The biggest shopping season of the year is wrapping up on the biggest shopping marketplace in the world. Where is that? Amazon, of course! Since you can find just about anything there, this is the place most people do their online shopping. Including YOUR potential customers. Are you considering selling on Amazon using FBA in the new year? Now is the time to get started if you want to hit the ground running in January.
First of all, what is FBA?
When you are shopping on Amazon, you will notice that the product you want might be available at several different prices from several different sellers. Some of those sellers may or may not be named specifically—you just see the cryptic words, “Fulfilled by Amazon.” (Hence, FBA.)
Why Use Amazon’s FBA Instead of Selling Directly?
If you find yourself spending the bulk of your time for your business taking orders and shipping them out, then you have a problem. A good problem, but a problem nonetheless. The good news is: you have lots of people interested in your product. Hooray! The bad news is: You don’t have time to do anything else. Boo. With FBA, all your inventory goes to Amazon’s warehouse, and they take care of filling the orders for you as they come in.
Since Amazon charges a flat $40 fee for this service, you should only consider it if you are making more than that in a month to cover costs. Otherwise, the $1/item fee charged by Amazon marketplace might be more what you are looking for.
How Do I Start FBA?
Find a Product to Sell
After doing your research (here’s a site that can help you), you should have come up with a product that is already selling well on Amazon. Your next step is to try to figure out what adjustment you will make to it to make it unique. Once you have done that, you are ready to get in touch with us at Private Label University to move the process along.
Get a Supplier to Make Your Product
You will want to make a list of about 10 different supplier options and compare them for samples, international availability, and most importantly, prices and terms. Some popular suppliers to try could include: alibaba.com, aliexpress.com, and globalsources.com. These aren’t bad options if you’re just starting out, but you may expect to see smaller profit margins. Or, you could go directly to the source at the Canton Fair in China. By cutting out the middle man and working directly with suppliers, you could see a much bigger profit on all your products. Our next trip is in April.
Set Up a Listing on Your Amazon Account
If you don’t already have an Amazon account, consider setting up either a professional or individual account. The professional account is for those with more serious volume aspirations, as it offers more options to help you (at a cost, of course.)
Once you have an account, click “Start selling” to get to the catalog and make a listing. There are many steps to getting this step right, which is why you can surely use the help of Private Label University.
Ship Your Product
When you create your listing, you’ll then move to the portion on shipping. You will enter your supplier’s address and the amount of the product you have to sell. Amazon can do most of the rest of the work, if you elect for them to do so.
Get More Sales!
Even though you have just outsourced your distribution, you still have plenty of work to do. The most important way to get sales is to get reviews for your product. So, get the word out and sell, sell, sell! The more reviews you have, the better the chance your product will be shown on one of the first pages of a search.
Still looking for guidance in selling on Amazon FBA? Our latest book has a whole section on FBA, and it’s packed with all the information you need to start private labeling. You can also book a one-on-one call with us, sign up for our free boot camp, or join us in Colorado for classroom training and hands-on experience. See what Private Label University can do for you today.