Entrepreneurs have many fantastic business opportunities today. Even if you haven’t ever tried selling things online, you will find a short road leading to success. And Amazon is the first platform you should consider when selecting the channel for promotion. Why? Because of the history of this marketplace and millions of customers visiting it every day. Its history counts more than 20 years, which is a huge period for the company – buyers already know it and trust it. Besides, the mechanism will blow your mind, as it’s amazingly easy to register your brand and start selling goods here.
As you can see, Amazon is the place where you must be. It’s not only the chance to acquaint the world with your product, but also a luring opportunity to increase your budget. And if you don’t want to hold all the worries on your shoulders, then Amazon FBA might be the best solution for you. Learn what it is, how to take advantage of a program, and beat the competition.
What is Amazon FBA?
It doesn’t matter if you are a beginner or have a vast background in selling, as everybody wants the same – to earn money. No doubt, Amazon is the best place to perform your products. You don’t need to create a website if you don’t have it or think about all the promotion campaigns. Register on the platform, create listings of your goods, and voila – you have your online store. However, you will have to determine the best product to sell and learn how to attract the audience. And it may take some time. Thanks to Amazon FBA, you can concentrate on research, analysis, and advertising staff rather than looking for a place to store items or selecting logistics partners.
How does Amazon FBA work? It’s a program that allows sellers to delegate their duties . Particularly, Amazon does all the hard job for you. There’s no need to be worried about where to keep all the boxes with products because you only have to send them to one of the company’s warehouses. Specially-trained employees will store your things, put them into branded boxes, and arrange shipment after they’re sold.
Moreover, the company also takes care of the return process and customer support. FBA is a practical solution for entrepreneurs because they won’t have to do everything by themselves. Besides, it’s the chance to reach for a wider audience, as your products get a Prime logo. Labeled items attract buyers who want to receive orders quickly – members of the program are eligible for free two-day shipment.
You might be curious, what’s left for you? Once Amazon helps you get rid of many worries, you will have more time for other important aspects of your business. For example, you can concentrate on the following details:
- Amazon FBA product research. It’s easy to start promoting things online, but it’s hard to choose the right way. Determining a profitable item may be a time-taking process, and the chances are you will make one or a few mistakes on your way. But success is worth fighting for, so you will have to spend hours, days, or even weeks while searching for things that bring money. Conduct research, check what customers buy more often, analyze the niche, and you will see that all the efforts aren’t in vain.
- Look for reliable suppliers. You must offer high-quality products, and that’s why you will have to try the items before you start selling them. Find manufacturers and order samples from them to check everything.
- Make sure your product is in stock. It’s better to order items in advance from suppliers – everybody knows that customers don’t like to wait for purchased things for too long.
- Build an advertising campaign. Of course, Amazon is a platform with millions of customers, but you will have to be sure that buyers will see your product.
How to Sell on Amazon FBA? - the Basics
No worries, if you haven’t ever heard of this program. You will find everything you need to know in this Amazon FBA review. The first thing you have to remember – it’s not a free option. The members have to cover fees for storing, shipping, packing, customer support, and other services fulfilled by the company. If you don’t want to be surprised by a sum to pay, count it directly on the website. Then you’ll be able to choose the best thing to offer. Besides, it’s necessary to prepare the brand’s budget for extra expenses.
One of the best things about Amazon FBA is the possibility to sell everything that isn’t forbidden by the rules. Moreover, the variety of methods allows you to select any convenient and profitable model. Here are the most popular ones:
- Arbitrage. Buy products at the retailer's stores and sell them at higher prices online.
- Private label. You find a manufacturer who produces things for you and marks with your brand’s logo and name.
- Wholesale. Purchase products from a manufacturer in bulk and then offer them as a reseller.
It’s up to you which model to choose – it has to be convenient and profitable. After you’ve figured out which thing will bring you money, you can start the business path on Amazon. The mechanism of using the platform is amazingly simple:
1. Register on Amazon
How to start Amazon FBA? Create a Seller’s account on the website and then join the program. If you want to know the sum of fees, you will have to cover, use the calculator to count everything quickly.
2. Create a product list
Now, organize the catalog of products you’re going to offer to customers. When creating listings, consider proper optimization – conduct research, and find out which keywords are used more often for the selected products. The right words and phrases will help you appear higher in search results. And it means sells and money.
3. Follow Amazon FBA
Now, it’s time to feel the benefits of FBA. You don’t fill your garage or guest-room with hundreds of boxes – you send them to one of the company’s warehouses. There, Amazon’s specialists will take care of your products. They will put your goods on appropriate shelves, pack them, and send them to a customer.
4. Customer service
Amazon FBA allows you to wash your hands off communication with buyers. Once a customer has bought a product online, the company’s specialists make sure whether everything is fine with the order. They get in touch with him or her and ask for feedback. But in case you want to take part in the buyer’s experience with your brand, answer the comments you receive.
5. Get paid
When selling on Amazon FBA, you don’t change a number of products in stock manually or remind the company they have to transfer the money to your banking account. They update your catalog automatically and pay the sum you’ve earned every two weeks. You only have to check the number of goods and order another batch from a supplier in time.
As an entrepreneur, you may have different fears connected with your brand. But FBA, wise commercial and advertising strategies, and desire to develop can become a perfect blend for creating a superweapon. Of course, you will have to work hard and take chances sometimes. However, this experience will be the strongest side of your business background.
Finding Profitable Products to Sell on Amazon FBA
If you choose FBA selling, you will see how easy and convenient it is to collaborate with Amazon. But always keep in mind that it’s important to pick the right product – only in this case you will benefit from joining the program. This process requires free time and effort because you will have to do research and analyze the received information. Consider the following recommendations when looking for profitable things to promote on the platform:
1. Use IO Scout
IO Scout is an ideal solution for both experienced entrepreneurs and those starting business on Amazon. It will take much time to conduct research manually, and this software will help you save free hours and concentrate on other things that matter. Check the product database by applying filters, including price, revenue, stock status, and many more.
You can find the top-selling items in the niche or see how the competitors perform in the market. The tool generates accurate data according to your preferences within seconds and updates it every hour. And it’s comfortable when you want to track a group of products you’re interested in. IO Scout features are amazing, as you get meaningful insights and access to millions of products offered on the platform.
2. Look for competitors in the niche
The best choice when starting an Amazon FBA business is picking a product already offered by a few brands. Avoid products that aren’t represented on the platform at all, and it doesn’t matter how attractive it is. The thing is, someone could try selling it, but this thing didn’t bring any income. It’s also better to refuse to pick categories with famous brands, as it may be hard to compete with a corporation for a starter.
3. Offer something cheap
Unlikely you’ll become popular with a product that costs more than $ 100. When picking goods to promote on Amazon, it’s better to pay attention to a category that allows you to appear in a list of impulsive purchases. For example, furniture and computers cost more than $100. It’s a serious step to buy such things, that’s why a customer starts looking for testimonials and asking for advice from friends and colleagues. He or she will also compare prices from different stores and check characteristics – it takes time, and the chances that this person picks your item are low. Cheaper things don’t require recommendations or thinking. People buy them just because they act impulsively.
4. Try your luck with the best-selling things
Check the rankings and choose the top-selling products in a list. Of course, you won’t avoid the competition, but you will get the chance to reach the audience quickly. Picking an item that is in high demand among customers means success in the market and one of the best decisions of what to sell on Amazon FBA.
5. Choose the right competitors
If you want to dominate the market, then it’s better to get rid of the idea of competing with big corporations. It’s a waste of time, money, and efforts – luck won’t be by your side whenever you decide to try to leave serious companies behind. You should start with a niche that isn’t occupied by Adidas, Ikea, or Disney, for example.
6. Be unique
It’s easy to stand out from the crowd today, but you have to explore the customers’ needs. Read the testimonials and pay special attention to the characteristics that didn’t satisfy a buyer. After investigation, you can come up with the best products to sell on Amazon FBA. Find a supplier who manufactures these things and offers higher quality. And if you’ve picked a Private Label model of business, it’s a perfect moment to improve your goods. Change the construction, add color variety, or size – it’s up to you how to show the uniqueness of your brand.
7. Select keywords with high search volume
When starting selling goods on the platform, remember that Amazon only gives a chance to well-optimized products. They must be visible to customers. Otherwise, no one will even find your online store. Check which keywords are used most often for the things you offer and pick the ones with the highest search volume. And you’re in a winning situation if there are no dominant players in the niche with these phrases. You have a perfect opportunity to fill this gap and become a leader here.
What are the Benefits of Using Amazon FBA?
It’s very convenient to be an Amazon FBA seller because you get access to the incredible features of this program. No doubt that an entrepreneur will find pros and cons in membership, but no one will deny the fact it’s a time-consuming option. And Amazon FBA benefits are impressive:
- Logistics questions. Starters don’t have much space to keep all these boxes and time for searching for a place where to store products. With FBA, everything becomes easier. First of all, you don’t have to look for a trustworthy logistics partner. Secondly, you don’t have to waste free hours on delivery arrangements. All you have to do is sending items to Amazon’s warehouse and ordering the next batches from suppliers. Caring employees will store your products, pack them when a customer places an order, and organize shipment.
- Free shipping for Prime members. Amazon FBA business membership has many benefits for Prime members of the platform. A customer gets the chance to receive your product within two days for free. Of course, buyers will pick your brand more often – they want to receive orders quickly and don’t like any delays. Be sure people will give the preference to your products over competitors who didn’t apply for FBA membership. And it’s a short road to high income and success.
- Amazon handles returns. No one likes to work with complaints and reverse logistics. But the truth is, a seller has chosen the business path, and he has to follow it. Disappointed customers, hours of the delivery arrangement, and awkward moments when you realize that something went wrong with your system – you can get rid of many problems. Amazon does all the dirty work for you. Employees communicate with unsatisfied customers, organize the return processes, and many more.
- 24/7 customer support. If you don’t have an opportunity to monitor feedback or answer the customers’ questions all day round, don’t worry. The company offers excellent support services so that you should rely on them and allow well-trained experts to help you cope with any problem.
- Send as many items as you want to. Amazon FBA gives access to unlimited storage space , and there’s no need to be worried that they won’t find a place for five other boxes. You will only have to check the inventory and ask suppliers to send another portion of goods to the warehouse in time.
- Quick shipment. Want to have more sells? You will because customers are going to choose your brand thanks to the chance to receive an order within a few days. When sending products, Amazon picks the fulfillment center that is located closer to a buyer.
- Variety of channels. Amazon FBA opens vast opportunities to entrepreneurs as they can choose other platforms for product promotion, and the company will still provide fulfillment services.
What are the Disadvantages of Using Amazon FBA?
Before applying for membership, you should consider all the pitfalls of this program. Even though Amazon FBA has many benefits, it may become a false decision for the development of your business. And it will be a pity to face unexpected problems when searching for success. Here are the main disadvantages of being an FBA member:
- Be ready to pay the fees. Even if you’ve chosen the best items to sell on Amazon FBA, expenses you’ll have to cover may be higher than you hoped for. Members must consider shipment, fulfillment, storage, and other fees connected with products. That’s why you have to count whether this solution works excellently for your business.
- Products can’t wait for too long at a warehouse. Actually, they can, but the fees you’ll have to cover are too expensive. You will find it convenient to send hundreds of boxes with items to Amazon, and it really is. However, don’t forget to take into account the storage fees and prepare the budget for the future.
- Expect for a larger number of returns. It doesn’t mean that you offer a product of poor quality. Due to an easy return process, many customers will buy things to test them. And some of them will purchase impulsively – they will send unneeded items back when the understanding that they spent money in vain will come.
- A complicated product preparation process. Amazon has designed special rules for FBA members – all the items must be correctly labeled and shipped to the appropriate warehouse. It will take much time to prepare everything and organize the delivery process properly.
- Sometimes it’s hard to track the inventory. Of course, you can rely on a system and be sure that Amazon will inform you that products are out of stock. But there’s the possibility that you will miss the notification because you’re too busy. For a customer, it will be a disappointment to realize that the needed item is no longer available on the platform. Besides, it will take a few days or even weeks to deliver goods to the warehouse.
- Sales tax collection. US states have different requirements for this aspect, and you may find it hard to maintain the process if you offer products on the territory of a few regions.
Amazon FBA can essentially change the path of your brand in the market. It has pros and cons, but benefits are valuable and comfortable for entrepreneurs. This program allows you to rely on a company with over twenty years of experience and let it take care of storing, packing, shipment, customer support, and many more. You only have to choose the right moment in your business journey to join the program because it won’t work in a proper way for your brand. Check whether your budget is well enough to cover the fees and build a wise strategy to benefit from collaboration with the marketplace.
Picking a profitable product is your Amazon FBA recipe for success. Use IO Scout to collect the necessary data, conduct research, avoid big brands, and build a smart advertising campaign to find an item that will bring you money. With a properly chosen product, you’ll be able to attract the audience, boost sells, and grow your business as fast as it’s possible. Follow this guide, and luck will always be by your side.