Many of the online business opportunities we see today involve selling products through Amazon FBA. So naturally, you may wonder what exactly Fulfillment by Amazon is and why is it so popular?
FBA is a program that enables you to use Amazon fulfillment centers to handle your products’ storing, packing, shipping, returns, and exchanges for a flat monthly cost and a selling fee. By signing up for this program, you save yourself time to scale your business and potentially reach more customers.
Suppose you want to know how to start an Amazon business, how it works, what opportunities it has, and the most profitable Amazon FBA business ideas when starting on a budget. Then you are at the right place. In this article, we’ve outlined the 5 most essential steps you need to follow to build an Amazon FBA business in 2022.
#1 Conduct market and product research
Good market and product research are essential for starting any business venture, and an Amazon FBA one is no different. Even though Amazon sells billions of dollars worth of products a year, that does not mean you can sell any random item and expect to be successful.
Instead, you want to research what to sell, current pricing, and how to promote your products. And if you want to be successful, keep in mind the following aspects:
- Choose products that are close to your interests or skills. It will be easier to promote something you are knowledgeable or passionate about.
- Examine the Amazon Best Seller Rank (BSR) to get an idea for products. The higher a product is ranked, the greater the demand for it. However, keep in mind that this will also mean more challenging competition.
- Consider your price range and be aware that lower-priced items require more inventory and sales to generate profit. Higher-priced items may be slower to sell.
- Never ignore your competition, so make sure you research it.
- Think about ways to market your products. It will help if you do more than good Amazon product descriptions. For example, pay for advertising, link with websites or blogs, or start a blog to promote items.
#2 Consider localization
Consumers in the US do not search for products and shop the same way as consumers in Europe, China, or the Middle East. That means you need to think in advance about the localization of your business to whichever geographical region you are thinking of selling. Your goal is to better tailor your business to a more relevant target audience.
In addition, localization allows more consumers to learn about your products and increases your customer base. That is especially important as you start with your business because it will provide you with a better focus in its initial growth phase.
#3 Create an Amazon seller account and learn the platform
Before selling on Amazon, you need to register for a seller account. There are two account types: individual and professional. We recommend you opt for a professional account since this way, you will have access to Amazon’s advertising platform, in-depth inventory data, and additional categories you can sell in.
In addition, before preparing your product for sale, you need to understand the platform better. The key areas to look more in-depth include listing your products effectively, Amazon SEO, Amazon Deals & Vouchers, competitor analysis, and A/B Testing. Finally, as your business will probably evolve in the future, it is wise to understand every possibility that Amazon offers.
#4 Find the suitable suppliers
Once you decide what you want to sell, you need to find a company that can supply you with the products. Most sellers source their inventory from abroad since it is generally cheaper than purchasing items domestically. In this sense, the most popular choice is the largest global market. There you can find Amazon FBA wholesale suppliers easily. Online marketplaces you can check in China include Alibaba, AliExpress, Taobao, etc. Another way you can meet suppliers is by visiting trade shows online or in person or by checking wholesale directories.
#5 Plan your product promotion
Once you launch your business and your products are available for buying, you need a way to get traffic to your listings. And one of the best ways is to run paid ads. In this regard, Amazon offers a very effective advertising platform, which you should definitely take advantage of.
You can also opt to advertise on social media platforms like Facebook and Instagram to get even more exposure. The great thing about paid advertising on social media is that it is very affordable and allows you to target specific demographics that you know are interested in your products.
Starting an Amazon FBA business might seem to you as a big responsibility. However, it is possible to be successful if you commit yourself and use the right tools. So, do your research and keep our tips in mind; soon, you will be able to build and run a profitable Amazon FBA business.