How To Sell On Amazon FBA Like A Pro
How to sell on Amazon fba – a very common question I encounter when people knew of what I did in business. How to sell on Amazon - selling on Amazon is very lucrative IF you know how to do it right! When I was selling part-time, I used to have a five-figure sales in a year.
Over all, these are the questions that people do asked:
* How to sell on Amazon
* How to sell books on Amazon
* How to sell things on Amazon
* How to sell stuff on Amazon
* How to sell something on Amazon
* How to sell items on Amazon
* How to make money selling on Amazon
* How to sell on Amazon FBA
And these questions do have one thing in common – they want to know how to make money through Amazon!
Speaking of making money, there are links in this blog that may be affiliate links whereby I may be paid if you click and purchase anything through these links.
Why I Like Selling On Amazon:
- Physical store – you need one, either you own it, or you rent it. Can you imagine how much to rent a store? In many circumstances, it is more expensive than renting a house or an apartment. Mostly, you will be need to pay per square footage of the size of your store.
- Employees – you need someone to help you sell your products and to handle them. You need someone to handle returns or do customer service, cashier, cashier, janitor, accountant, driver, guard, and what else? You name it. And what is the minimum wage you need to pay your employee in your state or country? Research it.
- Other bills – including electricity, water, liability insurance, advertising, and more.
The above three things comprise one of the biggest overhead cost in a brick and mortar store. They may or may not be present in your online store.
Example: you can do online selling even from your own home when you do online selling. In our example, if you sell through Amazon, Amazon becomes your storefront. That eliminates the biggest chunk of your overhead expense.
Advantages of Online Selling
With online selling, it is possible that you may not hire any employee if you can do it by yourself. That can certainly reduce your overhead expense without having a need to pay any salary for not having a regular employee.
And some of the other bills mentioned above may not exist in your online business, depending on how you do it, which one you need and which one you do not need.
Before I proceed, let me clear up what FBA means. FBA is an acronym for fulfilled by Amazon. There two ways by which I can sell through Amazon – by fulfilling the orders myself (merchant fulfilled) or through Amazon FBA.
In fulfilling orders of my customers (merchant fulfilled), I need to store my own goods in my own house, or any facility I may want. Once I have orders, I pack it, and ship it to my customers individually. If a customer has complaints, I have to do the customer service, and possibly take care of returns. Now, you can easily do this if you only have one or two orders in a day.
However, when you want to do business seriously, you need to think of scaling your business. Can you handle your sales if you have 20 to 50 orders in a day? Considering that Amazon wants all their sellers (that includes you if you become one) to ship the orders as fast as possible for a better service to Amazon customers. In this scenario, you may be forced to hire employees too.
The Beauty of Fulfillment by Amazon
From personal experience, here’s the beauty of fulfillment by Amazon with the fees I paid them.
- Storage. I may not have a physical store, yet I am able to send all the goods I am selling through Amazon to their many different fulfillment centers throughout the US. They assign me to which fulfillment center I should send my goods. Whenever I have an order, they will ship my goods to my buyer from the nearest fulfillment center that stores my goods. By so doing, they are able to deliver in a short period of time even with their customers who are Amazon Prime subscribers.
- Pick and Pack. Amazon does the picking, packing, and labeling of the packages to the buyers. I do not have to do that individually even during peak seasons like Christmas season. I do not have to worry about buying packing boxes and the individual labels in packing the shipment.
- Shipment. The individual orders through FBA are shipped by Amazon from their fulfillment centers. I do not have to line up to the post office or bring my shipments to UPS or Fedex.
- Customer Service. One of the biggest headache in retail is handling customer complaints. Whenever a customer receives a damaged product, or their ordered was not delivered, I do not have to worry about that as this is handled by Amazon.
In essence, although I am able to eliminate a big cost of rental for a physical store, hiring my employees, and other bills, for a reasonable fee, I am able to avail of the FBA services of Amazon which covers storage of my goods, picking and packing of individual orders, shipment to customers, and handling customer service. All that I have to worry is where and how to source my in demand products, and shipping them in bulk to Amazon.
You too will benefit these things that I have experienced. Would you like that?
How To Sell On Amazon
Once you have opened a seller’s account, you will be able to access the Amazon Seller Central where you will be able to post the goods you want to sell, see your orders, see your sales, use an app to scan some products, and many more.
Why You Need An Amazon Professional Account
Here’s How To Have A Professional Account As an Amazon seller, you can either sell as an individual or as a professional.
As an individual seller, you plan to sell only at less than 40 items a month. With that, you pay $0.99 per sale + other selling fees. This is good when you are still trying to familiarize yourself with Amazon and you don’t have much sales yet. However, if your sales picks up to become more that 40 items per month, the expense will also grow. This means, if you have 100 sales in a month, you will pay close to $100 for that month, plus the other selling fees.
In this particular case, you need to start selling with a professional account. With the professional account, you will need to pay $39.99 per month, plus the other selling fees. So, even if you are selling 100 or 200 items for a particular month, all you need to pay is just $39.99 per month, plus the other selling fees that come with it. These other fees include the fulfillment fees which covers storage, picking and packing, shipment, as well as Amazon’s commission for every item you sold.
Take note, whether you are able to gain a profit or a loss, Amazon will still charge you for the fees. In this case, select in demand products that you can make good profits.
Four Ways You Can Make Money With Amazon (An Overview)
Four Ways You Can Make Money with Amazon (An overview):
- Retail Arbitrage. This is where I initially started selling with Amazon. Thanks to my friends Calvin and Randy for introducing me to it. They are the big giants I personally know who have been successful in this field.
In retail arbitrage, you go to places like stores or distributors who offer discounted prices for whatever they sell. Scan it and compare it to how much a particular product is being presently sold on Amazon. Here, you will use your smart phone by scanning through the seller central app you have. Be diligent to enter the figures that are being asked – the price it is being sold at that store, and your estimate of shipping your product to Amazon. Then see, if you end up being on the profitable side. If you like the profit, then buy it and send it immediately to Amazon.
Once Amazon receives it, wait till it is sold. Amazon usually sends your money to your bank once every two weeks. Repeat and rinse the process.
When I started with this, I only experimented with a start of $50 dollars. I was able to buy a brand new book from a thrift store for $0.25 and it sold for about $10. Deducting the fees which was about $4, I still ended on the profitable sale. Just do the math. From then on, I got hooked up before I shifted to selling toys.
- Wholesale selling. With wholesale selling, you will need to create your account with manufacturers and distributors. You may need a bigger capital in this case as manufacturers and distributors may allow you to purchase from them in bulk with their minimum requirements. Sometimes, you have to purchase pallet size load of goods.
Again, with wholesale selling, make sure the product you want to sell is profitable for you. Do your due diligence. There should be no room for just guessing or just crossing your fingers. Otherwise, you may be in for a big loss.
- Private Label. This is the big stuff where money comes in. Here, you will be creating your own brand even from generic products, or creating and designing your own products. In other words, you will have to produce on your own through manufacturers that will cater to your needs.
Again, you may need a sizable capital amount to start with this venture. Other manufacturers may allow you to purchase small, but your profits may not be big enough. You may source your product from a local manufacturer, or overseas.
By creating your own brand, you have to register your brand with Amazon. Your advantage here is that, you are the only one selling your own brand. If you discover anybody else using your brand, you can bring a complaint to Amazon about that other seller who is illegally selling under your brand.
Other advantages by making your own brand, once you are highly selling your own products, you can even let Amazon sell it for you and you will be the supplier of Amazon.
I cannot cover every detail here about Private Label. But there are coaching programs that offer excellent courses or coaching course if this is what you prefer. One of those programs I know and enjoy is by Seth Kniep of Just One Dime.
By the way, you may need to register your brand by having a trademark for it in your country for your business protection.
- Become An Affiliate. Yes, you read that right. You may become an affiliate of Amazon. It is known as Amazon Associates program. Amazon will provide you an affiliate link, and it is up to you to promote their products. You will be rewarded a certain amount of money from any products sold through your affiliate link. You will need to open a separate affiliate account with Amazon other than your seller’s account. To apply for an affiliate account, go to this link: https://affiliate-program.amazon.com
Of course, you cannot just spam anybody by emailing them your link. This is against the rules of Amazon.
In all levels of making money with Amazon – retail arbitrage, wholesale selling, private label, affiliate – there will always be pros and cons that come with it. There are rules that you need to follow. Otherwise, if you don’t, Amazon can ban you anytime.
Last but not the least, legally register your business properly and pay your taxes regularly.
The secret is yours ... it is no longer a secret.
There you are. I have spread the beans. It is a secret to some people that they don't want you to know. More related posts will follow in the near future. Best wishes to you and good luck.
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