The world is closed, people are more financially strapped than usual, and Amazon fulfillment centers are slower than normal. How the heck am I supposed to continue running a successful Amazon business?
While no one likes this new normal, there is no need to throw in the towel and call it quits. There is still plenty of business to be done online.
Now that no one can go anywhere, all business is taking place online. Just because things are closed doesn’t mean people don’t want to try out new things for themselves.
Here are 5 tips to keep your business afloat during this pandemic.
1. Merchant Fulfillment (MF)
Amazon’s fulfillment centers are not only packed with heath supply shipments, but have also seen a slight decrease in workforce. This can be quite frustrating if you are trying to send in large SKU quantities while the demand is still high.
The way around this is to temporarily switch to Merchant Fulfillment (MF). Now I know you are thinking: “I will never get the buy box and my margins will be slimmer!”, but surprisingly, MF sellers are seeing a lot of action.
Since some Prime shipment times are weeks out rather than the 2 days they traditionally are, MF sellers are getting the buy box quite frequently on certain listings at near Prime price levels.
By no means is this a long-term solution, but if the bills are due, then it is an excellent way to keep operations going.
2. Establish New Relationships with Suppliers
Everyone is affected by this virus, including your suppliers, and ones you have yet to reach out to.
If you are scoping through the Amazon marketplace and are finding brands that have many opportunities, now is the best time to reach out to them! We have called several new suppliers who were very happy to hear that we were interested in opening a new account, since sales are down.
Don’t kick the can waiting on contacting brands, because the longer you wait, the more opportunities other sellers have to reach out and establish those relationships. Nothing hurts more than hearing from the supplier that they have capped their online marketplace sellers.
Not only will doing this help you out in the short term, but in the long term, you now will have more brands to buy from that could take your company further.
3. Forecast What Products Will Be in High Demand
From our experience, items that were in demand last year during this time are just as in demand today.
Now that suppliers may be experiencing delivery or shipment delays, it is critical that you are able to identify which products start increasing in demand.
You should constantly be checking in with your suppliers to see what their stock status is like and their lead times so that you are ahead of the competition.
One of the easiest way to forecast items is by using a tracking software such as Sellonaut. With Sellonaut, you can look back up to a year on your items, along with seeing the moving averages for best sellers’ ranks and prices.
Forecast a month out from now; don’t be the last person on a good listing because you waited too long to pull the trigger!
4. Stick with What You Are Good At (Don’t Chase Trends)
If you are a company that sells tools, don’t all of a sudden try to start selling healthcare products.
Amazon is learning how to handle the increase in health product demands on the go and the rules are constantly changing. Several sellers have been booted off listings due to price gouging, or are not even putting themselves on the listings.
Don’t pivot to brands that you typically would never buy from. So many sellers are trying to capitalize on this opportunity, but the brands that specialized and carried these suppliers will always come out ahead of you.
Businesses are slowly opening back up (and limits are being lifted), so take a breath and strategize. A slowdown in sales is a good way to try different advertising campaigns, re-evaluate your item lists, and see what other niches you could be inserting yourself into within your category.
5. Maximize Your Employees’ Time
If you are able to keep your employees on payroll, congratulations! Many companies are struggling to keep their full workforce, so giving someone the opportunity to make an impact during this time is very rewarding.
If you are slowed down in one section of your business, get your employees on other tasks or projects that they feel comfortable with. They are resilient if they are still with you during this time and would be eager to learn a new skill in the company.
Increase your internal value by not only keeping yourself, but your employees busy during these unpredictable times.
Moving Forward
COVID-19 has happened, it is happening, and will continue happening in the near future. There is no point crying over spilled milk.
Opportunities still exist and with all the extra time you may have, it’s the best chance to try something new. Go out there and make a difference whether it’s growing your brand relationships, analyzing the marketplace for new listings, or upgrading the capabilities of your team!
