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How to Start an Amazon Business from Scratch

FBA Amazon business, Fulfillment by Amazon, Amazon distribution network, Creating an Amazon Seller Account, Amazon Fulfillment Center

If you want to have an extra source of income, you can start an Amazon business from scratch. In this article, we are going to look at how you can get an FBA Amazon business going. First, FBA stands for Fulfillment by Amazon. This method allows leveraging the robust distribution network and Amazon customer base. Using this model, the Amazon warehouse fulfills your orders as well as offers customer service to your buyers.

An FBA model allows you to:

  • Focus your attention on tasks like conversion rate, marketing as well as in the development of new markets.  
  • Enjoy perks like fast shipping, handling of consumers credit cards, free shipping as well as customer service. All of which are offered by Amazon on your behalf. 
  • Focus on the growth of your business as opposed to chasing orders. 
  • Reduced operating costs and offering fast services. An Amazon warehouse can handle shipping orders better than a private e-business. 

We will now look at the steps that you can follow to start your FBA business. 

1. Creating an Amazon Seller Account

You can save this step for later; however, it is a good step to start with to show your commitment to the idea. To open an account, you need to access the Amazon website and scroll to the bottom. You can then click on “Make Money with Us” and select “Sell on Amazon.” Here, you need to follow all the instructions that appear. 

Here, you will need to decide if you are making sales as an Individual or professional. 

An Individual account does not have monthly subscription fees, but it comes with many limitations. For a professional account, you will need to pay $39.99 per month, but the first month is free. You are not limited in this case, like in the individual account. 

If you want to build a successful business on Amazon, it is advisable to go for the professional one. 

2. Pick your Niche

This is a bit complex as you cannot sell everything that you lay your hands on. You need to determine your profitable niche. There are structured guidelines to help with this. These are:

  • Passion: Here, you need to write down the areas that you are most passionate about. You can get them from your hobbies, career, special interests, or areas that you have researched about. 
  • You can now think about all the products that you can sell in these areas. 
  • Narrow down this list to find your niche in 3 or 5 areas.

Finding a product in the area that you are passionate about can help you in advertising, blogs, or product listing. 

3. Research your chosen Products

This is a very important step in your FBA business. It helps you to find a product that has the potential of bringing in revenue. You can search for that product in various e-commerce sites to see how it is rated. However, you will need to employ the use of FBA selling tools such as Viral Launch, AMZScout, Jungle Scout, and many others. These tools are beneficial to you as the seller as they offer great insights into the performance of the products in the market. You can use the tools to get data that you can use to narrow down your niche. 

You can also get to see the BSR of your chosen product on Amazon. 

Once you have found your niche, you need to determine the FBA fees. Some of the tools listed above can assist you with that. The FBA fees are usually dependent on the size of the product, shape, weight, storage, or if special handling is required. 

Some tips to help you choose your products include:

Keep away from products that have established brands. These big companies have big budgets that as a beginner, you cannot compete with. 

Go for bulk items or clearance sales which help in building your business in the short term. 

4. Establish the source of your product. 

You want to get the most reliable product. You can test the products that you intend to sell. You also need to find a reliable supplier with quality products. They can be overseas or local manufacturers. If it is overseas, you need to study the shipping logistics for the products. Timely shipping is also very important. 

5. Brand.

Once you have your products, you can work on your brand. You can do this by getting a name and picking a Logo. You can create your taglines and brand theme. Once you have these details, you can apply for copyright.

6. List your Products

Once you have all these details, you can list your product. You need to use professional photos of your products. Also, ensure that you have written detailed descriptions and titles with keywords to optimize your listing. Ensure that you fill in all the relevant fields indicated on Amazon. 

7. Marketing

You can now advertise your FBA business to earn more revenue. You can use social media, sponsored ads, blogs, and Vlogs as well as email marketing.

Amazon Business

More on this topic:

How to Compete with Amazon as a Small E-Commerce Business

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