Here's a guide for Amazon newbies aspiring to get to the top. We have a list of basic tips to get you started with FBA program. You will also find many services that will prove useful not only for beginners but for experienced Amazon sellers as well.
Amazon holds 50% of the US e-commerce market with a nine-figure estimated annual turnover. The FBA program (Fulfillment by Amazon) is one of the major reasons for its success in the field of online network marketing.
FBA is the main tool for those willing to conduct business via Amazon. This program allows sellers from different countries to use the company's warehouses and easily deliver their goods to the final customer. For example, you venture into selling toys for kids. If you are an independent entrepreneur you have to look for a warehouse, work out the logistics, configure your website, and solve a whole bunch of other issues. The beauty of FBA is that it does all these tasks for you.
You start your business on Amazon by registering an account. After all the fees are paid, the FBA service selects the warehouse closest to the seller's location. All the seller has left to do is choose the product to ship and sell. The success of the entire enterprise depends on the wise choice of the product. There have been many cases of new sellers going bust because they tried to sell unmarketable goods .
In a nutshell, this is how you enter the Amazon market:
Step 1: Find a product to sell via the website;
Step 2: Settle the deal with the supplier;
Step 3: Deliver your products to the Amazon warehouse;
Step 4: Prepare a listing (description) of the product;
Step 5: Start selling.
It's easy enough to see what sells well on Amazon. For example, you can use one of the browser plugins such as "DC Amazon Quick View" or "Unicorn Smasher" for Google Chrome. It automatically shows products with the Best-Seller Rank. Or you can just check the top-selling goods manually.
In addition to the demand for a certain product it is necessary to look at:
Fulfillment by Amazon provides the seller with a variety of business tools, charging a commission on every sale. The commission also includes a fee for packaging and shipping, as well as a monthly storage fee. Two key parameters of your goods influence the commission – the weight and size of the product. Therefore, the smaller the product – the more profitable for the seller. It is better to keep these things in mind before starting a business on Amazon.
You can get an approximate figure using the special Amazon Revenue Calculator . It will help with the cost estimation for your product if it is already listed on Amazon, as well as reveal the expenditures for similar products sold by the competitors.
You should be prepared for not breaking even with the first batch, and you definitely should have a financial safety net. Experts recommend putting aside at least $5,000 at the start.
Many entrepreneurs start with the world's largest supplier database – Alibaba.com. We advise you to link your account to a business email address, not your personal mailbox. This will protect you from spam mail and bring more responses from potential suppliers.
Don't rush into a contract with the first company that got in touch. First, you should make sure that the supplier has been on the market for a long time and has sufficient product turnover. Before ordering a whole batch, always ask for a sample. Provide the supplier with a technical specification and your vision of the product.
Discuss the delivery method in advance – ocean freight, air freight, or express shipment. Shipment by sea is the cheapest, but also the longest. For example, it can take 30–50 days to deliver a product from China to the United States. Air delivery is relatively fast and of average cost. And express shipment is the fastest and the most expensive.
If this is your first shipment you can use the services of a freight forwarder, who will take care of all logistics issues and deliver the goods to the Amazon warehouse.
Correct product listing is very important. Amazon has standard requirements for listing design. There is nothing complicated about it. The main thing is – the product photos must be of high quality and the specified size. Products on Amazon are indexed by keywords. To see which keywords work for your competitors you can use such tools as Sonar, Merchant words, Keyword Inspector, etc.
You can create the product description by yourself, or you can hire professional copywriters. It all depends on your skills and budget. Never copy someone else's descriptions because you can easily lose your account on Amazon for that.
When you launch the business, it is better to go for a price tag which is slightly below the market price, seeing that your buyer needs a powerful incentive. When you get your bearings, you can gradually increase the price.
Another crucial point is reviews. Without any reviews, the conversion rate will be very low, since customer feedback is the basis of trust in the Internet environment. Experience shows that the product must have at least 15 reviews. You can get the necessary minimum with the help of your friends, via Facebook, and on freelancer platforms like Fiverr or Upwork.
You can attract people to your freshly listed product by using a Sponsored Products tool by Amazon.
Amazon advertising services yield $1.2 billion a year.
The seller has two options in terms of advertising: automatic targeting, which uses the keywords specified in the listing, or manual targeting, where the same keywords are submitted by the seller manually.
Since the service does not allow for 100% creative control over the ad, it is important that your product has a good visual representation and an attractive price. Once again, think your listings through carefully.
Generally, Amazon ads operate like Google ads. The client sees your ad, and if you get the click you have to pay a certain amount of money to Amazon.
Amazon is an ever-changing marketplace. There is no single perfect way of quick money-making on this platform. To become a successful seller, you need to monitor the trends carefully, build a correct marketing strategy, and most importantly – have enough courage to try new things. Learn from the mistakes of your competitors, improve your approaches, and take risks. After all, in the words of Peter Drucker: “Entrepreneurship is neither a science nor an art. It is a practice.”