Do you want a successful side hustle (or entirely online employment) to supplement your day job?
Do you have the urge to manage your own internet business?
Are you looking for a quick start when you leave college to enter the workforce?
If your answer was yes, you are the right person to use my guide and take advantage of the Amazon FBA business model.
Towards the end of this article, I’ll answer some of the most frequently asked questions about how to start an Amazon FBA business and other online alternatives.
Steps To Starting An FBA Business And Creating An FBA Business Plan
Let me help guide you in setting up your FBA business now that you’re curious about this great opportunity with high-earning possibilities.
These are the procedures you should take before selling things on Amazon.
To get your FBA business up and going, all you have to do is follow their instructions.
Step One: Create An Amazon Seller Account.
If you’re starting an Amazon business, you must have an Amazon Seller Account. Although you may postpone this step, creating an Amazon Seller Account is worthwhile if you’re serious about beginning an FBA company.
Individual vs. Professional
It’s important to decide upfront whether you wish to be a professional or an individual. The difference between them is:
- There is no monthly subscription fee for an individual account. You will still be subject to many limitations because this account is free.
- The monthly subscription fee for a professional seller account is $39.99. However, you need not pay any additional charges the first month you set up your account. The individual account’s limitations don’t limit your freedom.
If you are just having fun, such as when you were a child with a lemonade stand or hosting a garage sale, the individual account is fine. But, someone who wants to build an FBA company should go straight to the professional account.
Step Two: Pick Your Niche.
The most difficult aspect of starting an FBA is deciding on a niche. When you are ecstatic about a new chance, you will want everything.
You can pick your niche and then determine how you will fit in the world of e-commerce. This is why a structured approach works best. Here are some steps to follow to achieve that structured approach:
- Think of the areas you’re passionate about, and then make a list. It could be from hobbies, specific interests, work experiences, books you’ve read, extensive research, etc. They can be from any place, and they should if you are thinking outside the box.
- Develop a list and brainstorm all product lines you can create in each area.
- Focus your marketing efforts on niches. One example would be someone who loves to garden. The term “gardening products” can seem very broad in marketing. So you might want to focus it on garden weeding tools or designer flower pots.
- Simplify your selection of niches and narrow it down to a few products, about 3 to 5.
Choose items or niches you are passionate about to be more prepared when writing copy, blog posts, or hosting podcasts. Once you have narrowed the scope of your topic, move on.
Step Three: Research Products.
They claim here is when “the rubber meets the road.” Even if you are enthusiastic about your specialty and your goods, starting a company selling them to people is a wholly different notion.
You must perform product research in the niches and regions of interest. Here are the procedures you must follow to do product research.
General Product Looks
General internet searches can provide you with a better understanding of the product options in your area. Begin by looking for what you want on Amazon, eBay, or other large shopping sites.
Use Jungle Scout, Merchant Words, And Other Keyword Tools
This keyword tool can help you assess the demand for your items. These are used to determine whether or not your product appears in keyword searches.
Best Seller Rankings
Amazon BSR doesn’t have to be your first concern when deciding whether to sell a product. However, they provide an overview of which items and product categories are most effective in attracting purchasers.
Additional Tools To Conduct Market Research
There are several excellent tools available for doing more in-depth market research. You will have access to a variety of knowledge and know-how that you will be able to comprehend. Jungle Scout is an effective FBA market research tool. Other market research tools are as follows:
- AMZ Scout
- AMZ Base
- Ebay’s tracking system
- Unicorn Smasher
After narrowing your product listing to a selection of products or a specific product category, it’s time to check Amazon’s resources to see what FBA fees are associated with the product.
These fees will be based on several variables, including the product’s size, shape, or weight. FBA fees are something you should try to minimize to help reduce your expenses.
Additional Product Research Tips
Following the steps above should help you narrow down your products from the vast brainstorming list. If you’re unsure which products you should choose, you can launch to the next stage. These additional tips might be of use:
- Don’t compete with well-known and established brands or products. They have marketing strategies, budgets, and other tools that you simply cannot compete with.
- Consider these options if you are looking for bulk items or clearance items from retailers. It allows brands to sell and helps build your business. It can be challenging to keep these products coming, so don’t base all of your FBA business on it.
- Additionally, You can use local retail stores to find items for market research. You can do this by using a bar code scanning application on your Smartphone, such as the Scoutify app or Amazon Sellers app.
Once you have completed these steps and used the additional marketing research tips mentioned above, you will have established your niche.
Step Four: Establish Your Product Sourcing.
It’s one thing to create your first product or product line. But there is another step you must take before you can list and sell products. You need to identify the sourcing source for your products.
You will still have nothing to sell if product sourcing is not done. This can be time-consuming as you need to find reliable suppliers with the best products.
You may not need testing if the products are already in your possession. To save money, you might consider generic market items. You would still want to provide the best quality products for your clients.
Before you can decide whether these are high-quality products, you will need to see samples.
Find A Supplier.
When sourcing suppliers for your products, the most important thing is cost. Here are some ways to find suppliers for your products.
- Suppliers from abroad
- Local Trade Shows
- Clearance and bulk orders from local retailers
- Local manufactures
- Private label products
Shipping costs can make it very difficult to sell wholesale products at a profit. When selecting your supplier, consider shipping costs.
Consider all the rules and regulations that apply to international shipping.
It is not only important to pay shipping costs, but it can also make a big difference in products that sell quickly. You will lose sales if your supplier cannot restock an item quickly.
Note that government rules and regulations may delay shipments. Plan well to ensure your product remains in stock.
Ship Your Product.
Once you have identified the source of your products, you will need to purchase and ship your initial order.
You can ship them yourself and then have them ready to ship to Amazon Fulfillment Center. Advantages of Amazon Fulfillment Amazon has over 175 fulfillment centers across the globe, with over 150 million square feet of storage space.
Amazon will give you specific guidelines about preparing or shipping your order.
Step Five: Establish Your Brand.
This step could be handled earlier when you set up your FBA company. However, since your first batch will not be shipped until then, it’s an excellent opportunity to start your own brand. A unique brand is a distinct and identifiable mark that identifies the person and product offering. There are many steps involved when it comes to branding.
Name Your Brand.
You have now narrowed your selection to one or more products that you will offer as your first FBA product.
You need to think beyond the brand name and envision what your FBA business looks like in five years.
What products will be offered in addition to what you already have? With that question in mind, you can name your brand. It’s possible to name your brand in a way that will cover all of these brands.
Create Your Brand Logo.
If you’re a graphic artist, it’s possible to create your logo around the chosen brand name. If you aren’t a professional graphic designer, get some ideas together and ask an associate or friend who can assist you.
You should keep it simple and avoid complex colors. A logo that is too complicated will result in higher printing costs and reduced clarity when it is scaled down.
Fiverr allows you to hire someone to draw your logo. You can also consult family and friends for help.
Create Brand Themes And Tag Lines.
In addition to a brand name or logo, you will also want to create brand themes.
Copyright Your Logo And Brand Name.
After spending so much time developing your brand and logo, you should form an LLC and register your brand. For more information, visit the U.S. Patent and Trademark Office website.
Step Six: Create Your Product Listings.
Your FBA is now ready to list your products. This is where you will need to focus your best thinking and creative energy.
It has taken a lot of work to get your FBA business up and running! Create product listings that give sufficient information to help your potential customers make an informed purchase decision.
This will ultimately determine your income, so you need to choose wisely.
Step Seven: Marketing Your Product.
Your product listings should be professional-looking and attractive. You’ll get more product sales because you are listed on the largest marketplace in the world.
You will need to get the attention of potential buyers to turn inventory over and make sales. FBA advisors recommend that you “advertise” your product.
Here’s how you get the word out.
- PPC Advertising
- JumpSend offers a platform that allows you to send money.
- Encourage lots of product reviews.
- You should not launch a brand new website or blog.
- Social Media
- Podcasting and Vlogging
- Buildup Your Email List
- Use Coupons & Special Deals
Wrapping It Up
FBA business models leverage the power of Amazon’s fulfillment function and warehousing capabilities to make it simple to set up and grow a high-profitable business.
Depending on how much effort, time, and money you put into it, you could generate a decent side hustle or even replace an existing job with your business. What would you do without the need to get up each morning and go to work?
These seven fundamental steps will help you create an FBA side-income business and can generate sales more quickly. Focusing your efforts on a single goal is crucial.
There are plenty of resources out there that will help you launch your FBA business at a higher level.
How Many Third-Party Sellers Use FBA?
There are more than 2 million third-party sellers on all Amazon marketplaces.
How Much Does It Cost To Start An Amazon Business?
To kick-start an Amazon business, you’ll need at most $5,000. This includes storage and inventory costs. If you plan to purchase 500 units of small size, this is a conservative estimate.
Do I Need A Business License To Sell On Amazon?
To sell products online, including on Amazon, you don’t have to obtain a business license. Because most of the products sold on Amazon don’t have Federal regulation, this is why. Most products sold online are consumer goods that do not require approval from the government.
What Is My #1 Recommendation For Making Money In 2022?
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve drop-shipped a toilet bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
That being said, my #1 recommendation for making real money online is, hands-down: being a Digital Landlord.
Whether you’re a complete newbie or you’ve been around the block before but have never had that “big win” to propel you forward, becoming a Digital Landlord is for you.
1)Time: You can do this if you’ve got a spare hour or two each day. If you want to drop everything and go all-in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
2) Ownership & Control: With Amazon FBA, you don’t technically own the customer base.
Amazon could literally shut you down overnight. They have a history of kicking suppliers off their platform or stopping payouts to affiliates for certain products once they’ve built their own.
Why pour your soul into a business that could be taken away from you at the drop of a dime?
When you’re a Digital Landlord, you literally own all of the assets, which means you have ultimate control.
3) Big Margins: With FBA, you’re often going to have really slim margins. That means you need to hit a serious scale to make serious money. This usually entails spending A LOT of money on ads and other methods for growing traffic to your product.
Being a Digital Landlord, your profit margin is nearly 100%. Watch here to learn how.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort put into creating the next property decreases.
Best-case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.
4) It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with Amazon FBA, you would need to sell twice as much inventory, or double your profit margins. And I can guarantee you (from my fidget-spinner FBA days), that’s a lot harder than a few clicks & a phone call.
5) You’re Helping REAL People: My biggest gripe with FBA is that you’re basically only helping yourself. The world doesn’t need another B.S. gadget to consume.
It’s cool in the short term to make a quick buck, but it gets really old, really fast in the long term.
But when you’re a Digital Landlord, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
We’re not helping Jeff Bezos shoot another rocket into space – you’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other FBA programs, which might make you money 12 months from now.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.