Starting an Amazon FBA is quite a cheaper source of earning as you may start it a minimum investment of $1000. It is really possible to host this business at this price point. You may have spent that amount in buying some products, services or used it uselessly. You would have never thought that a great business is possible with that amount.

But, there are several factors that help you grow this great business. You have to accept your failures. As you start with a minimum balance you won’t get ample chances of failures. So you need to be smarter, practical and selective about your choice.

You have to analyse well before penetrating into any market what is the demand and return on products, local suppliers, etc.

This article is provided to us by Nine University, a leading mentor helping people to grow their Amazon affiliate business.

These Are Some Points to Consider Before Starting Amazon FBA Business:-

  • Selective About Your Inventory:-

As you start on an initial level you must be selective about the product you are selling and it should also be making you great profits. There are millions of items listed on these platforms but a small portion can only be bought from your invested capital. You have to pick a specific niche and relatively list down items related to niche on amazon. 

You have to be selective about your inventory as you are starting with less amount. You must select a profitable niche where you can get a higher rate of interest on your investment which you can use later to increase your product portfolio and this even decreases your operational cost.

Here are some points to keep in mind while selecting the items you would sell.

  • Focus on Size: If the item can fit into a shoe-box or something smaller and is fairly light in weight, this helps you minimize your shipping costs.
  •  No Seasonable items: It’s a high risk to start an Amazon business with such a budget, so you shouldn’t stick to seasonal items, it’s advised to sell products that are bought throughout the year.

  • Frequently Used items: you should sell an item that is frequently bought as they are in higher demand and so the chances of your success is even high. sell the best selling product of your niche.

  • Risk capacity: Sell products that can be easily transported well and can handle a small rough-handling, and avoid fragile or breakable items. There’s a market for that, but you need to spend high on their transportation.

  •  No Brands preferences: The big brands are generally huge sellers, but you’ll face incredibly tough time making worth for you.you would also have to comply with strict branding and selling regulations, but you’ll also be facing stiff competition.

  • Category selection: few categories are quite more competitive than others, like electronics, clothing. Although the wholesale product price is less, you’ll need to spend on other areas to set yourself apart.

  • Comparing Prices on Alibaba:- 

you should be comparing the price from Alibaba this would give you an idea of the potential profit margins of each item. Then, multiply the Alibaba price by the number of items you’ll want in your inventory, to get an idea of the budget you require.

When you have selected items that are potentially inexpensive but profitable items, order samples of them, whether from Alibaba or another supplier. Make sure to ask about minimum order quantities, negotiate for the price of smaller quantities that fit your budget. If a deal can’t be done, stand on your last decision there is a chance there might be a deal as it’s just business, for both sides.

  • Adding other Expenses:-

Secure a decent amount of your budget for paying for a professional Amazon account, Amazon fees, storage/packaging/shipping, legal needs, brand label and marketing/advertising. Now, You might be budget-poor, but you should make up for it with time-richness.

With such a limited budget, speed is of the essence in terms of setting up and starting to sell. Don’t spend too much time in initial days on a fancy logo or special packaging — that can come later in the process as you refine things and compound sales.

  • Building Good Customer Experience:-

Today, customers are not concerned about the product but value-added service you provide to them. The market is user-centric, so you have to bring a good customer experience for them. Provide all the necessary details about your product on the description. Provide some free stuff or knowledge about your niche to them in the form of blogs, posts, video or audio contents.

Now, start by setting up building a social media presence, running promotions to hype visibility, assembling an email campaign to gather reviews, nailing down keywords and optimizing your listings. Also, make sure to really familiarize yourself with Amazon’s Terms and Conditions so you won’t run into tangles later on that could jeopardize your selling chances or even your account.

Once you start building some profits, one of the ideas you would consider is to invest by adding more products on your list. If you start Placing orders with bigger quantities that would decrease your per-product price, this would gradually increase the profits column of your revenue. As you continue reinvesting, after a while you can diversify your investments to other areas, like packaging, brand aesthetic, email marketing and more.

These were some methods to start Amazon FBA business provided to us by Nine University. We thank them for the valuable knowledge they have shared.