Make Money with Amazon FBA
Amazon is an online platform that offers users worldwide to buy and sell various wares. It is an online retailing market and is recognized as being the largest of all online retailers in the United States of America and in the United Kingdom. If you are in the business of selling various items and you want to reach out to a large number of customers, you can use the internet and use Amazon so as to be able to reach out to millions of people not only in your country, but worldwide as well.
Many people make money using Amazon as a platform and you can join the bandwagon too. Amazon can offer you a platform to simply interact with potential buyers and once an item is bought, you take care of the packaging and shipping process and you ensure that the client gets exactly what they bought. However, Amazon further offers a service called Amazon FBA. What this stands for is Amazon – Fulfilment by Amazon.
Under the Fulfilment by Amazon program, Amazon handles the picking of the order, packaging and shipping it if necessary, and takes care of the whole process until the goods are delivered to the customer. The key benefit of using the Fulfilment by Amazon program as a seller is that Amazon will handle all the issues pertaining customer service, from the point the customer makes an inquiry to the final point when the goods are delivered and the customer receives them. They will even handle customer returns. However if there are queries that are too technical or specific, they may be forwarded to the seller.
The customer’s experience is not affected in any way if they are to buy from a seller who uses the Fulfilment by Amazon program or purchasing from Amazon directly. They will still get the same return policies, delivery options and access the same customer service team. Using the Fulfilment by Amazon program, you can make money with little done. All you have to do is to ensure that stock is produced and then you have it delivered to an Amazon storage facility or warehouse.
To make money using Amazon FBA, you first have to have a product you are selling. To get a product, you can either invent your own product, that is come up with a product from scratch or you can simply improve on a product that is already there. If you notice a certain need in society, then you can come up with a product that will attend to that need or you can improve on what is already available.
To come up with a great product, always do your research to know what the market needs, to understand the market trends and to also be sure that there are no other products that are superior compared to yours which would drive you out of business once you start. Always aim to settle on a niche which you know clients will keep on coming back and will do so regularly, which means items that are to be used again and again so as to ensure you have a continuous market.
Once you know the product you wish to sell, the next thing is to source for the product. It may be a product that you can get ready-made and you simply have to purchase and resell or it may be a product that will require you to contact some manufacturers and work with them to produce your products.
Get the best manufacturer you can, which means you need a manufacturer who will produce for you the best quality at the lowest price possible and in the most reasonable amount of time. Having a manufacturer who offers standardized as well as quality packaging is an added advantage. The amount of products that you want to made will also be a factor in determining your cost of production and choice of manufacturer.
Once your products are produced, you will need to have them delivered to an Amazon warehouse. Because the Fulfilment by Amazon program will deliver the products to your seller for you, it is necessary to have the products in a centralized location so that they can easily access it, therefore this creates the need for you to deliver them to an Amazon warehouse. The Amazon warehouses are located in countries where Amazon sells items in thus, you can have your products shipped to another country and stored in an Amazon warehouse there.
Sometimes damages do occur and products can be faulty, therefore always plan for product returns which may occur once in awhile. Basically, this means that you should have a few extra products so that in case something is returned and you have to replace it, you will be able to do it fast.
Once you have a product, then you can calculate how much it costs you to produce your product, have it packaged and transported to the Amazon FBA warehouse. With all this in mind, and any other extra charges that you might incur, you can be able to set a price for your product. Pricing requires market information, so as to ensure that you do not overprice it and drive away potential customers, or you under-price it and end up making sales without earning any profit.
Take into consideration factors such as the shipping fees, any tax and importation duties that you will have to pay, delivery fees and charges charged by Amazon for the fulfilment of the FBA and closing fees. You may have to start off with a lower price so as to capture a share of the market, though you can clearly indicate it as being a discounted offer and once the business is going steady you can adjust the price again.
Setting up an Amazon Account
You need to set up an Amazon account for you to be able to sell on Amazon and it is important to have the account ready even before you start manufacturing. This is to ensure that once you have started manufacturing, everything else is ready and there shall be no unnecessary delays in getting sales once the products are ready.
In setting up an account, the better option is to set up an individual account as compared to a professional account because an individual account is free apart from the extra fee you pay for every item sold. However, for a professional account, you will be required to pay a monthly fee. You can set up an account with Amazon in any country apart from India, which requires one to have a business that is based in India in order to register using India as the country of choice.
It is advisable to start off with just one country and as you gain more experience and continue to grow, you can then expand into other countries gradually. This will give you space to grow your business while also getting feedback and you can use the feedback to improve your product, therefore, by the time you expand into other countries, you will have a product that is better than how it started off.
Create a Listing
Once you have a ready account, the next step is to add a listing for your products so that buyers can view it when they search for it. It is important to create a new product listing in the right category, hence, once you select a product, ensure that you select the most relevant category when creating a product listing for it.
After choosing the category, there is more information that you will need to provide which include the product name, brand name, the product ID, the price, condition and the fulfilment channel. When in putting the product name, include the brand name as it is more specific and a customer can be sure that the product is what they are looking for when they conduct a search. The product ID is the same as the UPC number which offers your product a unique barcode. You purchase this number when you are designing your product.
It is important to set the Fulfilment channel so as to ensure that your business is an Amazon FBA business. Select that you want Amazon to dispatch and further provide customer service for your products whenever they sell.
The product listing will require you to have an image of the product. The image represents the product to confirm that is an image of the actual product you are selling and, have the photograph taken by a professional photographer if possible. The image by itself can draw attention to your product and create sales leads.
Apart from the image, the product description is also important because it provides an overview of the product, describing it and what it does and offers. It may not have all the information, however; it should have the key aspects of the products, giving a clear outline of how the product is best suited to serve its intended purpose. Make sure that your product description comes out as appealing as possible so as to get you sales.
When coming with the item name and the description of your product, always use keywords which are closely related to your product as much as possible. This is to ensure that your product is visible on the results page once a user searches for an item on Amazon.
Once all these are done, you are ready to start earning money with Amazon FBA. Sellers on Amazon can order for your product, pay for it and Amazon will take care of the packaging, shipping and delivery of the product. All you have to do on your part is to make sure that there is enough stock being produced and that they are of top quality.
The more satisfied clients you have, the better ratings your product has thus, pushing up sales since buyers will always go for top quality products. Selling on Amazon under the Fulfilled by Amazon program gives you the opportunity to go into business like a set up company and you can even compete with top brands if you have the right quality. Get started today and make money with Amazon FBA.