Building an Amazon Business is not something new, but trending now in 2017. I even signed up for a paid Amazon FBA Course ($1500) and I cannot emphasize enough the opportunity that this eCommerce Titan represents!
Btw, there are hundreds, maybe thousands of Amazon trainers all around the world that get rich only by training other people on how to start their own Business on Amazon. Crazy?
Of course, ~80% of Amazon's Business is made by 3rd party Business Owners and Resellers. Should I mention that Amazon had a $107 Billion in sales last year?
SO HOW DO YOU START AN AMAZON BUSINESS?
There are 4 important steps that make the difference between losers and winners on Amazon:
1. Selecting a product to sell
You can sell a lot of products - but there are quite a few filters that you need to keep in mind when you start.
- the product is selected from Amazon Bestsellers
- ideal from $15 - $50 listing price
- the Best Seller's Rank needs to be between 1,000 - 15,000
- use Amazon's Calculator to check the costs for Volume and Weight
- the product can easily be improved (you cannot sell what everybody else is selling)
2. Finding the supplier
You'll select the supplier from Alibaba.com. The idea is to contact 3-5 sellers at once and negotiate the price per unit.
The ideal supplier meets the following criteria:
- good price/quality
- flexibility
- meets your requirements
- easy to communicate with
You'll need to order around 500 units (depending on the seller and the minimum order requirement). This will ensure a good price if you negotiated well.
You can ask to receive a samples first (recommended), to check the quality yourself. After you are sure that the quality is ok, you will make a down payment and pay the rest of the money after the products have been produces. Your seller will handle the shipping (you pay for it) to Amazon's warehouses in USA.
3. Listing the product
Listing the product is essential for helping your future client to make the decision fast. What do you need to keep in mind?
- you need good photos & you can even hire a product photographer
- a good sales copy - if you can't write this, you can hire a Fiverr Amazon product copywriter
- a good keyword optimization to ensure that your product will be shown on the first search result page on Amazon
You need to emphasize the following aspects:
- why someone would buy your product?
- how does it help the customer?
- why your future client would not want to buy from someone else after he saw your product?
- why should the customer buy now?
4. THE LAUNCH!
This step represents the marketing campaign that you'll start when your product is available on Amazon.
IMPORTANT: Amazon's listing algorithms are being influenced by lots of factors. The main ones are good traffic and lots of orders in a short span of time.
Your marketing campaign means:
- paid PPC campaigns on Amazon
- paid Advertising on Facebook/Google
- a brand website with complete information about your company and products
- a newsletter campaign (list built prior to the order in the weeks/months after you decided which product you will sell)
Of course, there are lots of other important aspects that you need to consider when you start your business on Amazon but these are the main ideas that you need to know in order to understand the business model.
I'll keep you updated with my product launch and also, I'll post new ideas, tips & tricks if there is interest in this topic. If you are interested, click the subscribe link below and you won't miss a post.