Once you’ve sourced out the perfect products to offer, the right name to start your business under, and a gameplan to stand by, it may seem like all is set to get your Amazon business started. Although it may seem like your tedious planning and constant research will suffice in equipping you for success on Amazon, there’s one more crucial thing to think about: How are you going to make your products stand out from those of your other competitors?
Amazon contains millions of sellers and an even greater number of products. Generally, there are several ways—such as Amazon SEO and harvesting—to approach the challenge of differentiation for success. Out of all the various approaches that you can use, however, nothing has proven to be more effective than the numbers-based approach of Amazon accounting.
While the approach to standing out from the competition with Amazon accounting doesn’t necessarily have anything to do with finances, there’s one aspect of the practice that can help: its knack for data. The Amazon accounting approach for boosting the growth of your business relies on two specific data:
The number of people who visit your Amazon page (or “traffic”)
The percentage of your visitors who purchase your product (or “conversion rate”)
How can you use the Amazon accounting approach to grow your business?
Growing your Amazon business with the help of the data-centric practices of the Amazon accounting approach can be carried out in several key practices. Let’s look at a few key practices that you can use:
Amazon accounting approach #1: Analyze your data frequently
A standard e-commerce accounting firm uses constant data analysis to point your Amazon business’s finances in the right direction. But did you know that the same practice can be used for growing your business? By setting a benchmark for your conversion rate—or unit sessions percentage—and visits for an established point of comparison, you can immediately set up a data monitoring regimen.
For starters, a good conversion rate to strive for is at least 10 per cent, but this may vary depending on the type of product you offer, how many visitors you have, and the listed prices. On the other hand, another proper metric to analyze your data frequently is the goal of having at least 30 visitors per day.
Amazon accounting approach #2: Research your competition in greater detail
With data comes research, and with research comes results. An effective, yet uncommon Amazon business practice that you can use for more effective competitor research is to buy the products of your competition for a close comparison.
For best practice, it is ideal to consult with your Amazon accountant or e-commerce accountant to set a budget for purchasing the product of your competitors. Aside from purchasing your competitor’s products for comparison, supplement your efforts by researching on the reviews that they get and the emails that they send out as well.
Amazon accounting approach #3: Update your keywords on a regular basis
Another practice that Amazon accountants use, which can also be applied to your growth strategy, is constantly updating your variable factors. In this case, it’s your keywords. In the same way that e-commerce accountants find ways to play around with your Amazon business’s variable costs, updating your keywords is a must to ensure that growth takes place.
The keywords that you use, in essence, are a few of the most important elements of your Amazon listings and page, which means that it is vital to refine them continually. Updating your keywords on a regular basis can help with retaining relevant traffic while keeping your listings sharp as well through the use of keywords that conform to what your customers search for.
Applying an Amazon accounting approach to the way you work your Amazon SEO strategy is a time and effort investment that can yield results right away. Although it may be complicated to find the right footing with this in-depth approach, consistently applying it in your efforts can go a long way.
If you’re looking for a professional e-commerce accountant on the Gold Coast, get in touch with us to see how we can help.