If you have been looking into running your own business, now more than ever is the best time to realize that goal and step foot into the Amazon marketplace. We are not sure when this pandemic will end so might as well make the most of our time while in isolation.
There are countless ways to sell products on Amazon, and being an Amazon FBA seller has turned into one of the most popular and profitable options in recent years. Whether you are thinking of starting a lucrative part-time job or you want to become your own boss, selling in the Amazon marketplace provides a financially rewarding opportunity. We share five steps on how to sell on Amazon FBA for beginners.
Selling Tips on Amazon FBA for beginners
Create a Business Plan
To start your Amazon venture, you have to put a plan in place to help you establish a clear roadmap for your business from the outset. While it may seem like a lot of work, taking the time to develop a business plan will save you a ton of time and money down the road. It will prepare you for opportunities and challenges that you will likely encounter as a new Amazon FBA seller. It will also help you determine the resources you need to make your business successful.
Your business plan should include your business objectives, the market and competition, marketing and sales plans, business operations and financial plan. This should also include a timeline with realistic milestones and deadlines to help you stay on track and be able to catch-up immediately when you fall behind the schedule.
Find a Profitable Product
Amazon sells more than 350 million individual products, making the competition in the marketplace fiercer than ever. It is also worth noting that only by selling the right products to the right audience can you become a successful seller. Selling on Amazon FBA for beginners takes a lot of product research and careful selection at the get-go.
To find the best products to sell on Amazon, you first have to understand what makes a product profitable. You have to consider the item’s shipping weight and cost, popularity, category and its competition. Look at the retail price too. A retail price ranging between $25-$50 USD makes it possible to cover direct costs – such as Amazon’s fees, cost of goods sold and advertising costs. You will also want to pick a product that sells throughout the year and not just during certain seasons.
Another great way to zero in on products that will sell is by examining customer reviews. Find out what people are talking about and what they are disappointed by. Products with over 500 reviews are highly trustworthy products and likely to have a lot of demand. Selling niche items – such as handmade bags and custom jewelry items – are great too. This way you minimize the competition not only from large sellers but also from Amazon itself.
Understand your Competitors
Our third tip when selling on Amazon FBA for beginners is to check out your competition in the marketplace. If you have no ideas where to begin, you can start looking at overall bestsellers on Amazon. On the top tabs of the Amazon web page, you will see categories for the following: Hot New Releases, Movers & Shakers, Top Rated, Most Wished For, and Gift Ideas. You have the option to filter by the department for each category and you will get valuable information about what is trending in any markets.
Looking at the top sellers in your chosen category also allows you to find your potential competition. Some will have a company or author page which you can check out to learn more. You will want to check for their product listing pages and their official website if available. Don’t copy what your competitors are doing, but use their information to find out which of their products are making enough sales and are getting good ratings.
Optimize Product Listings
Amazon FBA for beginners should be taken seriously. Once you have determined which products to sell, time to list them. As you create your product listings, make sure all of them are optimized so that you can increase traffic, improve conversions and boost profits.
The key elements of every product listing include:
- Product Title
- Product Images
- Key Product Features
- Product Listing Description
- Product Reviews
- Product Rating
Amazon follows a unique way of ranking products based on search queries – and this is something to be mindful of as a new Amazon FBA seller. This means it focuses mainly on the products customers are searching, rather than what results best match their search question. With that said, carefully pick keywords and any related terms that describe your product. Gather as many keywords as possible to increase the likelihood of your product being found in searches.
Prepare for Product Shipments
As an Amazon FBA seller, all your packaging, shipping, returns, and even customer service are handled by Amazon. All you have to do is to send your inventory to their warehouse.
Your FBA shipment begins with the creation of a shipment plan on Amazon Seller Central. Make sure to fill out all necessary information accurately. You will need to send each of your products in an individual polybag with a warning label on it. You can either print the labels yourself or have Amazon do it for you for an additional cost.
Remember, if any original bar codes are showing on your items, make sure to cover them with your labels. This is because labels are coded to make it easier for Amazon to know whom to pay when an item sells. Once your items are all labeled, put them into a box and use newsprint or bubble pack as filler and cushioning.
Make sure to follow Amazon’s packaging and prep requirements and its FBA inventory requirements to avoid unexpected fees and prevent temporary suspension of your shipping privileges. Amazon FBA for beginners seem like a daunting task with its plethora of requirements, but don’t worry – there are a lot of tips and strategies you can find online so you can be well-guided.
Selling on Amazon FBA for beginners can be downright overwhelming as it involves plenty of work and research. To make your seller journey a lot smoother and increase your chances of succeeding as a new Amazon FBA seller, follow the steps in our guide – and of course, don’t forget to use a full-suite Amazon seller software, like SellerMobile!