Getting started on Amazon is easy, but mastering the art of selling on the platform isn’t as straightforward. To build a profitable Amazon business, there are certain things you need to do.
When you sell on Amazon through FBA, Amazon handles all of your shipping, storage, and handling needs. The fact that you don’t have any fixed overhead costs makes it a very attractive business model.
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What Is An Amazon Business?
Instead of hiring people or renting warehouses, you can do it all from the comfort of your computer while Amazon handles the heavy lifting.
Keep in mind that there’s a fee that you must pay to Amazon for every product that you store and sell. However, it’s much cheaper than doing it on your own. An additional benefit of this business model is that you can scale without bounds.
With this business model, you can start with a relatively low investment, and it doesn’t take a lot of time to run. Nevertheless, Amazon sellers must work hard to make a lot of money. This business model poses many challenges, as with any business. You need to offer something that people want to purchase, and you need to let them know about it. Basically, you can concentrate on that aspect of the business while Amazon handles all the logistics and system management.
So, what do you have to do in order to build a profitable Amazon business? Keep reading because I’m going to break it down.
Research Products
Identifying what you are going to sell is the first step. It’s not exactly easy to figure this out. Fortunately, you can sell pretty much anything. Almost anything can be made by suppliers online these days. In contrast, you should do some research and find out what is selling on Amazon. Obviously, it’s not all about what sells.
There are other factors to consider as well, such as:
- Are you going to have much competition if you sell a certain product?
- How big are your margins going to be?
- What is the cost of manufacturing and shipping?
- Do you offer products that can be customized?
- Can you estimate how many will be sold?
There is no easy answer to these questions, and choosing the right product is crucial. Choosing the wrong one can doom your business before it even begins. While there are no guarantees of a 100% fail-proof product, you can minimize your risk of failure.
Because of this, most sellers use market intelligence software like AMZScout to gather as much information as possible, as well as to generate a large number of viable product ideas quickly.
The research can be done without the software- it would probably take longer, and you’d have to rely more on luck and hunches. There are ways to work around this, but it is not the smartest business practice.
Getting Samples From Suppliers
Once you have found an idea or several ideas, it’s time to find someone to shoot your product(s). Alibaba.com is a great place to find suppliers, and during this phase of building your Amazon business, you should try to obtain the following information.
- Manufacturing cost per unit, based on order quantity
- Prices include shipping to your market country
- Customization of the product and packaging by the supplier
- Your first product should be a prototype (or sample) that you can stress test
Once you’ve gotten through this, you can place your first order. Additionally, you should take product photos, which will be needed for the next step.
In addition to ordering your prototype, you should also choose a brand name and register a domain for it. Keep in mind that Amazon doesn’t require you to do this, but you will need to do it as your business grows.
Create Your Product Listing on Amazon
While you are waiting for your first shipment of items to arrive, you can begin working on your listing.
The listing has several components:
- Listing images
- Product Title
- Bullet points
- Product Description
- Back-end Keywords
Each of these components has its own rules. Amazon’s own SEO is applied to all components, except the images.
Keywords are crucial here. The most relevant and searched-for keywords that are related to your product should be included in your keyword research. As a result, you will eventually rank higher in those searches.
This is why AMZScout’s Keyword Explorer and Keyword Tracker are so important. You need to identify the right keywords for your product and incorporate them into your listing copy. You must present them well to your potential shoppers, and the Algorithm must pick them up and index you.
The first image, also called the title image, should be on a white background where the product covers the majority of it. Focus on highlighting your product’s features and have more freedom with the rest.
On Amazon, SEO is not affected by images. If you want to find new keywords for your listing, you can always adjust it. To be successful, you should start with the best setup possible, so you can hit the ground running.
Advertising on Amazon and Launching Your Product
Product launch on Amazon involves a lot of different elements. Pay-per-click (PPC) advertising on Amazon is the most important one. In my opinion, its advertising system is one of the most powerful and cost-effective on the web.
In contrast to social media sites, Amazon is a place where people are coming with money in their pockets to buy items. The use of keywords is once again relevant here. To get your product as much exposure as possible, you need to advertise the keywords in your listing. When someone types a keyword into a search bar, you rank higher in those searches the more products you sell.
Your first sales will come from Amazon PPC until you rank high enough for your listing to appear organically in searches. This is why PPC is integral to any product launch, and it will never go out of style. Besides PPC, social media promotion can also be used to promote discounts and giveaways. Those methods are less cost-effective, but they can help you get your product out there. PPC, however, is an absolute necessity. Everything else is optional.
Learn More About Building A Profitable Amazon Business
Once your product is launched, you’ll have a living and breathing business that needs constant attention. Building a profitable business on Amazon is definitely time efficient, but it doesn’t mean it will run itself just because it can be run for only a few hours per week.
It’s always possible to improve your advertising, optimize, and position your product, as well as add new products. Selling on Amazon is all about adapting, growing, and finding new opportunities. The act of becoming an Amazon seller itself conforms to these principles.
Are you ready to launch a profitable business on Amazon? I can show you how. Visit The Wealth Connect to get started on your future as an entrepreneur.
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