Amazon Seller

7 Ways to Reduce your Shipping Costs as an Amazon Seller

  • Written by Ziggy Masterman
7 Ways to Reduce your Shipping Costs as an Amazon Seller

As an Amazon seller, you know that costs can quickly add up.

Between Amazon's fees, shipping costs, and inventory expenses, it can be challenging to maintain a healthy profit margin. 

However, there are several ways to reduce your costs and improve your bottom line, so if you're looking to reduce your costs and increase your profits on Amazon, you've come to the right place! 

We’re here to share some tips and tricks that will help you stay ahead of the game and save some serious cash. Let's dive in!

1. Optimize Your Product Listings

First things first, let's talk about optimizing your product listings.

This is crucial for attracting more customers and increasing your sales. You want your listings to be as clear and compelling as possible, so that people will want to buy your products.

Here are some things to keep in mind:

  • Use high-quality images and videos to showcase your products.

  • Write detailed and accurate product descriptions.

  • Use relevant keywords in your titles and descriptions.

  • Get good reviews and ratings from your customers.

  • By optimizing your product listings, you can increase your visibility, attract more customers, and ultimately, increase your sales and profits.

2. Use Amazon FBA

Fulfillment by Amazon (FBA) is a great way to reduce your costs and increase your profits.

With FBA, Amazon handles the shipping, handling, and customer service for your products, which frees up your time and resources.

Plus, Amazon offers discounted shipping rates for FBA products, which can save you even more money.

You could also make life easier by using shipping software, Veeqo, for your Amazon FBA shipping and inventory management.

You'll be able to sync your orders to Veeqo from the likes of Shopify, Etsy, and eBay. Then send any order to Amazon FBA in one click through our Amazon Multi-Channel Fulfillment (MCF) connection.

Further reading: Veeqo’s Amazon FBA Integration

Veeqo also allows you to set any sales channel to have all of its orders fulfilled by FBA on autopilot. Just flick the switch, and every order is sent to Amazon through MCF as soon as it comes in.

Then track the progress of all your FBA orders, see FBA stock levels at each location, and take control of your Fulfillment By Amazon operation with Veeqo’s Amazon FBA software with multi-channel control.

Here are some further tips for using FBA:

  • Send your products to Amazon's fulfillment centers to save on shipping costs.

  • Take advantage of Amazon's discounted shipping rates.

  • Use Amazon's Multi-Channel Fulfillment (MCF) service to fulfill orders from other sales channels.

  • Use Veeqo for your Amazon FBA inventory management

  • By using FBA, you can save time and money, and focus on growing your business.

3. Negotiate with Suppliers

Another way to reduce your costs is by negotiating with your suppliers.

You can try to get better prices, better payment terms, or even exclusive deals. Here are some tips for negotiating with your suppliers:

  • Research your suppliers and their competitors to get a better understanding of the market.

  • Start with a low offer, but be prepared to compromise.

  • Build a good relationship with your suppliers and be respectful.

  • By negotiating with your suppliers, you can save money and increase your profit margins.

4. Use Amazon's Advertising Tools

Amazon offers a variety of advertising tools that can help you increase your sales and profits. You can use Sponsored Products, Sponsored Brands, and Sponsored Display to promote your products and reach more customers. Here are some tips for using Amazon's advertising tools:

  • Set a budget and bid for your ads to control your costs.

  • Use relevant keywords and target the right audience.

  • Monitor your campaigns and adjust your strategy as needed.

  • By using Amazon's advertising tools, you can increase your visibility, attract more customers, and ultimately, increase your sales and profits.

5. Monitor Your Inventory Levels

Keeping track of your inventory levels is crucial for reducing your costs and avoiding stockouts.

If you have too much inventory, you're tying up your cash and risking spoilage or obsolescence. If you have too little inventory, you're risking stockouts and lost sales.

You can use an inventory management tool like Veeqo to monitor your inventory levels. Veeqo automatically updates your stock across all your warehouses and storefronts.

It’s the easiest, most efficient way to manage your inventory. And it’s completely free! 

Further reading: How to Choose an Inventory Management Software

Here are some tips for monitoring your inventory levels:

  • Use Veeqo's inventory management software to automate your inventory.

  • Set up automated alerts for low inventory levels.

  • Use Amazon's FBA inventory storage fees calculator to optimize your storage costs.

  • By monitoring your inventory levels, you can avoid stockouts, reduce your storage costs, and increase your profitability.

6. Use a Repricing Tool

A repricing tool can help you stay competitive and maximize your profits. 

By automatically adjusting your prices based on market conditions, you can ensure that your prices are always competitive and you're not leaving any money on the table. 

Here are some tips for using a repricing tool:

  • Choose a repricing tool that's compatible with your business and your selling strategy.

  • Set your minimum and maximum price points to control your costs and maximize your profits.

  • Monitor your competitors and adjust your pricing strategy as needed.

  • By using a repricing tool, you can stay competitive, maximize your profits, and save time on manual price adjustments.

7. Monitor Your Metrics

Keeping track of your metrics is crucial for understanding your business and identifying areas for improvement. 

By monitoring your metrics, you can see how your products are performing, how your advertising campaigns are doing, and how your costs are affecting your profitability. 

Here are some metrics to monitor:

  • Sales: Keep track of your sales volume and revenue.

  • Conversion rates: Monitor how many people are visiting your product listings and how many are converting into customers.

  • Advertising performance: Track how your advertising campaigns are performing and adjust your strategy as needed.

  • Profit margins: Calculate your profit margins and identify areas where you can reduce your costs.

  • By monitoring your metrics, you can make data-driven decisions and optimize your business for success.

Reducing costs as an Amazon seller 

These are just a few tricks for reducing your costs and increasing your profits on Amazon, but by using FBA and Veeqo and following these tips, you can stay ahead of the game and save some serious cash. 

So, go forth and conquer the Amazon marketplace!

Sign-up to Veeqo to help manage your Amazon business - it's free and easy-to-use, but packed with features for Amazon sellers.

About the author


Written by Ziggy Masterman

Content Writer at Veeqo

Content wizard, sci-fi enthusiast, ecommerce master. Ziggy's always ready to take on any content challenge and leap into the unknown.

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