How to Automate Your Amazon FBA Business
Automating your Amazon business enables you to put your cash flow on autopilot and increase your workflow efficiency. By using powerful software for specific tasks and hiring freelancers in emerging economies in true “4-Hour Work Week” style, you can fully automate the routine processes of running your FBA business. This allows you to generate passive income while sipping margaritas on the beach.
Simply by utilizing the Fulfilled by Amazon business model, many of your important business processes are already fully automated. Shipping individual orders, handling product returns and general customer support management are all taken care of by Amazon, saving you countless trips to the post office and endless frustrating customer calls.
However, after using AMZScout to research your niche and select the perfect products, you have the opportunity to take things a few steps further. So take another sip of that margarita and let’s take a look at how experienced Amazon sellers are automating their FBA businesses.
Listing Creation & Optimization
Online platforms such as Upwork and Freeup enable you to find product photographers and Amazon sales copywriters to create professional listings for your products. Hiring experienced freelancers that use a variety of advanced methods and strategies to create optimized listings that resonate with your target customers will boost your conversion rate and increase sales, providing you with greater profits and freeing up your time to automate more business processes.
Continuous optimization is also possible by using split testing software that utilizes automated A/B testing to further increase your conversion rates and profits. At the click of a button, you can test various aspects of your listing such as pricing, images, titles, bullet points, descriptions and back-end keywords.
By asking your product photographers and copywriters to provide multiple versions of their work, you can leverage this automated testing so you don’t have to manually rewrite your sales copy. You can also use software that identifies negative product reviews and seller feedback, and contacts the buyers directly to remove it. This means you don’t have to waste time manually tracking orders and dealing with unruly customers!
PPC (pay-per-click) campaign management is another easily automatable process that can be handled by powerful PPC management software. The software will automatically adjust your bids for different keywords, help keep you below your target ACoS% (average cost of sale), and set up your campaigns to find new highly converting keywords. You can even hire a PPC management freelancer to regularly tweak your settings for optimum results, or take a hands-off approach and let the system handle itself. No more scrolling aimlessly through laborious search term reports!
By using inventory management software that accurately estimates how many units you should order and when, you can avoid stock-outs that significantly limit your profits and damage your organic rankings. You can give software access to a virtual assistant (VA) hired on an online freelance platform to automate the process even further. The VA checks the software weekly, reviews what needs to be ordered, and sends out template emails to your suppliers. This means all you have to do now is process the payments!
To automate your finances, it is imperative to use bookkeeping software such as Xero or Quickbooks to accurately record and reconcile your revenue and expenses. This allows you to stay in control of your finances, quickly process your tax returns, and keep track of the growth of your business. You can hire a freelancer to manage the reconciliation process for you, so all you have to do is forward your invoice emails, or better yet, set up auto-forwarding rules from your email client.
In addition to this, you can combine your bookkeeping software with A2X (a2xaccounting.com – an accounting automation software), which fetches Amazon settlements from your seller account and posts summarized settlements to your accounting system. This will save you many tedious hours each month manually recording transaction data.
To be more in control of your financial data, you can use software to accurately calculate and display your critical metrics, such as total profit, profit margins, PPC spends, ACoS%, FBA fees, and refunds. Having all of this information in one place without manually creating messy spreadsheets is an incredibly useful time-saver.
You can have more control over your Amazon payouts with the help of Payability. Amazon usually pays sellers every 14+ days and it can take a few more days for the money to actually hit your account. Not to mention there may be instances when Amazon holds back all or a portion of your payout in the form of an unavailable balance.
If you're faced with an unavailable balance, you may have to wait even longer to get paid not knowing when Amazon will actually release the payment. Instead of getting paid for your Amazon sales every 14+ days, Payability can get you paid the next day, every day. With Payability Instant Access you'll always know when you are going to get paid for what you sell on Amazon and have assurance against unavailable balances.
While all these software subscriptions and freelancer fees add up to a significant monthly expense, the automation process frees up your time so you can focus on what truly matters to your business: making high-level strategic decisions that develop your business and increase your long-term profits.
Generally, this means finding more great products with AMZScout, expanding your product lines and implementing carefully crafted launch strategies. But if you really want to ride the automation wave, you can hire a freelancer to do all of this for you, and kick back living the 4-hour dream.
So now the automation is up to you. Are there any other processes you would like to automate in your Amazon FBA business?