Are you planning to start an Amazon business? And are you confused about what to do first? Don’t worry about it, here is a step-by-step guide for beginners to start an Amazon FBA business.
Before introducing the step-by-step guide, I want to make some explanations on whether Amazon can make money.
Do Amazon sellers really make money?
Starting a new Amazon business is not difficult. Amazon does not need to invest so much money, and the chance of success is greater. Unlike traditional businesses, you do not need to find stores and offices for business. Even if you choose FBA, you don’t need to ship the products to customers yourself.
However, I can’t give you an absolute answer. It is a business. As we all know, someone can earn money from his business, someone can not.
Don’t lose confidence! Let me share some exciting things for you.
Here is the product on the Amazon:
And I have found a similar product in 1688 (Alibaba’s online wholesale marketplace in China):
You can see, the price for 4 sets is $21.99, however, the price of 1688 is about $5. Yes, you have to pay for the shipping fee and other necessary fees for your business. However, you can still earn money from it.
So far, if you still want to start your Amazon business, just follow me to check the steps on how to do it.
Guide to start an Amazon FBA business 2021
1. Create an Amazon seller account
There are 4 Amazon seller accounts for sellers to choose from. In general, the choice of most people is to start with an Amazon Seller Central.
Know more information about the types of Amazon seller account.
Let’s go on…
Prepare well your documentation
You must prepare the following documentation before you start to create your account:
- Basic information: our legal business name, address, and contact information (Phone Number and email address)
- A credit card: Sellers have to provide a valid credit card, This card is kept on file in case you have a negative account balance.
- A business license: Amazon must confirm you are a legal organization.
- Tax ID: Your tax identity information, including your Social Security number or your company’s Federal Tax ID number. A Tax Identification Number (TIN) is a nine-digit number used as a tracking number by IRS. You can get one for free at IRS.gov.
Create the account
Firstly, go to sell.amazon.com, click the button”Sign Up” to start to create an Amazon seller account.
Secondly, fill in your basic business information.
Thirdly, set up your billing information.
Then, provide your tax information.
Congratulations! Now you have created a successful account.
Setting your account
Finally, you can decide to choose a professional account or an individual account.
You can click “Settings” in the upper right-hand corner, change your seller account type.
Click “Manage“. From here you can see what kind of account you currently have, and allow you to upgrade/downgrade.
2. Choose products to sell
Regarding how to choose the product, it is necessary for you to do product research. You need to know the market status of the product:
- The situation of competitors;
- what is the overall selling price of the market;
- The advantages and selling points of their products;
- what is the pricing strategy, and what is the profit margin?
Only by understanding the possible situation of the product on Amazon can you grasp the overall operation of the store, because all subsequent work is carried out around your product.
Captain BI product research tool can help you instantly research the amazon product market. It Shows the price distribution, review rating distribution, brand distribution, price & review distribution, launched time, and word frequency of the product with clear Graphs. In this way, it is easy for you to grasp the development of the product market and increase sales.
- What to sell on Amazon in 2021?
- Product idea: where to find profitable products?
- Amazon Seller Fees: How Much Does It Cost To Sell On Amazon？
3. Establish product sourcing
Once you determine what to sell, you can start to establish product sourcing. Without product sourcing, you still don’t have anything to sell.
Find product suppliers
You can find the product suppliers in the following ways:
- Local Trade Shows. Locate local trade shows which host industry leaders that provide the products you will be sourcing at a wholesale price. Search for trade shows online, through trade magazines and newspapers.
- Bulk and Clearance Items from Local Retailers. We discussed this earlier as possible short-term sourcing.
- Local manufactures. If you happen to be marketing a product that is produced locally, by all means, make use of local manufacturers as a means of sourcing your products. They are certain to appreciate your efforts.
- Sourcing websites: A lot of FBA business owners will use sources outside the U.S., like Alibaba.
Order product samples
Whether you have found a product supplier from the local market or an overseas market, the next thing you have to do is to order product samples and then test the product. In order to run your business better, you will certainly want to make sure that you are still offering the best quality of product possible to your clients.
You can compare the products provided to you by several different suppliers at the same time, and then choose the supplier that best meets your expectations for cooperation. Be sure to factor shipping costs into your overall decision when it comes to selecting your supplier.
Further reading: The Ultimate Guide to Find Reliable Chinese Suppliers (2021 updated)
Ship products to FBA warehouse
Once you have determined which supplier will source your products, you will want to purchase and ship your first order of products. You can ship them to yourself, and then prepare them to ship to the Amazon Fulfilment Center, or you can have them shipped directly to the Amazon Fulfilment Center from your supplier. You will need to follow Amazon’s specific guidelines on how to prepare and ship your orders.
4. Launch the product
After the product is selected, it is time to launch it on Amazon. Here are two methods for you to launch your product.
You can choose to list your product to the existing listings. However, you have to make sure the existing listing allows you to do that. In this way, win the buy box is really important. Usually, you can win the buy box at a lower price.
Or you can create a new product listing. In this way, you need to spend time optimizing your listing. Here are the things you can do for optimizing your listing:
- The number of characters. The English input method does not exceed 200 characters.
- Use related keywords. You can use keyword tools to identify keywords that should be included in the title.
- Describe product details.
- Explain the benefits of the product. You can use this opportunity to let potential customers understand what they will get by purchasing the product.
- Put the most important information first. You need to make sure that the product title starts with the most important information. This means that the first word you use in the title should be related to the brand and product; add other descriptions later to help shoppers better understand the characteristics of the product.
- The measurement unit must be spelled out completely (such as Ounce, Inch, Gram, etc.).
- Upload as many pictures as possible. Amazon allows 9 pictures to be uploaded, 7 of which will be displayed on the product listing. When customers click on the photo gallery on the product page, they will see the remaining 2 pictures.
- Show the actual use process of the product. life-like photos of the product will help potential customers imagine what it would be like to use the product in the real world, and also help to add a new perspective to the product.
- Show products from different angles. You can use images of different angles and sizes to help shoppers better understand the product. Doing so can help potential customers feel more comfortable and confident when making purchasing decisions.
- Use high-quality images. The competition on the Amazon platform is fierce. If your product belongs to the saturated category, then you need to hire a professional photographer to take high-quality, high-resolution product photos. High-quality photos can make potential customers trust your product more.
- Upload photos of product changes. If your product has different colors or changes, you can add photos to illustrate the product to customers. Don’t leave anything to the customer’s imagination.
- Keyword. At the beginning of each line, try to use short keywords to describe the core content.
- Outstanding advantages. The first line must be the most important advantage of the product, which is to solve the problem of consumers concern most.
- The sentence should not be too long, keep it between 15-25 words.
- Focus on benefits and functions. Mainly discuss the function of the product and the benefits that customers will get, and then discuss the product itself, so that customers believe that your product is what they need.
- Easy to read. The sentence should not be too long, keep it between 15-25 words, and try to tell your customers about the product by telling stories.
- Use the right keyword. You can use target keywords in product descriptions, but don’t fill them blindly.
- Learn from your competitors and customers. Don’t provide the content just based on your own experience. You can monitor your competitors to know what they are doing on the product to find out the customers’ needs.
- Fill in a single word, phrase, and be careful not to make spelling errors.
- Can fully express the name of the product.
- Provide excellent customer service. As a seller, the best you can do is to promise excellent customer service at every stage of the buying process. This means communicating with customers about order-related issues, sending thank-you emails, and following up after the products arrive.
- Send follow-up emails. The easiest way to get more product reviews from customers is to take the time to ask them. This seems simple, but many sellers seem to ignore this strategy.
Further reading: 6 Steps To Build Your Brand On Amazon In 2021
5. Market the product
Luckily, you will get some sales because of your optimized listing, however, it is not enough. In order to start turning over inventory and ringing up sales, you will have to draw the attention of potential buyers to your product.
You can take Amazon PPC advertising to promote your product. Amazon provides sellers with a variety of advertising solutions, allowing sellers to more precisely control their advertising positions. There is no doubt that Amazon ads are one of the best ways to get your product noticed and purchased.
However, you must know not all products are suitable for Amazon ads. So before running Amazon ads, please confirm whether your product is suitable for Amazon ads.
Further reading: How to reduce your Amazon ACoS?
6. Improve the product
Amazon ads will bring you sales, it is great! However, it is not enough. It is a great time for you to improve your product.
By analyzing the product performance data, try to improve your product. For example, if the conversion is not great, it is necessary to check the product price, product images, and product reviews.
Are you preparing to start your Amazon business now? Lastly, I have to repeat something. Yes, we can’t directly copy the success of others. The truth comes from practice. For novice sellers, please not be afraid of difficulties at the beginning, settle down to slowly improve your abilities, polish your products, and calm down to do it.