The holiday selling season and Q4 are the most lucrative times for a FBA seller. It seems like almost everything sells, and sells fast! Once Christmastime has passed, many FBA resellers make some huge mistakes that could cost them hundreds in potential profits. Having a wise post-Christmas business strategy is the best thing to start the new year off right.
Here are some things to think about once you’re done unwrapping your last present:
1. Don’t lower your prices – Just because Christmas is over doesn’t mean that big time sales are over too. Don’t forget that people now have Amazon gift cards burning a hole in their pockets. Not only that, but buyers are now ready to buy the gifts they actually want. People will still be buying like crazy in January, and if you lower your prices, you’ll only lower your profits. Many FBA sellers have better Januarys than Decembers simply because they follow this one piece of advice.
2. Go thrifting – If thrifting is in your business model, then after Christmas is “the most wonderful time of the year.” Many people decide that the week after Christmas is the time they want to clean out their homes of excess stuff. That paired with New Year’s resolutions to “get organized” bring massive amounts of donations to thrift stores. If you usually hit thrift stores once a week, then I’d highly suggest going a lot more often. Some people even donate unwanted Christmas gifts that are still brand new.
3. Check out after-Christmas clearance sales – With end-of-the-year inventories looming, many stores are desperate to move excess products. This provides a great opportunity for FBA sellers. Check both online and brick-and-mortar stores to see what’s on sale. This is also a good time to look at Christmas-themed products that are clearance priced at up to 90% off. It doesn’t seem to make sense, but Christmas-themed items sell pretty well year round. I’ve sold ornaments in April, a Grinch inflatable lawn decoration in May, Christmas CDs in June, and holiday movies in July!
4. Look back over the past year – Look back at your sales and financial numbers. What worked for you? What lessons did you learn? Look back at your FBA business goals and see how you did. This is also a great time to make new FBA goals for the coming year.
5. Put your profits back into your business – As stated in an earlier blog post, using your Q4 profits wisely can really help your FBA business. Maybe you are ready to get a shrink wrap machine, a Scanfob, or new laptop. Maybe you’re ready to sign up for a year’s membership to a listing program. The possibilities are endless. To hear some more ideas on how to use your Q4 profits wisely, click here.
As with most tips, there are some exceptions. If you highly invested in certain toys that you hoped would flip quickly for the holidays, and you would rather get your investment back than wait for the items to sell at the price you want, then you may want to lower your price. Many FBA businesses are modeled on the “fast flip” method and would rather get their money back and invest it in other products.
So what about you? What strategies are you implementing as we near the new year? I’d love to hear your ideas!
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Note: This will be the last blog post of the year. We’ll be back in January with more useful tips to help you make selling on FBA your full-time job. Merry Christmas!