8 Ways Amazon Sellers Can Reinvest Their Q4 2021 Profits

Posted by Jimi Patel | December 28, 2021

When life gives you lemons, don’t just make lemonade and drink it yourself; sell the lemonade, buy more lemons and build a lemonade stand instead. Similarly, when Q4 gives you profits, don’t just take it all home. Plow the profits back into the business. When spent strategically, the reinvested money can propel your business to new heights.

But with so many places to reinvest your money in, which levers should you pull? There are so many moving cogs in an Amazon business and not all of them need greasing at the same time. There’s expanding your catalog of products, investing in PPC, building a brand and so much more. Let’s narrow it down. Below is a list of 8 things you can do to reinvest profits in your Amazon business.

#1: Launch

launching a product on amazon

The process of launching a product on Amazon can take anywhere between 4-8 weeks. Most sellers face a sales slump in Q1, so you’ll likely have a lot of time on hand to plan and launch new products. Here are a few tips for a successful product launch:

  • Build a buzz ahead of launch: If you have a website, write a blog post, set up a social media campaign to spread the word, or send emailers informing your existing customer base about the launch.
  • Don’t skimp on Amazon listing optimization: Hire Amazon product listing services to properly set up your product listing with a keyword-optimized and informative copy.
  • Invest in high-quality product shots: Your images should be a combination of white background images, infographic images, lifestyle shots, measurement images and an image showing how your product compares to the competitors.
  • Create a subpage in your Amazon storefront design to highlight newly launched products from our brand.
  • Gather 3-5 reviews to provide your shoppers with social proof. Sellers can enroll in the Early Reviewer program or use the Request a Review button to get a head start on reviews.

#2: Optimize

amazon listing optimizeThis is an investment that keeps on giving. A well-optimized listing is one of the most underrated ways to build trust. Now, more than ever, it is imperative that brands position their business as a brand shopper can trust. Although Amazon is responsible for more than 50% of the online sales, it has also become a cesspool of fake products, fraud sellers and scams. You can overcome the fear of your prospective shoppers by establishing yourself as a professional brand. This means having your listing copy, images, Amazon A Plus content, storefront and Posts in tip-top shape.

#3: Advertise

amazon advertise
After the holiday season, sellers are so exhausted – they pause their marketing efforts and go quiet. You might be tired of the sale, but your customers aren’t. They are still there looking for new products to buy. You don’t have to offer the same level of discounts – it can be anything from a winter clearance sale to a bulk-buy discount. Schedule a meeting with your Amazon PPC experts and create a marketing plan that hones your goals be it growing your customer base or improving brand recall.

#4: Retain

new customer compared to retainingIt’s anywhere from 5-25 times more expensive to acquire a new customer compared to retaining an existing customer. One of the best ways to reinvest your money is by building a solid customer retention strategy. Here are some ways you can make it happen:

  • Encourage customer loyalty: Give them a reason to keep coming back to you. Offer discounts and promo codes on their next purchase. If you sell essentials, encourage customers to enroll in Amazon Subscribe and Save program.
  • Make your customers feel valued: Create marketing campaigns that make your shoppers feel like an insider. Offer free giveaways to your re-returning customers or let them be the first ones to enjoy new products.
  • Send useful emailers: If you have an email list, send the latest updates and information about your products, offers and deals. Also, send them practical information and tips about their concerns and remind them how your products can be a solution.
  • Improve refunds/return policy: According to Marketing Interactive, about 76% of the customers will stop buying from you after a negative customer experience and 72% will advise friends and family to avoid your brand after a negative experience. While you prevent shoppers from having a negative shopping experience, you can streamline the returns/refunds process. The way you deal with a frustrated customer can be the difference between them telling others not to buy from you and them genuinely wanting to purchase again from you.

#5: Introspect

introspectNo matter how profitable your Q4 was, there’s always room for improvement. It’s a wise decision to use your profits to look inwards to bolster your customer service, streamline the fulfillment process, refine your PPC strategy or streamline your manufacturing process. All of these combine to increase profit and reduce wasted spend.

#6: Educate

educateInvesting in yourself is just as vital as investing in your business. Consider reinvesting your profits in furthering your own education. Attend seminars and conferences to improve your skills, network with other sellers, know what’s going on in the world of Amazon and find new service providers. Connecting with sellers who have already pivoted and thrived through the ups and downs you are facing right now can give you a competitive edge.

#7: Secure

secureIf there’s anything COVID has taught us, it’s that no one cannot predict what’ll happen next – all you can do is prepare for the worst. Having 2-3 months’ worth of essential expenses locked in can be the difference between surviving or succumbing to a temporary income loss. Although building an emergency fund for uncertain times might not feel like you’re reinvesting, it’s a fund you can fall back on at the hour of crisis.

#8: Hire

hire any of the best amazon consulting agenciesHire any of the best Amazon consulting agencies and let them take day-to-day account management and consequential Amazon-related matters off your plate, leaving you to concentrate on other essential aspects of your business.

That’s all for today

Reinvesting your Q4 profits is one of the best ways to ensure success in 2022. While it might be tempting to up the money you take home, the rewards of sustained profits down the line will make it all worth it.