T he idea of selling through the Fulfilled by Amazon program is an exciting one! You will no doubt have read about the advantages gained from utilizing Amazon FBA. You have seen the success stories of starting an Amazon FBA business where sellers are generating thousands of dollars within their first 30 days on the platform.
Making money by selling through FBA is easy, right?
If you become transfixed on all the positive stories and stats, the belief will be that all you need to do is to produce some listings, send your goods to Amazon, let them deal with everything else, and wait for the money to roll in. Sadly, this isn’t the case.
Now, this doesn’t mean you cannot have great success when selling on Amazon FBA. With the right strategy and the proper Amazon FBA product research, you can produce greater profit margins compared to selling on other platforms yet doing so is far from easy. There are various points to consider when getting started with Amazon FBA and these will quickly become evident as you start your Amazon selling journey. With that in mind, here’s what to expect in your first month of Amazon FBA.
The Importance of Inventory Management
In the first month of selling on Amazon FBA, you will learn a lot about how the platform functions. This includes one of the most essential elements: inventory. Simply put, your inventory management can make or break your Amazon selling venture.
The reason for this is simple: storage fees from Amazon. For every cubic foot your products take up in their warehouses, you get charged a fee each month. The more products you have stored away, the more money you have to give to Amazon. Add in the fulfillment fee charged for each unit and these charges can seriously cut your margins.
Picking the Right Products
With the above in mind, you need to know which products work best on Amazon. If you send a load of units for a product that gains no traction, they’re going to be sitting around and burning a hole through your budget. The good news is that with Amazon Seller Central, they will let you know beforehand if a product is likely to gather dust in their warehouse.
Another point to consider is the size of the product. Remember, Amazon charges per cubic foot for stored items. If you send in oversized goods which eat up bundles of space, the charges will quickly mount up. This is the reason why a lot of FBA sellers decide to focus on smaller items.
Once you’ve sold on Amazon for a month, you’ll also gain a greater idea of what types of products will sell fast. When you find an item that flies off the virtual shelves, you obviously need to place a greater emphasis on this product.
You Learn That Marketing is Essential
Not only is it the single biggest marketplace on the planet, but Amazon is also one of the most popular search engines around. When people start their online shopping search, the majority don’t begin with Google – they head straight to Amazon.
This means there are a lot of potential customers for your products. It also means there are lots of competitors who stand in your way, which makes marketing an essential asset.
Admittedly, you’re limited in what you can do when selling products that already exist on Amazon. Putting up the best price is your best tactic, as this will overtake other listings for the same product. When it comes to selling your own unique product on Amazon or private labeling another, there’s greater scope to promote your offerings.
There are various tactics you can incorporate when promoting your products, including:
Write a high-quality product description
Many Amazon listings feature a weak product description. This means if you craft a quality description, one that entices buys and truly sells what you’re offering, it can make your products pull ahead of the pack.
Conduct keyword research
When you put together your product description, it’s important you implement relevant, high-volume keywords. Remember: Amazon is a search engine and you want your product to show up with all applicable customer searches.
Produce eye-catching images
Selling online means potential customers cannot visit your physical store and hold your product in their hands. Due to this, your images play an integral role. They showcase your product in a way that words simply cannot match. The result: you need to create multiple eye-catching images which provide context to your product.
Generate positive reviews
Getting a customer to leave a review for your product is not easy. However, there are ways to entice them to provide such feedback on your product listing. You could, for instance, include a little card within your product packaging that describes how beneficial a positive review can be for a small business like yours.
Consider paid advertising
Amazon offers a range of paid advertising solutions on its platform. These supply instant results as they propel your listing to the top of search results.
Of course, you will also learn in your first month that promoting your products is not easy – even with the aforementioned tips. As a result, many FBA sellers opt to utilize Amazon marketing services for their products.
Products Won’t Sell Instantly
There are going to be exceptions to the rule yet, in many cases, newcomers to Amazon FBA won’t exactly hit the ground running when it comes to sales. Even if you are offering a quality product, it still takes time to turn your Amazon seller account into a money generator.
Of course, there are ways to kickstart your FBA journey. Along with these steps to start Amazon FBA and the advice offered in this guide, you can learn directly from expert Amazon marketing consultants. They will be able to understand your products and client base, create proven strategies, and guide you along the way towards positive – and profitable – results.
When you start selling on Amazon, naturally, there will be bumps in the road. If you don’t let these bumps deter you from moving forward and you use this vital first month to build your reputation, you have the foundation to become a successful Amazon seller.
Ryan Flannagan is the Founder & CEO of Nuanced Media, an international eCommerce marketing agency specializing in Amazon. Nuanced has sold $100s of Millions online and Ryan has built a client base representing a total revenue of over 1.5 billion dollars. Ryan is a published author and has been quoted by a number of media sources such as BuzzFeed, CNBC, and Modern Retail.