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6 Essential Tips For Amazon Sellers To Quickly Grow Profit Margin

Are you planning to start selling on Amazon but are not sure how to start? Then this article offers 6 practical tips for Amazon sellers that you must know before starting your e-commerce venture.

Before I narrate the tips to sell successfully on Amazon, let me educate you about the competition you are likely to face.

It is estimated that Amazon currently has around 2.5 million active sellers. And the number keeps growing. According to the latest statistics, nearly 2,000 new sellers join the platform every day.

Amazon marketplace is dominated by third-party sellers who contribute more than 50% of total Amazon sales.

So, if you are looking to start a business with little money, then Amazon e-commerce can be the perfect launching pad for you! And I am sure by following these 6 practical tips for Amazon sellers, you will be able to boost traffic and profit margin quickly.

Find A Niche – One of the Key Tips For Amazon Sellers to Grow Sales Quickly

Do you know what you want to sell on Amazon? Perhaps you have a vague idea, right?

Most Amazon sellers commit the mistake of trying to sell several items. And they end up with little sales at the end of the month. Remember even Jeff Bezos, the Amazon founder, started his business as an online bookstore. Gradually Amazon marketplace kept adding other products.

So, to pick up a profitable e-commerce niche, you can focus on these 3 key factors:-

  • Products/ niches that you are passionate about.
  • Niche about which you have in-depth knowledge and experience.
  • Check the performance of these products/ niches on Amazon.

How to Do The Research to Know If Your Shortlisted Niches Can Generate Profit?

The safest approach is to find products that are already performing well on Amazon. Conduct simple research like “top sellers” or “best sellers” in your selected categories.

Let’s say you decide to sell men’s sportswear online. You can look for products that are already making good sales. Accordingly, you can offer something better and different.

Take the Help of Tools to Know What’s Trending on Amazon

There are free and paid tools to track the sales rank of Amazon products. You can use CamelCamelCamel to monitor sales of specific products on a regular basis and multiple times a day. The tool lets you track prices over a period of time. This data helps you identify the trends on Amazon. Accordingly, you can pick trending products that are performing well on Amazon.

Few other popular tools to use for such research are Amazon FBA Calculator, AMZ Base, Google Trends, Google Keyword Planner, and the like.

Price Your Products Carefully to Increase Profit Margin

Often new sellers are confused about product pricing strategy. Let me give you a brief idea of how the pricing works on the Amazon marketplace.

Suppose you decide to sell a product on Amazon for $30. You need to add the Amazon FBA service charge also if you decide to use the service. The charge is around 2/3rd of the selling price. Further, you have to consider the shipping supply and shipping costs to deliver the product to the Amazon warehouse. Finally, you should have a refund budget, to cover the loss, if the buyer refunds your product.

Thus while pricing the product and calculating profit margin, you should consider all these expenses and plan for an unexpected expenditure too.

And here I would like to share a little trick that you might already know about product pricing. I am talking about the 99¢ strategy. By now, many established brands follow this strategy to attract buyers. However, this strategy seems worn out nowadays. Often such prices make customers feel that the seller is trying to fool them! 

So, it is better to avoid the much-used 99¢ strategy and try something new on Amazon. To separate your products from competitors, you can experiment with other attractive prices that DON’T end in “.99”! 

When others have listed their products for $22.99 / $23.99, your product price of $22.59 is bound to attract the attention of prospective buyers!

Write Search Engine Optimized Product Description- One of The Best Tips For Amazon Sellers to Get Noticed Quickly

write product description for Amazon

You can hire a copywriter to handle the product description writing job professionally.  And if you can’t afford one then take a close look at the product descriptions of the top sellers in your category. Thus you can learn to write product descriptions that are loved and read by prospective buyers. The more views your products get, the better becomes its search engine ranking. Besides writing attractive product descriptions, you should focus on product photography.

No matter how good your product is, grainy and hazy pictures are bound to create poor impressions which ultimately may affect your profit margin.

Encourage Review and More Review

How do you make a purchase on Amazon?  I guess you read customer reviews before making the final decision. Yes, this is how many seasoned buyers buy on Amazon.

This is why Amazon prioritizes customer reviews and feedback. If your product manages to receive reviews from lots of customers, its ranking improves automatically on Amazon. This simply means whenever someone searches for products that you sell, your item will appear on the first/ second page.

Needless to say, such a strategy can help create a positive impression on buyers. They are likely to check products that are already reviewed by other buyers.

The problem is it is quite difficult to get reviews from buyers on Amazon. In fact, statistics say that a meager 5% of buyers leave feedback after completing the purchase.

How to Get More Reviews on Amazon?

Make sure you have activated the “Request a Review” button which is provided within the Seller Central’s Order Reports. However, you can send only one review request within 4 to 30 days of making the purchase. This is the easiest method to encourage product reviews.

Make Customer Service Your Business Priority – One of The Must-Follow Tips for Amazon Sellers

When it comes to growing your e-commerce business on Amazon, make customer service a priority. Thus you can build up a long-term relationship with buyers.

How to Improve Customer Service As an Amazon Seller

  • Make sure to respond to negative feedback. You should try to settle disputes and grievances promptly. Thus you can prove that you are sorry for the problem faced by the buyer and that you have taken prompt action as per customer feedback.
  • Often people post queries if they are not sure about the product. For instance, you are selling a new gadget. So, a prospective buyer may want to know how to use and maintain it. You can post the reply promptly and thus encourage a prospective buyer to make the purchase.
  • When it comes to online purchases, buyers are often skeptical about product returns and/or exchanges. So, you should adopt adequate measures to reduce the return rate and improve customer satisfaction. For instance, double-check the product quality to make sure the buyer receives items as promised.
  • You have displayed a product that is actually not available in your inventory. This is bound to make the buyer unhappy and dissatisfied. And there are many instances when Amazon penalizes such sellers! Thus it is important to monitor the inventory to make sure whatever is displayed on Amazon is available physically and ready for delivery too.

Focus on Marketing Your Products

Many Amazon sellers fail to realize the power of social media marketing and content marketing. Perhaps they feel too secure to be on Amazon! Thus they may feel that there’s no need to do any marketing on their own because Amazon is powerful enough to attract buyers.

The fact is, Amazon is a trusted but highly competitive platform which can be challenging for new sellers. So, to beat such growing competition, you need to establish your e-commerce presence on social media platforms like Facebook and Instagram. You should focus on content creation of all types to divert traffic to your Amazon store.

You can consider creating Instagram Stories, Reels, Facebook posts, and videos to talk about your products. At the same time, you need to remember that social media marketing is also about engaging with prospective buyers, answering their queries, re-sharing their posts, and so on. So, make the most of social media business pages to build up a long-lasting relationship with your customers.

And if you are finding it difficult to boost your social media following, then you can contact a few influencers in your niche. You can inquire whether they will shoot a demo or unboxing video and promote it to their followers. While influencer marketing can be a bit expensive but you can always negotiate the terms and conditions to fit your budget.


Now that you know the practical tips for Amazon sellers, it’s important to apply them and see whether they are working for your e-commerce or not. You should review the progress after 6-12 months and modify the strategies as per your business goal.

And if you find the tips useful, please “Share” the article to help it reach more people looking for such information.

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