An FBA Beginner’s Guide on How to Sell on Amazon
There are countless of ways to sell products online, 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. Here are five steps to help you get you started.
New Amazon FBA Sellers’ Guide
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 worth noting that only by selling the right products can you become a successful seller.
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.
Spy on Your Potential Competitors
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 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 Listing
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 Shipment
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.
Selling on Amazon can be overwhelming as it involves plenty of work and research. To make your seller journey a lot smoother and increase your chances of succeeding as an 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!