Amazon provides a unique opportunity for everyone who wants to create a fully functional online business from the comfort of their home.
Sell on Amazon
- You can reach out to Amazon’s 2.7 Billion monthly online shoppers means huge sales for your business.
- Amazon has earned the market trust during the past 25 years is the basis for an unparalleled charm for the buyers.
- All the hard work done for you by Fulfillment by Amazon program.
- Sales estimation tools for an accurate assessment done by Jungle Scout lets you predict sales in advance.
- Easily scale your business, as small or as big, as you like!
How Amazon FBA Work – The Basics
If you are a new hunter or have little experience with Amazon FBA, don’t worry at all. We are here to make the whole process a fun, in a very short time you will be able to understand how it all works. In this section of the article, I will be covering the basics of How to Sell on Amazon FBA.
Amazon FBA literally means Amazon Fulfilled by Amazon. Amazon does all the hard work for you in this Amazon FBA program. If at any stage, you have queries in mind, or need any sort of assistance, don’t hesitate to reach out to one of our success representatives.
Amazon FBA Explained
First of all you should understand the whole mechanism. After buying your product, you ship Amazon your products and they store it in one or more of their fulfillment centers. These massive warehouses, which are called ‘The fulfillment centers’ run by robots and hardworking Amazon employees, round the clock.
After reaching the Amazon warehouse, your products are inventoried and sorted by Amazon themselves. They take good care of it and if something happens on their part for example, something is damaged in one of Amazon’s warehouse; Amazon will reimburse you the full retail price for the damaged good!
After the whole sorting is done, a customer orders one of your product on Amazon, Amazon handles the transaction for you. The whole process is automated and done completely by the Amazon services staff for you.
After that, your product is picked from the warehouse where it was placed on the shelves, packed into a box, and shipped to the customer on your behalf.
When your product reaches to the customer, Amazon follows up with the customer to make sure everything is okay with the order. If there is any problem found during the delivery, Amazon automatically takes care of that, too.
What an Amazon FBA seller’s Job
Pick the products: Amazon handles all the back end work, but you need to decide what to actually sell. I will let you know about the various methods of selling products on Amazon in a moment.
Keep inventory in stock: Amazon will let you know when inventory is running low. But it’s your job to make sure that the things you sell stay stocked up.
Promote and advertise: Amazon has a huge collection of products. You’ll need to do a little work to make sure people find your products.
Amazon FBA selling Cost
Amazon FBA Selling process is very reasonable if you are going to start it from your home and don’t have any warehouse to store your goods. In fact, if you’re selling products that you already own (like unwanted things being wasted around the house), you can do it almost for free!
Seller accounts: Individual vs professional
Amazon FBA offers two types of seller accounts, Individual account and Professional account. Although individual seller accounts have no fee upright but have higher sales fees on the other hand professional accounts have a monthly subscription fee of $39.95, but lower fees. We recommend you to get a professional account if you plan on selling more than 40 items per month. But if you want to start slow with only a few items, then individual may be better for you.
Amazon fees
Amazon completes the whole process for you and making you feel at home and takes meager fees for their services, usually after a sale has been made. For most categories Amazon charges referral fees 15%.
If you want to get rid of all this hassle and decide to use Amazon’s FBA service, they will take a nominal fee, to cover the shipping and handling costs for your products. However, these tend to be less than what it would cost to ship it by yourself anyway. Some categories have an additional flat fee i.e books and DVDs.
If you are selling on an individual seller plan then there will be no subscription fee, instead Amazon charges an additional $1.00 flat fee for this subscription plan. I recommend you to go with the professional plan if you’re going to sell 40 or more products per month.
Keep in mind that storing your inventory at Amazon fulfillment centers for long duration can cause havoc, resulting in long term storage fees.
If you feel that it may be too much, don’t worry! The fees overall are pretty low and actually end up costing you a lot less in comparison to what you would have spent to do all the work yourself.
Inventory costs
Your inventory costs may vary for different types of products you choose to sell on Amazon. I strongly recommend you ‘The private label method’ which is the best choice with a moderate investment to start, but you still choose to start with just a few things around your store house to get going for how to sell on Amazon FBA.
Amazon vs Ebay
Amazon and Ebay both have their own massive following and ultimately, it depends solely on your choice and what you want out of your business. Some people live by Ebay. While others, think Amazon is the best place to start an online business. I think the best way to sum up the difference between the two marketplaces is given below.
Ebay is without any doubt world’s biggest louse market. You set up your “plunk”, offer your products, and handle transactions, shipping, and everything else. It’s 100% your own responsibility and there is nothing to do with Ebay. Therefore, you may end up putting more work into it for lesser profits.
On the other hand, ‘Fulfillment by Amazon’, is like owning a ‘stall’ at a very large departmental store. Your main job is only to make sure that your ‘stall’ stays full of stock and presentable enough to attract the visitors. Unlike Ebay, this departmental store handles all the transactions, shipping and all the tough work for which most sellers get frustrated to do. According to my personal experience it is far less work as compare to the huge profit.
Products for Amazon FBA
Important Note: Another thing that’s amazing about this business model is that there’s no one way how to sell on Amazon FBA. Here’s a few of the most popular methods.
Arbitrage The process involves finding low priced items on different retail or online stores and reselling on Amazon at a higher price.
Wholesale The process involves buying bulk discount branded goods to resell on Amazon at a higher price.
Used Book Sales Purchasing used books at book sales centers, discount shops or other places to resell on Amazon at a higher price.
Private Label Manufacturing of your own branded products to sell on Amazon FBA where you control every aspect of the product is called Private Label. You can also place your labels by asking the manufacture or to the third party.
*** This is my preferred method***
Private Label
A private label product is manufactured by a contract or third-party manufacturer and sold under a retailer’s brand name. You can take a product that is already existed in the market place and get it manufactured, with your own design, brand name and logo.
Advantages over the other methods
Lesser sourcing & searching
You need to source a single product in large quantities versus many small products like you would with arbitrage.
More Price control
The Amazon listing is one of the powerful features of Amazon, so your product is under your control. In other words, you have no competition so you don’t need to worry about under pricing due to your competitors, like you may have to do during whole selling or arbitrage.
Higher profits
Beyond any doubt, private label is the most profitable and predictable method of how to sell on Amazon FBA.
Profit Margins
It is obvious that the success of every individual depends on various factors with private label. However, if you follow the basic steps you can expect to earn a lot and all of this with as little effort as by working only four hours a week.
You have to learn the basics well otherwise you may ruin yourself by experimenting in little things which are made easy by the guru’s like “Jason Katzenback’s AMAZING SELLING MACHINE”.
Video Training
If you join this life changing course AMAZING SELLING MACHINE you definitely need not any further learning. Once your product is created and live on Amazon, you don’t have to do anything else but check on your advertising and make sure your inventory is stocked.
Just 4-hours a week and you can earn an extra $3,000 per month!
Quick Five Steps to create your first private label product
Research with Jungle Scout, and find products with high demand and low competition.
Now source these products through Alibaba, a website that puts you in touch with thousands of manufacturers who are eager to do business with you.
Create a brand new listing of your product on Amazon. It is so simple that you can do it in less than 40 minutes.
Ship the products to an Amazon warehouse so it can be part of the Amazon FBA program and you won’t have to do all the tiring work.
Now launch the product and advertise it using Amazon’s standout advertising system which is as simple as clicking a few buttons and no in-depth knowledge is required.
Then, all you have to do after that is just to sit back, relax and watch the profits roll into your account!
Finding a Profitable Private Label Product in less than 15-Minutes
I know this is a lot of information to digest, but now it’s time to demonstrate how easy it is to find a private label product for you to sell.
This is an important part of selling on Amazon called “product research.” If that sounds like a lot of work, don’t worry. Believe it or not, Amazon actually offers updated data on how well, each of their product sells.
In fact, one of the key metrics that we use to determine a product’s demand is found right on the Amazon product pages “The Best-Seller Ranking (BSR)”.
What is the Amazon Best Seller Ranking?
Best Seller Ranking is the most powerful tool to get high level products on Amazon. Every product on Amazon has a unique BSR rating number. If this number is on the lower side it means that this product is producing more sales on Amazon. We can take the BSR and translate it into average monthly sales.
In case if we need an estimate of a product’s monthly sale, we will use the BSR number of that product and will put it in the Sales estimator tool to have estimated sales of the product.
Free Estimator Tool
Of course, it helps you to learn how well one product is doing at one time. But if we want to see how multiple products in a single niche search are doing and what their average is, you can do it only by hand on a spreadsheet, but it will take hours of hard work and yet complicated. That’s what I used to do when I started, and I won’t recommend it to you anyway!
Fortunately, there is a lot better way of doing it with JS Extension.
JS Extension
With the Jungle Scout extension for Chrome, you can open an Amazon search page and click on the “JS” Chrome button to discover how profitable that product niche is all at once. Immediately, the extension creates a spreadsheet that estimates the sales for each and every product on that page in ten seconds or less.
Best Seller Ranking
This is the overall rating of the seller, the lower rating is the indication of better results predicted for your future sales.
Average Price
This shouldn’t be too high or too low. You should look for products which are priced between $18 and $60.
Average number of reviews
This gives you the analysis of competitiveness of a product. I prefer myself and will recommend you to look for products with less than 100 average reviews.
Opportunity score
It gives product niche a rating from 0-10. By using this amazing tool, you can quickly search through multiple product categories in just a few minutes.
Seller data
See who is selling the product: whether it’s another FBA seller, a merchant seller, or even Amazon itself.
Historical rank and sales
Want to know how well the product has done over time? Clicking on the BSR and average sales for each product will tell you.
Google trends
This tool gives you a futuristic approach to get an overview and popularity prediction of the product in the future.
It will be worth mentioning here that private label product can earn as little as $1500 per month in profits. That’s $18,000 per year. And all it takes is a few minutes of research to find your dream product.
More Resources
Amazing Selling Machine 11 (Hot Selling Hands On Training from beginner to Professional)
Sourcing a product on Alibaba
Once you’ve discovered your product through research, you’ll need to source it through a manufacturer. There are plenty of options out there, but your best bet is with Alibaba.
Killer Amazon product listing
After you have made a deal and your products are being created, it’s time to start building your Amazon product listing. Product listing is the backbone of Amazon FBA for selling on Amazon. So you should make sure that you know all the best ways, tricks, tips, and strategies to build a listing that sells.
Ship your products from the manufacturer to Amazon
After that, you will need to ship your product from the manufacturer to Amazon. This is really the most difficult part if you do it on your own, but thankfully we have actually got a few resources that can make this as easy as ordering a pizza.
How to launch and promote your product
Last but not the least you need to launch and promote your product when it reaches in one of the warehouses of Amazon. Once again, this might seem difficult, but it is super easy. In fact, once you got it done, there is very little left to do except tracking your ads and making sure your product never gets out of stock. That’s all. You are done.
Conclusion
Amazon FBA changed my life. And I hope it can help you change yours, too. Whatever it is that you want, whether it’s financial freedom, a 4-hour work week, or just the ability to create something that’s your own, I want to help you succeed.
LIFE CHANGING AMAZON FBA APPROACH
KILLER SELLING 