Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
It's no secret that people are shopping more on Amazon. This is because they offer competitive prices and items that are delivered right to your door. But more treats are waiting for both Amazon buyers and sellers. One of them is a very important benefit: saving money.
You might not be knowledgeable enough to know how easy it is to save money with a seamless buying process. This article will discuss tips for optimizing the purchase process, including the Amazon Sales Tax Exemption Program (ATEP).
How Does an Optimized Buying Process Help Your Business?
A good business does its best to provide customers with a great purchasing experience. Without consumers, the business won't be there in the first place. Moreover, an easy and fair transaction process reduces questions or doubts from your customers.
Financially, it saves and earns you a lot of money. An optimized buying process reduces the likelihood of product returns. Returns can hurt the business's profit, so providing a good customer experience can minimize financial loss. It also shows you've gained customer trust and satisfaction.
Five Tips on Optimizing the Purchasing Process
Now that you know how important it is to provide a smooth purchasing process, here are some tips on optimizing the buying experience. Additionally, we'll introduce you to the ATEP feature from Amazon for tax-free and unquestionable purchases.
Tip #1: Display a Clear Confirmation of Each Purchasing Step
An online action without a response can make your customers anxious. Let's say a customer completes a checkout. From their perspective, what would you expect to receive after that? Naturally, you will look for the order acknowledgment, shipment notifications, invoice, and item receipt.
Without these things, your customer won't be able to sleep at night trying to guess if their purchase went through successfully. So keep this in mind as you work on your eCommerce transaction systems.
Tip #2: Establish and Communicate Purchase Policies Internally
When it comes to the company's financial matters like policies and processes, every employee must understand how they work. Doing this can help prevent financial issues, regardless of whether they're directly or indirectly involved.
It's not ideal to just set the rules and let them comprehend things on their own. Instead, ensure everyone understands the systems step-by-step and in detail. Some examples include order approvals, purchase agreements, product information management, and many more.
Tip #3: Set Realistic Goals and Monitor KPIs
It's important to hold productive discussions about the purchasing process to ensure its success. What do you want to track? What are some realistic expectations and limitations you want to set? How are you going to achieve them? The answers are called specific, measurable, achievable, relevant, and time-bound (SMART) goals.
You set and monitor KPIs to achieve these SMART goals. Some examples of aspects you can track are cost savings, average time for delivery, purchasing cycle, supplier lead, and the average cost of a purchase order.
Tip #4: Enroll for Amazon Tax Exemption
If you're an Amazon seller, you can qualify for a sales tax exemption. Individuals and businesses can make Amazon sales tax-exempt purchases using the ATEP. Here are some rules for you to quickly understand who is eligible for it:
- Must be enrolled in the ATEP.
- Available for sellers who use the Tax Calculation Service to approve buyer exemptions.
- Buyers should also be enrolled in the ATEP for acceptance of exemptions.
- Amazon sales tax-exempt items only apply to purchases sold by Amazon, Amazon's affiliates, and independent third-party seller participants.
How to apply for tax exemption on Amazon? You can find a thorough guide on the enrollment process in the Amazon Tax Exemption Wizard.
But how do you associate it with optimizing the purchase process? Tax-free products are a benefit to the company and its customers. That being said, it doesn't apply to everyone, so you have to make it clear to your buyers.
For example, optimize your product tags or create a page about ATEP on your eCommerce website. This way, your Amazon customers will not get confused about the purchasing process.
Learn the Ropes of Running Your Amazon Business in the Financial Aspect With Unloop
The purchasing process can be tough work. However, it's a crucial aspect of financial management, especially for Amazon accounting. You can make the company workload lighter and more organized when done correctly, while providing a better customer experience. Consequently, you get fewer returns, fewer order issues, and reduced financial stress.
Still, it's easier said than done. For startups and small businesses venturing into the eCommerce world, this can be quite overwhelming. All kinds of costs involved have to be organized to analyze and forecast the company's financial state. Working on these will require efficient business bookkeeping and accounting.
But don't worry! If you find financial management difficult, Unloop can help you improve. We offer bookkeeping, income tax, and Quickbooks eCommerce sales tax services together with partner accounting firms. Whether you're looking for bookkeeping help, better financial management practices, or simply trying to overcome the challenges of eCommerce, we’ve got your back.