In this post, you’ll learn how to apply Amazon automation, computers, and software to systematize almost every aspect of your e-commerce business.
Running a successful Amazon business involves managing a lot of moving parts.
For example, you must maintain inventory levels, adjust pricing, respond to customer inquiries, customize advertising, and manage reputation.
At the same time, malicious sellers are constantly trying to take over your listings and hijack your merchandise. New competitors appear daily, and it’s a fierce competitive environment.
What’s worse, you also have to worry that Amazon might suspend your listings or blatantly copy your products for sale.
With all this in mind, how do successful Amazon entrepreneurs run 7- and 8-figure e-commerce businesses with just 2-3 people on staff? How is this possible?
Successful sellers use automation and Amazon software to shift the tedious tasks of selling to a computer or third-party vendor.
In this article, you’ll learn the easiest and most cost-effective way to automate and outsource the following tasks for your business on Amazon.
- Advertising on Amazon
- Generating reviews and reviews
- Generating email and SMS lists
- Listing monitoring
- Delivery and fulfillment
What is Amazon automation?
Amazon automation is the use of software and third-party services to manage your Amazon business as smoothly as possible, reducing your workload and allowing you to focus on your strengths.
Amazon automation comes in many forms.
Some companies will build your entire Amazon business for you: find profitable items to sell, find suppliers, create your Amazon listing, set up Amazon PPC… EVERYTHING!
But most Amazon sellers are probably looking for inexpensive software solutions to automate repetitive tasks so you can focus on other areas of your business.
In the rest of this post, I’ll talk about each service and software package that I personally use to automate my business on Amazon.
Amazon Automation #1: Use Amazon FBA
Fulfillment by Amazon (FBA) is a program where Amazon stores and fulfills your orders directly from its warehouse every time you make a sale.
- You don’t need to store inventory.
- You don’t have to ship packages.
- You don’t have to deal with customer service.
In fact, Amazon FBA is the closest business model to dropshipping you can find online. And using Amazon FBA is the easiest way to automate your e-commerce business.
If you look at the FBA fees that Amazon charges, you’ll notice that FBA is pretty expensive compared to most third-party fulfillment centers. So why not just sell items fulfilled by the seller?
Amazon FBA gives you access to the “Prime” badge, which instantly increases the visibility of your items by 3x or more.
Every time I shop on Amazon, I purposely exclude all “merchant fulfilled” listings from search results and view only prime listings.
Amazon has accustomed us all to focusing on fast and cheap shipping, which can only be obtained through prime shipping.
Editor’s note: Amazon does offer a service called seller fulfilled prime, but it has been temporarily suspended until further notice.
Although Amazon FBA will cost you another 10-15% of your income on top of Amazon’s 15% sales commission, it’s well worth the cost just by increasing sales alone.
In addition, Amazon will handle shipping and fulfillment and will take responsibility for your mistakes.
All you have to do is apply for reimbursement for lost inventory, and Amazon will pay you back!
Amazon automation #2: Use a service that automates inventory reimbursement
When you use FBA, Amazon loses your inventory more often than you expect. In our e-commerce business, Amazon mistakenly places our products at least a few times a month.
But the problem is that Amazon never openly admits to losing your products and doesn’t automatically refund the cost.
Instead, you must contact Amazon, show proof of the inventory discrepancy, and only then will you be reimbursed for the number of items lost.
Instead, you must contact Amazon, show proof of the stock discrepancy, and only then will you be reimbursed for the number of items lost.
As you can imagine, this process is extremely tedious and not a good use of your time. That’s why most successful Amazon sellers use inventory reconciliation services like GetIda.
GetIda uses software to track your Amazon FBA transactions, returns and seller analytics, and automatically files claims with Amazon on your behalf.
We’ve been using GetIda for a long time, and the nice thing about it is that you only pay a commission when they actually get a refund.
So there is no risk involved in using GetIda. Right now they are offering $400 in free reimbursement if you sign up below.
Amazon Automation #3: Generating Reviews
Getting reviews on Amazon is an important aspect of ranking your products in Amazon search. And if you don’t actively ask a customer to write a review, you won’t get one.
Amazon currently has a button in Seller Central that allows you to manually request a review, but who has time for that?
Instead, you should use a service like Feedback Genius, which automates the process for you.
Jungle Scout also offers a similar service, where you can request bulk reviews on all of your recent orders.
No matter what service you use, the generation of reviews should always be automated.
Amazon automation #4: Listing monitoring
Amazon is a competitive marketplace, and evil sellers are constantly trying to sabotage your listings on Amazon.
Probably the subtlest form of sabotage is when a competitor takes control of your listing and changes the titles and details.
Sometimes unscrupulous sellers intentionally leave negative reviews to ruin your reputation. Other unscrupulous entrepreneurs intentionally buy and return your product, labeling it as “not as described.”
If you manage many Amazon listings, it is impossible to manually track them all. Instead, you should use Amazon automation and alerts to keep track of them all.
Personally, I use a service called FeedbackWhiz to monitor all my listings. This service lets me know…
Whenever I get a negative review.
Whenever someone returns an order.
When any of my listings change
When I lose the buy box
In general, when something bad happens to any listing, I immediately get an email notification and immediately put out the fire.
Without this tool, it would be impossible to manage.
Amazon Automation #5 – Automating Amazon PPC
Running profitable Amazon PPC ads involves bidding on targeted keywords and carefully managing bids to generate a positive return on ad spend.
As a successful Amazon seller, you are likely bidding on dozens or even hundreds of keywords for each product. In addition, you must monitor the effectiveness of keywords, continually refill your list of negative keywords, and manage bids for various phrases.
The complexity of advertising on Amazon increases quickly and can easily become a full-time job.
There are 2 main ways to automate PPC advertising on Amazon.
- You can outsource your advertising completely
- You can use keyword bidding automation software.
Personally, I’ve tried both ways with varying degrees of success.
If you want to completely outsource advertising on Amazon, I recommend Seller Labs. I hired Seller Labs for full PPC management on Amazon last year, and they’ve had great results.
The second way to automate PPC is to use a tool like Ignite.
Ignite is Amazon advertising software that allows you to quickly assess the effectiveness of your campaigns and get customized recommendations for action.
It’s fully integrated with Amazon, and you can manage all your campaigns from Ignite.
Instead of sorting spreadsheets and manually adjusting bids, Ignite uses machine learning algorithms to create intelligent suggestions for your bids and campaigns.
Here’s a sample screenshot of Ignite’s latest recommendations for my ad campaigns.
According to Ignite, I should mark the keyword “servilletas para tortillas” as a negative exact match keyword because it doesn’t work well.
With one click of the “approve” button, Ignite will automatically make this keyword a negative keyword in my campaign.
Using a tool like Ignite, you can semi-automate your PPC campaigns on Amazon by outsourcing your keyword management to software. All you have to do is approve offers, and your ROI will improve over time.
Amazon Automation #6: Automate the collection of emails and SMS messages
It’s no secret that Amazon hides all your customer information from you. What’s more, Amazon now removes a customer’s name from all orders!
To get your customer’s email address and phone number, you’ll have to resort to other ways, and that’s where a tool like ManyChat comes in.
ManyChat allows you to create a bot for Facebook Messenger to automate the collection of customer information. Here’s how it works.
First, you create an enticing Facebook ad to draw customers to your product. In this example, I’m giving away my product to Amazon for free with a refund.
When customers click on the ad, they go to Facebook Messenger, where the offer is presented to them.
After they click “Yes,” I give them full instructions on how to buy my product on Amazon.
After they make the purchase for the full price, they go back to the bot to apply for a refund.
What’s great about ManyChat is that the user’s email address and phone number are filled in on the form based on the information Facebook already has about the user.
As a result, you don’t have to type, and the conversion rate is fantastic!
If you implement the return flow correctly, here’s what you get.
- Email address
- Phone number for SMS
- Facebook Messenger subscriber
- Full-price item sale on Amazon
- Amazon review
Amazon Automation #7: Automate pricing to get a block buy
If you sell other people’s products on Amazon, your ability to win a Buy Box will depend almost entirely on price.
As a result, if you are NOT selling private label items on Amazon and your business model is wholesale, retail arbitrage or online arbitrage, you need to use repricers.
An Amazon repricer is software that automatically updates the prices of your items so that you win in the “buy” field. After all, if you don’t have a buy box, you can’t generate sales.
Here’s how it works.
- Sign up for the price change tool and connect it to your central seller account.
- Choose which sellers to include or exclude for repricing.
- Set minimum and maximum price thresholds.
- Apply a strategy based on your desired profit margin and inventory levels.
Once you set your pricing rules, the software will automatically adjust your prices to make sure you get a box of purchases while still making an acceptable profit.
Note that Amazon pricing software is only required if you don’t have your own brand.
When you sell your own private label products, you will always have a buying margin 100% of the time because you are the only seller.
Is Amazon automation required?
When it comes to automating Amazon, I always prefer to favor a machine over a human:) But not all software will have the features you need.
If you find that the software solutions mentioned in this post don’t meet your needs, there are several ways to outsource your Amazon tasks to contractors who specialize in Amazon.
For example, you can use 2ndOffice to find a Filipino assistant to manage your Amazon lists. Every VA at 2ndOffice is specially trained in e-commerce.
In addition, 2ndOffice provides the office and necessary infrastructure such as a computer, Internet access and backup power.
However, if you only need temporary Amazon contractors, a firm like Urtasker offers trained workers who will manage your Amazon operations on your behalf.
Urtasker contractors can be hired on a project-by-project basis and are a very cost-effective way to outsource your Amazon operations.
Whether you decide to use software or human capital is up to you, but you should automate your Amazon operations as much as possible so that you can focus on the important aspects of your business.