To successfully run your own Amazon business, you need to take on numerous responsibilities at once. Most eCommerce company owners also have to be marketers, accountants, customer service representatives, and much more. With so many aspects of your business to manage daily, it’s easy to become overwhelmed. Fortunately, there are solutions available to you that can help facilitate the process of selling on Amazon.
One of the best ways to manage your online business more effectively is to automate your business. Automating your Amazon store enables you to put various everyday tasks on “autopilot” so you can sit back and focus on more important projects. The resources you’ll free up can then be reinvested in your company to support its long-term growth.
Here’s everything you need to know about Amazon automation and how it can help your online business grow.
Key Takeaways
- Automating your Amazon store means delegating various business tasks to a software program that performs them automatically.
- Creating an automated store offers various benefits, such as increased customer satisfaction and improved cash flow.
- To automate your business, we recommend investing in the right software, hiring a VA, and leveraging AI.
What is an Automated Amazon Store?
An automated Amazon store refers to a specific type of Amazon store in which all or most duties are performed automatically. This is accomplished through programmable software that completes manual or repetitive tasks with little to no input on your part. You can automate any number of business operations with this technology, such as:
- Inventory management
- Ad campaigns
- Shipping
- Pricing
- Sales tracking
Once your online store is automated, you can redirect efforts to areas of your business that require more of your time and attention. This way, you won’t be wasting precious time and energy on menial tasks that can easily be accomplished by automation software. You may also find that you have more free time on your hands, letting you enjoy a better work-life balance.
Fully-Automated Tasks
There are various kinds of daily business tasks that you can automate. To decide which ones you should outsource to a software program, consider how much time you spend on each task. The action items that take the most time but yield the lowest return should be fully automated. These include manual or repetitive tasks such as daily reporting, backing up data, and managing inventory.
Automated Amazon FBA Store
As opposed to picking and choosing tasks to automate via third-party software like the Walmart done-for-you store, Amazon FBA does a lot of heavy lifting. Fulfillment by Amazon (FBA) is a specific type of automation that facilitates various aspects of the selling process. It mainly takes care of shipping, packing, and inventory management, all of which are time-consuming but necessary responsibilities. To enjoy these benefits, you first need to be approved as an FBA seller.
Reasons You Should Create an Automated Amazon Store
If you’re like most Amazon sellers, you lack the budget for a full staff to manage your business. As a result, you may have trouble juggling all of your daily responsibilities. By creating an automated Amazon store, you can take the grunt work out of running your business, freeing up more time and money for more meaningful projects. This can create a more rewarding experience for you as a business owner.
Another major benefit of automation is increased customer satisfaction. Automation allows you to give buyers more precise inventory levels, real-time discounts, and price matching. This encourages them to keep returning to your brand.
Automation software can also provide valuable insight into your business operations. It lets you compile data and quickly find information instead of spending time scrolling through spreadsheets and compiling manual reports.
How to Build a Fully-Automated Amazon Store
If you want to automate your Amazon store to facilitate your business’s growth, it’s important to understand what to expect. We’ll guide you through each step of the process to ensure that you’re prepared for success. Here is everything you need to know:
Product Research
Before setting up your automated business, look into product research tools. There are many automated research tools available that will identify your target market on Amazon. This will help you narrow down the marketplace’s many product categories until you find one that fits your needs.
These tools will also scan Best Sellers lists to get an idea of what types of products are most popular in your chosen category.
Finally, they’ll analyze the reviews and sales of best-selling products to see what your competitors are doing right.
Listing Creation
The next step is to create your product listing. With automation, you can easily optimize product listings to reach as many customers as possible. There are many tools that will readily provide keyword suggestions to boost your Amazon ranking and help you become more visible to your target audience.
As a bonus, these platforms will analyze your competitors’ ASINs and keywords. Using this information, they will form a similar marketing strategy that works for your own business goals.
Order Processing
Once you’ve conducted product research and created your listing, you’ll need to figure out how to process orders. Amazon FBA lets you outsource orders to Amazon, where they are processed automatically. From here, Amazon can then prepare the order for shipment, allowing you to focus on other areas of your business. Automatic order processing also gives you peace of mind that your products are reaching your customers intact and on time.
Shipping & Fulfillment
After orders have been processed, Amazon FBA will go ahead and complete shipping and fulfillment. FBA allows you to store products in Amazon’s global network of fulfillment centers for convenient shipping and delivery. In addition, if you’re approved as an FBA seller, you’ll have the chance to offer free, two-day shipping for customers who are subscribed to Amazon Prime. This makes your products appealing to a wider audience, helping you reach and secure more potential customers.
Pricing Optimization
The price you assign to your product plays an integral role in a customer’s decision to purchase it. This is a great opportunity to use automation software that incorporates dynamic pricing, which analyzes prices of similar products in your category to find the optimal price for your item. You might need to go through some trial and error before settling on a pricing model that yields profitable products but don’t be afraid to experiment.
Advertising Campaigns
An effective ad campaign is the backbone of every online business. Optimizing your ad campaigns means you can run them automatically. From keyword implementation to product categorization, each aspect of your online ads can be streamlined to boost your sales. There are various types of Amazon ad software programs that will take care of all the hard work for you so that you can sit back and watch the sales roll in.
Customer Service
Communicating with customers is a key part of running any business, but it’s especially crucial on Amazon. Many things can go wrong between processing a customer’s order and delivering it to them. However, what matters isn’t the mistake but how it’s handled. Amazon handles customer service in this regard, communicating with buyers in an effective, professional manner.
Generating Reviews
Amazon reviews help lend credibility to your product and brand. Additionally, the more highly-rated your product is, the higher it will rank in Amazon’s search results. However, there are stringent guidelines regarding reviews on the platform, and to remain a seller, it’s critical that you follow them. Regarding automation, consider product inserts that can be easily updated depending on the item. Amazon also has a Request a Review feature that can be customized by you and sent in an email between 5 and 30 days after purchase.
Inventory Management
Not only does handling inventory on your own take up a lot of time, but it can also be a great source of stress. Fortunately, you don’t have to go at it alone. Inventory management software is designed to assist Amazon sellers with inventory management, allowing them to manage cash flow and keep their customers happy. From reducing the number of out-of-stock products to minimizing fees, automating inventory management can benefit your business in a number of ways.
Processing Returns
If you’re an Amazon FBA seller, Amazon will automatically handle all returns for you. FBA automates each step of the process, including customer service, return shipping, and refunds. Because returns can be very costly and time-consuming, leaving the job to Amazon can help free up a lot of time (though we hope you don’t have too many returns).
Managing Finances
If you don’t manage your finances properly, your business could face significant cash flow issues. At the same time, keeping on top of revenue can take a lot of time out of your schedule. A more effective way to manage your funds without losing precious time and energy is to automate this aspect of your business. From budgeting to adjusting your pricing, you can rely on automation software to keep the financial part of your store running smoothly.
How Much Does it Cost to Build an Automated Amazon Business?
To set your automated business up for success, it’s crucial to be financially equipped to create one. The price range varies significantly based on your goals and the type of store you run. With that in mind, here’s a breakdown of the costs involved in building a fully automated Amazon business.
Software Tools
The most substantial cost involved in automating your Amazon store is the cost of the software itself. A number of factors influence the price of automation software, including the vendor, the subscription model, and the included features. If you opt for a more basic version, your fee can be as little as a few dollars per month.
Products
The products you offer can impact the overall costs of scaling your business. For example, does your current supplier fully automate order management? How much input is needed on a daily or weekly basis regarding new or unique items? Some aspects of your products may be easier to automate than others. In general, don’t skimp on the areas that need a human touch. This could impact quality and customer satisfaction.
Amazon Fees
If you automate your business via Amazon FBA, there are certain seller fees you’ll have to account for. All FBA sellers must pay a referral fee, which is a flat percentage paid to Amazon for each product sold on their website. The specific rate is determined by your product category, but most are set to 15% of sales or less. You’ll also have to pay FBA storage fees, inventory fees, and potentially others, depending on how long you store products in Amazon’s warehouse.
Advertising
Because advertising is a significant part of running your business, don’t forget to include ad automation costs in your budget. The amount you can expect to pay depends on various factors, such as the types of ads you plan to run, your product category, and your target audience. You should also consider how much work you want the software to do for you. If you’re just looking to target a few basic keywords, you’ll pay less than someone who plans to run a full-scale campaign.
Shipping
The major perk of using Amazon FBA is that they fully automate shipping and fulfillment, so you don’t have to worry about your products reaching your customers. However, it doesn’t come without a price. FBA charges its sellers a fulfillment fee, which is calculated on a per-unit basis, and includes packing your orders, shipping and handling, customer service, and product returns.
Amazon Automation Tips
Now that you have a better idea of the benefits and costs involved in automating your Amazon store, we’ll help guide you through the process. Here are some tried-and-true tips for building an automated business.
Invest in Software
The most common and effective way to automate your Amazon business is by investing in reliable software. There are numerous types of programs available to sellers, so it’s crucial to ensure that you choose one that meets your specific needs and goals. If you’re looking to build a completely automated store, you will likely need a full-service automation platform. Otherwise, you may benefit from a more basic program.
Leverage AI
As artificial intelligence continues to transform the way we use technology, there’s no better time to harness the power of AI in eCommerce than right now. Through machine learning, AI systems can collect and analyze data about your business and use it to optimize nearly all of your operations, helping ensure that you’re constantly improving without additional costs associated with expert advice or salaries.
Hire a Virtual Assistant (VA)
A virtual assistant (VA) is someone who provides administrative services to help alleviate the burden of running your own business. You can hire a VA to help you set up your automated Amazon business and handle the many tasks involved in the process. By delegating these important yet tedious duties, you can dedicate more of your time and energy to more meaningful tasks.
Automate & Optimize Your Amazon Business with Trellis
Even the most seasoned Amazon sellers need a little help with the daily responsibilities of running their business. Automating your store can help simplify selling on Amazon considerably. From manual, repetitive tasks like preparing shipments to more complex duties like setting up ad campaigns, you can automate nearly every area of your business with the right software program.
Our experts at Trellis can help facilitate the process of building an automated store. From content optimization to advertising software, our platform can facilitate and enhance the success of your eCommerce business. Contact us today to learn more.
Frequently asked questions
Is Amazon automation a scam?
Amazon FBA is a legitimate and trustworthy service for sellers that helps automate their Amazon business. However, many automation software programs are available online, some of which may not be legit. Take time to screen your preferred platform before signing up.
How much of an Amazon business can be automated?
Many aspects of an Amazon business can be automated to varying degrees, including inventory management, order processing, marketing, and more. That said, some tasks may require some human oversight, such as handling complex customer inquiries and making strategic business decisions.
Is Amazon automation worth it?
This depends on your specific business goals. If you find that the cost of Amazon automation is worth the features offered, you may benefit from using this service in the long term.
Is Amazon automation legal?
Yes, Amazon automation is legal as long as it complies with Amazon’s Terms of Service. Sellers should confirm that their automation practices do not violate any of Amazon’s policies.