on September 1, 2022 by adminoo

Executive Summary

What’s an Amazon FNSKU? How to Create an FNSKU for FBA Sellers
1.	What is an Amazon FNSKU?: Fulfillment Network Stock Keeping Unit (FNSKU) is a unique term used on barcodes to identify products of FBA sellers. Sellers get a unique FNSKU for every product they sell, even if other sellers have the same ASIN.
2.	Difference Between FNSKU and ASIN: Many sellers can use the same ASIN if they sell the same product. In contrast, each seller gets a different FNSKU for the product they send to the fulfillment center.
3.	How Can I Create an FNSKU?: Log in to Seller Central and navigate to the settings drop-down option. In the drop-down menu, select fulfillment by Amazon. Keep scrolling until you see FBA Product Barcode Preference, and click edit. After that, select the Amazon barcode and click update. Select Manage FBA Inventory and upload the product for which you want the FSKU. Upload the product listing, and go back to Manage FBA Inventory to see your FNSKU.
4.	How to Print FNSKUs?: Log in to Seller Central and choose the Manage Inventory option. After that, select the product for which you want to print the FNSKU labels. Click on Print Item Labels, and adjust the label size and settings per your preference. The next step is to print the labels. Lastly, stick the labels onto the packaging of every product that goes into the Amazon warehouse. If you do not place the FNSKU label, your product will never make it to the buyer.
5.	Is FNSKU Better than a UPC?: Hundreds of sellers use the same product from the same manufacturer. So, they all have the same UPC, but Amazon assigns unique FNSKUs to every seller. It means FNSKU is better than a UPC.
6.	Why Do I Need FNSKUs?: FBA sellers need FNSKUs to fight against counterfeiting, and it also helps in managing inventory.

Amazon sellers are often overwhelmed by confusing terminologies and abbreviations. It is hard enough to create an Amazon product listing without having to understand these terms. ASIN, UPC, FNSKU, what do they all mean? Why do you need to learn about all of these terms? Most sellers assume these are the same product identification terms and do not serve any unique purpose. However, the truth cannot be further than this assumption. Amazon FNSKU is entirely different from ASIN and UPC. It is a unique identifier that connects Amazon FBA sellers to their products. Our guide will teach you everything about FNSKUs.

What is Amazon FNSKU?

Fulfillment Network Stock Keeping Unit (FNSKU) is a unique barcode that identifies the products of FBA sellers. It is slightly similar to ASIN and UPCs, but every seller has a different Amazon FNSKU for every product. The fulfillment process becomes much easier if a product has an FNSKU. After a buyer places an order, Amazon can easily find the right product through this unique barcode. More importantly, Amazon FBA sellers can track their products in transit. FNSKUs provide complete transparency to sellers and make it easier to manage the inventory.

In many cases, Amazon demands that FBA sellers put FNSKU barcodes on their products. ASINs with multiple sellers cause a severe problem for the warehouse staff as these products have the same universal product codes for amazon. Therefore, a unique identification code or number is necessary for finding the specific product.

Difference Between ASIN & FNSKU

Here is the explanation for everything from ASIN to UPC.

ASIN, FNSKU, and UPC can get a little confusing for most people. What is the reason for different codes and labels? Do they all mean the same thing? No, Amazon ASIN is a product identifier, and every product on Amazon has an ASIN. The problem with ASINs is that multiple sellers can associate themselves with the same product. As a result, Amazon can not differentiate between sellers of the same product.

FNSKUs are unique and remove any confusion at the warehouse. Every seller gets a different FNSKU for each product. As a result, even products with the same ASINs have different FNSKUs. It allows Amazon to connect every product to a specific seller. Therefore, buyers do not receive products from the wrong sellers. It makes a significant difference in customer perceptions. Imagine that you order a product from a specific seller but receive a faulty one from another Amazon seller. You would blame the seller you chose. So, FNSKU helps Amazon sellers to distinguish their products with a unique marking.

How Can I Create An FNSKU?

Creating an FNSKU only takes a few minutes. Let us guide you through the process of creating an FNSKU. Please be advised that it will only work if you are an FBA seller.

Log in to Amazon Seller Central and navigate to the settings drop-down option.
In the drop-down menu, select fulfillment by Amazon.
Keep scrolling until you see FBA Product Barcode Preference, and click edit (see the image below for reference)
Select Amazon barcode and click update.
Open the inventory drop-down menu, and select Manage FBA Inventory.
Upload the product for which you want to create the FNSKU.
After you create the listing, go back to Manage FBA Inventory and viola! Your product would be there with its newly created FNSKU.

Follow these steps to create FNSKUs for your products.

How to Print FNSKUs?

Okay, you created the FNSKU now, but you also need to put it in your products. Follow these steps to print your FNSKU labels.

Log in to Amazon Seller Central and choose the Manage Inventory option.
Select the product for which you want to print the FNSKU labels.
Click on Print Item Labels.
Adjust the label size and other settings as per your preference. After that, print the labels.
Stick the labels onto the packaging of every product that goes into the Amazon warehouse. If you do not place the FNSKU label, your product will never make it to the buyer.

Creating an FNSKU is good, but it will not do anything for you if you do not post these codes on your products. It gets slightly complex from here because most FBA sellers never get to see their products. Third-party manufacturers send the product to the Amazon warehouse. Talk to your supplier or manufacturer and explain that you want to place these labels on the packaging. FNSKU registration and printing are worthless if your manufacturer does not stick these labels on your product. So, talk to them and explain that you want these labels to be your product packaging.

Most FBA sellers send the label design to manufacturers and ask them to stick the FNSKU label onto the packaging. You can also do it yourself if your products do not come from a foreign third-party supplier. So, a few simple steps can give you an advantage on Amazon. There are plenty of ways of sticking the labels on the packaging, but you need to choose the one that fits you the best.

Is FNSKU Better than a UPC?

Amazon UPC is just a generic code that does not help to identify seller-specific products. Dozens or hundreds of sellers may use the same manufacturer for their products. As a result, all of the products will have the same UPC as they are the same. It creates needless confusion and makes things difficult for the warehouse staff. More importantly, it increases the chances of delivering the wrong products to customers. Therefore, Amazon UPC can only identify a product, but it cannot pinpoint the seller of the product.

We strongly advise FBA sellers to switch to FNSKUs. These unique codes will help you to manage inventory much better than UPC codes for Amazon. Buyers will never receive the wrong product when they buy from you. It will help you to increase customer satisfaction while decreasing the chances of misdeliveries. If you have not made the switch to FNSKUs, you should look into it.

Why Do I Need FNSKUs?

Items without FNSKUs are commingled with products of the same ASIN. As a result, the fulfillment center cannot differentiate between your products and other products that have the same ASIN and UPC.

Let us run a hypothetical scenario where the Amazon fulfillment center cannot find your product:

Your product arrives at the Amazon fulfillment center without an FNSKU. As a result, they are mingled with products with the same UPC and ASIN. A buyer comes to your Amazon product listing and places an order. The fulfillment cannot find your particular product as it has no unique marking. So, they pick a product with the same UPC as your product. The buyer receives the product, and it is not in good condition. They will leave a bad review on your listing even though they received a product from a different seller. FNSKUs will help you to avoid this entire scenario.

FNSKU is also your weapon against counterfeiting. Fraudulent sellers cannot mingle their products in between your products. You will also have better control over your inventory. Overall, FNSKUs have too many benefits, and you should not ignore these benefits as an FBA seller. Take full advantage of the Amazon barcode. FNSKUs might be slightly frustrating to print and label packaging, but the pros outweigh the cons.

Conclusion

We hope that you will consider using FNSKU labels from now on. FBA sellers must give their products a unique identity, so others cannot counterfeit products. More importantly, fraudulent sellers will think twice about copying your product. Hopefully, you have learned the difference between all of the product identifiers. FNSKU is like a product + seller identifier, which makes it different from Amazon ASIN and UPC. Therefore, you should start using Amazon FNSKU to separate your products from others in the fulfillment process.

Don’t Get Stuck Sitting on Inventory: Improve Your Amazon IPI Score

Posted on August 25, 2022 by adminoo

Sellers cannot just throw unlimited items in the Amazon fulfillment center with hopes of selling all the stock. Inventory management is an essential part of a successful FBA business. You pay through the nose if you keep too many items in the fulfillment center. The Amazon IPI score shows how efficiently you manage your inventory. Amazon rewards high scores and implements restrictions on low-scoring sellers. They know their space is valuable, and storing stranded inventory will hurt their business. You need to learn all the tricks to avoid a low IPI score, and we cover all of these tricks in our blog!

Don’t Get Stuck Sitting on Inventory: Improve Your Amazon IPI Score
1.	Amazon IPI Score: The IPI score measures the efficiency and productivity of inventory management. Higher scores indicate better inventory management.
2.	Where to Check My IPI Score: Log in to Seller Central and click on Inventory. In the drop-down menu, select Inventory Planning. Click the Performance tab, and it will show you your IPI score.
3.	How Amazon Calculates IPI Score: The formula is undisclosed, but Amazon most likely uses the sell-through rate to calculate the IPI score.
4.	Amazon IPI Threshold: *IPI Score Above 450:* Average *IPI Score Above 550:* Excellent *IPI Score Below 350:* Additional Storage Fees & Storage Restrictions
5.	How to Improve My IPI Score: Improve your sell-through rate, avoid excess inventory, and create removal orders for stranded inventory.
6.	Additional Tips to Improve IPI Score: Use PPC advertising, pricing strategies, removal orders, and listing optimization to improve your IPI score.

Amazon IPI Score

The Amazon IPI score measures the efficiency and productivity of your Amazon FBA inventory management. It ranges from 1 to 1000; higher scores indicate excellent management, while lower scores indicate poor inventory management. Therefore, sellers should aim to get a high score because it gives them several advantages. Amazon FBA sellers who efficiently manage inventory receive several privileges. Moreover, efficient inventory management is a sign of a prospering business. Minimal bottlenecks and productive inventory turnover also show that the product sells quickly. Sellers cannot overstock or understock the inventory and must find the perfect balance to achieve a great IPI score.

Where to Check My IPI Score?

You can check your Amazon Inventory Performance Index score in three simple steps. Follow the instructions given below to find your IPI score.

Log in to Amazon Seller Central and click on Inventory.
In the drop-down menu, select Inventory Planning.
Click the Performance tab, and it will show you your IPI score.

Now, you might either get disappointed or happy after seeing your score. Either way, you can still take many actions to improve your score. The most important thing you should know is that IPI scores are not static and keep changing based on your previous three months of performance. If you keep improving your inventory management, your IPI score will keep improving. Do not despair and get to work even if your score is poor! Let us show you how to correct your IPI score.

How Does Amazon Calculate IPI?

Amazon has not disclosed the Inventory Performance Index calculation formula, making it even more complex to understand the IPI score. The organization is secretive and does not want to reveal its algorithms and ranking mechanisms. Amazon has assured sellers that the IPI score does not decrease if a seller runs out of stock. However, stranded inventory decreases the IPI score, as your items are stuck in the warehouse. It means that out-of-stock items represent missed opportunities, but stranded inventory is the death of your IPI score. Study the demand for your product, and do not fill up the fulfillment center with excess inventory.

The sell-through rate is another factor that affects the Amazon Inventory Performance Index score. It refers to the number of units sold and shipped in the last three months divided by the number of units still in the inventory (see the image below for reference). The percentage shows how much stock was on hand in the past 30 days. A low sell-through rate means your items are not selling and are just sitting in the warehouse. As a result, your products are occupying needless space in the Amazon fulfillment center.

Amazon IPI Threshold

Amazon FBA sellers must meet the minimum IPI threshold to avoid penalty fees and restrictions. Extra storage costs can prove detrimental to your business if you are not careful. According to Amazon, an IPI score above 450 is the average score. Every seller should be near this score, but falling below 350 leads to additional fees and storage costs. Moreover, you can only send a limited number of units to the fulfillment center. Avoid going below 350 at any price, and do whatever you can to raise your score. An IPI score of 550 and above indicates your inventory management is excellent. Aim for this score if your Amazon FBA inventory management is currently above 450.

IPI Score Above 450: Average

IPI Score Above 550: Excellent

IPI Score Below 350: Additional Storage Fees & Storage Restrictions

How to Improve My IPI Score?

What can sellers do to improve their IPI score? We have compiled a list of recommendations that can improve your score. Follow these recommendations as much as possible, and the IPI score will rise.

Avoid Excess Inventory

Amazon aims to make the best use of its warehouse space and does not tolerate excess inventory. Be careful and never send too many units to the fulfillment center. When your FBA stock exceeds a 90-day supply, Amazon terms your item as excess or overstock, meaning you have sent the unnecessary stock to the warehouse.

The best practice is to maintain an inventory of 30-60 days. Keeping a low stock has no lasting disadvantages, but you may miss out on sales opportunities if your product runs out of stock. However, running out of stock is much better than paying extra storage fees to Amazon and incurring storage restrictions. Thus, keep a small inventory in the fulfillment center and never ignore your supply and demand statistics. Only increase the stock if the demand is projected to rise shortly.

Improve FBA Sell-Through Rate

The sell-through rate is the number of units shipped in the past 90 days divided by the number of units still in inventory.

The sell-through rate depends on the duration the products stay in inventory. Think of the 90–day-sell-through rate as your salvation. It means that your stock is clearing out in 90 days, so you are not consuming unnecessary space in the fulfillment center. Most importantly, the 90-day-sell-through rate will keep the IPI score in the green graph, which is your ultimate goal.

Amazon Seller Central also gives helpful recommendations to improve the sell-through rate. Go to the inventory dashboard and click “improve sell-through” to see the suggestions. Amazon wants to help you turn over your inventory in a short time. So, follow their advice and try to consider all of their recommendations.

A last-ditched method to improve the sell-through rate is decreasing product prices. Run a promotion and sell your products at low prices to clear out your entire inventory. It might save you from excess inventory but will decrease your profit margins.

Stranded Inventory

Stranded inventory is the biggest nightmare of any FBA seller. Imagine you sourced a new product and were expecting high demand for the product. So, you sent 30-60 worth of stock to the fulfillment center. However, there was a problem with the Amazon product listing, and it went down for some reason. Do not just take this as a hypothetical situation because it is a realistic situation on Amazon. Listings get banned for several reasons, and you cannot do anything about it. As a result, your inventory is stuck in the warehouse. No items are being offered, and the stock is just taking space in the fulfillment center. You must create a removal order to get rid of the stranded inventory.

If stranded inventory sits in the fulfillment center for 365 days, you will have to pay long-term storage costs. Draft a removal order as soon as possible to remove the stranded stock. Another option is to activate the Amazon product listing if possible, but you will need to clear out the inventory quickly. Stranded inventory severely lowers the IPI score and is harmful to the business. The inactive stock serves no purpose and only consumes precious resources. So, ditch the stranded inventory on the first chance you get.

In-Stock Inventory

Being out of stock does not decrease your IPI score, but it is a missed opportunity to improve. It means you are missing out on sales opportunities that can increase your sell-through rate. Amazon also calculates the estimated number of orders you missed due to out-of-stock status. Continuously missing out on sales also indicates inventory mismanagement. Do not be overcautious, and keep your most popular ASINs well-stocked. Use forecasting tools and other methods to track the demand for your product.

Are you working with seasonal products? If yes, mark your ASIN as non-replenishable in the restock inventory. Seasonal products often sell out in a few weeks. However, you might be stuck with these items when the season finishes. Create a removal order to remove any leftover seasonal products after the season is finished.

Additional Tips to Improve IPI Score

Here are some additional tips that can help you to improve your IPI score.

Advertising

Amazon PPC advertisement is a great way to increase your sales. Higher sales translate to a high IPI score because you are clearing the inventory at a high rate. Active advertisement is also much more effective if your product rank is not that good. Advertise to the audience and do not wait for them to search for your product, which might not even pop up due to poor product rank.

Pricing

A competitive pricing strategy always increases sales, and you may have seen countless sellers running offers on their products. Do not decrease the price too much if your products are already making a healthy revenue.

Removal Orders

As we mentioned above, create removal orders to remove dormant inventory that is not making any profit. You cannot afford to let these items sit in the warehouse for long.

Time Shipments to the Fulfillment Center

Time your shipments well and always maintain a 30-60 day stock. Avoiding a low IPI score does not mean that you should continually run out of stock. Maintain a smaller inventory, but keep it stocked to avoid missing out on sales.

Improve Product Listing

Amazon listing optimization can help you to clear out your inventory. It helps to attract relevant traffic to the Amazon listing and increases conversions. Optimize all your product listings to increase sales velocity and frequency. Find the best Amazon listing optimization service to improve your product sales.

Conclusion

Swift and efficient inventory management are essential for making a profit on Amazon. You will be stuck paying storage fees forever unless you improve inventory management. Learning about the IPI score and using different tricks to improve your sales will help your IPI score. Moreover, these methods will help you to be more efficient. You will only pay the minimal Amazon FBA fees if you have a decent inventory turnover. Do everything you can to get in the green IPI rating, as it will help you to gain several advantages. Remember the lesson; stuck inventory equals financial losses.

What Is The Best Funding Option To Scale Your FBA Business?

Posted on May 25, 2022 by adminoo

As an Amazon FBA seller, you know that scaling your business and increasing Amazon sales rank is essential to growth. But what is the right funding option to help you reach your goals?
This blog post will explore the standard funding options for Amazon FBA businesses and highlight the benefits and drawbacks of each. By understanding the different funding options available to you, you can make an informed decision about which one best suits your needs. So, let’s get started!

The Best Funding Options For Scaling FBA Businesses:

With the growth of your Amazon business, you may find yourself in need of seeking additional funding to scale your operations. While many funding options are available, not all of them are good for scaling FBA businesses. We will provide tips on choosing the right funding option for your needs and the best funding options for growing your FBA business.

Amazon Lending:

This program is an invitation-only service offered by Amazon to help small and medium-sized businesses grow their business on the platform. The various financing options are both short-term and tailored for each seller’s needs. If you meet all the criteria, then you will be notified that you are eligible for the loan on the Seller Central dashboard.

The eligibility requirements are that sellers have an account in good standing with positive customer metrics with a steady increase in Amazon product sales over time and are also active sellers on Amazon.

This program is best for Amazon businesses already having a steady increase in sales. However, it might not be worth taking out a loan if your inventory isn’t moving quickly enough since you won’t have the means to pay it back on time.

The loan range is around $1,000 to $750,000, and the term loan length ranges from 3, 6, 9, or even 12 months, having fixed monthly payments. Additionally, you can expect your interest rate to vary depending on what kind of account you have and how much money is made. Sellers report receiving a 3% to 17% annual payment rate.

Business Term Loan:

If you are looking into getting a business loan for the first time, it is always best that your bank or credit union offers term loans. This type of finance works well with people who have annual revenues over $50k and good credit history because they can take out amounts up to about 5 million dollars.

This type of loan is potentially composed of interest plus fees in fixed monthly payments over time periods of anywhere from 5 to 20 years. Apply through an online direct lender who requires less stringent eligibility requirements to avoid paying more than you should. Some lenders may even factor in your amazon listing quality, so be vary of listing optimization.

SBA Microloan:

The Small Business Administration or SBA offers a microloan for those who want to start their own business or expand an existing one. The designated lenders make funds available, then qualified applicants can take out up to $50k in loans.

It may be surprising for you to find out that you can get a loan for business purposes if your company does not meet specific criteria. Microlenders focus on small for-profit businesses with no bankruptcies or foreclosures in the last one to two years, and they offer loans regardless of personal credit scores.

If you’re a business owner with limited experience or funds, this option can be great for your company. It’s also good if credit is an issue and/or finances aren’t recorded anywhere else, as it will help establish credibility in case any future creditors come looking.

The SBA provides financing to small businesses through designated intermediaries. The requirements for each intermediary lender are different, but generally, they require collateral and personal guarantees from you as the business owner.

The loan range is around $500 to $50,000, and the term loan length is up to 6 years max. Additionally, you can expect your interest rate to vary from 8% to 13% annual payment rate.

Personal Savings:

While it is uncommon for top amazon FBA sellers to recommend using personal savings when investing in their own company, this may be your only option if other avenues fail.

You could easily make back quickly as long as you are selling at a good rate and have enough money set aside for inventory purchases. Thankfully, the process is very simple, and you don’t need any kind of qualifications like credit checks or paperwork.

Fintech Lenders:

These days, the main challenge in getting a loan is that it’s not just your regular old banks or credit unions who offer them. You have to go through all sorts of electronic channels, which can be difficult if you need assistance from a bank or a credit union.

Why would you choose a traditional lender when there is an easier way? Fintech lenders provide the same services as your favorite bank but with some key differences. They offer loans or lines of credit that are much faster to receive and have less rigorous criteria for approval than other lending institutions, all while being more flexible and having inventory deals, so it works out better overall!

Examples:

Two examples of such vendors include Payability Capital Advance and Kabbage, which can give up to $250,000 in less than 24 hours.

Merchant Cash Advances:

Merchant Cash Advances or MCA is an easy and fast way to get funding for your Amazon FBA business, even if you don’t have collateral. You can find a lender online with little or no paperwork required – so it’s very convenient.

Be wary of high-interest rates, especially if you have top amazon FBA sellers in place, since your half funding may go to your PPC campaigns. It’s an unregulated industry, and some companies may charge you fees while others don’t. Ask what they are before taking out any loans because it could vary widely from one lender to another.

Loans of all sizes are available, with the typical lump sum being based on credit card sales and repayment through an added fixed fee plus percentage. Loans between $2,500 to $250k tend to be more popular.

Peer-to-Peer Loans:

The first step in getting a peer-to-peer loan is filling out an application on one of the P2P websites. For investors to be comfortable with lending money, you need information about your credit score and debt to income ratio and why your business requires this financial aid. This is so the investors feel secure about investing in your business.

The P2P lending website has a few strict guidelines to follow if you want your loan approved. It can take up to a few weeks. You can help speed up the process by reviewing all of the details carefully beforehand on their site or talking with a professional who can answer any queries you may have.

Amazon Line of Credit:

Goldman Sachs has teamed up with Amazon to provide sellers the opportunity for a flexible and convenient way of taking out loans. Amazon Business Line of Credit is a new service that offers sellers the opportunity to access funds when they need them. This differs from lending a loan as you can request money when the need arises rather than taking one large sum.

The process of getting funding by Goldman Sachs line of credit is an invite-only one, with no general information about how it works. When you click on the invitation, you’ll be redirected to Marcus’ website to verify your eligibility. Amazon will share your data with Goldman, which is then used to underwrite a line of credit.

The option of a line of credit can be more beneficial for your business than taking an Amazon Lending loan. The ability to use the money when needed and not having any monthly obligations makes it worth considering other options available on their website.

The loan range is up to $1M, and you can expect your interest rate to vary in a range of 6.99% to 20.99% annual payment rate.

SellersFunding:

SellersFunding is the ultimate tool for sellers who want to take their Amazon FBA game up a notch. It uses an artificial intelligence algorithm to qualify your store, looking at performance metrics over six months of consistent selling at $30K or more per month.

In just 5 minutes, it can tell you if you are qualified, and to find out whether you are able to get your desired amount takes up to 1 to 2 days only.

SellersFunding offers attractive interest rates of 15% to 24% without any hidden fees or pre-payment penalties. The biggest advantage to this option is that you can take out another loan as soon as 50% of your current one has been paid back. However, be careful because getting too far into debt could quickly become overwhelming.

Personal Loans:

You can get a personal loan for any purpose you need, with many banks and fintech lenders offering both secured (collateral required) and unsecured loans. Many people turn to personal loans when they’re just starting, as these can be a good option for those without any sales history.

The internet is a great place to find personal loans, but not all of them will work for you. Your eligibility for a personal loan is contingent on your credit score, debt, and income- so take some time to evaluate before making any decisions.

This is the perfect option for individuals just getting started and who aren’t eligible to take out a business- or sales-based eCommerce loan. They allow you fast access to cash for prompt startups.

The loan range is around $1,000 to $35,000, and the typical term loan length ranges from 2 to 7 years. Additionally, you can expect your interest rate to vary based on your credit.

Conclusion:

Now that you understand the different funding options available to help you scale your FBA business, it’s time for you to decide which option is best. Depending on your specific needs and situation, one of these funding sources may be a better fit than the others.

Keep in mind that no single option is suitable for everyone, so it’s essential to do your research and compare your choices before making a final decision. However, most sellers will be able to find a suitable funding option from among the many available choices.

We hope this blog has aided in giving you a better understanding of what’s out there and how to choose the best funding source for your business. Please contact us if you’re looking for help getting started with an Amazon PPC strategy or want more information about any of the funding options we’ve discussed here. We’re happy to help!

9 Pitfalls for New Amazon FBA Sellers

Posted on May 14, 2019 by adminoo

Starting any business can be daunting especially when you don’t know the starting point. This also happens with Amazon FBA Sellers, who often fall into different pit holes out of sheer excitement and end up in resentment. Based on our experience selling on Amazon and client feedback globally over the years, we are going to share 9 traps usually new sellers encounter and discuss their solutions. We will touch a couple of topics briefly before addressing these mistakes.

1. Amazon FBA Sellers DNA.

We need to identify the DNA of a new Amazon FBA sellers as everyone come with their own mindset, targets and reasons to enter Amazon FBA. Some come for quick money, some want to leave their 9 to 5 jobs, some want an alternate income channel, some come for an exposure into Ecommerce while some come just to see what the fuss and the excitement is all about! Based on their objectives, sellers choose a business model according to their objectives i.e. Retail Arbitrage, Wholesale, Private Label, Drop shipping, FBA vs FBM.

2. Timing in the Year.

It is pertinent to mention here that the timing of starting Amazon FBA business is extremely important and usually new sellers are unaware of the calendar of Amazon sales.

If new Amazon FBA sellers are entering and venturing in January – March then they will experience slowest pace of sales for sure which can become demotivating and can kill the excitement altogether. While the sales skyrocket from October to December, the new sellers can start their journey on a positive note, profitably.

3. Copyrights

It is very easy to fall prey to this trap.

Selling on Amazon is usually induced or is at times executed after attending a course of a guru. What new Amazon FBA sellers see is the final result or the fruit after the tree has fully grown facing enormous hardships and challenges unique to the product. Their thought process usually goes like this.

Getting excited after searching a product on JungleScout chrome extension and getting an encouraging opportunity score like 6, 7, 8, 9, 10. Step 2 would be to have a quick search of keywords to see the frequency of searches on Amazon for the product. Then they quickly open Alibaba to find a supplier, shortlist and finalize their orders.

What they miss is to do patent searches to see if there is already someone who has the copyrights to sell the same product or has a similar design. Their inventory will arrive in the warehouse, once their sales start they will come on the competitor’s radar. A complaint will be lodged in the post-natal phase. It’s very easy to check the copyrights and patents via google patents you just have to spend some time to go through.

Alternatively, you can hire an expert to do this for you and you will easily find a competent/ experienced professional on fiver or up work.

4. Seasonal Products

Newbies are naïve and consider all products behave in a similar manner all year round. Amazon FBA Sellers are generally targeting products that will yield reliable and consistent profits to them all round the year.

If you are selling winter caps or bean caps, chances are that they will be in demand in the winters only and people will not be buying them in summers most likely. So, your sales might skyrocket in the winters while they will plummet in the summers.

We are not saying that seasonal products are a no go niche but in case you are planning to enter into it then you should be mentally and financially prepared to enjoy the ride while its moving at a fast pace at its peak and when it’s not at trough.

If you work on seasonal products in the right manner, you can easily reap off tons of money for that particular time of the year and they are a definitely a great add on in your portfolio of products. You just need to be wary of your expectations.

5. Prohibited Listings

Many times sellers procure products from suppliers without knowing whether they are allowed products or not. Below are some of the examples of prohibited items that you cannot sell on Amazon:

Products that are subject to recall or safety alert
Dietary supplements, such as weight loss products that contain undeclared or prohibited ingredients or are marked as unapproved new drugs such as:
- Growth hormones or products that claim to support or promote hormone productivity
- Homeopathic drugs that are prescription, mislabeled or unapproved new drugs
- Patches marketed as dietary supplements
- Sexual enhancement products
- Steroids
Supplements claiming that they can be used to cure, mitigate, treat or prevent diseases
Supplement listings that include disease names in their keywords

Sellers still take chances what they don’t understand is that all it takes is for one person to come along and complain or report. You might get away by selling the above items using different names but you will eventually be caught. So this can never be a long term thing as Amazon can remove your listing or ban your account.

6. Identification of a Fad

There are products that will come and go, they will have some fashion life maybe for days or months but their days are numbered for sure. Like iPad or iPhone accessories will change with improvements in versions and eventually they will not be in demand as and when technology improves.

Similarly fidget spinners were a craze of their time, a fad that died out after sometime and many sellers fell victim to it. You need to work on products that have a history of sales, estimating total market size in terms of revenue. It needs to be high for a considerable time so that when your product reaches Amazon warehouse in USA in about 1 – 2 month’s time, their demand doesn’t diminish.

You need to check your product results on Keepa and Google trends regularly to get a clearer picture and see through the product fate.

7. Liability Insurance

This is a common falling point for new Amazon FBA sellers as well. They enter into categories with chemicals, oils or substances that are applied to the body without appropriate documentation and paperwork. Many times, Amazon FBA sellers are clueless on this subject as they do not have any business or retail background. modafinil online romania https://lustfel.com/ Substances that can cause an obvious accident risk or an allergic reaction by using them needs to get the required approvals. It takes a lot of time and will require some serious money to get the approvals from the right authority in each category.

If someone starts selling such products without approval then Amazon will eventually ban them and ask them to take away their inventories from the warehouse.

8. Calculating Amazon FBA Costs

People are often snared while inaccurately calculating the product cost after it reaches the warehouse and when it reaches the customer ultimately. The best way is to use Amazon’s calculator which will give you each and every cost in detail. You can easily estimate your projected cash outflows based on the results and be wise while investing.

9. Data Analysis

This is the biggest issue within the new seller communities. They get excited after looking at scores using different market intelligence tools like JungleScout, AMZ Wordspy, Keepa etc. One needs to sit and take an overview of these stats and then dive into different details to get the most accurate and holistic picture of the product performance.

People hastily select products just to throw them in the market and see how do they respond? Most often or so, poor homework results in disappointment. One of the most common mistake rookies commit is to type incorrect keywords, extracting and interpreting the results in their own favor. They do not understand that the same product can be searched with other names as well.

Earning profits and running a successful business on Amazon is tediously complex now and you might want to consider a mentor or an expert by your side to avoid the pitfalls mentioned above.

If you have fallen prey to some of these points, you don’t need to feel bad about it as even experts and seasoned Amazon FBA sellers also have battled on the same grounds. You just need to avoid these pitfalls and stay away from trouble right from day 1 by doing the right things.

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