What Is Amazon Automation? (And Why You Should Care)
Integrate your CRM with other tools
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How to connect your integrations to your CRM platform?
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Techbit is the next-gen CRM platform designed for modern sales teams
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Why using the right CRM can make your team close more sales?
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An Amazon business offers an incredible opportunity to tap millions of buyers and grow a profitable venture. However, running it is often not easy, as you’ll have to monitor several moving parts as the seller. In addition to overseeing your daily operations, you must also manage your cash flow, request and respond to reviews and seller feedback, and arrange returns and refunds, among many others.
The e-commerce industry has become more and more competitive. Although Amazon has a massive customer base – over 300 million active users worldwide – it’s also home to nearly 2 million small and medium-sized third-party businesses.
With around 3,700 new sellers joining the marketplace, business owners need to find ways to rise above the competition. This is where taking advantage of Amazon automation becomes helpful.
Automating specific tasks or hiring Amazon management services lets you improve efficiency, automate repetitive tasks, and limit order processing errors. More importantly, it allows you to make significant returns on your investment and support business growth.
If these resonate with your business goals, this blog is for you. We’re covering the following topics to help you understand Amazon automation better – and use it to take your e-commerce store to the next level.
- What is Amazon automation?
- Is Amazon automation legitimate?
- The different aspects of Amazon automation
- Why is Amazon automation important for Amazon sellers?
What Is Amazon Automation?
Amazon automation generally refers to a business approach involving software and other tools to streamline Amazon marketplace management. It passes on repetitive, time-consuming tasks to software, giving sellers more time and energy to focus on higher-value work.
With that said, Amazon automation does not always literally entail integrating software programs into processes.
There are two main approaches to automating Amazon processes. We’ll cover them in more detail later, but here’s a brief overview.
The first approach is when business owners use e-commerce automation tools and programs to boost their productivity and efficiency, generate more sales, or simply gain more time for other tasks. A popular example of this is Fulfillment by Amazon (FBA). With the FBA program, all that sellers have to do is send their products to their Amazon fulfillment center. Once received, Amazon will take care of picking, packaging, and shipping orders.
There are also third-party tools that allow sellers to automate various business activities, such as accounting, inventory management, email campaign creation, and PPC advertising.
The second is when a seller outsources most or all business activities to a third-party service provider. There are freelancers that can handle specific tasks, like optimizing product listings and managing advertising campaigns. However, there are also Amazon automation services that essentially run the entire business for you.
With the right tool or service provider, Amazon automation saves you time, reduces operating costs, and boosts efficiency and profitability. In the long run, you can take advantage of these benefits to gain a clear competitive advantage.
Different Aspects of Amazon Automation
As mentioned, order fulfillment through FBA is just one facet of Amazon automation. Read on to learn more about how you can streamline and simplify your e-commerce business.
- Fulfillment by Amazon (FBA)
94% of Amazon sellers use FBA, and it’s not hard to see why. When you enroll in an FBA program, you delegate the entire order fulfillment process to Amazon. This means that Amazon will now be the one that stores, picks, packs, and delivers your products to customers.
The Amazon FBA program also handles other essential tasks, like:
- Overseeing customer service
- Arranging order returns and refunds
- Providing updates on customer complaints
However, keep in mind that these conveniences come with a price. This is because the costs of enrolling in the FBA program include the following:
- Basic order fulfillment fees
- Oversized items fulfillment fees (if applicable)
- Storage fees for your products
- Returns processing fees for each item returned
Also, while Amazon handles the order fulfillment process, you will still have to label and ship your products to the Amazon warehouse correctly.
- Third-Party Logistics Services (3PL)
If you’re a long-time store owner with dwindling storage or a new entrepreneur wanting to take off as smoothly as possible, a third-party logistics (3PL) service could help.
3PLs can solve common challenges faced by e-commerce business owners by offering a range of solutions, such as:
- Inventory management
- Warehouse space
- Order fulfillment
- Shipping coordination
- Return and exchange management
While the workflow will depend on your chosen provider, here’s an overview of how 3PLs generally operate:
- They wait for your inventory to arrive, either from your own storage space or directly from your manufacturer.
- Each stock-keeping unit is received and organized in the 3PL’s warehouse.
- They receive orders from you or your chosen software.
- The ordered items are picked and packed in boxes for shipment.
- They forward the shipments to a shipping service provider.
One great example of a 3PL is Cart.com, one of our fulfillment partners. Cart.com offers our partners a seamless inventory management system with the added convenience of their extensive world class services. Unlike most 3PL’s, their analytics combines and connects ecommerce data from across clients’ marketing, storefront, fulfillment, marketplaces, product feeds and more—helping brands attract new customers, fulfill buyer demand, drive revenue and simplify operations—all in one place.
- Amazon Automation Store
If you’re interested in a done-for-you, end-to-end solution, partnering with an Amazon automation management company is a wise move. Full-service agencies have a straightforward investment process that lets you become a business owner – and them your operational partners – with less stress.
They also take the hard work of starting and growing a business off your shoulders by taking care of the following:
- Product research
- Listing optimization
- Order fulfillment
- Shipping coordination and order tracking
The biggest advantage you can get from signing with an Amazon automation management company is that you get to partner with professionals who have run numerous online stores. With their experience, they can keep your business from the common pitfalls new entrepreneurs fall into and scale toward your goals.
Why Is Amazon Automation Important for Amazon Sellers?
Many e-commerce sellers run their online stores with limited time, a small staff, or a restricted budget. If you face the same challenges, Amazon automation can reduce or eliminate time-consuming, repetitive tasks, giving you back more time for higher-level tasks, or even for friends and family. It also lets you find better ways to use your budget, like reinvesting it to market your store.
Here are some more notable benefits you can enjoy with Amazon automation:
Simplify the Startup and Operation of Your Business
You can use third-party tools or partner with an Amazon store management company to automate routine procedures, like:
- Product research
- Listing and PPC optimization
- Inventory management and order fulfillment
- Returns, exchanges, and refunds management
- Customer communication (e.g., chatbots and email campaigns)
- Repricing
- Seller feedback and review requests
With these tasks off your plate, getting your online store off the ground and scaling can become more manageable.
Enjoy a Passive Income Source
One of the most significant benefits of Amazon automation is that it lets you sit back and relax while your software or Amazon automation store does the heavy lifting.
Especially with the latter, there’s little to no hard work on your part. After you fund the business, your Amazon management service provider will oversee and grow your business by handling day-to-day responsibilities. From finding the best products to sell and fulfilling orders to running customer support, your Amazon automation services cover it all. All that’s left for you to do is collect your profits.
Final Thoughts
In today’s highly competitive e-commerce space, you must constantly find innovative ways to manage and grow your business. This is why taking the time to learn what is Amazon automation and how to use it to your advantage is crucial to your success.
Engaging Amazon automation management companies, in particular, can help you improve your productivity, reduce costly order processing errors, and save time and resources. Most importantly, partnering with a reliable agency gives you the competitive advantage you need to take your venture to the next level in no time.
If you want to realize the best returns in a done-for-you solution, remember to vet Amazon management service providers carefully. You’ll also want to partner with agencies with a demonstrated track record of success or those offering refund policies like Wealth Assistants. This can give you peace of mind knowing that your money isn’t going to waste.
With the right partner, you can reap the benefits of owning a thriving business – even without having to work on it.
Investing in E-Commerce Store Management Services
Interested in investing in the e-commerce space but not keen on running your own store/s? Here at Wealth Assistants, we offer Amazon Marketplace Management, and Shopify Brand Management.
With both opportunities, you are the business owner while we are your operational partners. You fund the business and collect the profits while we manage supplier relations, quality checking, warehousing, shipping, product listings, and customer support. We do 95% of the work on your behalf. Click here to book a call to learn more.
Getting Funding
Should you need or desire capital to retain our services or for working capital for your e-commerce business, we have reliable sources that can provide these funds to qualified borrowers. Many sources offer 0% interest credit lines for 12 to 18 months and others take less than perfect credit.
At Wealth Assistants, you may not need to come out of pocket to secure one of our services, as we understand the importance of leverage. Since launching we have secured joint relationships with funding partners that work alongside our clients to get them the working capital needed, so we can scale and you can grow.
