In this guide we will try to answer questions and concerns about Amazon FBA and we will look at some key aspects of starting a winning business.
This is normal. When I first heard about Amazon FBA I was fascinated and at the same time full of questions. In this short guide, I will address the basic steps and try to answer the most frequently asked questions, referring for further discussion to other, more detailed articles on the topic.
Step 0: the right mindset
This is perhaps the most important step.
Having the right mindset, the entrepreneur mindset.
What is meant by. Starting a sales business on Amazon constitutes for all intents and purposes a real business activities, with all the associated risks. And of course the eventual benefits.
If you have the right mindset, you will get the desired results. But you have to be aware that there may be moments of discouragement, phases when you feel you have thrown yourself into something too big.
You have to be ready to face these moments. And to overcome them.
The road to success is paved with obstacles.
If you are not ready to overcome difficulties, give up at the outset. Focus on something else. Don't risk losing the money you are not willing to lose.
Step 1: product search
The first and most important thing to do is obviously to research the product to be sold.
This is a critically important step that must be given the utmost attention. Choosing the wrong product can jeopardize your sales, so you will find yourself having invested money in merchandise that may take several months before generating a profit. Spend as much time as possible on this step.
Make thorough analyses, try to understand what margins there are to enter the market, and always make a careful assessment of the competition.
There are various tools to use: the most widely used tool for conducting product research is definitely Jungle Scout.
Step 2: Production and shipment
This step may seem perhaps even more complicated. You may be scared to buy products in China from a person you have never seen.
With proper care, however, this is possible, and already hundreds of people are doing it. You must be prepared to take several important steps:
- Finding and contacting a supplier
- Request samples of the product
- Negotiating the price
- Make payment (30% at the start of production)
- Production
- Quality control (70% when the inspection is completed)
- Shipping
Step 3: Product launch
Now that you have the finished product, it is time to sell.
This is the most exciting and at the same time scary part. You will ask yourself a thousand questions and your head will be filled with doubt:
- Will people buy my product?
- Will I get good reviews?
- Should I lower the price?
- Are my competitors' products better?
- If they ask me for a refund what do I do?
Do you remember the mindset talk?
Stay clear. If there are issues, deal with them rationally.
Be positive.
Q&A
How much money does it take to get started with Amazon FBA?
Even €1500 may be enough to start selling on Amazon. If you don't want to risk too much, you could start by buying small quantities of a product, put it up for sale, and see how it performs. Analyze all the costs of selling on Amazon.
Do you need a VAT number?
You can also start selling as a private individual, but with the limit of 40 items per month. You should also keep in mind that if you want to start this business, it will be necessary sooner or later to open a VAT number in order to be compliant with the payment of the fees.
Find here more information about Seller Central.
Is it too late to start now?
One could respond with a quote:
The best time to start was yesterday. The next best time is now.
Selling on Amazon is becoming increasingly competitive. But it is also true that Amazon is growing exponentially.
More and more people are buying, there is no shortage of customers. Just look at the graph below.
If you ask your friends, at least the 90% will have purchased something on Amazon.
If you find a good product in the right niche, you will have a very good chance of success. You just need to have a method and follow a strategy, as explained to you in the Amazon FBA course.
Does Amazon handle returns?
Of course! The advantage of Amazon FBA is just that. all logistics-related tasks are handled directly by Amazon, so you can be more focused on business development.
You won't have to worry about shipping, packing and order management.
Is Amazon FBA or an ecommerce more worthwhile?
Most likely Amazon FBA. If you already have an established ecommerce, with good traffic and a recognized brand maybe Amazon FBA is not for you.
If you're just starting out, think about the costs of making an ecommerce: agency for site design, hosting, SEO activities, advertising, etc.
But let's be honest, do you really think you can compete with Amazon? Millions of users visit the site every day, all with their own accounts and credit cards already registered.
Would you want to let this chance slip away?
Can I start on my own or do I need a course?
It depends. Starting a business on Amazon is not super complicated, but you still need skills. If you want to start jumping into this venture, you'll find thousands of free resources online, many in English, so you'll be able to untangle yourself.
But if you want to save time, avoid making mistakes, have a path to follow, then a course can be right for you. The advantage is that you will have a mentor who will follow you step by step and get you up and running as quickly as possible.
From the above you will surely have gotten an idea about Amazon FBA, but you can also go deeper by taking a look at the Advantages and disadvantages of Amazon FBA.
