Amazon FBA Beginner's Guide

Introduction

• Host: Nate
• Tutorial on selling with Amazon FBA (Fulfillment by Amazon)
• No sales pitches or courses; purely informational
• Amazon FBA is still viable in 2021 for making substantial income
• Important to understand this is a long-term commitment, not a get-rich-quick scheme

Key Concepts

Amazon FBA

• Fulfillment by Amazon, where Amazon handles storage, packaging, and shipping
• Allows sellers to benefit from Amazon's shipping network and customer trust
• Typically results in higher sales but incurs more fees

Amazon FBM

• Fulfillment by Merchant, where sellers handle storage, packaging, and shipping
• Lower fees but potentially slower sales due to lack of Prime benefits

Steps to Start Selling with Amazon FBA

Finding the Right Products

• Look for products with high demand but low supply
• Use Jungle Scout software for detailed product research
• Criteria to consider:
  • Monthly units sold (at least 100 units/month recommended)
  • Average price (suggested $10 - $80 range)
  • Market competition (aim for low to medium)
  • Seasonality of products

Sourcing Products

• Main platform: Alibaba
• Understand differences between manufacturers and trading companies
• Recommended steps:
  • Find multiple suppliers (3-5) on Alibaba
  • Order samples from these suppliers to check product quality
• Rule of Thirds for Pricing:
  • 1/3 for product cost
  • 1/3 for Amazon fees
  • 1/3 for profit

Shipping Options

• By Sea - Cost-effective, takes longer (weeks to a month)
• By Air - More expensive, faster (within a week)
• Ensure FNSKU barcodes are on products for Amazon’s inventory system

Setting up Amazon Seller Account

• Options:
  • Individual Plan - Pay per item sold (initial plan)
  • Professional Plan - $39.99/month (better for high volume)
• Understand Amazon's various fees, usually around 15% for referral fees

Creating Product Listings

Optimizing Listings

• Use SEO-friendly titles with relevant keywords
• Detailed descriptions with benefits and features
• Utilize high-quality images, including in-context usage
• Consider bundling frequently bought together items for added value

Customer Engagement

• Fast responses to customer questions
• Proactively garner reviews
  • Include a note in packaging prompting reviews
  • Cannot solicit only positive reviews

Initial Sales Strategies

• PPC (Pay Per Click) - Advertise directly on Amazon
• Competitive Pricing - Start with lower prices to generate initial sales and reviews

Conclusion

• Long-term commitment with incremental growth
• Avoid expensive courses; ample free resources available
• Engage in ongoing learning and optimization