Amazon FBA can be an excellent tool to get into the online market, because it is very expensive to create your own website and promote it. To start an online business, development costs are unlikely to be less than € 6,000. That’s a lot of money for small and medium-sized businesses.

Therefore, to avoid that initial outlay, to create and promote a website, you can use Amazon FBA and pay a small monthly fee or a percentage of each sale. How to connect to the largest market in the world and start making money?

What is Amazon FBA?

Amazon FBA stands for Fulfillment by Amazon. Simply put, Amazon allows third-party sellers to sell their products on amazon.com, and Amazon will package and ship the products to customers for you. How Amazon works is as follows:

• We start with the creation of an Amazon seller account.
• Then we tell Amazon which products we want to sell.
• Amazon automatically assigns which warehouse to ship your items to.
• Subsequently, print the shipping list on the platform and send your products through the assigned parcel company.
• Once your shipment reaches the Amazon order center, you can start selling!

Once you sell, Amazon will collect your item from their warehouse, pack it into one of their boxes, and ship it to the customer. This does not require your participation. They also take care of customer service for returned products, so you waste a minimum of time.

You can sell new products that you have produced and used products. Or resell items that you may have purchased but are still in their original packaging.

Here are a couple of great advantages of using the Amazon FBA program over shipping yourself.

• Your product will be available for Amazon Prime shipping. This is a HUGE advantage to many buyers of getting a two-day shipment. The ability to ship via Prime and ship within two days means you are more likely to get more sales.
• Amazon does it all, so it’s REALLY easy for you. They handle shipments and returns. All you care about is your listing, which saves time and effort

 

What is the Amazon FBA Fee?

Of course, you now have to pay Amazon fees to do all of this. Therefore, Amazon’s commission is an inconvenience that you need to weigh when deciding to use Amazon FBA.

If you are curious about the commission, Amazon provides a FBA calculator that you should familiarize yourself with.

What are the Best Products to sell on Amazon FBA?

Several tips can help you choose your product portfolio. Among the recommendations:

Find Competitors … but not too many

A little competition is good because it helps you understand that the product is viable. If nobody sells what they want to produce, it may be that you are the first among 7 billion people … Or it may mean that others have already tried and it is not worth it.

If there are multiple competitors in a niche, then the product is profitable and worth producing. A product without competitors can be a sign that margins are not high enough or that there are other unforeseen problems.

On the other hand, make sure there are not too many competitors. If you find a great product and all of your competitors have 2000+ reviews with 4-5 stars that could be a bad sign. You will simply bite off more than you can chew without major connections or resources.

The best part is if you find multiple products similar to yours that have up to 50 reviews on the first Amazon search page. If many of the highly rated products have multiple negative reviews, that’s even better. You can use these negative reviews to solve the problem and be better than your competitors.

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Choose Products with a Good Best Seller Rating

The metric you can refer to when choosing a product to sell on Amazon is the BSR (Best Seller Rank).

If similar products occupy the first positions in the rating (the first place in the rating is the best-selling product in the category), then there is a demand for them.

Selecting products identical to those on the list allows you to position your business on par with these bestsellers. As a result, you can reach your target audience for best-selling products and get them to buy from you.

You should be looking for the first 3 results with a BSR of up to 3000. This not only means that the product is in demand, but also that it is not the only product that is selling well. If 3 different products are selling well, it means that the market is receptive to different brands

Do not name the brands

If you recognize the name of a competing company, it is best to avoid that niche.

Search and optimize keywords based on frequent search requirements

This is the Amazon FBA key that most of its competitors lack.

You need to find a product that receives a lot of searches. If a product has a lot of requests, but there are no dominant offers in the field, then this product is ready for new entries (that’s you).

You’ll benefit even more if you can find places where your competitors haven’t optimized for that keyword. They might rank high in the “Best Digital Thermometer” category, but they don’t have that in the product description. Or maybe it’s not in your product title.

Finding a missed optimization like this is the key to growing your FBA business without going through the competition. But this type of optimization will only help you if there is some search volume to start with.

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