How to start a successful Amazon FBA Business in 2022

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    Amazon FBA (Fulfilled By Amazon) is an excellent way to sell items on for a low upfront cost without buying inventory and managing shipping orders yourself. When customers search or browse for products on Amazon they are shown the ‘Fulfilled by Amazon’ logo next to your listing which tells them that your items will be shipped by Amazon instead of yourself.

    Selling on Amazon FBA means that you sell products all around the world that are listed on a website with millions of visitors and buyers every single day. Every time someone buys your product, you also sell to other people from across the globe at the same time as who bought it originally based on their location.

    You sell other people’s products and you don’t have to think about stock levels, customer service or shipping timeframes. All of these things are done for you by Amazon FBA meaning that your time can be spent running a business instead of dealing with physical inventory, sales orders, shipping and fulfilment!

    There is a well defined step by step process to sell on Amazon:

    1. Product Research
    2. Product Sourcing
    3. Logistics and Forwarding
    4. Pricing and Listing
    5. Amazon SEO and Amazon PPC
    6. Customer Reviews
    7. Rinse and Repeat

    How To Do Product Research On Amazon FBA

    Amazon FBA Business
    Image Credit – Jungle Scout

    You need to sell a product that is in demand on Amazon FBA. There are millions of products on the site but not all of them sell or sell well. To sell a product successfully, you need to find something that:

    • People are searching for on Amazon (use the search bar at the top when you’re browsing to sell them something).
    • Are selling well. To find this out, you can use the best sellers list or search for keywords in a different category and find a product that is high up on the list. Look at how long it has been listed for (the longer it has stayed up, the more sales it’s receiving) and how many reviews it has received (the more reviews, the more sales it is receiving).
    • Have a low competition. To find this out, you can look at the same product that you found above and click on ‘competition’. This will show you how many other sellers sell the same thing as you. You want to sell products with low competition that sell well.
    • Is a unique product or something that is in demand. You should find a product based on your own interests and hobbies, not someone else’s. People will buy from you more if they trust you as a brand to sell them good products.
    • Has the right price point for your market and audience. You want something that people will be willing to pay and sell for the right price.
    • Is in profit! If you sell something, but don’t make a profit from it, what’s the point? Your goal is to sell something with high demand and low competition at a good price point that makes you money.

    Use these tips to find products on Amazon that sell well and low competition! Then move on to product sourcing.

    How to Source Your Products for Amazon FBA

    Product sourcing process will depend on the type of product that you plan to sell. If you are planning to sell a product offered by any existing brand, then you need to source directly from the manufacturer or their authorized wholesaler.

    Conversely, if you are planning to sell a product not offered by any existing brand then this means that you will have to create your own private label. This is where it gets tricky as creating a good and profitable branded product takes time and effort.

    When starting an Amazon FBA business most of the people sell popular products using existing brands.

    In case you plan to launch your own Private label brand, then the best option is to find a supplier on Alibaba. First step is to create an account on Alibaba to find your products + use a sourcing agent.

    How to price your products to maximize sales on Amazon FBA

    Set a competitive price and sell the product as well as your competitors (experiment with different prices). You can sell a product for $100, then sell another of exactly the same but branded differently for $60. If you sell both and they sell at the same rate, you make more money!

    The sweet spot for pricing is between $19-$60. For pricing over $60, it’s hard to sell a significant enough number at one time so you could sell that product instead in different sizes/delivery speeds (i.e. sell it for $100 but sell a 6-month delivery option for $70).

    Amazon Listing Optimization

    Your listing needs to sell your product! You need to sell a product that has high demand on Amazon FBA. It should not be hard to sell something when you use the right keywords. Do keyword and product research before choosing a category or product name for your products.  Understanding How Amazon’s Algorithm Works  and How to Use it to Your Advantage. When your product has been live on Amazon for at least 30 days , you will start getting reports about its sales and performance.

    This is where you will be able to do some serious analysis and make changes to your listing/product if needed in order to sell more units .  This is the time when you can start using the keyword tracking tool Amazon provides (it’s under ‘ business reports ‘) to learn which keywords are converting best for your product, as well as how accurate your ‘expected’ sales are.

    This is the time when you can start using the keyword tracking tool Amazon provides (it’s under ‘ business reports ‘) to learn which keywords are converting best for your product, as well as how accurate your ‘expected’ sales are. Once you hit 25-30 units of sell, you will have enough data to start A/B testing your listing.  This will greatly improve your sell through rate and increase sales for each individual product .

    Bullet Points – Bullet points are very important as you want to sell products quickly on Amazon. These bullet points can be used to sell the product without using too much space and writing a long description. Use bullets  to sell your product by including it’s features, model number, size, materials, color, weight etc…  Write one feature or sell point in each bullet.

    Product Description – The description should tell the customer everything about your product + an eye catching image that is relevant. Don’t use keywords like “Best Seller” or “Newest” in the description.

    Product Image Optimization – The product image needs to be relevant, eye catching and telling what the product is. Use a well known brand logo if it’s related to your product (e.g. sell adidas bags). This makes your listing more attractive for customers and sell-able units sell faster.

    Amazon FBA PPC
    Image Credit – Jungle Scout

    Advertising on Amazon To sell on Amazon

    The best way to advertise is by using keywords directly related to your product(s). For example, if you sell a branded Pokemon card game (motivation) then put “Pokemon Cards” as a keyword. You can sell 1000 sell-able units in a month and sell it for $1 profit each (for sell-able units that sell 1 or 2 per day). To increase sales, you can try different keywords like “How to play Pokemon cards”, etc.

    How to setup Amazon PPC campaigns

    – Go to amazon sell on Amazon seller central. Click on the “campaigns” tab and click on the “create campaign” button. Select the product you sell (first step), then select your country, then keywords related to your sell-able units, then set a budget of $20/day. Once you create the campaign, you can run it up to 90 days.

    How To Get Reviews On Amazon

    If your product has no reviews, don’t worry! The best way to get reviews is by answering customer questions about your product. This works because once you answer the question, they might leave a review (or they might not). You can also send reminder to customers who have purchased your products asking them to leave a review.

    We hope this article has been helpful in your planning for a new Amazon FBA business. If you would like to learn more about the process, or if you need help with any other aspect of launching an online retail store, be sure to contact us at our website! Contacting us will also give you access to additional free resources on how to sell on Amazon and start your own e-commerce company. Happy selling!

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