According to analysts, e-commerce has a 265% growth rate in 2023.
However, starting an ecommerce business from scratch means no sales for up to a year…unless you’re registered with Amazon.
Amazon has made more than $834 billion, and a decent percentage of that is dedicated to its FBA program.
The Fulfillment By Amazon program is, by far, the best ecommerce platform for small business, thanks to its flexibility and increased exposure. It allows small merchants to limit their investment and brings in great traffic.
So how to start an Amazon FBA business?
This blog will guide you on launching your e-commerce business globally, through Amazon FBA.
Head below, and you’ll find some quick tips to start your Amazon FBA business.
Steps to Follow for Starting an Amazon FBA Business:
1. Select a Niche:
If you land yourself with the right Amazon product niche, you can avail high-growth opportunities.
However, market saturation has made it quite challenging to pick a low-competition but high-demand niche.
According to a survey, 47% of FBA sellers find it hard to select a profitable niche.
We recommend checking Google for Amazon sales data to shortlist potential niches.
You can dig deeper by checking the Amazon associates commission list to know which product sells at the maximum commission rate and analyze demand.
The AMZScout Pro tools are also helpful in identifying high-demand and low-competition products by checking niche history and profit calculator.
2. Set up Your Amazon FBA Account:
To get things in action, you must set up an Amazon seller’s account to navigate the sales. The first thing is selecting between a selling plan and an individual one.
We recommend a selling plan because it lets you advertise and allows 40+ sales per month. Although the pricing for the professional plan is high, perks like better management, promotion, and API exposure cover up for it.
Then you have to sign up as an FBA seller by filling in details like your business email address, internationally chargeable credit card, government ID, tax information, and payment address.
3. Prep the Account/Research About Amazon FBA Tools:
For a competitive marketplace like Amazon, you have to make some investments to make your product stand out. Experts recommend using the best Amazon seller tools from the beginning to attract customers.
Tools and extensions validate supply, demand, and competition data apart from managing your business handle.
You can use paid tools like Helium 10, Viral Launch, and Feedback Five to conduct keyword research, manage analytics, and shortcut the launch process. These tools put your Amazon FBA business at your fingertips, no matter where you are.
The Amazon Seller App is another free tool that helps store management with more than 10 million subscribers.
4. Launch Your Products:
Now that all the backend work is done, it’s time to launch the product.
Start by creating an SEO-optimized product listing and add crisp product images. Make sure the headline features your money keyword and avoid keyword stuffing in the product description.
Use your contact list to create awareness about the product to boost reach. If you want to generate sales throughout the year, set a minimum target of five per day from day 1.
Since pricing can be changed on FBA, we recommend putting the products at a low price to display value.
Another pro tip is launching your business a month before the holidays to quickly cover up the Amazon pricing and warehouse charges.
5. Invest in Advertising:
After launching the product, you should focus on building an audience to support your brand.
Luckily Amazon has 300 million active customers, out of which you can pitch your target audience.
The best way to create brand awareness is by running ads. Well-established businesses on Amazon rarely run paid ads, but since you’re new, it is a try-worthy attempt to gather attention.
Simply go to the advertising section in your seller central account and click on the campaign manager. Go to Amazon PPC ads and select the products on which you want to run automatic targeting ads.
6. Target the International Market:
Gathering sales from one target region won’t be good for long, so you should expand your target region internationally.
Amazon FBA offers an export sub-program that enables you to take orders worldwide. You can add more target regions in your seller central dashboard by navigating the export settings.
FBA Export works just like regular Amazon FBA, but you have to pay an export fee of $86. The international shipping cost depends on delivery time, package dimensions, and weight.
Once you’ve signed up for Amazon FBA Export, you’ll automatically get listed on Amazon Global Selling, which allows you to run ads globally in different regions.
7. Implement a Marketing Strategy:
According to stats, 61% of users go to Amazon just for product hunting.
You can use the non-buying audience for conversion by creating and implementing an Amazon review, SEO, and affiliate marketing plan.
We highly recommend promoting your Amazon FBA business through social media as it increases reach and drives external audiences to your Amazon page.
Tips for Starting an Amazon FBA Business:
Once you’re done with the basics, make sure to incorporate the following tips for a flourishing FBA business:
- Perform an intensive competitor analysis targeting three to five small-scale businesses for strategy-building.
- Select a sub-sub niche to limit SEO workload and maximize success rate.
- Stay loaded with inventory to maximize capitalization because product availability impacts the Amazon search ranking algorithm.
- Set automated pricing on your products to become eligible for Amazon recommendations and Buy Box.
- Optimize customer-friendly product listings in bullets to boost customer attention.
- Grow your customer review section by engaging with customers to enhance your reach.
- Keep track of your monthly performance metrics to review managerial performance and analyze profitability.
Summing up, starting an Amazon FBA business requires a lot of market research related to the niche, selling tools, techniques, and branding.
Although the long-term storage fees can be high, it can earn you six figures every month, working from home.
The key is to stay consistent and keep yourself updated on the latest FBA trends and policies.