Emily Clarke

How Much Should I Be Spending on Advertising for My FBA Business?

Fulfillment by Amazon (FBA) is a service for Amazon sellers that allows you to take advantage of Amazon's vast logistics network and warehouse and shipping infrastructure. With FBA services, you can take your Amazon business to the next level as FBA allows you to reduce your overhead and get products shipped to customers fast. Find the best service for Amazon sellers by visiting this website.

Even though FBA handles a lot of the heavy lifting, no pun intended, you're still going to want to advertise your FBA business to get the most out of it. Many sellers, particularly those who are new to FBA, question how much or how little they should set for an advertising budget each quarter.

If you're wondering how to maximize your advertising efforts and make the most from this service for Amazon sellers, below are some tips:

Consider Your Selling Costs

When putting together an advertising budget, you'll need to factor in all of your costs to compare against your ROI from advertising. This figure will allow you to see how much you're spending on advertising versus how much you're getting back in revenue. Essentially, this will help you to see the line where you cross over into profitability.

When thinking about your costs, don't forget to factor in your selling costs. Amazon offers two types of plans currently - Individual and Professional. The Individual plan charges a fee per item sold while the Professional plan charges a monthly fee. These costs compared against your ROI from advertising will help you figure out how much you need to spend on advertising each month.

Think About Your Growth Potential

Advertising is something you should engage in throughout the year, but it's particularly important when you plan to grow. Whether growth means expanding your product line or adding new employees and business assets, these are the times when you'll need to increase your advertising budget to account for your new capital and cash flow needs.

Remember that advertising serves to maintain the status quo in terms of revenue, but it also works to expand market share. In Amazon's ever-competitive FBA marketplace, you need every advantage you can get to reach customers before the competition.

Author Resource:-

Emily Clarke, advertising management consultant, is providing info about growing your business, optimizing your ads, analytics, promotion ideas and advertising for SME's. You can find her thoughts at Amazon advertising blog.