The Amazon FBA allure is irresistible. In fact, there’s every chance that you’ve come across some seemingly unbelievable stories of guys crushing it with FBA, taking home six-figure incomes.
And it got you thinking. You want to get into it, make it big and generate enough revenue. Eventually, you want to quit your job and become financially independent.
Hey! Hold your horses! It’s not as easy as it seems. You need to understand the basics from the get-go if you want to make money with Amazon FBA. That way, you’ll know what to do, the mistakes to avoid and how to achieve your goals in the long. Here’s an in-depth breakdown.
Learn the Ropes
Start by learning what works and what doesn’t. See, as hustlelife.net explains, success on Amazon takes investment, both in money and time. And, that’s something many shy away from, leading to failure.
Here’s the thing – Amazon FBA is super attractive. Do you know what this means? Well, it implies that many inexperienced entrepreneurs want to “cash in” but end up as bottom feeders.
It makes perfect sense, therefore, to get well acquainted with the basics before you take a plunge. That way, you will have a solid strategy (and backup) to build a profitable business that won’t crumble six months later as is the case with many startups.
Sell your Own Brand
Insiders call it private labeling. Here, you’ll take an existing product and rebrand it with your label. How do you go about it? Start by researching on high demand/low competition items. You’ll then source the product, rebrand, and launch. Of course, you have to advertise to make your products discoverable by the target market.
It is essential to mention that you’re better off with software to help you with product research. The last thing that you want to do with Amazon FBA is to pick products randomly or through poor guesses.
Track your Competitors
You have to know what you’re up against. So, list your competitors even before you start. Look at what they’re doing and find ways to outwit them. Go on a comprehensive research spree, test ads and remain active in sales. In other words, make winning a priority.
When you find success, don’t forget that there are other people behind you want to succeed as much as you do. And these aren’t some mindless computers. No, your competitors are serious marketers with a burning ambition to make things happen.
The long and short of it is that you should keep honing your skills, time after time.
Launch with Promotion
How you launch your rebranded products on Amazon FBA is critical. It is your first chance to make skyrocketing sales. And the beauty of it is that Amazon’s algorithms interpret this to be high demand for your items.
Start by determining how many promotional products you’re comfortable giving away. The best way to do it, according to industry experts is to try and outperform the sales of your biggest competitor for 10 to 15 days.
Once you have the items, create a promotion on Amazon seller central. Don’t forget to provide your promotion codes.
Things can get a little bit overwhelming with Amazon FBA, especially when your business is thriving or starting. Plus, you cannot perfect everything – there’s something that’ll always be outside your realm.
Consider a helping hand for what you’re not good at. The only that you need to do is to ensure that you’re getting value for your money when you outsource. When you have a lot of time on your hand, you can concentrate on other things such as expanding and marketing your business.
…Before You Go
Don’t Forget to Measure your Profits
One of the biggest mistakes most Amazon FBA sellers do is failing to track their profits. Many don’t even know how to calculate their profitability. And no, they’re not poor in math – it’s that there’s a lot to take on. Remember, Amazon has a host of costs and fees. Add Amazon PPC into the mix, and it becomes a blur.
The Bottom Line
Sure, Amazon FBA is profitable, but it takes a lot of hard work and dedication. You have to learn ways to test and optimize your listing. Keep yourself up to date with what’s happening in the industry. Don’t be afraid to take risks to maximize profits. While FBA is competitive, you can still take home a tidy sum if you are willing to go the extra mile. Oh and, be patient – this isn’t a get rich quick scheme.