How to Use Amazon Data Analytics to Increase Profits

Master strategies to optimize Amazon listings & boost visibility. Find Amazon success with proven tactics.

November 27, 2023

When it comes to selling on Amazon, there are two ways to increase profits. The first method is strategically reducing costs so that each sale produces more profits, as we’ve covered in a previous blog. The second method is increasing the number of sales.

There are several variables to consider when calculating profit for seasoned Amazon businesses. But at a rudimentary level: Profit is the total sales, subtracting Amazon FBA fees, Amazon referral fees, advertising costs, and cost of goods sold (COGS).

Profit = (∑ sales) - (∑ ad spend) - (∑ cost of goods sold) - (∑ amazon fees)

By increasing the number of sales, sellers can widen the gap between expenses and profits, resulting in more take-home pay or capital to inject back into your Amazon business. A few ways to increase sales and therefore profits include improving organic search visibility, expanding product lines to capture more customers, and maximizing FBA inventory where it makes the most sense.

Improve Organic Search Visibility

In the competitive marketplace of Amazon, achieving high organic search visibility is crucial for driving sales and profitability. Organic search visibility refers to the ranking of your product listings in Amazon's search results when customers search for relevant keywords.

To enhance your organic search visibility, consider implementing the following strategies:

Conduct thorough Amazon keyword research: Utilize dedicated tools and resources to identify high-volume, relevant keywords that accurately reflect your target audience's search queries and optimize your product listings accordingly. This includes focusing on long-tail keywords with lower competition and capitalizing on seasonal trends in search volume. Examples include: Helium 10, SellerApp, Ahrefs, and Google Keyword Planner.
Optimize Product Listings: Craft compelling and informative product titles, descriptions, and bullet points that incorporate relevant keywords frequently searched by potential customers. Ensure your product images are high-quality, showcasing the product from multiple angles and in use.

Leverage Backend Keywords: Utilize backend keywords to provide Amazon with additional context about your products, improving their relevance to specific search queries.
Collect Customer Reviews: Encourage customers to leave positive reviews, as these serve as social proof and boost your product's credibility, influencing purchasing decisions.
Enroll in Amazon Brand Registry: Registering your brand with Amazon provides access to enhanced brand control and marketing tools, further optimizing your search visibility.

Expand Your Product Line and Variations to Capture More Customers

Expanding your product line and variations can significantly increase your reach and attract a wider customer base.

Consider these strategies to broaden your product offerings:

Identify Customer Needs: Analyze customer feedback and market trends to identify gaps in your product assortment and potential new product opportunities.
Explore Niche Variations: Offer variations of your existing products that cater to specific customer preferences or needs, such as different colors, sizes, or styles.
Bundle Products: Group complementary products together to create attractive bundles that offer added value and convenience to customers.
Monitor Market Trends: Stay abreast of emerging trends and customer preferences to introduce new products that align with evolving market demands.

Maximize FBA When and Where It Makes Sense

There’s a time and place for everything. And the same thing is true for FBA. Super fast shipping is a big win for consumers—and a common consideration for shoppers deciding between various vendors. This puts Amazon sellers in an interesting position: Pay FBA fees or potentially lose out on sales opportunities.
A smart strategy is to divide some inventory (usually high-converting products) towards FBA, while other goods (such as low-converting products) are shouldered by third-party logistics (3PL) or fulfillment by merchant (FBM). This Amazon inventory strategy ensures that sellers can make the most of their top-selling products.

Time to Put It in Action

Increasing product visibility, expanding product catalogs, and ensuring product availability helps keep your sales high and your profits coming in. Feel empowered to experiment with these tips to find what works best for your Amazon business.

‍Explore our blog for more Amazon business tips. And request a demo of Junglytics to learn what Amazon data analytics for sellers can do for your business.

ABOUT THE AUTHOR

Isiah Kurz

Isiah is an experienced content writer with more than a decade of experience in journalism, public relations, and marketing.

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