Online marketplaces such as Amazon have made it easier than ever to start a business. What’s more, you potentially have access to a lot of customers. This guide addresses everything you need to know about starting an Amazon company.
The Easy Parts of Beginning an Amazon Business
Starting an Amazon business has never been easier. First, you will need an Amazon . com seller account, which usually almost anyone can setup with just a few pieces of information. Next, you will need a bank account, government-issued identification, chargeable bank card, phone number, and tax information.
The whole process of setting up the vendor account is very user-friendly. You’ll receive prompts along the way, so all you need to do is your correct information. You also don’t need to worry regarding creating an ecommerce website to sell on Amazon. You’ll obtain an online storefront with your Amazon seller accounts.
Similarly, finding potentially lucrative products to sell on Amazon shouldn’t be hard. You can use the sales analytics tool like Jungle Search to determine the best products to sell. The tool also helps you analyze the profit potential for your chosen products.
Lastly, you don’t have to deal with the headache of fulfilling purchases yourself if you don’t wish to. The Fulfilled simply by Amazon (FBA) system picks, packs, plus ships products for you. Amazon will even handle customer service for your products so that you can focus on various other essential business features.
The Tough Parts of Starting an Amazon Business
Setting up an Amazon . com business is very accessible. But generating sufficient sales to ensure income can be a challenge. This problem is compounded by fact that Amazon pays out every a couple weeks. In addition , Amazon’s payout system can make it hard to maintain inventory if you rely on your sales to cover the cost.
Another potential challenge of an Amazon business is the competition. You can find more than eight mil sellers on the Amazon . com marketplace. The rigid competition can make it difficult to penetrate the market. Additionally , this competition often leads to price battles. You may even encounter competitors willing to sell at a loss just to gather customer reviews. These retailers later raise their own prices. It’s a poor strategy that does not work and only undermines the marketplace.
Finally, starting an Amazon . com business means that you might be at the mercy of the brand. Amazon keeps a good rein on sellers, which is mostly the best thing for merchants and customers. But you may unwittingly break the company’s rules and get your account suspended. Amazon . com can also change its rules and procedures at any time, and there’s nothing you can do about it.
Starting an Amazon business is still worth it despite all this. So if you’re prepared to leap, here’s the way to go about setting up a good Amazon business.
Step 1 – Generate An Amazon Vendor Account
You’ll need a seller accounts to sell any products on Amazon. Nevertheless , the registration procedure is super simple, and you can get placed in just a few minutes.
Choose Your Plan
Amazon provides two plans, the person plan, and the Expert plan. I recommend the latter. The Individual program charges per sale, while the Professional program attracts a flat annual fee, regardless of how much you sell. So it makes more financial sense if you’re starting an Amazon company.
The Individual program costs $0. 99 per sale. The particular Professional plan costs $39. 99 per year.
Aside from the lower offering fee, the Expert plan allows you to:
- Use on-site advertising tools
- Run marketing promotions such as free shipping
- Add multiple users to your Amazon account
- Use API integration to increase offering efficiency
- Create bulk listings
Sign up Your Account
The particular registration process can be quite simple. Just your requested information within each step. For example , you will be asked for identification, a bank account quantity and routing number, and your credit card details.
Step 2 – Choose Your First Item
Picking your best product is the immediate challenge you’ll encounter when starting an Amazon business. It has an infinite product range to choose from but just a handful have the revenue potential to make the opportunity worthwhile. So , think carefully about your first item, as it could make or even break your business.
Sign Up For Jungle Scout
Jungle Scout is a must-have with regard to Amazon sellers. This sales analytics tool helps ensure that you don’t choose your first product blindly. Instead, you’ll have all the critical information you need to make an educated decision about what to market.
Jungle Search offers three pricing plans. These include:
- Basic – Costs $29 monthly
- Suite – Costs $49 per month
- Professional – Costs $84 per month
The basic plan is sufficient to get you started, but I actually highly recommend the Collection plan. The reason is the fact that basic plan may slow your progress. For example , the Opportunity Finder feature is limited to three searches each day. But you get limitless searches by leaping up to the Suite plan.
Similarly, the particular Keyword Scout, Product Database, and Supplier Database are restricted to three daily searches with the Basic plan. Again, you can get unlimited search on all these functions with the Suite program. You can still opt for the Basic plan in case you are okay with the limitations. It is still a great option if you are individual.
Search for Your best Product
Now you can use Jungle Scout’s catalog of more than 475 million Amazon items. You’ll find the Item Database feature on the navigation menu, around the left-hand side of your screen. It will be under Product Research.
Following, select your preferred item category. Then, filtration system the results according to your own most important factors, for example price range, sales position, net price, reviews, revenue, and rating.
Jungle Scout furthermore lets you see possible products depending on minimum and maximum income. For example , you can established your desired income between $4000 plus $7000 per month. Jungle Scout will show you the items that make that type of monthly revenue.
Choose Your Item
Jungle Scout is an excellent tool pertaining to exploring potential products. First, make a list of all the products that meet your criteria. After that, pick the one you might be most passionate about. It’s hard to sell a product you don’t understand anything about. In fact, customers may be searching for you to offer help and advice or solutions along with your products.
Another thing you need to watch out for is competition. The particular Amazon marketplace is saturated with retailers. So you want to give yourself a good opportunity to penetrate an currently crowded market. For this end, stay away from items that Amazon itself sells. They’ll beat you on price every time.
Thankfully, Jungle Scout allows you to see which products Amazon sells. Simply apply the Seller Type filtration system to get this information. You can also see which some other products vendors within your category are selling.
Lastly, watch out for seasonal items. You want products that sell reliably throughout every season. Seasonal products reduce the consistency of your month-over-month sales. Additionally they limit your lucrative months. Cash flow will probably be an issue, especially in the starting. So choose a product you can count on to create consistent sales.
Step 3 – Source Your Product
Finding a product to sell is only one part of the puzzle. You now need to figure out where to get it. Fortunately, this step shouldn’t be therefore difficult.
Search Suppliers With Bush Scout
You might want to start with a household supplier when getting started with your Amazon business. This route may even be cheaper compared to international suppliers at this point of your business. You can also get products to your customers faster, so you don’t have to deal with the complexity of worldwide suppliers.
Jungle Scout can also assist you in finding suppliers. The device has a database of global suppliers, complete with confirmed shipments and customer volumes. Rainforest Scout also allows you to find niche providers and ones that can fulfill small order quantities.
Figure Out Delivery
You’ll also have to figure out how to get items to your customers. The very first option is to do it yourself. This option is known as merchant-fulfilled in Amazon circles. Here, you’ll have to store and deliver your own products. In addition , the customer chooses the delivery timeframe. You’ll be expected to deliver the product based on this timeframe.
Alternatively, you can choose Satisfied by Amazon (FBA). With this option, you send your supply to Amazon. The company scans your products and makes them available for sale. After that, Amazon packages plus ships your items directly to customers. The service also collects payment on your behalf and even handles customer service.
The latter option much more attractive but it can take some time to set up. FBA may also not be an alternative to many new retailers who don’t have the track record for high turnover. Either way, it is an option worth discovering for your Amazon business.
One last thing to think about is the product size. Ideally, your products should be easy to deal with and ship. You may want to stay away from fragile products, especially for a new company. Think about starting with points small and lighting to lower shipping costs.
Get Product Samples
Be sure to ask for product samples just before committing to a supplier. Product samples are usually inexpensive and will confirm that you are selling top quality items.
In case you qualify for FBA, consider having your supplier deliver the products directly to Amazon’s warehouse
Step 4 – List Your Products
It’s time to put your own products up for sale. List your products on Amazon makes them instantly available for purchase. Amazon offers a broad audience, so there’s a good possibility of creating a profitable business– but it still requires work.
Listing Your Products
Go to Seller Central > Inventory > Include an Item . Even though Amazon offers the option to list your products in bulk, I recommend doing so individually. You’ll be able to get a detailed look plus an intimate understanding of the items you are selling in this way, which is crucial to get a new business.
You will be required to enter 3 pieces of information: the cost, item quantity, and its particular condition. Then you’ll upload high-quality pictures of your product.
If you don’t have good images from your supplier, take the time to use the examples you ordered to consider photos from multiple angles and in different lighting.
Cost Your Products
The first consideration whenever pricing your product is your desired profit margin. To this end, consider all your expenses. Don’t forget to include FBA fees, Amazon recommendation fees, storage fees, and all other expenses you incurred. You have to be aiming for a profit perimeter between 25% plus 30% to make your company worthwhile.
You can use Jungle Scout to see your product’s average purchase price on Amazon. Then, you can use the number of to determine your maximum price. Finally, think about your minimum cost. This figure ought to be the amount you need to break even after factoring in most your costs.
Phase 5 – Begin Selling
You’re now ready to start your Amazon business and start selling. Nevertheless , there’s still some work to do to increase your chances of running a prosperous business.
Think About Branding
A lot of manufacturers offer white-label opportunities. This means that you can have the products branded with your logo or tag. This is an excellent chance to set yourself in addition to the competition.
Think about also branding the particular packaging with your logo design. Again, many manufacturers offer this flexibility for little or no extra cost.
Market Your Business
The best place to begin marketing your Amazon business is with Amazon . com ads. They offer decent conversion rates. It’s alright if you don’t have a lot of cash to spend on advertising. Start small plus scale your ad campaigns as your company and revenue develops.
Other advertising opportunities to look into include Pay Per Click (PPC) campaigns and social media advertising.
Gather Product Reviews
Product reviews are a great way to build your credibility in the Amazon marketplace. You can include product inserts politely requesting customers to review your products or include it in the email confirmation when people order. But you may need to figure out how to make leaving reviews worthwhile to your clients, such as offering a little discount on a long term purchase.
You can even use social media platforms like Twitter, Facebook, and Instagram to request product reviews from users.