Overview of Amazon FBA Selling Strategies

Aug 22, 2024

Amazon FBA Course Overview

Introduction to Amazon Selling

  • Amazon is a $1.3 trillion company.
  • 2.4 billion customers visit Amazon monthly.
  • Third-party sellers account for 60% of sales on Amazon.
  • 40% of Amazon sellers earn over $100,000.

Growing Online Retail Market

  • Currently 18% of retail sales are online, projected to rise:
    • 20% next year, 22% the year after.

Amazon FBA Methods to Make Money

1. Retail Arbitrage

  • Buy discounted products (e.g., Walmart) and sell at a higher price on Amazon.
  • Example: Buy a product for $229 and sell for $599 on Amazon.

2. Wholesale

  • Purchase products in bulk at a discounted rate.
  • Use tools like Jungle Scout to estimate sales.

3. Private Label

  • Create a unique brand on existing products.
  • Example: Buy a product for $2.99 on Alibaba and sell on Amazon for $15.99.

4. Passion Product (Best Method)

  • Create a unique product aligned with personal interest.
  • Example: Sear Pro torch.

Steps to Launch an Amazon FBA Business

1. Identify Product

  • Method for finding a product to sell.

2. Find a Manufacturer

  • Use Alibaba, ThomasNet, or Globalsources.

3. Create Product Listing

  • Easy process on Amazon.

4. Ship Products to Amazon Warehouse

  • Use Amazon FBA program for handling fulfillment.
  • Product must be Prime eligible.

5. Launch Product

  • Strategies for effective launch:
    • Social media promotion.
    • Email list building.
    • Use influencers for marketing.

Common Mistakes in Selling on Amazon

  1. Analysis Paralysis
    • Hesitation to start due to fear of mistakes.
  2. Choosing the Wrong Product
    • Ensure product has demand and is not oversaturated.
  3. Poor Listing Quality
    • Optimize title, images, and bullet points.
  4. FBM vs. FBA
    • FBM (Fulfilled by Merchant) often results in lower sales.
  5. Neglecting Reviews
    • Aim for a high number of positive reviews.

Financial Aspects of Selling on Amazon

Initial Costs

  • Approximately $3,500 to $5,000 to start an Amazon FBA business.
  • Fees include professional selling plan, UPC codes, product samples, and production costs.

Ongoing Fees

  • Amazon referral fees (15%), FBA Pick and Pack fees, storage fees.

Profitability

  • Use Amazon PPC for advertising.
  • Aim for a high conversion rate through effective marketing strategies.

Conclusion

  • Selling on Amazon requires commitment, effort, and strategy.
  • The opportunity is vast and profitable for those willing to learn and adapt.