Amazon, the retail giant, has permanently transformed the eCommerce industry in the US and abroad. With its superior two-day delivery service and affordable items, businesses are jumping onto the platform to gain financial success. One of their popular programs for sellers is Amazon FBA. Being an Amazon FBA seller offers you several perks, such as access to Prime members and free delivery service.
With Amazon starting their shipping service, Amazon shipping, we are confident that this retail giant has no plans of slowing down. Start selling on Amazon and leverage Amazon’s vast resources. You just need a small amount of money and a growth mindset to start selling on their platform. Better yet, apply for their Amazon FBA program!
Do you want to become an Amazon seller? This guide will show you how to become a seller on Amazon and the benefits you can receive from availing the program.
If this is your first time hearing about Amazon FBA, don’t worry. We’ll cover the basics for you to have a clear grasp of the program.
FBA stands for Fulfillment by Amazon. This means Amazon handles the picking, packing, and fulfillment of your items. They’ll handle everything for you!
Here’s how it works:
Based on this process, we can tell that the FBA business has a model that lets you leverage Amazon’s customer base and distribution network. Taking advantage of the program allows you to search for profitable products and focus on marketing them without the headache from fulfilling the orders. Amazon handles the packaging, fulfillment, and customer service on your behalf for a fee.
These fees are due to storage and fulfillment costs .. Before you start selling on Amazon FBA, you need to know about these fees because these will affect your pricing and computation of sales.
Since Amazon handles the heavy lifting for you, what are the tasks that you need to do?
Amazon FBA is a fantastic program for eCommerce businesses. They help you navigate through the tedious process of fulfilling orders and shipping products promptly. Aside from this, Amazon enables you to keep track of and maintain your inventory. By eliminating these two challenges, you can focus on growing your business.
Below are some of the other benefits of Amazon FBA
Frees Up your Time: Through Amazon FBA, you can focus on growing your business rather than handling your orders’ fulfillment.
Effortless logistics and shipping: If you’ve ever experienced shipping your parcels, you’ll know how tedious it can be. With Amazon FBA, they’ll take the burden off your shoulders, so you can focus on running your business.
Storage Space: Amazon has tons of warehouses where you can store your item. If you’ve been worrying about not having enough space in your home to keep your products, fear no more because Amazon will take care of it for you!
Access to Amazon Prime: Being part of the FBA program gives you access to Amazon Prime members. Prime members account for most of Amazon’s sales, so you want to get your hands on them.
Reputation: Amazon’s got a reliable name, and many buyers trust it. When you work with Amazon and sell on its platform, it will increase your chance of making a sale. Plus, you can leverage its vast customer base.
Returns: Processing returns can be a big headache on your part. With Amazon FBA, they’ll be the ones to talk to your buyers and send them a new product.
Fast delivery: We can’t stress enough how fast the delivery is with Amazon. Customers love it when you quickly ship their orders. With Amazon FBA, they can avail of the two-day shipping and overnight shipping. Having a fast shipping system will earn you positive reviews from your customers. FBA will even help you spread the word about your business.
Amazon’s Multi-channel Fulfillment: If you have your website and want Amazon to fulfill your orders, you can do so! Amazon offers their Multi-Channel Fulfillment (MCF) for sellers outside of Amazon who wish to avail of Amazon FBA.
Now that’s a difficult question to answer because many factors come into play. Most sellers earn $1,000 per month in sales while others earn $250,0000 per month. There are FBA sellers who made $3,000 – $40,000 within the first 30 days of starting their Amazon FBA business. Only 23.7% of sellers earn under $1,000 per month. Essentially, these figures show you the massive potential of making deals with Amazon FBA.
Now that we’ve got you excited about Amazon’s fantastic opportunity, let’s get you started with your Amazon FBA business. Follow these easy steps, so you can get your business up and running.
Before you create an Amazon FBA account, you need to know what niche and which products you will be selling. You may tend to want to sell every product you can think of, but it’s best if you pick one niche and determine the products you will be selling under that niche. The best way for you to choose a niche is to consider the areas you are most passionate about, list them down, and narrow that list down to 3 to 5 specific niches you are most passionate about.
After picking the niche, you can start conducting product research. Though you are passionate about your niche and products, making a profit from offering these products can be difficult. Hence, you need to conduct product research.
To conduct product research, you can do some general product searches to get a better idea about your products. Search for your product on Google and see what stores sell your product. If it is being sold between $10-$50, then that is a good product because consumers tend to buy between these price points. You may also check Amazon’s bestseller rankings (BSR) for you to know which products are popular and appeal more to the public.
Another method is to use a keyword tool where you can determine the level of popularity and demand for the product. You can also determine if there is a sizable market for this product. Ideally, you want your product to be high in demand, but only several stores are selling the item. This way, you can sell it at a higher price and higher volume.
Once you have picked the niche and the products you wish to sell, you can start looking for your supplier.
Before you start listing and selling your products, you must look for suppliers that can offer you high-quality products. Without product sourcing, you won’t have a product to sell. It is also time-consuming since you want to look for the best and most reliable supplier.
Below are several ways you can look for a supplier:
After looking for product suppliers, you can start testing the product. Grab hold of their product samples, so you can determine if they are of high-quality.
The last step is to research shipping companies and costs. This is important, especially if you are sourcing overseas. Your shipping costs can eat into your profit margin, so be sure that you factor in the shipping fee in your product pricing. Don’t forget to ask how fast the product can be delivered to you. A product can quickly run out of stock, and you need to be able to restock your inventory quickly.
After choosing a product and taking care of the shipping, your next goal is to come up with your business name and brand. When you create a brand, you need it to be recognizable and identifiable. Below are the steps to create a unique brand.
Before you can start applying for the program, you must have an Amazon seller account. Below are the steps to create an account.
To add your products on Amazon and create a product listing, follow these steps:
Optimizing your product listing is essential to help you gain sales, rank high on Amazon, and encourage organic traffic.
After creating a product listing, you can now prepare your items for shipment to Amazon’s warehouses. Properly package and label your items to ensure they are safe and can be transported properly to the fulfillment centers. You can hire the help of shipping services such as Stallion Express to help you ship your products to Amazon’s warehouse.
After packing your products, your next step is to create your shipping plan, print Amazon shipment ID labels, and send your shipments to Amazon fulfillment centers. Once you have created a shipping plan, Amazon will decide which warehouse you will be sending your products. Send your products yourself or hire a shipping carrier.
Once the fulfillment center has received your items, you can start marketing your products. You can reach out to Amazon services sellers to help you out, too.
Market your products using social media, PPC advertising, and paid advertisements.
Becoming a seller on Amazon has its benefits and disadvantages. To eliminate your worries and streamline your business, here at Seller Interactive, we will handle everything from warehousing, fulfillment, and logistics. We will help you grow your brand on Amazon by working closely with your team to manage your Amazon account. If you wish to know more about our services, book an appointment today!
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