If you’ve been selling on Amazon for a while now, you know how lucrative it can be. As an Amazon seller, you don’t have to worry about creating an eCommerce website and trying to rank it in Google to push sales. Quite the contrary. With Amazon, you’re given access to their millions of customers who are willing and ready to spend their hard earned cash on your products.
The Shipping Nightmare
Don’t you just love it when you go to order something and you get free shipping? I mean who doesn’t? Amazon sellers, that’s who. While shipping may be free for consumers, the costs come out of the pockets of sellers. Unless you’re using FBA (Fulfillment By Amazon), you’re probably going the FBM (Fulfilled by Merchant) route. This means that when someone orders something from you on Amazon, the product is then shipped directly from your own warehouse to the customer.
Unfortunately in the case of FBM, shipping isn’t free. Either you (the seller) will foot the costs, or you’ll have to pass those costs along to the consumer. Passing costs to the consumer is a smart strategy to boost your bottom line, but it often doesn’t work in your favor, and here’s why.
We live in a society where everyone is use to free shipping. It’s pretty much expected nowadays, and if you don’t offer free shipping, consumers will look elsewhere. This is especially true in the case of Amazon.
Back in 2015, Amazon reported having over 2 MILLION sellers using their platform. This number has undoubtedly increased since then. Essentially what this means is consumers have no shortage of options when it comes to purchasing on Amazon. If your shipping costs are too high, customers will choose a cheaper seller.
Keeping Shipping Prices and Times Down
The cost to ship, and the time it takes to ship are two major factors when it comes to e-commerce. Staying in stock and inventory forecasting are another (but we’ll save those for another discussion). Whether you’re selling on Amazon, Ebay, Shopify, or any other storefront, get one of those factors wrong and you could eventually be out of business.
So how do you keep shipping prices and times down while also ensuring a healthy bottom line? The key here is “distance”. The one thing both shipping prices and shipping times have in common is the distance in which the inventory has to travel. If you can figure out how to shorten the distance your products have to travel in order to make it into the hands of the customer, not only will they get the items faster, but it will cost less to ship as well. Not only will this increase your bottom line, but customers are happy that they are paying less and getting their items sooner.
Data Analytics and forecasting to The Rescue
So now that we’ve figured out what we need to do, we still need to figure out how to do it. Shortening the distance your products need to travel in order to get into the hands of consumers means doing extensive research into which warehouses you’ll need to ship from. This requires tons of research and time, time which can be better spent promoting and selling your products.
Thankfully WareHouzer solves this problem and then some. Our forecasting and projection tools help Amazon sellers quickly and painlessly figure out exactly where they need to ship their products, how much inventory they need to stock, and a whole lot more. If you’re a FBM seller and want to make sure more of your money ends up in your pockets instead of in paying shipping costs, give WareHouzer a try.