Amazon FBA (Fulfillment by Amazon) is a service that allows you to sell your products on Amazon without having to worry about storing, packing, shipping, or customer service. You simply send your products to Amazon’s fulfillment centers, and they take care of the rest. Amazon FBA can be a great way to make money online, as you can leverage Amazon’s huge customer base, brand recognition, and trust. However, it is not a get-rich-quick scheme, and it requires a lot of research, planning, and hard work. In this article, we will show you how to start an Amazon FBA business in 2023, and share some tips and best practices to help you succeed.
Step 1: Set up an Amazon Seller Account
The first step to start selling on Amazon FBA is to create an Amazon seller account. You can choose between two types of accounts: individual or professional. An individual account is free, but you have to pay $0.99 per item sold, plus other fees. A professional account costs $39.99 per month, but you don’t have to pay the per-item fee, and you get access to more features and tools. If you plan to sell more than 40 items per month, a professional account is recommended.
To create an Amazon seller account, you will need the following information:
- Your name, address, and phone number
- Your bank account and routing number
- Your credit card and billing address
- Your tax identification number
- Your product categories and details
You can sign up for an Amazon seller account.
Step 2: Do Market Research
Before you start sourcing products to sell on Amazon FBA, you need to do some market research to find profitable and low-competition niches. You want to find products that have high demand, low supply, and good profit margins. You also want to avoid products that are too heavy, fragile, seasonal, regulated, or branded.
One of the best ways to do market research is to use a tool like Viral Launch, which is a software that helps you find, validate, and launch products on Amazon. Viral Launch can help you:
- Discover product ideas based on keywords, categories, sales, reviews, and more
- Analyze the market potential, competition, and profitability of each product
- Track the sales, price, and rank history of your competitors
- Optimize your product listing, keywords, and photos for maximum conversions
- Launch and rank your product using PPC campaigns, promotions, and external traffic
You can get a 20% off discount for Viral Launch.
Step 3: Define a Clear FBA Business Plan
Once you have found a product idea that meets your criteria, you need to define a clear FBA business plan that outlines your goals, strategies, and budget. A good FBA business plan should include:
- Your target market and customer avatar
- Your unique selling proposition and value proposition
- Your sourcing method and supplier information
- Your pricing strategy and profit margin
- Your branding and packaging design
- Your marketing and launch plan
- Your financial projections and break-even analysis
Having a clear FBA business plan will help you stay focused, organized, and motivated throughout your journey.
Step 4: Select and Source Products to Sell
The next step is to select and source products to sell on Amazon FBA. You have two main options: you can either buy existing products from wholesalers or manufacturers, or you can create your own products from scratch. The latter option is known as private label, which means you put your own brand name and logo on the products.
Private label is the most popular and profitable way to sell on Amazon FBA, as you can differentiate yourself from the competition, build your own brand, and charge higher prices. However, it also requires more time, money, and effort, as you have to design, manufacture, and test your products.
To source products for private label, you need to find a reliable and trustworthy supplier, preferably from China, as they offer the lowest prices and the highest quality. You can use platforms like [Alibaba] or [Global Sources] to find and contact suppliers, and request quotes, samples, and product specifications. You should also negotiate the price, quantity, lead time, payment terms, and shipping terms with your supplier, and sign a contract to protect your rights and interests.
Step 5: Package and Ship Your Products
After you have sourced your products, you need to package and ship them to Amazon’s fulfillment centers. You need to follow Amazon’s FBA prep requirements, which include:
- Labeling each product with a unique barcode
- Packaging each product in a poly bag or a box with suffocation warning
- Securing any loose or sharp edges with tape or bubble wrap
- Bundling or bagging any products that are sold as a set
- Placing a “Ready to Ship” sticker on each box
You can either do the FBA prep yourself, or hire a third-party service to do it for you. You also need to create a shipping plan on your Amazon seller account, which will tell you where and how to ship your products to Amazon. You can use Amazon’s partnered carriers, or choose your own carrier, to ship your products.
Step 6: Market Your Products
Once your products have arrived at Amazon’s fulfillment centers, they are ready to be sold on Amazon. However, you still need to market your products to attract customers and generate sales. You can use a combination of the following methods to market your products:
- Optimize your product listing: Your product listing is the page that shows your product title, description, features, photos, price, and reviews. You need to optimize your product listing to make it appealing, informative, and persuasive, and to rank higher on Amazon’s search results. You can use tools like Viral Launch to help you optimize your product listing, keywords, and photos.
- Run PPC campaigns: PPC (pay-per-click) campaigns are ads that you can run on Amazon to drive traffic and sales to your product listing. You can target specific keywords, products, or categories, and pay only when someone clicks on your ad. You can use tools like Viral Launch to help you create, manage, and optimize your PPC campaigns.
- Use promotions and coupons: Promotions and coupons are incentives that you can offer to your customers to encourage them to buy your products. You can offer discounts, free shipping, buy-one-get-one-free, or other deals, and display them on your product listing or on Amazon’s deals page. You can use tools like Viral Launch to help you create, manage, and track your promotions and coupons.
- Generate reviews: Reviews are one of the most important factors that influence customers’ buying decisions on Amazon. Reviews provide social proof, feedback, and trust for your products, and can boost your conversions and rankings. You can generate reviews by asking your customers to leave honest feedback, using automated email follow-ups, or using tools like Viral Launch to help you request and monitor your reviews.
- Drive external traffic: External traffic is any traffic that comes from outside of Amazon, such as from social media, blogs, YouTube, email, or other sources. Driving external traffic to your product listing can help you increase your sales, rankings, and brand awareness, and reduce your reliance on Amazon. You can use tools like Viral Launch to help you launch and rank your product using external traffic.
Step 7: Take Your FBA Business Global
Once you have established your FBA business in your home market, you can take it to the next level by expanding to other countries and regions. Amazon has 19 marketplaces around the world, covering North America, Europe, Asia, Australia, and the Middle East. By selling on multiple marketplaces, you can reach more customers, increase your sales, and diversify your income.
To sell on multiple marketplaces, you need to register for an Amazon Global Selling account, which will allow you to manage your listings, inventory, and orders across different regions. You also need to consider the following factors:
- Product compliance: You need to ensure that your products comply with the laws, regulations, and standards of each country or region that you sell in. You may need to obtain certifications, licenses, or approvals for your products, and label them accordingly.
- Taxes and duties: You need to understand and comply with the tax and duty requirements of each country or region that you sell in. You may need to register for VAT, GST, or other taxes, and pay customs duties, tariffs, or fees for your products.
- Currency conversion: You need to convert your sales and payments from different currencies to your home currency. You may incur fees or losses due to exchange rate fluctuations or bank charges. You can use a service like Wise to help you save money on currency conversion, as they offer low fees, fast transfers, and real exchange rates.
- Language and culture: You need to adapt your product listing, marketing, and customer service to the language and culture of each country or region that you sell in. You may need to translate, localize, or customize your content, and use native speakers or professionals to help you communicate with your customers.
Selling on Amazon FBA can be a rewarding and profitable way to make money online, as long as you follow the right steps and strategies. In this article, we have shown you how to start an Amazon FBA business in 2023, and shared some tips and best practices to help you succeed. Here is a summary of the steps that you need to follow:
- Set up an Amazon seller account
- Do market research to find profitable and low-competition niches
- Define a clear FBA business plan that outlines your goals, strategies, and budget
- Select and source products to sell on Amazon FBA, preferably using private label
- Package and ship your products to Amazon’s fulfillment centers, following Amazon’s FBA prep requirements
- Market your products using a combination of product listing optimization, PPC campaigns, promotions and coupons, reviews, and external traffic
- Take your FBA business global by expanding to other Amazon marketplaces, considering product compliance, taxes and duties, currency conversion, and language and culture
We hope that this article has given you some valuable insights and guidance on how to make money Amazon FBA. If you have any questions or feedback, please feel free to leave a comment below. Thank you for reading, and happy selling! 😊