Many people today are attracted to the idea of running a profitable side-hustle business online. The problem is, however, many of them are paralyzed by the preconceived notion that they have a lot to learn before they can accomplish success. The conventional wisdom is that if you are to make money online, you must know how to code, build beautiful web pages and have social media marketing expertise. Amazon FBA challenges all these notions.
While it is true that you will have to put in some work, you need to push such self-limiting ideas out of your mind since there is a way to make money on the internet without learning a lot of technical stuff. If you want to explore e-commerce and online marketing, one of the best places to start is Amazon’s Fulfillment by Amazon (FBA) business model.
What Is the Fulfillment by Amazon (FBA) Business Model?
You could think of the Amazon FBA program as Craigslist or eBay on steroids. The basic principles are the same – you have a product to sell, and you work to find buyers. The major difference, in this case, is that Amazon has a ready pool of buyers at your disposal (about 100,000,000, as a matter of fact). The main problem with other e-commerce sites is that you, as the seller, are left to do most of the work, such as selecting the product to sell, sourcing a supplier, ordering the product, packaging and shipping. In contrast, Amazon handles all the products which are housed at one of its many Fulfillment Centers, taking care of shipping and customer care for you.
How FBA Works
How to make money on Amazon FBA program is very simple:
- You find products to sell from a variety of sources including other e-commerce outlets, retails stores or thrift shops.
- You list the products that you choose on Amazon via your seller account, setting your own prices. Typically, common products will have pictures on Amazon already.
- You ship all the items you would like to sell to Amazon at one time.
- Let Amazon find you buyers, package and ship each item as ordered, collect payment for the items, deduct fees and send you money twice a month.
As you can see, it is fairly straightforward to get started as a new FBA business. However, if your business is to be successful, there are some tips you should follow.
- Carefully Pick Your First Product
When starting a new Amazon FBA business, what is probably the most difficult and time-consuming task is likely to be choosing your first product. Selecting the right product that you plan to start your business with, can easily be the difference of success or failure. If your first FBA product has little or no demand, or if it is costly to purchase in bulk, it may be difficult for you to achieve the profits that you expect. Especially in the case of your first product, always go for an item that does not face a lot of competition from established brands. Taking the time to explore a variety of supplier options, brainstorming and carrying out adequate market research is how to make money selling on Amazon 2017.
- Sourcing (Arbitrage) Of Your Product
Now that you have identified the best items to sell on Amazon FBA, you need to move to the next important step which is to establish where you will obtain the product from, a process that is almost as time-consuming as choosing the product itself. Among the most popular sources for retail arbitrage are major brick-and-mortar retail chains like Walmart, Walgreens, Big Lots, CVS and thrift shops like Goodwill.
You can also find interesting items that can be sold for high margins at auctions and garage sales, but if you need to save time and supply many items of the same type, your best bet is a chain store. Obtaining your product from international sources is also a good idea; for instance, Alibaba is a popular website that makes it easy to find quality suppliers who can offer you the product at a much lower cost than the actual retail price.
- Concentrate on Marketing Your Product
After you have chosen a product and figured out where you will get it supplied from, you need to spread the word about the exciting new product you are selling on Amazon. Although the simple fact that the item is listed on Amazon will almost certainly give it a fair amount of traffic, you still have to work to drive sales by carefully crafting the product description, providing images and marketing.
The marketing copy you come up with is vital if you want to make money from Amazon FBA business. Ensure that the product title incorporates the specific name of the product, your private label name (if you have one) as well as keywords commonly searched by customers. You also need high-quality, professionally-shot pictures of your product for the listing. Take the time and money necessary to have a professional photographer capture images of the items on sale. It will be money well spent and will help you make money online with FBA.
Before you embark on your Amazon FBA journey, you will have to determine what strategies and rules will govern your business. Establish your minimum category ranking and profit margins. Once you have decided on your rules, ensure that you do not waiver from them. This will make your business easier to manage and the payout more predictable.
Once you have your Amazon FBA Business set up and your product begins to fly off the shelves of Amazon’s Fulfillment Centers, you may want to consider the option of hiring a Virtual Assistant to ease your workload and help you with product research as your business grows. Go on, give it a try!