Making money with Amazon FBA
Chances are, you have heard of or bought something from Amazon, but did you know that you could make money from Amazon. As the biggest online retailer in the world, Amazon sales continue to grow and recently its founder, Jeff Bezos was briefly named the world’s richest man before losing the top spot to Bill Gates. Jeff Bezos in his garage started Amazon in 1994 with grand ambitions for the company and the direction it would take. Fast forward to 2017 and Amazon accounts for 43% of everything sold online in the United States. What is even greater is that you can claim a piece of the pie by becoming an Amazon seller. There are two ways to sell on Amazon and in this eBook, I will give you a brief overview of one popular model that has helped thousands of people make extra money from the comfort of their homes.
What is Amazon FBA though?
FBA stands for Fulfilled by Amazon meaning that Amazon takes care of storing and delivering your products to Customers. This is great for someone that wants to start an eCommerce business but does not want to have to worry about inventory. Amazon will store your products in one of its warehouses, giving you plenty of time to focus on finding items that sell well and market them to millions of customers that shop on Amazon.
Step 1- Finding a product to sell
Amazon has everything from Baby products to garden supplies and finding a product to sell is all about figuring out what sells best. Go over to Amazon and take a look around the many categories listed on the website. You can also search for what sells by visiting ‘Amazon best sellers’ which you can just Google. ‘Amazon Best Sellers’ list compiles the top-selling items in each category, making the process of finding what to sell easy. Study the lists, look at its rank, the price, how it is marketed, reviews and how you can better sell this item. What would you add and how would you market this differently so that customers buy your item and not the competitors?
Step 2- Finding a supplier
After you have selected a few items that you think will sell, the next step is to find a supplier that can manufacture your products. A great way to find suppliers is through Alibaba. Founded by China’s second-richest man Jack Ma, Alibaba is purposely built to connect people with manufacturers based in the manufacturing capital of the world. Simply type the product/s you would like to have manufactured and watch as the list of wholesale suppliers all competing for your business go on and on. You want to find suppliers you can rely on to produce quality products at the right price and luckily Alibaba allows you to filter your search.
By ticking the ‘Trade Assurance ‘Gold Supplier’ and Assessed supplier’ boxes, you are making sure that you are sourcing your items from trusted suppliers who will deliver value and service, so before you order anything or speak to any supplier, tick those boxes. Remember to also negotiate with the suppliers and don’t just go for the first offer you receive, there are so many wholesale suppliers and they are all competing for your business so make sure to shop around.
Step 3- Branding
The good thing about selling on Amazon is that you can brand products like yours. This is called ‘Private labeling’ and what it essentially means is that you can sell products with a logo/name you have chosen attached to the products thus creating your own brand. Take a look at this BBQ grill brush below. They look the same and do the same thing, but the first one is sold by ‘Qually United Sales’ and has the logo printed on it whereas the other one is sold by ‘eXintech’.
Sometimes, you will see that the seller name and the brand name are different and that is ok as many Amazon sellers sell many different products, they can choose to have a seller name and different brands under that name. When deciding on Private labeling make sure you speak to your supplier and work out if they offer such services.
Step 4- Sending the Items to Amazon so they can store it and ship it to the customers
Now that you have sourced a product, had it private labelled and are ready to sell it to Customers via Amazon, You need to send items to Amazon FBA and the best way to do so is through a freight forwarder. Freight forwarders like ‘Flexport’, will get your products from the supplier to Amazon FBA. There are quite a few of them out there so it is really up to you to shop around and partner with one that you are comfortable with and that brings you the best value and service.