How to Sell on Amazon FBA - A Beginners Guide
Amazon is a global e-commerce giant. Its rapid growth and adaptive style now allows for more types of products than ever before to be sold. During the past years, Amazon’s sales have skyrocketed. Over 55% of consumers would prefer Amazon over other stores. And over 120 million Americans are Amazon Prime members. Therefore, naturally, selling with Amazon FBA is becoming very popular as well. Its widespread success is no surprise due to its simplicity and well-oiled mechanisms.
The following article will help you understand what FBA is exactly. Then we will show you examples of how to use it as an e-commerce tool. This new and innovative platform provided by Amazon is a game-changer. If you are looking to open a new e-commerce business, or to transform your already existing one into a multi-platform one, look no further. Amazon FBA might just be the right place for you. After reading this article you will see what exactly you need to start one up yourself.
Before we dive in, it is important to understand what FBA is exactly. Amazon FBA stands for Amazon’s Fulfillment-by-Amazon initiative. This new way of doing online business is about the simplest e-commerce will ever be. One can easily become a member and have their products delivered to, stored at, and sourced by Amazon. Besides, FBA will take care of shipping and customer services as well!
Amazon Business Model Options
When you decide to conduct business on Amazon, there are plenty of options. You can choose what fits your mission or the types of products you are selling best. Here are some of the models you can choose from:
- Wholesale – Buying Goods From a Registered Brand Directly
- Reselling – Buying Products at a Better Price Then Later Reselling Them
- Private Label – Selling Your Own Brand On the Platform
- Dropshipping – Buying Straight From the Manufacturer, Who Distributes to the Customer
- Handmade – Made-From-Scratch, Handmade Products
Selling Private Label
When you sell private labels, you either produce your own goods or source from a manufacturer under your own patented brand. This method is very popular and over 70% of Amazon FBA users do business this way. It is easy to start and can be a very profitable business model. However, one should always do thorough research before investing their time and money into one method or another. After you have done your homework and you are clear with what you want to sell, as well as the demand and consumer habits you are all set. Here are the 6 simple steps to launching your brand with Amazon FBA
- Do Your Research
- Find Your Manufacturer/ Source
- Create Your List On the Platform
- Settle On a Marketing Strategy
- Find the Best-Fitting Shipping Method
- Launch Your Product
The Fulfillment Process
For you to be able to completely utilize the Amazon FBA, you need to see how it works exactly step by step. Once you start your platform you will have nothing to worry about concerning communications and logistics. This is because Amazon will take care of everything from this point and on. There are 3 main steps to fulfillment by amazon. This will always happen when you conduct business on the platform:
- Your Products are Received
When Amazon receives the products that you wish to sell, they will store them in their storage facilities. These are state-of-the-art places run by robots as well as human employees. The products then are sorted based on the category they fit in. They also assure you of your products’ safekeeping. If something is to happen with your items, Amazon will reimburse you for the lost or damaged goods.
- Orders Processed by Amazon
Once your products are in, the ordering can start. Upon a placed order, Amazon will process the information automatically and take care of the logistics. They will identify and find the right item, take it from the warehouse, pack it then they will ready it for shipping.
- Communications Managed by Amazon
Once the products ordered by the customer are shipped out, you have absolutely nothing to worry about. Amazon will take care of all communications, shipping processes (several options), and overall customer care. This includes tracking, notifications, and even reviews and returns as well as refunds.
What to Sell On Amazon
Before you commit to selling one product or another on Amazon FBA, it is important, as always, to do your research. Even if you are passionate about a product or another, there could be very tough competition around it, or it could simply be low in demand. Therefore, for you to avoid losses and maximize your chances of profit, never underestimate the power of research. This section will provide you with the main criteria as well as steps to take before start selling you products.
Criteria For Best-Selling Products
There is an ocean’s worth of products you can sell to the target consumers worldwide. Seemingly, now, it is also easier than ever before. Due to the sophisticated and very easy-to-use services provided by e-commerce giants such as Amazon FBA. However, regardless of the platforms and systems at hand, one can not avoid having to deal with the myriad of obstacles when it comes to starting your online business. One of the main difficulties is competition, lack of marketing, unknown consumer habits, branding, and so on. Therefore we made a list for you that sums everything up, as simple as possible. This is a list of everything you have to consider and research before you commit to your choices on the platform:
- Trust the Statistics
- Do Not Jump to Conclusions
- Use the Right Tools to Guide You Through
- See What if Your Chosen Products are Profitable
(Combine all expenses, fees as well as revenue to see where your profit margin lays)
- Research Demand-Supply of Your Product(s)
- Research the Competition
Top Amazon Product Categories
To help you with your choices, to begin with, we have collected some of the top-selling items. Here are the most in-demand products you can get your hands on when it comes to selling via Amazon FBA:
- Baby Care
- Personal Care
- Garden & Outdoor
- Office Supplies
- Clothing & Accessories
- Pet Supplies
Do Your Research
Three things to always keep in mind before you commit to a choice of product are competition, demand, and potential profitability. Regardless of the type of goods, you are going to invest your money and time in, these factors are key. They will not change and will always have a huge overall impact on your chances. The best is always to be ready. When you conduct your research use Jungle Scout. This is Amazon’s “in-house” seller software, guaranteed to show you the most useful and personalized data. Here are the most important steps to take before making final decisions:
- Search Amazon’s Database – Jungle Scout
- Monitor Products Versus Consumer Behaviour Over Time
- Find Innovative Solutions (Product Development)
- Check For Patents and Other Legal Necessities
How to Source Your Products For Amazon FBA
To achieve the best potential for your business to be profitable, you need to go above and beyond in every aspect. Sourcing your products might be one of the most important steps. This is because high-quality products will allow you to build long-term customer loyalty and steady revenue. Three of the most important aspects to keep in mind when sourcing your products are:
- Source High-Quality Suppliers
Be sure to find a top-quality supplier once you find the right product for you. The difference in quality can lead to long-term benefits and happy customers with the willingness to invest in your business again and write good reviews.
- Evaluate Product Samples
Make sure to ask for samples of the products you wish to sell. This is important because there could be a few differences between your wishes and what the manufacturer provides. It could be about quality, dimensions, color, and so on. Ordering samples is a standard measure that no manufacturer should oppose.
- Order Inventory For Amazon
Once you are satisfied with the product and ready to order, send a list of products to Amazon FBA. This inventory will show them what and how much of everything you will be ordering exactly. This allows for good communication and planning.
Ways to List Your Products
When you list your products, it is important to be strategic about wording, layout, and keyword research. Amazon FBA’s software, Jungle Scout, has a smart device that comes in very handy. When it comes to catering to keyword searches, keyword scout is a great device that will help you summarize your products and offers in just the right words. Make sure to purchase also universal UPC barcodes for your products as this is a requirement by Amazon.
Besides creating your listing in the software, Seller Central will be of great help too. It allows you to customize product information and variations as well as custom choices to your wish. And finally, it is important to have a good product description as well as titles, and of course great overall pictures of your products.
Launch Your Products
When launching your products it is important to have the best looks, reviews, and everything in order. One of the most important things to look out for is to have your BSR (Best Seller Rank) strategy set up strong. To satisfy this statistic you need three things:
- Have Products In Stock Steadily
- Make Sure Your Relevant Keywords Are Satisfying The Algorithm,
- Have Consistent Customer Outreach Metrics
Another important if not defining factor when it comes to starting up is reviews. You have to have them and you need to ask for them, as customers like to write and read them to express themselves or secure themselves a good deal. Common tools for this are the “Request Review” tool Jungle Scout’s review automation and Amazon’s Vine review program.
Ways to Improve Your Sales
Once you have launched your products you need to think about how you can maintain and improve your sales of course. There are many ways you can do this. Innovation is key as well as keeping up with the latest consumer trends. However, three key points are always helpful and they are worthy of your consideration:
- Expanding your Business
Always be on the lookout for new opportunities. There are always customers who want more and are open to exploring what you have to offer. Therefore it is key to keep an eye on your metrics and act accordingly. If you sell clothes, why not add accessories? If you sell toys, why not add a few new types if there is potential?
- Marketing Optimization
Be sure to always look out for your profile. The look and overall experience of going through your page(s) is everything! This will be the first impression you make on your future customer and this will determine whether they purchase anything and if they will come back again.
- Inventory Management
And finally, be sure to consistently keep up with your inventory. In general, based on what sells, it is recommended to have about 4-6 months of inventory in stock in advance. You want to avoid having too much or too little of this. If you see a new trend coming or you just want to explore new products, slowly put your current products on sale and ease into it, do not jump headfirst into anything new until you see it works for you.
Amazon FBA For Beginners 2022 (Step by Step Tutorial)
Shipping from china to amazaon warehouse
Amazon FBA is here to change the game. Regardless of the type of product you sell, this service will accommodate your needs. Almost any products you can think of can now be sold via Amazon’s FBA platform as well. However, it is always advisable to do thorough research. A third party, like a sourcing agent, is always helpful too. They are familiar with local customs and regulations and they know what are standard procedures. They can save you a lot of time and money as they will help you find what you are looking for exactly. This service is very easy to use and it can lead to profit and success. Though one can not ignore the hardship that comes with navigating in the sea of global competition. There are countless sellers with plenty of experience and a loyal customer base. Therefore we put together the most important steps to take before one proceeds to start selling via Amazon FBA. We hope you found what you were looking for and now, having the tools provided by the article you are one step closer to starting a successful online business.