The brand we are going to talk about today is an automotive equipment company that sells advanced equipment to auto repair companies. The Brand turned to Prime Clicks in December 2023 to scale sales and get more B2B customers on Amazon.
The Challenge
Due to poor marketing and increased competition the brand reached a point of stunned growth. The company needed to increase revenue and achieve positive year over year revenue dynamics.
What we did
At first we provided content recommendations to ensure we get the best converting creatives. When new content was ready we launched A/B testing to choose the best converting listing version.
We also restructured ad campaigns to ensure we drive maximum traffic on Amazon to our listings, utilizing research campaigns, product attributed targeting campaigns to increase market share, sponsored brands campaigns to increase brand awareness, and defensive campaigns to protect our listings and branded keywords from competitors trying to still out sales. We have also analyzed advertising reports and isolated best performing keywords to have more control over ad performance and gain organic rank for these keywords.
However, we also figured out that traffic on Amazon is very limited for these specific products and utilized external traffic via email marketing to drive more qualified leads to our listings on Amazon. With strategic data research we gathered a huge database of car repair shops across the United States. Utilizing Amazon Attribution we could track each order that came from external traffic.
Result
By implementing new campaign structure we doubled ad sales within a 3 month period. Additionally, running email marketing redirecting B2B customer to Amazon we have almost tripled total sales reaching almost $2 million in revenue for a 3 month period.
Is Selling on Amazon Still Worth It in 2024? Absolutely, Here’s Why.
In the ever-evolving landscape of e-commerce, Amazon continues to be a market leader, boasting an impressive revenue of $574 billion in 2023, a significant leap from $514 billion the previous year. Notably, a substantial portion of this revenue—nearly 23%—is attributed to third-party sellers, underscoring the pivotal role they play in Amazon’s ecosystem. Moreover, 82% of these sellers leverage Fulfillment by Amazon (FBA), showcasing its critical importance in their operational strategy.
The realm of e-commerce is undoubtedly competitive, more so now than ever. Yet, the increase in competition is paralleled by an equally robust growth in consumer demand for online shopping experiences. Statistic that supports this trend is that over half of consumers (51%) initiate their product searches on Amazon, highlighting the platform’s dominance and the trust it has among shoppers.
In this article, we’ll explain why selling on Amazon FBA is still worth it in 2024 and beyond.
How much do Amazon sellers make?
The earnings of Amazon sellers can vary widely based on a range of factors, including the type of products sold, the scale of their operation, and their strategy for utilizing Amazon marketplace, especially Fulfillment by Amazon (FBA) versus merchant-fulfilled options.
Let’s see some monthly revenue numbers:
40% of Amazon sellers sell anywhere from $1,000 to $25,000/month
30% of Amazon sellers report sales above $5,000/month
31% of sellers make under $500/month in sales
Monthly Sales
Percent of Sellers
Under $500
31%
$501 – $1,000
17%
$1,001 – $5,000
22%
$5,001 – $10,000
11%
$10,001 – $25,000
7%
$25,001 – $50,000
5%
$50,001 – $100,000
4%
$100,001 – $250,000
1%
$251,000 – $500,000
1%
Pros and cons of selling on Amazon
Amazon’s Fulfillment by Amazon (FBA) program is a game-changer, making it easy for anyone to start selling online, regardless of their experience. It’s a straightforward way to get your products in front of millions of people. But, like all things, it comes with both upsides and downsides.
Pros of selling on Amazon
– Reach Amazon’s Massive Audience: Imagine your small business tapping into Amazon’s nearly 3 billion monthly visitors and over 300 million Prime members globally. With just a few clicks, your products can be where millions are looking every single day.
– Let Amazon Handle the Heavy Lifting: With the Fulfillment by Amazon (FBA) program, you ship your products to Amazon, and they take over from there. Storage, shipping, returns, and even customer questions—Amazon covers it all. This means you can focus more on your products and less on the logistics.
– Prime Advantage: Products fulfilled by FBA automatically qualify for Prime. This gives you a direct line to Amazon Prime customers who prefer shopping with the convenience and speed of Prime shipping.
Cons of selling on Amazon
– Storage Costs: Using FBA means your items are stored in Amazon’s fulfillment centers, leading to storage fees. There are monthly fees for the space your products occupy and additional fees for items stored for a long time (aged inventory). Mastering inventory management can help you dodge steep storage costs.
– FBA Fees: Amazon charges fees for storing, handling, and shipping your products. These fees vary based on your product’s size and weight. Generally, combined with referral fees, you might pay around 30-40% of your product’s price in fees. It’s crucial to factor these costs into your pricing strategy.
– Returns: Amazon’s customer-friendly return policy can lead to higher return rates for your products. While this policy is great for customers, it can be a challenge for sellers, requiring you to manage returns and potentially affecting your bottom line.
How much money and time does it take to sell on Amazon?
The investment required to start selling on Amazon varies widely, depending on the scale of your operation and the nature of your products. Financially, you could need anywhere from a few hundred to several thousand dollars to cover initial inventory, FBA fees, and other startup costs. Time investment is similarly variable, with initial setup potentially requiring several weeks to months of research, product sourcing, and listing optimization. For a detailed breakdown of both financial and time commitments, refer to our comprehensive article on starting your Amazon selling journey. There, we delve into the nuances of budgeting, inventory management, and strategizing for success on Amazon, providing a roadmap for both new and seasoned sellers aiming to navigate the complexities of the Amazon marketplace efficiently.
Is it too competitive to sell on Amazon?
Despite the growing competition, launching a new business on Amazon can still lead to success, as we’ve discussed. Interestingly, the U.S. Amazon marketplace is seen as the least competitive, making it an attractive option for new sellers.
Remember, encountering competition in any business is a positive sign. It indicates a strong demand for your products, showing that you’re on the right path.
In fact, it’s not that amazon is oversaturated is that some products and categories are oversaturated like Yoga mats, for example.
This perspective highlights a crucial strategy for potential Amazon sellers: the importance of niche selection. While some areas, like yoga mats, may appear oversaturated, countless opportunities remain in less crowded categories. The key to success on Amazon is not just about entering the market; it’s about finding the right niche where your products can stand out and meet specific customer needs. By focusing on areas with less competition but still a significant demand, utilizing advanced Amazon ads techniques you can carve out a profitable space for your business. This approach requires diligent research and understanding market trends, but it can lead to a rewarding venture on Amazon’s vast and dynamic platform.
Is Amazon FBA worth it? Final thoughts
Yes, Amazon’s marketplace is indeed competitive. Launching a venture here demands a fair share of time and investment. And dispelling a common myth, it’s not a venture you can simply set up and forget. Steering an Amazon FBA business towards success involves a continuous cycle of learning, determination, and diligent effort. So, is venturing into Amazon’s selling space worthwhile? The decision ultimately rests with you, but our stance is a resounding yes.
We believe the advantages of selling on Amazon significantly outweigh the challenges. Will every new seller on Amazon strike gold? Probably not. However, with dedication to refining your approach, embracing continuous improvement, and learning from setbacks, success on Amazon is not just possible but probable.
After all, if countless others have navigated their way to success on Amazon, what’s stopping you? Embrace the challenge, and you too can join the ranks of successful Amazon sellers. Contact us to get started!
A Third-Party Logistics (3PL) provider is a crucial ally for businesses, especially those operating in the eCommerce space, including Amazon sellers. These providers offer comprehensive services such as storage, inventory oversight, order processing, and the distribution of products. By delegating these logistical functions to a 3PL, businesses can significantly streamline their operations, ensuring that the focus remains on strategic growth and meeting the essential needs of their enterprise. For Amazon sellers, partnering with an efficient 3PL company not only enhances operational efficiency but also optimizes the customer experience through reliable and timely order fulfillment. This strategic collaboration allows for scalability and flexibility in managing inventory and shipping, crucial for thriving in the competitive eCommerce environment.
How Does A 3PL Work With Amazon?
A Third-Party Logistics (3PL) provider simplifies the logistics and operational demands for sellers on Amazon’s bustling platform. These services range from warehousing products, overseeing inventory levels, fulfilling orders through meticulous picking and packing processes, to managing returns and addressing customer service queries. Moreover, 3PLs are instrumental in orchestrating deliveries, organizing shipments, and negotiating shipping rates. Leading 3PL firms may also provide advanced analytical tools, giving sellers valuable data and insights to fine-tune their operations for better efficiency. This includes support for Fulfillment by Merchant (FBM) and Seller Fulfilled Prime (SFP) options, allowing for greater flexibility and potentially enhancing sellers’ visibility and competitiveness on Amazon.
Criteria For Choosing A 3PL Provider
In selecting a Third-Party Logistics (3PL) provider, it’s crucial to assess a variety of factors to ensure they align with your business objectives. Key considerations include the breadth of logistics services offered, the provider’s ability to adapt to changing business needs, and a transparent and competitive cost and fee structure. The geographical location of their facilities, their capability to handle international shipping, and the comprehensiveness of their service network are also vital. Moreover, evaluate their packing and order fulfillment processes to ensure they meet your specific operational requirements. It’s important to thoroughly vet potential 3PL partners to identify one that not only offers a good fit with your company’s logistical needs but also supports your growth and efficiency goals in the competitive marketplace.
Top 10 3PL companies for Amazon Sellers
In the fast-paced realm of eCommerce, particularly for Amazon sellers, the quest for efficient logistic solutions is ongoing. Third-Party Logistics (3PL) and fulfillment providers play an essential role in this ecosystem, delivering a suite of services that encompass storage, inventory oversight, order processing, and shipping. To assist Amazon merchants in navigating this landscape, we highlight the top 10 3PL logistics firms specifically tailored to meet the distinct demands of Amazon sellers. These companies are distinguished by their ability to enhance operational efficiency, streamline the fulfillment process, and ultimately support the growth and success of eCommerce businesses.
1. ShipBob
ShipBob is a logistics service provider renowned for its precision and excellence in handling eCommerce logistics. This 3PL expert focuses on catering to online businesses with offerings that include efficient order fulfillment, meticulous inventory management, and tailored logistics solutions. With a strong emphasis on leveraging technology and providing exceptional customer support, ShipBob presents itself as an ideal partner for Amazon merchants aiming to enhance their logistical operations and improve overall business performance.
2. Deliverr
Deliverr stands out in the logistics landscape with its commitment to speedy and reliable service, specifically tailored for eCommerce retailers. As a 3PL provider, Deliverr specializes in fast order fulfillment, dynamic inventory management, and scalable solutions designed to meet the unique needs of online businesses. By integrating cutting-edge technology and focusing on customer satisfaction, Deliverr positions itself as a prime choice for Amazon sellers seeking to streamline their supply chain and accelerate their market presence.
3. Flexe
Flexe emerges as a leading logistics solution in the eCommerce sector, recognized for its innovative approach to warehousing and fulfillment. This 3PL provider excels in offering flexible, on-demand warehousing solutions, comprehensive inventory management, and efficient order fulfillment services tailored for the digital marketplace. Emphasizing the use of advanced technology and a commitment to client success, Flexe provides Amazon sellers with adaptable logistics options designed to support the evolving demands of online commerce, ensuring agility and competitiveness in a crowded market.
4. ShipMonk
ShipMonk shines in the logistics and fulfillment sector, marking its presence with a focus on small and medium-sized eCommerce businesses. This 3PL provider prides itself on delivering stress-free order fulfillment, robust inventory management, and personalized packaging solutions that resonate with the unique branding of online stores. Leveraging state-of-the-art technology for seamless integration and dedicated customer support, ShipMonk offers Amazon sellers a comprehensive logistics solution that not only optimizes their operations but also enhances customer satisfaction and loyalty, enabling growth and scalability in the competitive online marketplace.
5. Rakuten Super Logistics (RSL)
Rakuten Super Logistics (RSL) is on of the key players in the eCommerce logistics field, known for its comprehensive approach to fulfillment and distribution services. This 3PL provider specializes in offering a wide array of services including efficient pick and pack, strategic inventory management, and a suite of fulfillment solutions that are customized to the needs of online businesses. RSL leverages advanced technology and analytics to ensure operational excellence and customer satisfaction. With a strong focus on reliability and scalability, Rakuten Super Logistics presents itself as a valuable partner for Amazon sellers, aiming to enhance their logistics efficiency and drive business growth in the dynamic eCommerce landscape.
6. Shipwire
Shipwire stands as a prominent figure in the global logistics and fulfillment landscape, catering specifically to the needs of eCommerce businesses. This 3PL provider distinguishes itself with a comprehensive suite of services that includes advanced order fulfillment, precise inventory management, and a broad network of warehousing solutions across multiple countries. Shipwire’s commitment to leveraging cutting-edge technology ensures seamless integration with online marketplaces, including Amazon, facilitating efficient operations and customer service excellence. For Amazon sellers looking for a logistics partner with a global reach and the ability to scale with their business, Shipwire offers a robust platform designed to optimize supply chain efficiency and support international expansion.
7. Shipstation
ShipStation emerges as a powerful ally for eCommerce businesses, primarily focusing on streamlining the shipping process. While not a traditional 3PL provider, ShipStation offers a comprehensive shipping software solution that integrates seamlessly with Amazon and other online marketplaces. Its platform is designed to simplify order management, automate shipping tasks, and provide access to discounted shipping rates from leading carriers. With features like batch label printing, customizable branding for packaging and labels, and robust analytics for tracking shipping performance, ShipStation enables Amazon sellers to optimize their fulfillment process, improve operational efficiency, and enhance the customer delivery experience. For businesses seeking a tech-driven approach to manage shipments more effectively, ShipStation offers the tools and integrations necessary to achieve a competitive edge in the fast-paced world of eCommerce.
8. Red Stag Fulfillment
Red Stag Fulfillment stands as a beacon of excellence in the logistics and fulfillment sector, particularly for eCommerce ventures. This 3PL provider is lauded for its unmatched accuracy and commitment to quality service, specializing in an array of offerings that cater specifically to online businesses. With services that encompass everything from precision-driven pick and pack operations to comprehensive inventory management and bespoke logistical solutions, Red Stag Fulfillment ensures that every aspect of the fulfillment process is streamlined and efficient. Their dedication to leveraging the latest in technology coupled with an unwavering focus on customer service positions Red Stag as a preferred partner for Amazon sellers. This is especially true for those looking to optimize their logistical operations and achieve a higher level of satisfaction among their customer base.
9. ShipHero
ShipHero stands out in the competitive landscape of eCommerce logistics with its comprehensive and technology-driven approach to fulfillment services. Tailored specifically for online businesses, ShipHero offers an integrated solution that encompasses robust inventory management, efficient order fulfillment, and automated shipping processes. With a focus on maximizing efficiency and accuracy, ShipHero utilizes advanced software to streamline operations, ensuring that Amazon sellers can manage their orders and inventory seamlessly across multiple channels. Their platform also provides insightful analytics, helping sellers make data-driven decisions to improve their logistics strategy. For Amazon merchants aiming to enhance their operational capabilities and customer satisfaction, ShipHero presents a powerful, scalable solution that adapts to the evolving needs of eCommerce.
10. My FBA Prep
My FBA Prep is a specialized service provider dedicated to assisting eCommerce sellers, particularly those leveraging Amazon’s Fulfillment by Amazon (FBA) program. Offering a tailored suite of prep services, FBAPrep ensures that products are prepared and packaged according to Amazon’s stringent guidelines, facilitating smooth acceptance into the FBA system. Their range of services includes inspection, labeling, bundling, and packaging, designed to meet the diverse needs of sellers across various product categories. With a keen focus on compliance and efficiency, FBAPrep helps sellers optimize their inventory management and streamline the transition of goods into Amazon’s fulfillment network. For Amazon sellers looking to minimize delays and maximize operational effectiveness, FBAPrep provides an essential bridge, ensuring that products are FBA-ready, allowing sellers to focus on scaling their businesses in the competitive eCommerce marketplace.
How do I choose a 3PL company for my business on Amazon?
Selecting the right Third-Party Logistics (3PL) partner demands a careful evaluation of various factors including the range of services offered, cost implications, fee structures, pricing models, geographical coverage, technological integration capabilities, and the ability to scale operations in line with business growth. It’s crucial to weigh these elements against your specific business requirements, such as your logistical needs, the potential for enhancing operational efficiency, and the overall advantages of forging a strong partnership with a 3PL provider. By thoroughly comparing different 3PL companies, you can identify a partner that not only aligns with your operational goals but also contributes significantly to the success and expansion of your business in the competitive landscape.
Don't Leave Yet
Contact us and get the Free Audit of your Amazon Account
