What is Amazon FBA?
There are a few ways to make money online, one of them is via Amazon FBA.
You can create an entire online business and reach immediately millions of clients who are just a click away from buying your products. Amazing right?
Amazon is the largest e-commerce out there and it’s a great way to sell your physical products on their platform. You can sell on Amazon.com, definitely the largest out there, or in Europe. That’s where most people start.
Many actually think that Amazon is the seller of all the products they showcase. Although it’s true that Amazon owns a big chunk of the products on their platform, they give the chance to other sellers to sell to their client list.
I’m going to be honest, the first time you get into this project it’s going to be overwhelming and it will be seemingly a lot to handle. But as you jump into it, you will learn a lot about its functionality. They also have a great support, you can reach them 24/7.
Also, there are some good programs that help you to set up your Amazon business.
Now what’s amazing about Amazon is, like I said, that there are already millions of clients who are already signed up on as customers and each and every day they are looking to purchase from the immense choice Amazon offers. Many of these sellers are small entrepreneurs who have built up million dollar businesses solely by selling on Amazon one or multiple physical products.
Amazon also offers the opportunity to entrepreneurs to take care of all the hassle that comes with trading like stocking and transaction of products to your clients, this is the so-called FBA program (fulfilled by Amazon). This whole process is taken care of by Amazon BUT, you have to pay a fee. This amount of fee depends on several things. If you don’t want to pay extra for the charges, that’s perfectly possible as well. You have to take care of the whole stock, sending and returns etc.. yourself.
Private Label product vs Wholesale
You can choose to sell big brands products or design your own product, mostly thru suppliers in China. It can be any product, already existing or improved/invented products. Make sure you follow the laws regarding patent regulations. You can take a look at alibaba.com or aliexpress.com, there’s a ton of suppliers of products out there that are already manufactured. You have to carefully choose the Chinese suppliers that you are willing to work with, you don’t want to violate any safety or patent regulations.
You can also have your product manufactured in the USA or Europe, buyers appreciate this nowadays, especially for safety reasons like I mentioned. The costs are obviously higher but many are willing to pay more for quality.
Now if you don’t want to sell private label products, you can choose to buy big brand’s products and sell on their behalf. Usually, you have a much higher chance to sell but you make less profit than with private labeled products.
My husband and I sell both and we have more success in selling wholesale products. it totally depends on the products you’re selling, there’s no guarantee, you just have to test it out for yourself.
How to find and select your product for Amazon FBA?
The most important thing in the whole process is no doubt selecting your product. There are some criteria you have to meet in order to find a ‘good product’.
The first thing you might consider is a product that is small in size and that is light weighted. This reduces the cost of fees of stocking with Amazon. You risk also to pay for long-term storage fees twice a year if your product doesn’t sell after a specific period of time.
Next thing is to avoid specific products related to any holiday or season, like fall, Christmas or Easter related stuff, because you don’t want to be selling for just for a few weeks or months in the year. It can be a great way to start out with this kind of products though, and you should always choose with all holidays in the back of your head, but in the long run, you want to have a steady selling product that will provide a passive income stream.
Additionally, you also have to take other competitors into consideration. If there’s a large number of sellers with the same products, it’s probably not a good idea to invest in it. Another thing that is really key to finding a product is the number of good reviews that your competitors have. Think about it, when you purchase a product a product on Amazon the first thing you do is to check the reviews, right?
To make the selection of your product easier you can use software like AmaSuite or Jungle Scout. It’s less time consuming than if you were to do it manually. I personally used AmaSuite in the past and I have invested in multiple products based on this software. You need to order a sample first and have it first physically in your hands, this way you can avoid negative reviews of unsatisfied customers. Then you order a small first trial order to test the product on the market. It’s rare to make any profit in the beginning, but once your ranking starts going up, you will make more sales.
Usually, it takes about a month to set up everything and to start selling.
The best way to market your product is via PPC (pay per click). This is simply put the principle; the more money you put in the advertisement on Amazon, the higher it will appear in the search engine.
Also, make sure you put the right keywords for products so that customers will find you easier. Amazon is basically a search engine and if you apply basic SEO, you will get already far. Be specific as you can be and try a wide range of keywords.
Marketing outside of Amazon, with links directing to your product, helps speed up lifting your rankings as well. If you already have a website, blog or a youtube channel and an audience you will have an extreme advantage over others, you can start directly promoting your products.
Example of a product on Amazon
A good example is the extendable skewers above on Amazon.
They are light weighted, relatively small in size, probably won’t cost much to store in Amazon’s warehouses and they’re not very expensive for a first investment.
And the most import thing is that it’s a very ‘niche product’. It’s not a very cool product, but it’s usually this kind of products that sell most.
They are awesome by the way, they are extendable and handy for us moms with small kids.
If you want me to write a specific in-depth blog post about Amazon FBA, let me know.