In the 25 years since Amazon was launched it has the title of the world’s largest retailer and has become a household name. The reason behind its continuous growth is the fact that it keeps on developing new products, acquisitions, and various different service offerings that continue to enlarge its customer base. Amazon has been successful for a very long time because it has extended its target market to cover as many customers as possible.
When you explore different online business opportunities, one of the first recommendations you’ll find is selling through Amazon FBA because it is the most prevalent way of making money. Before moving forward, first we need to have a better understanding of FBA and exactly what it is about. Fulfillment by Amazon (FBA) is a program where Amazon fulfillment centers handle storing, packing, and shipping orders along with returns and exchanges
You can send your products to these centers with selling fees and monthly costs. The rest of the work of shipping, customer service experience and tracking is handled by the team. This results in allowing you to scale your business. There are many successful sellers on Amazon like Munir Ahmed who gained accomplishment in this business by following few important and necessary steps. Here 5 steps that will guide you how to start Amazon FBA business in 2022 and would lead you to success.
- Conduct product and niche research
The latest numbers from Amazon show that the company made $125.6 billion in sales revenue in the fourth quarter of 2020. Major sale on Amazon comes from the north of America. Doing business on Amazon is not a piece of cake. You can’t just sell any product and expect people to buy it and become a good seller. It doesn’t work that way.
It takes hours of research to find the product that will buy you maximum profit. The best way to do it is to look for products that have these in them.
- High average monthly sales
- Steady sales all year long
- Not many opposing sellers
- Easy to attain from suppliers
- A high search volume on Amazon
- A sales price between $10 – $70
In case you are wondering how you would get access to this data then there are different tools available to Amazon sellers that has made finding this kind of information simple and easy. You can also search for great sellers like Munir Ahmed that how they made their name in this business.
- Create an Amazon seller account
This is the first step you need to follow before starting your business on Amazon. You’ll have two options in that. You can either make an individual account or professional.
In individual account there is no monthly subscription fee but you’ll have to pay $0.99 to Amazon every time you make a sale. Whereas in professional account you have to pay $39.99 per month but the $0.99 fee for every sale is waived but along with that you can get access to extra features like Amazon ads, in-depth inventory data, and additional categories you can sell in.
After Amazon accepts your account make sure to acquaint yourself with the Seller Central platform. This is where you’ll make new product listings, create Amazon ad campaigns, and update your inventory.
- Find a supplier
Once you are done with the hassle of finding the right product to buy the next step is to find a company that will supply you with the product. Most of the inventory is sourced from China because people find it cheaper than purchasing items locally. It is also recommended to use Alibaba that has numerous wholesalers and manufacturers.
- Choose your fulfillment method
This method allows you to ship your product to your customer. There are two options to do it.
- Fulfillment by Amazon (FBA)
In this method what you do is, you send your items to Amazon and they store it in their warehouse and on getting the order they ship the product to the customer. Ijn this method you pay Amazon a storage and fulfillment fee every time you make a sale. This method is best for the new sellers. FBA makes your item eligible for prime shipping.
- Fulfillment by Merchant (FBM)
In this method you do all the work yourself. You store all your items and if an order comes in you pack and deliver the product.
- Product promotion
Product promotion is very important. One way to do it is by running ads. This way is best for new sellers. Amazon has provided its own advertising platform to the sellers and it is very operative. Amazon Ads are “often used to get your product seen ahead of the competition. Another option of advertising on social media platforms like instagram and facebook is always available. One thing to keep in mind is that your average cost of sale (ACOS) should be low enough that you still have some profit left over.
