Trying to start amazon FBA from scratch can be overwhelming with so many steps and methods it's even hard to know where to start.
In this article, I will share a proven method to start selling on amazon from scratch. With this method, you will be able to start making money with no marketing or even creating your own product.
So, there are four things that go into building a successful Amazon FBA business.
Your Product
Your Analysis
Your Supplier
Scaling your business
Now, I am going to break down each of these as simply as possible.
Your Products
Without good products, it's pretty much impossible to have success on Amazon FBA, but thankfully there are thousands of new products being added to Amazon every single day, so the opportunity is always going to be there.
When looking for a product there are three types of products on amazon.
Arbitrage products - These products you can buy from a supermarket near you and resell on Amazon for a profit.
Wholesale products - If you buy 1 product then let’s say the price is $10, but if you buy 5 of those then you will get a discount. After that, you will be able to sell them on Amazon and make a profit.
Private label products - You can go on websites like Ali Baba and look for products and after finding your desired product you can stick your logo on it and start selling on amazon.
However, with private labels, you have to create your own products, you have to do marketing as well. So there’s a lot of costs related to it. This is why wholesale and arbitrage are the best because you don’t have to create a listing, you don’t do any marketing, you don’t spend a lot of money. You can buy a product and start selling instantly. You can use existing listing with other sellers and simply start making money selling the same product.
The next thing you need to look into a product is Product Category:
Now when you do amazon arbitrage or amazon wholesale, you don’t need to care about what category is the product in, because on amazon every single category is just selling. You don’t want to sell products on a specific niche and miss out on the opportunities from the thousand on other niches on Amazon.
The last thing you need to look for in a product is Good Profit Margins:
Now, what most of the sellers consider as a good profit margin is to be able to make at least 30% more than you spent. Simply make a 30% return on your investment. You can calculate it by using a normal ROI calculator.
Your Analysis
Now, in product analysis, you make certain the product you have discovered is acceptable or not. You will come across so many good-looking products on amazon but when you do the analysis you will find out that they don’t even sell. This is the reason why doing product analysis is super important.
As soon as you find a product on Amazon, the first thing you need to look for is a BSR, which is the best seller's rank. You can find that under product information. The best products are normally under 100,000 BSR. The lower the BSR, the more the product is selling.
The second thing you wanna look for is something lightweight:
On Amazon, the heavier the product the more fees amazon will charge you, as well your delivery costs also go up. Make sure you look for a product that weighs less than two pounds because this is an ideal weight where your fees won’t be too much or too less and your profit margins will be a lot better.
The last one is to make sure your product is not a Seasonal Product:
Seasonal products are products like Christmas trees, this product will usually sell when Christmas is around in December. So if you list products on amazon in January obviously you will not get any sales. You can use google trends to find out whether a product is seasonal or not accurately.
Your Supplier
Once you’ve found a good product and supplier for the product, you will continue making sales every day.
Finding a product is easy but you should always spend time looking for a good supplier. There can be multiple suppliers for the product you’re finding, but the cheapest one will make you the most profit.
Reliability should be another key consideration for choosing a supplier
Reliable suppliers deliver goods on time and as described. Large suppliers are generally reliable because they have enough resources and systems in place to make sure they deliver if anything goes wrong.
The best way to find your supplier is simply locating them online. BY simply googling the product name, you will have thousands of results come up, so take your time to find the best supplier for the product. A key tip is to call your supplier rather than always emailing them.
Scaling Your Business
This is where you can be smart and start delegating. The first thing you need to remember when delegating is by figuring out what is taking most of your time?
The most time you will be spending on is most likely Packing:
The first thing you can do is delegate all your packing for the products or prepare the products to send to amazon. The time you will get back from delegating will allow you to spend it on product research as well as other admin parts of the business. This way you can find more products and make more profit and increase and start scaling your business.
Another thing you can do to start scaling is recycle your money. Once you start making money on Amazon, don’t take anything out, use the same money to buy more products and make more sales. This way you can continue the cycle to keep growing your balance and account.
And the final thing I will recommend when scaling is to look for a mentor who’s already done this. It will save you a ton of time and money and also will reduce the chance of failing.
So, that's all I got for you on this Amazon FBA guide, and thanks for reading. Comment below what you think of this guide and good luck with your Amazon FBA journey.
You might also like the Top ten types of NFTs
0 Comments