As the world’s most profitable online retailer, Amazon generated around $470 billion in net sales in 2021 alone, which just goes to show that there are plenty of opportunities for Amazon sellers. With the right marketing and analytics, you can direct some of Amazon’s customers to your own online Amazon store and start making money. In comparison to starting a business from scratch, becoming an Amazon seller is far less risky and can be much easier on your bank account.
It’s no surprise that Amazon has become an incredible platform for those looking to expand as more people start their own home-based businesses. Growing your business with Fulfillment by Amazon (FBA) is a very smart move because you just need the idea of what to sell and Amazon will do the rest for you. To become part of this process, you will have to create a quality Amazon FBA business plan, where you should present your short-term and long-term goals and showcase your selling capabilities.
Here are five things you need to consider before starting your own Amazon FBA business.
Create an Amazon seller account
In the beginning, you will have to create an Amazon seller account and visit the Seller Central website to create your FBA account and begin selling your products on their platform. You have the option of becoming an individual seller or opening a professional account. In order to become an FBA seller, you must first create a professional account.
After you create the account, share the link on social media. For example, on your Instagram profile, you can add the Amazon link to your Instagram Stories and bio. This way, you will reach a high number of Instagram followers organically, resulting in increased traffic reach and a higher selling percentage for your products.
Order the products
Once you’ve narrowed down the list of products you want to sell, it’s time to order the samples. Take this step first to ensure you’re making the right investment and purchasing high-quality products. As soon as the samples arrive, they should be inspected for quality, specifications, and utility.
After you’ve double-checked everything, enter the products into the Amazon catalog, specifically the FBA inventory listing. Amazon will then provide you with shipping labels and packaging guidelines, and based on your shipment size and location, they will arrange for the collection.
Image source: Amazon SEO Consultant
Ship your items to the Amazon fulfillment center
Product preparation for the Amazon FBA center begins once your supplier delivers your goods, and Amazon provides detailed instructions on how to do so. If you don’t have enough space in your garage to properly package your products, you can use the Amazon virtual assistant to manage quality control and assist you in completing all necessary tasks so you can ship the products to the FBA center and, with that, optimize your company’s potential.
Consider how much it will cost to ship your product by boat, plane, or rail, as well as how much it will cost to ship it from abroad or domestically. Every mode of shipping is governed by a plethora of laws and regulations. Regardless of how you ship goods overseas, you must go through customs and follow international shipping regulations and taxes.
Enter product descriptions
Take your time with this step during the setup process because it is likely one of the most important aspects of attracting customers to your Amazon store. Product descriptions must be clear, catchy, and SEO-optimized. Keyword research is important here because it can help you get ahead of the competition. Look for other Amazon stores that sell similar products to yours, as well as examples of other eCommerce websites, and draw inspiration from them.
Image source: Seller App
Get rid of unsatisfactory inventory
When customers return products, Amazon inspects them and determines whether the product can be resold. Unfulfillable items are products that cannot be resold. These items only cost money to store and are essentially useless. It is critical for an FBA seller to check its inventory on a regular basis to ensure that there are no unfulfillable products in it.
Check the Amazon Inventory Health Report every two weeks to make sure you keep up with all the necessary information on any product you have stored in the fulfillment center. If you come across unfulfillable inventory, you can ask Amazon to destroy it or have it returned to you. This way, you will not only avoid paying extra storage fees, but you will also be able to extract some value from otherwise useless inventory in the warehouse.
Final thoughts
Many sellers have successfully launched an Amazon business with the right product and business model. Sign up for a free seller account to take advantage of the free services and avoid unnecessary costs. If you become part of the Amazon FBA center, it is critical to ensure the accuracy of your products’ sizes and dimensions to avoid Amazon overcharging for storage fees. This way, you can save money by managing your inventory wisely.