Amazon FBA is a fulfillment service that allows you to sell products on Amazon.com and ship them directly from your own warehouse.
You can use FBA to sell your own products or private label products, which are items that you have sourced yourself and have the rights to resell. These types of items must meet certain criteria in order for them to be eligible for FBA — there are some restrictions on size, weight, allowable content and other specifics.
You can also use FBA to sell used items or items you buy discounted from other retailers like Walmart; this is called Retail Arbitrage! If you find a good deal on something at Goodwill or somewhere else that’s not quite broken but still needs some work (or if you just want something different), bring it home and put it in an Amazon seller account so that when someone orders it, they get yours instead of whatever exists in stock at another retailer!
Is Amazon FBA right for me?
As a successful Amazon FBA seller, you’re going to have to be able to handle a lot of things. The most important thing is your ability to commit yourself and your money. You can’t just think about getting into this business as an investment, but rather as something that will require the investment of time and money. If you don’t mind investing in yourself, then by all means go for it!
If you don’t want to spend hours looking at reports and spreadsheets, there are other online businesses that might be more suitable for you. For example: Shopify dropshipping or selling physical products on eBay.
How to get started as an FBA Seller
If you want to start selling on Amazon, the first step is creating an account. If you don’t have one already, it’s easy and free! Sign up here.
Once you’ve got your account set up, it’s time to fill out some important information:
Product Information – This includes the title of your product and its description (don’t worry—we’ll talk more about writing copy in later sections). The more detailed this information is, the better chance your product will sell!
Images – The next step is uploading images of your products; these should be clear photos that show off key features of the product being sold. You also have to upload an image with dimensions at least 1000 pixels wide by 1000 pixels tall; if they don’t meet these requirements then Amazon won’t accept them as valid product images.
Pricing – Finally comes pricing! Pricing can be difficult because there are so many factors involved (like shipping costs), but luckily there are tools available that make setting prices easier than ever before
Doing a Keyword Search
A keyword search is a way of searching Amazon’s catalog where you can find the best-selling products in specific categories. It can also help you identify what customers are looking for so that you can sell more on Amazon and grow your business.
Here’s how to do it: Go to the “keyword tool” section of Seller Central, and then click on “keyword research.” Under “Search by Category,” choose “All Categories.” Next, select one or more categories from the drop down menu provided (or type in a new category of your choice).
Then select which metrics (aka filters) you want to use for this search: Type limits like # words or % off; price range such as $10-$50; free shipping requirement such as Prime eligible or non-Prime eligible items; condition options including new items only or used items only; etc., depending on what information will help narrow down your results most effectively for easy filtering later on once you’re ready for step 5 after finishing this process!
You should now see an extensive list of keywords based off both broad searches like “cookbooks” + “kindle” + “free shipping”, but also specific themes within each topic area (like ‘baking’ versus ‘cooking’) — these latter terms may be harder to rank high enough into Amazon’s results pages without any actual sales data behind them yet because they’re not nearly as common among shoppers yet…but if there’s demand among consumers who’d buy them then they could definitely make sense over time with proper marketing efforts!
You can also use a tool like Jungle Scout. JS shows you the ranking of any product selling on Amazon as well as how many they sell per month and how much they are making on average as well as other data.
Buying Private Label Products
Finding a reliable supplier is the first step in creating your own private label products. To do this, you’ll need to know what to look for when searching for potential suppliers and how to find them.
A private label product is a product that a manufacturer already manufactures but you can get them to put your own company branding and label on.
Supermarkets do this all the time. They might want to release their own brand cereal but instead of creating their own factory, hiring the workers, etc. They
There are many ways to source products from China, but it’s important that you choose one with a good reputation and high success rate. The best way to do this is by finding out if the supplier is legit or not. You can do this by checking reviews online or contacting them directly before making any deals with them.
Once you’ve chosen your supplier, make sure they have excellent customer service as well as an easy-to-use website so that you can order samples of their products without any problems!
Things to Consider When Choosing Your Products
Let’s start with the first step to choosing a product. If you’re new to selling on Amazon, you might be wondering if it’s even possible for your business to make six figures. In fact, if you’re like most people who start selling on Amazon FBA (Fulfillment by Amazon), they sell in volume and treat it as a side hustle or hobby. But what if you could take that hobby and turn it into an actual business? What would that look like?
In order to make this happen, first determine what your goals are—and then figure out how much money those goals will cost. Are you trying to break even after expenses? Or do you want enough profit left over each month so that eventually one day down the road when retirement comes calling, this can become your main source of income? Either way, make sure whatever goal(s) that come out of these questions align with what’s important for YOU as this will help stay motivated throughout this entire process!
Where Do You Find Suppliers?
It’s not difficult to find suppliers.
They’re everywhere! There are some obvious places to look, like Alibaba and Amazon, but they aren’t the only ones.
Here are some other options to consider:
- Local markets and craft fairs: Check out your local flea market or farmers market for sellers who might be willing to drop ship their products on an ongoing basis. Many of them already have established relationships with retailers in their area, so it shouldn’t be hard for them to meet your own needs.
- Your own network: If you know anyone who runs their own business (or works at one), ask them if there are any vendors that would be willing to let you sell their products through FBA channels rather than trying to compete with each other directly for customers’ attention online or in person.
- Alibaba -Alibaba is a marketplace similar to Amazon but for finding manufacturers, suppliers and wholesalers. It is one of the largest B2B marketplaces in the world and you are sure to find a supplier for almost any category or niche.
The Product Research Process
Researching the market and finding the right products, suppliers, shipping fees and shipping times are all part of product research.
In Amazon FBA it’s not just about finding a good product but also about finding a good supplier who is able to supply your product with good quality at a reasonable price.
The first step in starting an Amazon FBA business is researching the market to find out what sells well online and what niches are still untapped by other sellers on Amazon.
For example if you’re selling a wooden pencil holder then you need to do some research into other similar products that have been selling well on Amazon over the past year or so before deciding whether or not this would be an appropriate niche for yourself as an entrepreneur looking for opportunities within which they can make money as quickly as possible (also known as “gold rush mentality”).
Sourcing products from suppliers in the US instead of China.
Sourcing products from suppliers in the US instead of China is more expensive, but it can be less risky. Because you’re working with suppliers that are nearby, you can visit them and inspect your products before buying them. You can even make sure they have a legitimate business address and track their history through the Better Business Bureau or Google search results.
In addition to being easier to trust, domestic suppliers are usually more reliable because they don’t have much competition for orders versus Chinese suppliers who get tons of orders every day (but may not deliver on time).
Top 3 Reasons to Order From Suppliers in China 1. You can get the lowest prices on the market by ordering products from China. This is especially true if you’re looking for raw materials like bulk cotton or cheap plastic packaging. Many other retailers buy from Chinese suppliers, so there’s a lot of competition for these types of orders.
2. Chinese suppliers offer more variety than domestic suppliers (which means you can find exactly what you need). For example, if you’re looking for a specific type of plastic packaging then domestic suppliers probably won’t have it in stock. But if your company needs to order 100,000 units of different types of plastic packaging each month—then China is the place to be.
3. Chinese suppliers have a large network of factories and manufacturers which allows them to deliver on time (especially if you place your order early). Domestic suppliers may not have this advantage because they can’t always find the right supplier for your needs or they don’t have enough time to get everything ready before shipping.
The Magic Number for Profit
To make a profit on the Amazon FBA business model, you need to sell each product for a certain amount. It’s called “your magic number.” Your magic number is your target price for each item sold, after factoring in the cost of goods (what you paid for the product), shipping and other fees, and Amazon fees.
For example: Let’s say your best-selling product costs $8 per unit at wholesale prices. You buy 1,000 units from China and ship them to your warehouse in California with a total cost of $7 per unit (including shipping). This leaves you with an initial inventory of $8 x 1,000 = $8,000 worth of products that you can sell on Amazon at their current retail price (plus tax).
Your goal is to make a profit off each sale so that the business can be profitable on its own without relying on outside funding sources like loans or investors’ money!
Meet your International Shippers and Freight Forwarders.
You will need to find a freight forwarder and an international shipper for any products that you want to sell.
A freight forwarder is the person who will ship your product from China or another country, usually through air freight or ocean freight, and then deliver it to your warehouse in the U.S. They also provide customs clearance services at the ports of entry (usually LA/Long Beach).
An international shipper is responsible for getting your product from China into their warehouse before shipping it out to their U.S warehouse where they can then send it on a truck (also known as LTL: less than truckload) directly to Amazon FBA warehouses across America!
Reviews
Reviews are super important when it comes to Amazon. They can make or break a product.
Let’s face it if there were two products that were similar on Amazon but one of them had 5 reviews and the other one had 143 reviews which one would you purchase. The one with more reviews, right?
That’s why reviews are so important. Here are some ways you can get more reviews:
- Social Media – This includes posting about your product on Instagram, TikTok, Facebook, Twitter and any other social media platforms. Use Facebook groups, Reddit, and other forums to find people interested in the product you have and offer it to them for a discounted price. Then follow up with them about leaving a review.
- Email List – If you’ve got a email list, send out an email to them about your product! Tell them how great it is and why they should get it and include a link in there. If people are interested they will buy it.
- Automated Follow up – Have an automated follow up sequence with customers who have already bought from you on Amazon. Not only can this improve customer service and make your brand look better but you can also ask for reviews from customers automatically. Some tools that can do this are Feedback Genius and Feedback Five.
With careful research and planning, you can create a successful Amazon business that makes six figures or more.
You’re not going to make a six figure Amazon business overnight. It takes time, effort, and dedication. But with careful research and planning, you can create a successful Amazon business that makes six figures or more.
Research and planning are the most important steps in starting an Amazon business. The first thing you need to do is figure out what niche you want to pursue. There are plenty of niches out there so take some time looking around and see what interests you! You also want to find suppliers for your products and set up shipping with them as soon as possible so they can send inventory straight from their warehouse directly into Amazon FBA warehouses where it will be stored until someone buys it online (which is really cool if I do say so myself). Once everything has been set up properly then all that’s left is marketing your business which can be done by posting on social media platforms like Facebook or Instagram as well as blogging about topics related specifically around what type of product/service this company offers customers interested in buying stuff like yours!
Conclusion
I hope this article has given you some insight into Amazon FBA and how to make a six figure business with it. I know that the process of finding products, shipping them to Amazon warehouses, and then selling them can seem overwhelming at first. But as long as you take it one step at a time, keep your eyes open for opportunities where they may not be readily apparent and always make sure that you’re staying true to yourself while taking on any new challenges… then anything is possible!
