2022-Ultimate Step-By-Step Guide on Amazon FBA
Hey, guys. Today my friend Sam is talking about Amazon FBA with me. and I shared the story with you about why it's a great opportunity for you to make money now.
I've been selling on Amazon FBA since 2016 so it's been about four years now. And in those four years, I've realized that Amazon FBA is such a great way to make passive income.?
Yes, you need to do a lot of work at the start to build the business to build the product, but once you get that all set up you know like the money just keeps coming in and you rarely have to do anything.?
We'll also go into how you can find products using specific tools to make your product research a lot easier. we'll talk about finding suppliers, getting samples, placing bulk orders from overseas, and having those shipped over to the States, and also creating a quality listing that will get your products sold.?
So all know I'll try to make this article as detailed as possible. But you guys this is gonna be more of an overview and if you're a beginning FBA seller then this is gonna be the perfect article for you don't watch any of those detailed articles yet.?
Do you want an overview of what this business is like and how you can start and make your own Amazon business??So the first thing I want to talk about is that. There are two ways you can make money on Amazon.
There's Amazon FBA which stands for fulfilled by Amazon. And in this method, Amazon is handling everything. You are sourcing a product, you're making the listing and then you're shipping all these products over to Amazon's warehouse. And when someone buys the product on amazon.com, Amazon will pack it, ship it and handle all the customer service.?
This is also how you can offer Amazon Prime shipping at your price. So a lot of people will only buy products on Amazon.?If it comes with that free Prime shipping, so I recommend going this route.
The other method is Amazon fulfilled by merchants. It's sort of similar to FBA. In that, you still have a listing on Amazon, but you don't get that prime shipping, and one thing item does sell you have to fulfill it yourself. So you need to pack it and you need to ship it to the customer.
Obviously, this takes a lot more time and it's way less passive than FBA. But the good thing about FBM is that there are fierce fees. When you're selling on FBA, the fees can get kind of high but if you pick the right product that has high enough profit. You'll then like you'll still, be able to be very profitable even with Amazon's influential FBA fee.
For most new sellers. I recommend that you get into private labeling. And what private labeling is- you're taking these existing products that are already created. And you're basically creating your brand and?putting that brand on this generic product.?
So that's exactly how I've built my business. I find these generic?products at these factories overseas, and then I tell them that I want to?customize this product to this shape or this color or whatever and then I send them my logos my packaging, all that stuff. And they're able to create this product and make it look like. It's my product the vast majority of sellers on Amazon use private labeling.?
So I do think this is the best way for you to get started. The good thing about private labeling is that you can build a brand around it. So you can take advantage of all these existing products, and sort of creating your brand.?
If you're focusing on one specific niche, you can do a bunch?of different products from that niche and have their brand centered around that type of product.?
This way you can, build some brand equity, and if you ever want to get out of Amazon FBA, you can probably sell your business to someone else. Okay, so now we're on Amazon's homepage. We're just going to go through it and I'm going to show you a type of product. Let's just search resistance bands because that seems to be trending right now.?
With this quarantine, and all these home workouts. So, basically, yeah! This is Amazon; you guys are probably very familiar with this. Your search for whatever you're looking to buy and the thing Amazon is. It’s like the biggest search engine for buying things in the world now. It’s like people searching on Google to normally get information or to find articles and stuff like that.
Okay, so we are on resistance bands, and, yeah, basically, you search some Resistance bands. And, you see all these different listings. You can see that these are all sponsored. So, the sellers actually paying to be listed at the top is pretty expensive. Yeah, there are tons of sellers selling pretty much the same product and this brings me back to my private labeling which I mentioned earlier.
These are all the same products you guys like; they are made by one of the few factories in China and they're basically just slapping their label on it. Their brand on it and sounding it as their own and it's not scanning as everyone does. This is just what Amazon FBA is like.
So, Amazon FBA obviously the goal is to get on this front page. In order to do that, we need to have a ton of reviews. You need to have a quality listing and you have a quality product. Because, obviously, that's going to affect your reviews. Therefore, your number of purchases. And, yeah, if you make the first page of any product, you're going to have tons and tons of sales. Like even for very specific niche products that you don't think many people will be buying. Well! There are people buying that on Amazon. So if you're able to find the niche Product and actually rank on the first page of that you'll likely do very well.
Now, as I said when you were getting started with Amazon FBA. You have to be extremely diligent with your product research. If you find a product that is not going to sell, well! Then, your business is already going to be tombed. And you probably won't make any money. You're probably losing money actually. So that's why it’s so important to find good products that actually bring you profit and there's actually demand for them. So one of the tools, that I like to use and which is probably the most popular tool for Amazon FBA sellers Is jumbles cow. So we've already searched? Up resistance bands; here jungle Scout has a chrome extension, which you can install.
Basically, I’m just going to click that and it's going to pop up a bunch of different information that is extremely helpful. So, based on, here you see all these products. You see the Seller, and you see the price. It’s going to tell you the monthly sales. It’s also going to have the monthly revenue. Then, this is all estimated, but, you know it's pretty accurate.
It’s going to tell you the number of reviews, the Rating, and the rake number, the seller type. So, you can see that pretty much everyone is FBA Amazon, which actually means, Amazon sells it by itself. But you can see most of these sellers are going to be an outside third-party sell. And then, finally the category. The reason why this is so important is that it tells you the demand for a product and it tells you what your competition is.
So for this product, you can obviously see that. Yes, there is a ton of revenue for the products on this First page. But, all these products have tons and tons of reviews. So man 12,000 reviews! 20,000 reviews as a new seller. Obviously, it's going to be very hard to compete with these products. Since you're starting out with zero. And as a seller, you'll find that the number of reviews you have is extremely important. If you're not able to compete and get your number of views this high then it's going to be hard to rank for this product.
Now that's not saying that you won't make any money. It’s just going to be hard to get on the first page or second page or third page. So optimally, we want to see the number of reviews a lot. I like to see it when there are fewer than 50 reviews. Because that means, that you can actually create a new product and hopefully get those for the 50 reviews pretty fast. Yeah! But, monthly revenue is also important to see because it just shows how much demand there is.
You can see mostly Sprague's are above $15 you want products that are generally going to be at least 10 $15 ten on the very low side. Because once you get into products that are that cheap. The Amazon fees are going to really eat up a lot of your profits. If you're solving something for seven dollars, for example, it's very likely that the Amazon fee is going to be around four dollars.
So, if you can't get that product how it shipped here send it to Amazon all that stuff adds costs for three dollars. Then, you will be losing money. Now another part of trouble scalp is you can actually go off to their own website. You don't have to do it through Amazon and there's a lot of cool stuff you can do in here. So for example, right now I'm in the find product section, opportunity finder, and this is what it sounds like; it helps you find opportunities. It helps you find products that you might be able to sell that would be profitable.
So what you want to do is, you know, find whatever category you want to sell them. So we can say since we're doing resistance bands. Let's say sports and outdoors. Then, you can select the average amount of monthly units sold. So I guess I'll just leave this stuff here from now. But you can change all these things. Optimally, you want something local petition you want something with a good niche score. But, yeah, I was just searching this and see what we find this is going to be an extremely generic search.
Okay, so it's pulled up all these things and basically, it tells you the niche right. And, it tells you the category, it tells you the average monthly units sold, average price, search volume competition in these scores. So, right now all these are very low it's going to sort it by that.
Basically, yeah, this is, oh gosh! Don’t look at that, yeah, basically, this is a way for you to actually find the Product. And one thing I always tell people is don’t sell things that you want to sell. These products are probably going to be higher competition. Because you know people just think about these products from the get-go and they just do it. So there are a lot of these very niche products that you don't know about.
A tool, like this, helps you find these nations and build up an e-commerce store, and build up an Amazon FBA store. We don't care what the product is, we just care that there are profits and that it's going to be worth our time. To actually create this brand, create this product, create a listing, and sell it. Sorry, so going back to Amazon, yeah, so this category is extremely competitive. It’s going to be hard to do well in this category just because there are so many people selling it and a lot of the top results have just insane amounts of reviews. So definitely keep that in mind. So, next up is, once we've found the product and I, definitely recommend getting at least a few weeks to find your product you're going to have to find a factory to make this product. And the best way to do this is just going to Alibaba.com. So I'm going to go there right now.?
Search the product that you want to do so we're going to do resistance bands. So it's going to bring up a ton of different listings. Basically, all these people on the right, are factories of a lot of them are factories; some of them are actually trading companies. If you are trying to get a product for the lowest price you'll do the best with a factory.
Because then there's no middleman. The good thing about training companies is that they often have a lot better customer service. They have English-speaking reps that can make actually getting your first product a lot.
So I've used both trading companies as well as going direct to the factories. All right! So let's look at some of these results; so first you can see the pictures of the stuff that they're selling and if that's exactly what you want to make. Then that's perfect. And tell you the price a lot of times.
The actual price is a lot different than what they'll actually quote. You and we'll get into that later, but, you'll have to message the supplier ask what their minimum order quantity is. They’re pricing their samples and all that stuff. But we'll get into that later quick run-through of what you should be looking for you want to see where they're from. So I mean, I think most of these are going to be in China? How long they've been on the platform? So, seven years is quite good. Also, here tells you that, they are part of trade insurance which is good.
It’s a free service that basically helps protect you in case something goes wrong with your order. Or they can't fulfill it or the products turn out like garbage and then also their transaction levels. So it also tells you the response rate as well. The number of transactions they have done in the last six months.
So we're going to go through here. If there's anything you see that matches the product you want to do, and they have like you know, good transaction history, good reviews all that stuff. What I recommend you do is reach out to them. You want to click on this contact supplier button and with that, you're going to ask them if they can actually make you a sample of how much that costs.
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?Normally it's going to be free but you pay for shipping. You’ll also want to ask about their minimum order quantity as well as, their unit pricing as well. Any Shipping options that they do have. When you're starting your first product, I recommend talking to at least two or three suppliers you want to get samples From two or three suppliers. So that you can actually compare the samples.
Make sure, that the product is of good quality, and, that you think it will sell. With that, you can actually have them compete with each other on the pricing. You can go back and forth with these suppliers and ask them to reduce their prices. Because ultimately the whole goal is to get this product as cheap as possible.
So that, you can sell it for as much as possible. Once you find a supplier and get the product and everything looks good I recommend looking up some more detailed guides on how to actually create your first order through Alibaba trade assurance. And how you can get all up to the United States using ocean shipping or air shipping?
It’s very complicated you get to deal with customs and all that stuff so a lot of stuff for you guys to learn. But it is very exciting, so now the next thing you want to do is you want to create your Amazon seller's account and what you're going to want to do is go to sell amazon.com. And it will bring you to this page, and this page is going to have a ton of different information for you. So I definitely recommend looking over it and seeing all the stuff that you should know.
Ok, so now we're at the plans and you can see that there are actually two different selling plans. There’s the individual plant as well as the professional. Plan pretty Much everyone I know uses the professional plan.
Because if you're selling over 40 products per month which I assume you will do at some point. Then, it makes a lot more sense to go with a professional plan. The professional plan is a straight $39.99 per month whereas; the individual plan is $0.99 per product that you sell.
Now I will say that, if you are just starting out and you're making your account early and not actually selling anything. Then, sure you can go with the individual.?
You can upgrade that later on once you get your product in it. Starts making sales, so I sort of went through shipping just very briefly. But, I guess, I’ll go into a little bit more overview. How you can get your products shipped from your factory overseas to the Amazon warehouse? Now there are two different shipping types.
The first one is air shipping and for most people, if you're doing a very small product or you're doing a small order. Then air shipping is going to be the best thing to do. It sounds like the way, this I mean; you’re shipping it on an airplane. So this is good for smaller orders that don't take up too much space. That isn't too heavy and yes air shipping is more expensive per volume than per weight. But, it's a lot faster and it's a lot easier once you start doing these huge orders.
Where you actually need a big truck and different pallets to carry your items. Then it's probably going to be smarter to do ocean shipping. This is when you actually put the products on a boat and they ship it over on the boat and it takes about 2 to 4 weeks for the products. To actually get here depends on where you are in the United States. But the good thing about this is that it is a lot cheaper when you are shipping big items. When you're shipping kind of stuff it's a lot more economical than air shipping.
But, for now, I think, don't worry too much about the shipping once you get to that point in the process. You’ll learn about it and you'll make the right decisions. You know the biggest thing that I tell people with starting any business and specifically, an e-commerce business is just getting started. You guys like to start finding that product that you want to sell and just do it.
Because you're going to learn as you do it. The last thing you want to do is spend all this time doing research. Getting analysis and then just never just starting it. So just start it. So once you've gone through the whole process of finding a product and making sure it's going to be profitable. Find a supplier making that first bull order and getting it over to Amazon. Well, you have to have a good listing, and let's go over some of these listings and just analyze what they're doing correctly.
What you should be looking out for when you're making your own listing. So let's just click on this one it seems to be a very popular product. For resistance bands, ok, so right away you can tell that the product image is very clear it tells you exactly what you're going to get and this is like it's like a thumbnail for YouTube. It’s extremely important that you have a clear picture that shows the consumer what they're going to get when they purchase this product. It has to be on a white background, with multiple pictures.
They tell you, how you can use the product, its features? A bunch of text which is great, it gives you a picture of the actual sheet that tells you all the different types of workouts. What’s In the Box? What’s in the box? Different ways to actually use the product. So, this is very smart when they use models to actually demonstrate using the product? This is a very good conversion technique to actually get your customers to buy this specific product.
Also, has a video which is really good to have. But, let's also take a look at their title. So you can see that the title is it's pretty generic. But it's also very descriptive, it tells you like that's all these different keywords. It tells you what it does, what you can hit With it, and all that stuff.?
Another important thing with this is your description .so you want to have these bullet point descriptions that really show you what the product is about. If you're not too familiar with copyright. I recommend, looking up some YouTube videos on how to write these descriptions because it's going to help you a lot. Now you want a good description to actually get your customers to buy. But, yeah, you can see that they do really well here.
One thing that I do see a lot is, yes people like to capitalize the first part, and then they have a description that is not capitalized. So, also, let's take a look at these listings. So with this particular product, you can see that they have a very cool and enhanced product description. Now if you're just selling you're just starting out and probably won't be able to have something like this.
Once you have a brand and once you have that brand trademarked you can apply to Amazon’s and on brand enhanced program. I think that's what it's called and actually be able to create these enhanced product descriptions for your listings. When you're just starting out. The only thing we'll be able to put into these product descriptions is text. So, basically, right here, you're just going to describe what the product is, and why it's the best proximal.
Yeah, this listing is obviously extremely good. Here are the sponsored products related to this item. So all these other sellers are advertising the products. They are bidding on keywords in order to be shown. Here when people do end up on this listing. So, yes, some people will you know look at this listing and then actually decide to buy one of these products.?
Review sections:
This is probably the most important part of your listing. In the review section, I mean, you can't really build reviews. But, just know, that it's extremely important for the life of your product as you get more and more salespeople will start to review your price. And, this is what is going to really make your product successful. If you have thousands of reviews on a product. Then you're going to be doing really well as long as the product reviews are good.
You know having a listing like this with so many reviews, equity it's like a company you can sell this listing to someone else. In the future, if you want one thing, I like to do is actually email your clients. One day makes a purchase, and once they receive the product.
I like to set a non-mac email that goes out, I think two or three days after the product is delivered. And, it basically, just asks for a review. I recommend any new seller do this because that's going to increase your conversion rate by a lot. For most products, if you don't send these emails to them maybe one or two out of each hundred purchases.
Obviously, we want more than once two reviews per hundred sales. We want at least five. Because that's going to really help your product takes off. So guys I have to reiterate that's launching an Amazon FBA business is not a fast business to make money. You’ll likely not make money for at least the first few months.
I mean right when you start, you'll be doing a lot of research. Do you have to learn a ton about how to talk to? How do get those products shipped over? How do get samples how to negotiate on the pricing? It’s just a lot of things that you need to focus on. And learn from the reason, why I think so many people are successful on Amazon.
Because this platform is the king the queen of just e-commerce like everyone does their shopping on Amazon. And when they have so many eyes, so many potential customers on this platform. If you're able to find a product that is profitable that people are actually Looking for.
Where there isn't so much competition then that's the winning formula. If you follow through if you create the product and you make a good Listing. Then this product will sell….. I guarantee!!!
It is a huge initial investment of time at the beginning guys. Like, building up an e-commerce brand is not easy. But, once you set this whole system up and you have it. You know, reoccurring where you just get sales and Amazon takes care of everything. Then it's extremely passive. You guys, I don't spend any time managing my Amazon Store. the only times I have to actually do something is when I run out of stock and even then it's very simple. All I have to do is contact my supplier, get things made ship it here, and then, that's pretty much. It will just continue to sell on its own on Amazon's platform.
Is Still Not Late Yet A lot of people think it's too late to get into Amazon FBA. And while it is harder. Now, then it was four years ago. It’s definitely still possible. I see people starting out recently that are doing well. It is harder, but you guys, if you're smart and if you do the right product research.
Then, you will be successful and that just brings me to the point. Where you guys, you have to be extremely careful with. The research and that's why you need a tool such as jungle scout if you go into making an Amazon FBA brand without doing your product research using a tool like jungle scout then your chances of failing it's a lot higher.
At Least So, I definitely recommend making that initial investment it's not very expensive. I'll have a link to it in the description below. But, if you are considering starting on Amazon FBA, then guys, you have to get a jungle Scout or another tool.
Basic Points To Help In Stepping Up In The Amazon FBA Business
So, hey, you guys I hope you got a lot of Knowledge from this article. This is just kind of like a step-by-step brief guide into how you can actually get started building your Amazon FBA business. Do I recommend it? I do it is riskier than a lot of other businesses you could start. Because of that initial investment in your product, you have to buy in bulk. If it doesn't sell, or it's not profitable then you could lose some money. But like I always say, you guys, just need to take action, just do it. Don’t think too much about it; don't be too worried about losing money.?
Because the lessons you learn in starting this it's going to be priceless. Like, you'll learn so many different things about e-commerce about sourcing products, building your own listings, and photography, and all that stuff. That even if you lose money and I'm saying. Even because, you probably won't, you're going to get a lot of value out of that money.
Amazon FBA has helped me out with my other businesses and it's just like the perfect business to start from home. You can literally do Amazon FBA from anywhere in the world. Like, you can sell in the US on Amazon and be in Bali Indonesia that's why this is such a cool business opportunity.
Explore Different Ways of Earning Money With Amazon FBA
Hey guys, we’re living in these really cool times. There are so many different ways to make money. If you're looking for a way to make money that's more unique. Which is very flexible, where you can do it anywhere? You want a lot of earning potential.
Thank you guys so much for watching if you like this video. Make sure, to hit that subscribes button. I make a ton of articles about investing entrepreneurship and personal finance. Oh! And, if you have any friends that are interested in Amazon. Make sure to share this article. I think it's going to help them out a lot, so that's it for today.
Thanks so much for your comments!!!