The FBA (Fulfillment by Amazon) business model is becoming increasingly popular for good reason. It’s basically the same as traditional e-commerce companies, but instead of having to fulfill orders themselves, the retail giant stores and even packages and ships your products to customers.
But did you know that you can get an Amazon FBA business up and running on a tight budget? Once you find one Amazon business worth it You might be tied up with a bit of money to buy, but that doesn’t mean you can’t start selling.
This post is everything you need to know to get your Amazon FBA business up and running without breaking the bank. That includes how you choose the products you source them from, where you source them from, and how you market your business.
1. Select the product that you want to sell.
Choosing the first product to sell is the first and most difficult step. At the same time, it is the most important thing, as choosing the right product will determine the success of your business Amazon FBA business. For example, if demand for your product is low, if it is too expensive to buy in bulk, or if it is in a very competitive market, you are unlikely to get the expected return on investment.
This can be avoided by spending some time brainstorming and doing market research.
Start with something that you are passionate about. You can get inspiration from your home or from something that interests you. Do you enjoy gardening or are you interested in interior design?
If you already have a solid social media presence or blog, you can use this to help determine your niche, that is, to see what your audience has to say about your potential new product. Once you choose a product that you are passionate about, it will be easier to talk about it on social media or write about it on your blog with real enthusiasm and knowledge.
Conduct market research.
When you start an Amazon business on a budget, you don’t have much margin for error. Therefore, you need to be very thorough and selective from the start.
Once you’ve found a product you’re interested in, it’s time to do some market research. Start by Googling it or doing searches on Amazon, Alibaba, and eBay to cross-reference it and get an idea of the item’s potential profit margins.
Also, do a search for keyword research tools to get a general idea of how often customers search for a particular product keyword.
Next, check the BSR on Amazon. If a particular item dominates a product category, it may mean that the category is too competitive. Keep in mind, however, that the BSR should not be the only determining factor in your decision. This list only shows whether there is a demand for the product in which you are currently interested.
The most important thing is to be open-minded and creative. Write down your ideas no matter how unrealistic they may seem. Once you have narrowed your selection down to a usable shortlist, you can review it FBA compliance fees associated with every product. The fees depend on various factors including the weight, shape and size of the product, etc.
2. Procure your product.
Since cost is a key factor in how and where to ship the product, consider sourcing from outside the United States. If you choose to go with domestic suppliers, read trade magazines or local trade shows where the big players in the industry are represented to find the supplier who sells the product you have in mind.
When you’ve decided on a product or a list of products, order samples and ask for minimum order quantities that will fit your budget.
Also, when looking for different suppliers, check to see if they have other products that you might want to sell in the future. From day one, work on building a close relationship with your chosen supplier to ensure long-term success.
3. Market your product.
Although listing your selected product on Amazon will generate significant traffic, you still need to think about your initial Marketing strategy. After all, Amazon’s marketplace is pretty crowded. To benefit as a seller, you need to stand out from over 2 million merchants. However, if you manage to get customers’ attention, you need to make sales.
Optimize the product description.
In order to let your audience know how great your product is, you need to create an amazing (and streamlined) product description. Start with a strong, searchable title that will make sure it includes your product’s name and uses keywords that are frequently searched for.
Next, you need high quality images. This means that you need professional-quality photos of your product, not those taken with your smartphone. Make sure the pictures show all of the sides and features of your product.
Then write an excellent product description. Start with precise bullet points that show all the details and characteristics of the product. The product description follows the bullet points and summarizes all the main features of the product while highlighting its benefits and describing how customers could use it.
And where better to find customers than on Facebook? The social platform gives you the ability to create PPC ads, customize advertising campaigns based on your budget, and target a specific audience for the ads.
PPC (Pay-Per-Click) is a great affordable option that allows you to reach a wide audience. PPC marketing is actually the “sponsored content” that appears when you search for a particular product on search engines. You pay a small sum to the search engine for every click your product receives.
Amazon has a great PPC option that enhances your product so that it shows up as a “sponsored product” in the website search results and helps customers easily find it among the thousands of Amazon products.
Collect product reviews.
Let your product advertise yourself through positive product reviews. Consider joining product review groups on FB to find people interested in writing great reviews of your product.
You can also submit your product to a popular product reviewer or blogger to get support from someone who has thousands of followers.
There you have it – your brand new Amazon FBA business is now up and running. Once you start building some traction, you can start reinvesting in more products. And as you continue to grow, you can reinvest in other areas like packaging, email marketing, etc.