5 GOALS EVERY AMAZON FBA SELLER SHOULD HAVE

Goal setting is an important aspect of running a growing and successful business.  For Amazon sellers, which goals we set and concentrate on could mean the difference between setting ourselves up for immediate success or lots of growing pains.  

When setting goals, it’s very important to understand and remember a few basic things:

1. Ensure your goal is specific, easily measurable and you can take immediate specific actions towards achieving them.

2. Ensure your goals are realistic. It’s great to have a vision of where you want to be in 5 or 10 years, but a vision is very different from a goal. The timeline you set for accomplishing your goals has to be both challenging and achievable. 

3. Extremely important to set a date for the accomplishment of your goal. Without that target date, your goal could easily become a dream. 

4. Your goals should be such that you get excited every time you think about them and every time you take a step forward towards achieving them. They should be the reason you jump out of bed every morning. 

5. Finally, your goals have to be relevant for you and your life right now. 

Now that we’ve discussed the basics of goal setting, let’s delve into some selling on Amazon specific goals. These are some of the FBA goals that I set for myself every year. 

1. Sales Goal – It’s important to have a growth mindset for your FBA business and the easiest way to gauge such growth is through increased sales. If you’re new to selling on Amazon and this is your first year, set your sales goal based on how many months are left in the year and how much investable capital you have to purchase inventory and send into FBA for sale. If you’ve been selling on Amazon for some time and have sales data from previous year(s), your goal should be to increase that number by a realistic percentage. For example, if your sales were $100,000 last year, you can set a Sales goal of reaching $120,000 this year. This is a 20% increase and achievable even with no additional capital infusion into the business. 

2. ROI Goals – Getting sales and increasing those sales numbers every year is great but it’s more important to ensure that your sales are actually making you money. For this reason, I continuously check my ROI (Return on Investment) for each period I track. For the purposes of setting goals, it doesn’t matter whether your ROI goal is 20% or 80%, what matters is that you have a strategy in place for what ROI you’re looking for and setting that number as your goal. Continuous monitoring of this number will help you identify inventory that you want to continue purchasing and replenishing and, more importantly, items that are falling short of your requisite ROI and need to be removed from your Amazon FBA catalog. 

3. Profit Goal – For me, sales and ROI goals are decent measures but my Net Profit (or Net Margins) goal is the main measure of whether or not my business is a success. This goal shifts my thinking and approach from a sales only mindset to one that takes into account all the expenses my business is incurring.  This allows me to work on the other side of the equation as well and find ways to increase my overall profitability by reducing or eliminating certain expenses.  

4. Average Selling Price (ASP) Goal – As sellers on Amazon we have a wide variety of products we sell at significantly diverse price points. You may have an item selling for $8 that is bringing you 30% ROI and an item selling at $80 bringing you 30% ROI. The difference is that the $8 item requires more time to prep and pack and, because of the lower price point, the smallest amount of increase in any fees associated with selling it, the ROI percentage will be significantly impacted. As sellers, it should be our continuing goal to increase our average selling price year over year. Amazon provides your ASP for any period you desire. If your ASP is currently $14, you should definitely have a goal of increasing it to a higher number by end of the next period. This process will play a significant role in your product sourcing strategy and will be a major catalyst for growing and scaling your business. 

5. Scaling/Wholesale Accounts Goal – Building a successful Amazon FBA business is not an easy job but it is definitely doable for anyone willing to put in the time and effort. One of the most important ways to grow your Amazon business is to find new wholesale accounts to source from. As such, setting a specific goal for how many new wholesale accounts you want to open next year will keep you focused and help you succeed in building a successful Amazon business. 

These are five goals we recommend setting for any one selling on Amazon.  

Now that you have some goals in mind, it’s very important to take the next steps towards helping yourself accomplishing them.  Take a few minutes RIGHT NOW to:

1. Write down your goals

2. Break down your goals into smaller goals

3. Put your goals on your calendar

4. Share your goals with your team, partner or anyone you feel can be your accountability partner.

5. Schedule specific dates & times to review your goals regularly

By following these habits you are setting yourself well ahead of the competition and ensuring you're on the path to see real sustain success as an Amazon FBA seller.  

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Ahmad "Zubi" Noory

Entrepreneur, Coach, Baba.  Live in Orange County, California

About the Author: Ahmad is founder and president at FBA Profits, a company with services tailored to new and existing Amazon sellers.  His coaching and training programs have helped many Amazon sellers launch and grow their businesses on the Amazon marketplace. He's also co-host of FBA Profits Podcast and a 7-figure seller on Amazon.