Amazon is the most massive marketplace in the world, where incredible business opportunities born every niche every single day. Books, T-shirts, home accessories, Amazon is full of opportunities to get rich by investing in the right slot and with the right product.
But is it so easy to sourcing the right product? Is it so easy to earn money?
The truth is that earning money is always extremely difficult, especially in a competitive online marketplace like Amazon. Amazon is a giant too strong to be defeated and so the best thing to do is to use its logistics to sell products and make money making the minimum effort to get the best results.
First of all, you need to understand the benefits of Amazon FBA to take full advantage of all the benefits of this service.
Amazon has proven to be one of the largest and most complex online markets in the world.
Whoever sells on Amazon must be able to compete with millions of other retailers, and at the same time must manage all sales and shipping processes. The site proposal created by Jeff Besos is called FBA, which stands for Fulfilled By Amazon (FBA).
FBA is a service that Amazon offers sellers to help them manage their inventory, inventory, shipping and customer service.
Sellers who use the FBA service send their products to the Amazon distribution center, which stores them until there is an order to be shipped. Once the request is received, the product of interest will be packaged and shipped directly from the Amazon staff.
In simple terms, FBA works like this: You sell, Amazon sends.
In detail, the Fulfillment by Amazon is developed through these points:
One of the most significant advantages of being an FBA seller is undoubted that the products become “Prime eligible.”
That is, they fall into the category of Prime products, which are displayed before the others.By joining this category, we can also increase potential buyers, not least because Prime members tend to spend more on average, But this service also has flaws:
1- If the seller chooses to use FBA, he will face additional costs that would affect the final result as he will pay the taxes for not only the FBA service but also the transport costs up to the fulfillment center.
2 – Another defect lies in the fact that Amazon charges a price per cubic foot of space occupied in the warehouse every month. This is a problem especially for long tail products, which have long storage times.
3- The multichannel operation can be expensive, and inventory can be difficult to trace.
4- Also it is essential that many sellers do not want to put their inventory in the hands of Amazon.
5 – And finally entrusting to another company that manages the logistics in our place the seller could be unfairly affected by any errors/damage caused by external logistics such as delays, damage, and loss.
This is an overview of the Amazon FBA service, once you have decided whether it is the service for us that we can succeed in finding a successful product in a profitable niche?
The first tip is never to be fooled by fantastic “perfect products, guaranteed gain!”
because it is very likely that they are big scams. Always remember that there is only one way to earn money:
This is the only efficient way to earn money; it is the attitude that must be adopted when it comes to identifying the niche that can bring the most profit.
The first choice is crucial, it is the one that will define the direction of your business, at least in the beginning of the activity. If the decision is correct, you will get a significant profit, while if it is wrong your business will be immediately at risk of closure.
The fate of your business is related to your response to these two options:
Choose to invest in a broad niche of products.
Choose to sell only a product that has very high sales.
What are the differences?
By choosing to work on a niche, you will necessarily have to buy a series of products (for example, a series of anime gadgets). Your goal will be to test the reactions of the market by selling many products and then continue buying only those that have been sold.
The idea behind this business method is based on the size of the niche: if the niche is large then there will indeed be space for me too, and I will be able to sell my products.
Once you have observed which products have been sold, you can make a more precise wholesale order and minimize the unsold.
Significant niche can lead to selling your products, but to start, you must necessarily buy many items.
The real risk is that of having to manage many unsold products and the indirect warehouse costs. Also, to start a business with this system, it is necessary to have an excellent initial budget to make the first wholesale order.
Working on a single product limits the possibilities of gain, but allows you to focus more on marketing and product management, creating the right conditions to be able to sell and promote.
This type of investment does not require much money but needs careful study of the chosen niche to find the object that is always sold. In case of error, it is possible to select a new product and start from scratch.
This system is prolonged, and initially, the earnings will not be high, but it is the best way to start because it allows you to study very well the chosen niche, analyze the products and find the one with the highest potential. Furthermore, monetary investment is much lower.
Some vendors detest this system because it takes a long time to become effective. These people must remember that fast money is just an illusion and that Rome was not built in a day.
Once you have made your choice (most people choose to invest on one item at a time for a matter of cost / earning opportunities) you must be able to set the right price.
The price is significant, too high a price will drive away most customers.
who will buy the same product or something similar from a competitor who practices a lower rate, while a price too low will make customers doubt of the quality of your product.
Amazon’s market analyzes have pointed out that the ideal price range is between $ 10 and $ 50. A price that succeeds in giving the impression of being economical, of proposing a quality product and that does not distance a customer who buys an impulse.
Your supplier will therefore necessarily have to practice low prices (and have quality products). Buying at a low price you can afford to have a higher or lower income depending on your market decisions and the initial budget will be much smaller. Also, the profits will arrive faster if you can sell products that have a low price.
Initially, to allow you to have a low price and limited running costs it is a great idea to sell small and light items, such as handmade soap bars, key rings, USB memories or little electronic gadgets
Shipping and handling costs vary exponentially depending on the weight of the object. More massive objects have more space and are therefore more expensive.
Rely on customer reviews, but do not take them as indisputable truths.
Unfortunately, some people are willing to pay and write fake reports to increase their sales opportunity. The average of the reviews is much more reliable, and in general, if all users agree on certain things it is very likely that the reports are genuine. Moreover, people are often too demanding or in bad faith and vent their anger about the wrong shipping (broken box, non-professional express delivery) with a negative review of the product.
The competition will be fierce, especially at the beginning. You will be the new seller who wants to conquer a slice of the market, while they are credible brands, with guarantees of quality and success. It will not be easy to win customers’ trust.
For this reason, it is necessary to try to win easy. First of all, you have to do a search on Amazon regarding the product you want to sell. Use different combinations of keywords and note if in the very first results there are products of famous brands. The first results are vital; they are the only ones that are looked after by customers.
If famous brands sell your product, then do not invest money and look for a new product, but if these well-known brands do not sell exactly your usual product, then you will create a shadow cone where you can enter to start gaining your market share.
Your products must be resistant and of high quality.
Unfortunately, an expedition can be damaged, and you must prevent every possible problem. A resistant product will be able to resist any problem, while a poor-quality product will be delivered destroyed to the customer.
Finally, it is essential to write a correct listing and use the proper keywords.
For the keywords, you can use this tool http://merchantwords.com/ to monitor the most used in your niche. Often it is sufficient to write all the keywords in the title without selecting the most used one. Just create variations of the most used keyword.
Your ad must contain a photo in HD. The photo is vital because it will be the ticket for the presentation of the product. A horrible picture will drive away all the customers so you could even hire a professional photographer to get the best photos possible.
Write the Bullet Pont with many details, intelligently using the keywords, so do not abuse them but write them only in 2/3 bullet points. Write detailed information and a beautiful presentation, using all the tags. More information will allow the customer to decide whether to purchase the product and will allow your ad to be optimized correctly, gaining visibility.
Selling on Amazon is not easy, but if you follow these tips carefully, you will be able to create a solid foundation to start with. Always remember to check the market trends and update your product. Do not believe that your products will remain the best seller forever and the competition is still hungry to take your place as Best Seller.
The competition, however, will allow you to improve your proposal, becoming even more competitive and allowing you to invest more money in other products.
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