If you’ve found your way to this blog, chances are it’s because you want to know how to become an Amazon seller utilizing Fulfillment by Amazon (FBA). We’re here to answer that very question with our 7-step guide to Amazon FBA for beginners.
TradeGecko’s inventory and order management software will help you automate your workflows so you can focus on growing your business.
Spending time on product selection at the outset will help you make informed business decisions further down the track. Take the time to look at existing products from other Amazon sellers to make sure you have a good chance of being able to sell your products at a price that allows you to make a profit.
You might want to know how to sell products on Amazon, but what you really need to know is how to sell on Amazon and make a profit. The percentage of revenue that goes to Amazon depends on a number of factors, but thankfully they make it easy to see how much of a profit you can make off different products using their profitability calculator. Before you start dropping your whole budget on products, make sure you’ll be able to sell them at a healthy margin!
Unless you manufacture products yourself, you’ll need to find a business to make or supply your products. Alibaba is the largest network and search engine for factories and suppliers in the world, but many of the suppliers are based in China and some businesses have reported suppliers on the site that aren’t legitimate. There are a number of supplier directories you can look for, but be sure to research any you find on an aggregator site thoroughly. Alternatively, you could reach out to other sellers you admire on Amazon and ask for recommendations.
You’ve identified your product range. You’ve found a good supplier. Now it’s time to sign up to Amazon!
Once you’ve become an Amazon Seller you’ll also need to sign up for FBA, which has a huge number of benefits:
It’s worth noting that some businesses prefer to have more control over their distribution and fulfillment processes as an Amazon Vendor. If you’re not sure which is best for you, see our guide to being an Amazon Seller vs. an Amazon Vendor.
Product listings are one of the most critical aspects of your Amazon store, but unfortunately, they don’t often get the love they deserve. For each listing, play close attention to the following:
Titles, features and descriptions – Should be clear, concise, and contain relevant keywords
Images – Should be high-quality and professional
Reviews – Encourage customers to leave feedback about your products
Ratings – Make sure you’re maintaining a good rating on each of your products, and, if not, look at what you can do to improve the product or remove it altogether
The buck stops with you when it comes to ensuring the quality of your products, so make sure they’re in good condition by inspecting them thoroughly before they move into Amazon’s hands and follow Amazon’s FBA guidelines.
Regarding shipping costs, in many cases the products you sell are more impactful to profit margins than keeping shipping costs as low as possible – which is why it’s so important to choose the right products at step one. With that said, shipping costs should be reasonable based on factors like delivery time and item weight. It goes without saying that a heavy item being express-shipped will be pricier than a standard letter.
Here’s the fun part: making a sale! Now that you’re up and running keep an eye on which products are selling well and which just aren’t cutting it so you can refine your offering over time and ensure you’re selling products which your Amazon customers actually want.
Use TradeGecko to streamline your inventory management processes and grow your business