Marketing Strategies To Increase Your Amazon FBA Business Valuation

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Marketing Strategies To Increase Your Amazon FBA Business Valuation

The ultimate objective for many Fulfilled by Amazon (FBA) sellers is to build a successful business that they can then sell for a profit. In this article, we uncover how to increase the Amazon FBA business Valuation through marketing strategies.

Marketing Strategies for Increasing the Value of Amazon FBA Business

Raising the value of your business can be extremely fruitful, even if you are not planning on selling it immediately. If you decide to sell further down the line, doing the work upfront to increase your valuation will bring clarity and peace of mind when you finally decide to close the deal. It will also maximize your profit margin, consolidate your position in the market, and strengthen your brand.

The process of increasing an Amazon FBA business worth is always a complex one, comprising many steps and taking into consideration the constant change in Amazon’s ecosystem. One definite way to go is to launch effective marketing campaigns, and this is exactly what we are here to talk about.

Below are the essential factors you should consider taking care of.

Create A Solid Marketing Plan

For a seller, it is important to know exactly all the vital metrics and figures and define what needs to be improved. A good marketing plan is basically a roadmap to sellers’ objectives. It will help put all the objectives in order: what a seller wants to accomplish, how to distribute the message, and when the success will be in sight. Basically, it describes the strategies that a seller uses to market its products and to maintain and increase brand awareness.

As you create your next marketing plan, think about the company’s short- and long-term goals. Then, focus on the momentum your marketing strategy has built and keep it going. Also, don’t forget to employ what already worked for you in the past. The tactics used to define the most efficient strategies are multiple and diverse, with the most common being A/B testing, broad keyword-based search ad campaigns, and inbound marketing.

Drive Traffic to Amazon from External Sources

Amazon obviously opens gates to a huge audience. The graph below depicts the total global visitor traffic to Amazon between 2021 and 2022.

Source: Statesman

The most popular traffic sources from desktop users are portrayed below.

Source: SimilarWeb

If you need a little extra oomph to drive traffic, there are more ways to do that. Driving external traffic has become a must for modern Amazon sellers. We know you’ve heard this before, but it’s important to work on driving more consumers to your listings constantly. With the right plan and techniques, becoming a household name on Amazon isn’t impossible.

Amazon has a lot of success generating inter-brand traffic and driving visitors to their website from other partner sources, so consider investigating possibilities in this area. Amazon also dedicated a significant amount of time and budget to building methods (e.g. DSP) to help sellers drive traffic to their stores from external sources. Consider launching DSP ads to attract more customers.

Build a Social Media Presence

Social media is undoubtedly having a major impact on the way people spend their time and money. With 87% of online shoppers using social channels while making buying decisions, for a business that wants to stay relevant, social media is going to be a large piece of marketing strategy.

With a solid social presence, you’ll be able to connect with a greater number of people and then measure how effective your marketing efforts are. Besides, a huge portion of the traffic that Amazon gets comes from social media.

Source: Sellerapp

Many small businesses today rely on social media to interact with their customers and build relationships. The more you know about your audience and the more conversational you are, your social media following can become bigger. It’s important to maintain a presence on mainstream networks like Facebook and Twitter in order to reach a huge audience. But you also want to focus on finding your niche where users will be interested in buying your product.

Use the Right Keywords

It’s nearly impossible to work in online marketing without hearing the issue of finding the right keywords to amplify advertising efforts. When estimating your Amazon FBA business worth, keep in mind that keyword optimization can greatly increase that assessment. Keywords can be a powerful tool for finding potential customers, but the wrong one can cost you a lot of money.

More enterprise brands understand the power of paid advertising, but they’re not always sure how to use it most effectively. With the algorithm changing quite often, it’s crucial that advertisers prioritize the right keywords and make sure their audience is still relevant. If you know your target audience, you’ll know which words resonate and what words don’t. Choose a relevant, targeted keyword and include it in your site or page’s noteworthy, helpful descriptions, ensuring they accurately represent your business.

While keyword research is time-consuming and costly, it’s imperative that you finish it before you take your campaigns live. Launching ads without meticulously choosing the keywords in your campaigns can be a costly mistake.

Use a Variety of Marketing Channels

Marketing channels and their use is becoming more complex. But their importance can’t be overestimated. The days of relying purely on one channel like television ads are gone. Today it’s more likely to see multiple channels being explored, combined, and automated by Amazon sellers. And modern content marketing is mostly comprised of automated campaigns.

In order to increase brand awareness, you should use a variety of different marketing channels that complement each other. You should create and share content on social media networks like Facebook and Instagram, especially if you are looking to build a community around your brand. You should also create videos and webinars that focus on your brand’s value proposition and share these videos on popular social media platforms and search engines.

Final Word

Fulfillment by Amazon (FBA) has been around for a long time, but it’s very difficult to continue to grow your sales across the platform when you are entirely dependent on Amazon’s sales ranking algorithm. With the simple but powerful strategies we mentioned above, you can find ways to increase your business value.

About the Author

Lana Parchuk is the Head of Project Management at Profit Whales, a full-service marketing agency for e-commerce brands that scales them on Amazon and beyond via a cross-channel approach.

With over two years of experience of work in Profit Whales, Lana went through all the stages from Customer Success Manager to Head of Department. She built a system of managing multiple marketing channels (Amazon and social media, search ads, etc) for e-commerce businesses to set clients up for success.

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