Top 5 Strategies for Private Labels and Brands to Double Profits on Amazon

Thousands of private labels are entering the Amazon game every day, and only some of them are successful in their journey. From a payout perspective, success is usually defined as a successful exit to an FBA Acquirer or making it to Amazon’s Top 1000 sellers over time. The rewards are great, but it’s a long-term journey, and the way to success is not very different from any other business or, to be specific, any other startup.

Although startups have great products in good market demand, they mainly face two challenges. 

To begin with, failing to meet your early objectives does not imply that you will fail shortly. Allow yourself the flexibility to fine-tune your product and try out fresh tactics. Nobody gets it right the first time. Private label selling necessitates a trial-and-error method. It takes time to acquire those “seller instincts” that allow you to determine which items will sell, how to advertise them, what price to set them at, and so on. If you quit too soon, you will never get the opportunity to learn the ropes. Before you reduce your losses, try switching up your methods; you could discover that a tiny adjustment leads to a significant difference.

Additionally, you need cash. If you run out of money, you can’t buy inventory or advertise your products.

At best, you can only have a sub-optimal success, which may not be sustainable. You can always work with a funding platform to request more cash, which is a necessary strategy for accelerated growth. Finally, this process requires profit maximization strategies. Profit maximization can happen either by reducing the operational costs or by increasing your profits faster. 

Here are 5 Strategies to make this work:

  • Price Management: Amazon-owned brands revenues tripled during the last three years. Their prices often update, as the market is dynamic and advertising costs are changing as well. Still, many private label owners did not fully unleash the power of dynamic Pricing, including trend-based Pricing, which can significantly impact success. Dynamic Pricing also plays a crucial role in avoiding and delaying stock-outs, which can cause the keyword rankings to go down and does not come back quickly with restocking. Another advantage of price management is to avoid buybox suppression. Although the private labels keep the same price on Amazon, due to several other factors, Amazon suppresses the buy box even if the listing has a single offer. Sales drop significantly, and certain advertising functionality does not work without owning the buy box. 
  • Reimbursements: Amazon logistics is becoming more complex every day, which results in lost or damaged seller products or process anomalies. Auditing such anomalies using the power of Artificial intelligence in a fast and accurate way can result in up to 4% of revenue claims back from Amazon. Until recently, this process was not transparent and real-time. Although many companies claim to audit seller data, they often fail to understand the complete picture. Without unlimited data access and understanding of logistics in full, users often find themselves with reimbursements-reversals and a less than optimal reputation with Amazon. 
  • Restocking Optimization: One of the biggest headaches of Private Label sellers is when and how much to restock items, and Amazon forecasts help only a little. The main challenge is that it’s not only about replenishing the top-selling item or the lowest available item. More importantly, it’s about restocking the most profitable item without ignoring a balanced replenishment of the portfolio. Today, many Private Labels do this with multiple Virtual Assistants and many hours of work, and still, they end up being out of stock. Having a data-backed restocking solution is key to continuously having optimal inventory.
  • Effective PPC Management: Amazon advertising started small, but today, Amazon is a play-per-pay platform. The breadth and depth of the advertising are growing fast, and Private Labels are investing a considerable amount of money in PPC. Our analysis shows PPC alone does not impact your growth that much, but the most effective PPC can be done if you have creative content, SEO, Feedback management, and Pricing done correctly. Even if this is the case, PPC still requires optimization to grow fast with reasonable ACOS, which can be done by combining AI and humans to maximize the impact of PPC.
  • Use an All-in-one Service: Thanks to Eva, you can now connect the essential aspects of your Amazon business into a single intuitive dashboard. The uniqueness of is that until 2021 there was no technology platform like that could deliver Private Labels Price Management, Maximum reimbursements, Optimized Restocking, and Effective PPC at the same time. Eva’s unparalleled Amazon experts make sure the platform is used in the best way possible to maximize your profits by improving your transactional profits by 40% and reducing OPEX by half just in 90 days.  Join hundreds of sellers using Eva instead of multiple tools and services that are not integrated. Save your time with a completely integrated Amazon Management Platform and save your money by paying much fewer commissions to reimbursements and software subscriptions. 

Join Eva to use unique features and maximize your profit. Eva is your technology partner in this long journey so that you can focus on your products and supply chain, and Eva can take care of the rest. Also, check for excellent reimbursement and pricing opportunities.