You can encounter a similar kind of experience when you are introduced to the world of Amazon. Most people believe that Amazon is simply an online store. Where we go to buy stuff for our daily necessities.
But did you ever thought where all the products are coming from? Is amazon buy things in bulk to sell them to us or they have a special deal with all the manufacturer in the world? The answer is neither. In 2004 Amazon came up with the most brilliant e-commerce idea of all time. They went from online book store to everything store.
To make that vision come to reality, they went out and bought big warehouses and started amazon third party seller program where people like you and me can start a business online and can sale things in their platform.
It was not an instant success for amazon. No one believed online marketing and starting a profitable online business is possible. It was only after the success of online marketing in a large way that their perspective changed. People slowly realized the potential of the online marketing and how to capitalize on the biggest e-commerce boom in the history of the world.
The policy of free refund and replacement was one such strategy that changed the perspective of the online buyers. Most of consumers were Skeptical about shopping online as they were afraid that the delivered product could be different from what had been ordered. Similarly, they were skeptical about the authenticity and credibility of the brands being sold online. Once the system of free replacement, was initiated, there was no looking back.
Today I will share with you how I want went from $0 to $25979.99 in last 30 days starting with Amazon FBA. Before I start Please understand my results are not typical. I’m not implying you’ll duplicate them (or I am not guaranteeing any result). I am doing this for a while and my soul purpose behind this blog is share with you all the steps that I took to get where I am at. I hope my information helps you to start your journey online and hope that you will take action after reading the blog post.
Now I am not a newbie with Amazon. I did do Dropshipping with Amazon before and but recently I started to move into Private labeling my products and it was an absolute game changer for my business. So I thought to share my journey with you about what I did and how I got to where I am today. Hopefully, it will help, inspire and guide you to start your own business with Amazon FBA.
What is Amazon FBA?
There is no need for you to slog through pages or go through blogs to understand how does Amazon FBAwork. FBA stands for “Fulfilled by Amazon”. It reflects a simple mechanism where in Amazon encourages various third party vendors to get associated with Amazon and sell their products online through Amazon.
You might be a complete newbie who is skeptical and confused about the whole process right now. Trust me all the successful seller like us were on your shoes one day. By the end of this blog post you will be excited, cause I will hand you my complete blueprint step by step and You will be able to start your own Amazon FBA business in no time.
I learnt about Amazon by taking different courses from UDEMY since 2016. But I did not get started until 2017. That’s when I started drop shipping in Amazon. I would list product from different vendors in Amazon and would run ads for them. Once the product was sold, I would reach out to the product manufacturer and would simply let them ship the product to the buyer. This type of selling also known as Retail Arbitrage. It was a great learning experience but the margins were too low. But then I started digging and finding product that has a high demand and low competition and I started sourcing products from China. I started customizing the product that sells, put my own logo and start sending them to amazon warehouse.
Don’t get overwhelmed by what you have read. I will take you Step by Step what I did so you can follow my footstep to do same.
Don’t hesitate to ask questions
I have always come across people who is hesitate to ask questions and do not proceed due to ignorance or rather lack of knowledge. In the beginning, I had lots of confusions and was very skeptical about the whole aspect of selling online, but when I started asking question and got answers for my questions, my doubts got removed.
The more you ask, the more you can learn about the ins and out about the topic that you are interested about. So if you have any question after reading this blog, leave a comment below and I will reach out to you help you out.
Benefits of the Amazon FBA Program:
When I wanted to start a business online, I had various ideas in my mind. I always wanted to have a hands free business which could run and operate without me being there all the time. Then I found out about Amazon FBA program, through one of the Facebook videos. I dug deep into it and went to YouTube and Udemy to learn more about it.
Though I took a few courses in 2016 I did not start my Journey with Amazon FBA until early 2017 when I really saw the opportunity. Other than Amazon holding the inventory, and handling the shipping and returns behalf of the third party sellers, there are many benefits of starting a business with Amazon. Here are few of the benefits:
- Amazon is a well-known ecommerce platform where people go with the intent to buy. Product gets noticed easily and commands a lot of attention from the prospective customers. Also, Amazon throughout the years build a strong bond and trust with their customers, which is the hardest thing to accomplish.
- When you send inventory to amazon warehouse your product becomes part of the Amazon Prime Program. So the buyers gets the advantage of fast delivery. i.e. within two days Free Shipping. Faster delivery increases the sales and that’s not a secret.
- Amazon manages shipping, returns and billing. The sellers don’t need worry about logistics, supply chain any other hassle of dealing with the customers directly. Amazon handles it all for you for a small fee.
- You don’t need to own a warehouse. Amazon get you covered for that as well. You can simply slap a label and send the product to amazon. No need to worry about piling inventory in your garage or bed room.
How costly is Amazon FBA?
As you can already see, there are a lot of advantages selling on Amazon FBA but these are not free. Amazon does charge sellers for providing all these services. How much amazon charge depends on what type of product you sell and how big is the product. In order to get better idea you can use Amazon FBA Calculator, which will give you a better idea about the cost and profit.
In general, Amazon charges 15% commission from the items that are sold from your end. The best part is – you need to pay the commission once the product is sold. That makes it a win- win situation for you and Amazon. The commission that you pay, known as the Amazon FBA fee.
Apart from the selling fee, sellers also need to pay Fulfillment fee to Amazon. Don’t worry about that as it will not break your bank. This fee completely depends upon the size, weight and product category. It varies from product to product and you need to identify under which product category does your item falls so that you can calculate the cost to be incurred.
Now let me walk you through how I made $25,979.99 In 30 Days Step-By-Step.
Before we start I want to show you few ways you can really make money with Amazon. You don’t have to start private labeling product. I started with dropshipping products in amazon. You can chose one of the following from below to start making money with Amazon FBA –
- Private Label products by putting your name and logo on the products
- Through Retail Arbitrage.
- By selling used or returned products.
- By selling products as a wholesaler.
It completely depends upon you, what you really prefer to start your business with. But I will show you how I made money through private labeling products. Later on I will have content related to each one of those topics.
What Is Private Labeling?
Private labeling product means simply find products that sell on Amazon, make them unique and slap label on the top of the product. You can private label any product as long as they are not trademarked by the big selling brands.
“Private Label products” give uniqueness to your product and an opportunity to differentiate your product from the competitors. You can price the product based on your preference where you can make decent profit after the Product Manufacturing Cost, Amazon FBA fee and Shipping fees.
How to Sell Private Label Products?
Launching private label product is quiet easy and straight forward. You just need to follow few steps to introduce your private label product. Here are few things you need to consider in order to start private labeling your products-
It’s very important for you to be clear and focused for the product you intend to sell it as private label product through Amazon FBA. Using tool like Jungle Scout Web app could help you to determine a potential winning product and whether it has a good opportunity to sell that product. If you have no idea how this tool works and how you can find potential winning product using this tool you can check out the video where I share my exact strategies using jungle scout to find potential winning product.
Once the product gets decided, you now need to plan how to source or manufacture it. If you have an existing manufacturing you are quarter way done. If you don’t have manufacturer yet, you can always rely on manufacturers from Alibaba.com You will be able to find trusted seller on that platform who will be able to make any products based on your specification.
Step 1: Start With Researching For A Potential Winning Product:
Alright, the first step to start your business profitably, is get your research done the right way. Specially in this day and age, researching deep to find a potential winning product might be bit harder than the past. But researching never been so easy either specially all the tools available in this day and age. I use Jungle Scout to Research product that I want to sell in Amazon. Watch the video below where I walk you through how to research the product and find a potential winning product.
Step 2: Find Trusted Manufacturer From China
Next You have to find trusted seller who can make the product based on your recommendation. I use AliBaba and AliExpress to find trusted seller who I can work with for a long period of time. Also, both Alibaba and Aliexpress gives their seller the buyer protection so you will not going to get scammed or if the product is damaged you will get your money back. Finding a trusted seller in Alibaba is very easy. Just navigate to Alibaba and selected the Trade Assurance and Gold Supplier Boxes. This will filter out all the top seller from AliBaba –
To learn about finding trusted seller in Alibaba, Checkout this Video where I explain everything step by how you can find trusted seller using Alibaba
Step 3: Get Sample to See the Product Quality:
Getting sample is the next step on the stage. After you contact with few manufacturer, you need to get SAMPLES from few of manufacturer, in order to compare the quality of the products with different sellers, as well as the price point of the product. Getting sample is pretty straight forward. Speak to few sellers and pay them the cost for the sample and shipping cost to send you the product that you wanted. I usually get 3 samples and ask my manufacturer to send me the sample via air express shipping. it cost me between 30 to 50 dollars to get each samples.
Step 4: Create a Bulk Order for Your Products:
Once you have selected the right sample, and found the seller you worked with, you can then place a bulk order with the manufacturer. It’s pretty easy to place a bulk order with Alibaba. Make Sure you place the order using Trade Assurance where Aibaba will provide you with seller protection for your money, if the manufacturer screw up, you will be able to get your money back. Checkout the video below where I will guide you through the steps of how to securely place order with Alibaba –
Step 5: Create an Optimized Listing in Amazon Seller Central for Your Product
Alright now its time to create a optimize listing on Amazon Seller Central. First you have to create an account with Amazon Seller Central. I always prefer everyone to get a professional account with amazon seller central as it gives you all the benefit as an amazon seller. After signing up then you will be able to create your listing for your product as well as control your complete business on amazon. If you never created a listing before this video will show you how you can create killer listing in amazon start to finish. Just watch the full video and you will learn it all.
Step 6: Sending Your Products To Amazon Warehouse
Now that have done all the hard work it’s time to send all of your products to Amazon Warehouse. It’s not hard and you can do it from your seller central account. Just give it a shot and it’s very simple and easy. Just make sure you inspect your product yourself to weed out any damages good from the bulk order.
Step 7: Run Some Ads.
Once your product has reached to the warehouse, you will be able to see the listing getting activated in your seller central. Now it’s the time for you to run some ads –
Now that your product is up and live, start running few ads Start With Manual and Autobids Ads for your listings. and measure your result after a week to see if your ads are really making some sells or not. If they are scale. if they are not give it another week. After two weeks you will have some data to judge your ads and your products. Based on those data you can scale your product and optimize your ads.
How To Stand Out from the Crowd and Get Sales Fast:
There are millions of products being sold online. If you add one more product, what difference shall it make? Don’t you think that all your efforts shall go in vain if you or your brand is not noticed? It’s quite easy to say that your product should be unique. But is it easy? It can be done only if you strategize in such a way that you position yourself completely different from your competitors. Your brand should belong to a product category that is high on demand and low in competition. But thats not the only thing you should be focusing on. You should also, find ways to improve your products from your competition. How can can do that? Simple read the 1 and 2 stars of your competitors listing and improve on their downsides of those products –
“Opportunity Score” can be an excellent resource. It is software from Jungle scout that base all the findings on proven algorithms. Using this app, you can very well judge whether selling your product as a private label at Amazon will be profitable or not.
If you want to get some initial feedback and sales for your product, you can list your product in Jump Send. You can follow direction from their website to get some initial attraction for your products.
The main focus to be unique and distinctive is have the potential of attracting customers to your product. It can happen only when your product is well researched and possess attributes that are important from the customers view point.
How much money you think you can make through Amazon FBA?
How much you can make on Amazon is solely depends on you. I ways prefer anyone to start small in order to understand the business model. Once you have understand the process, the next step is scaling your business. There would be no limits to your earning potential. All you need to do is rinse and repeat the process again and again and add more variation of the product to the stock. I know someone who made $60 Million last year with Amazon FBA. So you can imagine what is waiting for you.
Talking about figures, in US alone, Amazon serves over 100 million consumers per month. Can you believe that? Just imagine the volume and turnover the sellers must be enjoying selling their products through Amazon.
This has not been possible in just a year. Amazon has given twenty years to reach this position, and well now once the things are established, you are lucky to reap the benefits!
The best part to be associated with Amazon as a seller is that the programs like FBA (Fulfillment-by-Amazon) and ASC (Amazon Seller central) is that you can run your business on an auto pilot mode, where you do not need to get involved in the series of day to day operations, as everything gets controlled and operated by Amazon smoothly.
If I need to plan your monthly revenue from Amazon, I can closely estimate that on an average you shall be able to sell approximately 250 to 300 units per month for each type of product, if you did your research correctly and differentiate yourself in the marketplace.
There are certain costs to be considered before calculating the profits. These costs relate to Amazon fee, promotion costs and the actual cost of the product.
If you are able to control and manage your expenses and costs to a considerable extent you can expect a minimum of $10 to $15 profit per product.
Multiplying the profits with number of units sold, we can estimate that you can easily make $2500 to $ 4500 per month.
This is the estimate for one single product. There is no limit to how many units you can sell on Amazon. So, the question “how much money I can earn on Amazon” shall completely depend upon you and your caliber!
Why Did Your Product Sold So well?
The products that sell well on Amazon are well researched and properly listed at Amazon. If you are interested to know about why did a particular product, sell well, you simply need to understand the strategy followed by the seller.
Amazon product listing is huge. It sells millions of products online, and that gives a customer a lot to chose from.. You get to browse through million of products online, that gets practically impossible. So you need to make sure that your Amazon Listing is better than all other listing from your competition, period. How you will be able to achieve that? Pretty Simple. Emulate your top 5 Competition closely and come up with a better listing with rich keywords. Over time while you are getting sales from the promoted listing and other promotions your products will then be listed on the first page automatically.
Also, you can improve on the other factors which boost your product to the first page of amazon. You can go out there and get product feedback, seller feedback from your customers which will then going to boost your listing and will make it trust worthy to the people who sees your product.
If you wonder how a product can do so well at Amazon, be clear that the seller used certain specialized software apps to find the potential winning product to sell and also created an optimized listing for the product. For instance, using Jungle Scout web app you can spy on your competition and steal their strategies and product ideas in matter of minutes. Also, you can find similar products, which has a lot of organic reaches or belongs to the first page of Amazon to find keywords, to create an optimized listing for your product.
If you further want to know how a product can sell so well, you can check its ranking using the Splitly app. With this app you shall be able to understand how a product reaches a particular rank and what the customer’s reviews are on it.
Which Keywords are preferred while Listing Products In Amazon?
If you want to list your product at a high rank, you should prefer long tail key words, so that your product ranks quite high.
It is highly recommended that you use long tail keywords, so that you are able to get your product noticed easily. Long tail keywords are three to four keyword phrases that customers connect to immediately. For instance, “Best coffee maker”, “most stylish cowboy hat” are three to four keywords that hit instantly with the customers online search.
When customers search a product online, they do not simply search for a “hat” or a “printer” or “a microwave”. The search usually focuses on “the best hat”, “most affordable printer” or “the low-cost microwave”.
So, if you want that your product should rank high at the Amazon product listing you should use long tail keywords that gives a best description of your product and meets customer’s expectations as required.
Ranks are extremely important. If you get successful to get your product listed on the first page, there is a possibility of 75% conversion. It has been observed that first three listings on page 1 get at least 60% of clicks.
Only 20 to 25% shoppers browse through the second or the third page. So, it is inevitable for any seller to maintain their products on the first page.
There is a lot of difference between rankings on Google and that on Amazon. People browse Google to get information. People browse through Amazon to shop. There is a clear distinction between both of them.
Hope you can understand this difference quite well!
Only serious shoppers shall log onto Amazon. Thus, it is very important that the product is listed or gets reflected on the first page.
You can always take the help of A9. It’s a highly specialized and discreet tool that guides you well on Amazon product rankings and the use of long tail keywords.
A9 discusses everything on product performance and various factors that contribute to the rankings and conversions. It also discusses various relevancy factors that are important for every seller to understand and implement.
Final Words, if you made this far then you are definitely committed to start your own business online. If you still confused and need some guidance you can sign up for this free course, where I walk you through step by step how I started and scaled my business to $25K per month. In this video guide I walk you through every step that I took to get my result, so you can follow my blueprint and get started as well.