Hi you !! 🙂
Amazon FBA is a very powerful earning tool , but what do you need to do to make money with Amazon FBA?
how to make money on Amazon FBA?
In this article I want to introduce you to everything you need to know about this online business model which is becoming more and more popular
Amazon is certainly the most important and well-known e-commerce in the world visited monthly by more than 100 000 million potential customers
and if I told you that with Amazon FBA you have the possibility to exploit this customer base and in addition to use Amazon ‘s sales methods to do so would you believe it?
Here’s in simple terms what Amazon FBA is
Amazon FBA What is it?
Amazon FBA is an online sales site that offers logistics services to individuals and companies
Any person with a product thanks to Amazon FBA can sell and ship it with ease throughout Italy and even throughout Europe.
on the other hand, Amazon only requires a percentage proportional to the sales made
despite the slightly high commissions , Amazon remains the reference site and a global weight in online sales
the great advantage it has is that to help you sell more easily A mazon takes care of the storage of your products and the shipping to your customers
to do this Amazon has many logistics centers distributed throughout Italy and in various European countries
To sell on Amazon and do it professionally you will need to open a VAT number and an Amazon professional account and register with Amazon at Amazon Seller Central
then you will need to send your products to the nearest Amazon Fulfillment Center
the products in question will then be made available on the market within 24 or 48 hours
Amazon is operational throughout the Italian territory but also in Europe, so you have the possibility to sell your products in France, Germany, Spain etc.
Thanks to the Pan-European service Amazon allows you to sell products both in Italy and abroad and your products will be shipped in a maximum of 48 hours
Amazon FBA Getting Started
Getting started with Amazon FBA is very simple, just register on Amazon Seller Central and then upload the products you want to sell online.
once registered in Seller Central you will have to choose between the two tariff plans offered by Amazon
- the basic subscription: a free subscription limited to 40 monthly sales and with a fixed sales commission of 0.99 euros and which does not require a VAT number
- the pro subscription : a professional subscription at a cost of 39 euros per month that requires a VAT number but which gives you access to an unlimited number of Amazon sales and assistance
The Costs Of Amazon FBA
As I told you, Amazon is a sales platform that connects the seller with customers
and therefore for this extraordinary service that Amazon offers it requires the payment of some commission depending on the sales made by each seller.
There are two types of fees on Amazon :
- commissions based on sales prices
- Amazon shipping fees
COMMISSIONS BASED ON SALE PRICES:
this type of commission concerns Amazon ‘s commissions on sales made.
the cost varies according to the type of product each product in fact has a category and each category has a commission cost
THE AMAZON FBA COMMISSIONS
this type of commission concerns the Amazon FBA service,
the commissions for the management of the products of each seller, the storage, the sale, the preparation of the products and their shipment
the costs of managing the order vary according to the type of product
Find all the information on Amazon commissions here -> Amazon commission table
Making Money With Amazon FBA
There are two ways to make money with Amazon FBA:
- Selling your own product
- Buying a product from a supplier and reselling it
Selling your product allows you to have bigger profit margins, it is definitely the option that allows you to earn more money
the downside to this option is that you take over the creation of the product and depending on the product you want to sell this can be very expensive or take a lot of time
The second option, that is to buy a product directly from a supplier , instead avoids you all the problems of creating a product
however, since it is not your product, you do not have control over production or quality and with the result of finally having lower margins
Amazon allows you to earn on the management of shipments and storage , you will not need to rent any warehouse and just provide Amazon with the address of your customers and it will take care of the rest.
Summarizing, these are the steps to earn with Amazon FBA:
- choose a popular but not overly competitive niche , look for categories with at least a hundred reviews
- choose a product in a niche with low competition (there are software to help you make this choice) a widely used way to identify a niche with little competition is to use the BSR ( best seller rank) ,
what is the BSR?
is the Amazon ranking of best-selling products - choose products between 25 and 50 euros
- sell a better product than the competition ; if you sell a product that is the same as that of your competitors, try to distinguish yourself in some way, with a better description or product customization
- find your supplier; Your supplier must meet a series of requirements: best service, lowest price on order quantities, assistance and punctuality, availability to send samples for supervision, availability of color customization, etc.
- buy some samples and place your first order – buy your product from 3-5 different suppliers so you have a chance to test their services
- Sell your product
- Advertise your product
How Much Can You Earn With Amazon FBA
Making money on Amazon FBA is possible, there are many people who have launched into this business that are fairly successful and others with less
a question that often comes up is how much can you earn with Amazon FBA?
the answer is always: IT DEPENDS !!
I don’t think there is an average earnings value to answer this question
Amazon FBA is a business so there are so many factors that come into play
your earnings may depend on: which products you sell (there are categories that are more advantageous than others), how many products you can sell, what supplier you have, where you sell, etc …
all these factors mean that you cannot easily estimate the earnings of this online business
I leave you here the link of a very interesting video that can help you deepen and have a more precise view of how much you can earn with Amazon FBA
-> Video “Here’s How Much I Earn With Amazon FBA”
The Advantages And Disadvantages Of Amazon FBA
THE ADVANTAGES
Selling on Amazon has several benefits, not only for sellers but also for buyers
- Shorter lead times
Selling a product has become a much easier business with Amazon
you no longer need to travel or look for customers for the whole day.
Just send your products to the Amazon fulfillment center closest to you and Amazon takes care of the rest
Amazon ‘s shipping service is also the strong point of Amazon logistics
all this allows the seller to not have to deal with logistics and concentrate his efforts on other points of his business
- Reliable and fast service
Amazon uses proven and effective ways to sell its products
Buyers can subscribe to Amazon prime for 49 euros per year
in this way they will have Amazon products , books, kindles, videos, 24h shipping etc available in a more convenient and advantageous way
and this favors the visibility of your products to an increasing number of customers
- Satisfied customers
Unlike sellers who do not use Amazon FBA, those who use it can earn customer trust due to the reliability and speed of the Amazon shipping service.
THE DISADVANTAGES
- Risk of depending on Amazon
Selling on Amazon exposes you to a risk of Amazon addiction
once you get used to using this platform, it will be difficult for you to go back
and not having total control of a business is never a good thing
- Account closures
a performance level is required by Amazon
this requirement concerns the quality of the products and the seller’s ability to handle e-mails, etc.
if these requirements are not met, Amazon can suspend your account
luckily Amazon has created a special training that aims to improve the skills of each seller with the aim of avoiding such a situation
In this training you will find experienced sellers who share their experiences regarding product selection , supplier management, product integration on Amazon and everything else that can help you earn on Amazon FBA
Choosing a Product To Sell
The choice of the product to sell is very important, very important because it is the first investment you will make in this business
once you have chosen the product you will go and buy it in large quantities and you risk losing a lot of money if the product you invest in is not the right one
- Avoid products that are too heavy
the heavier the product, the more Amazon FBA costs become important, choose a product that is not too bulky if you can
- Use effective software
To make sure you choose a good product, I suggest you use some good software that allows you to evaluate the product and know if many people buy the product or if it is not very popular.
software like Junglescout can be really useful to you at this stage of your business
with the right software you will have access to important information , such as the estimated number of sales or comments from buyers
the software thanks to a scoring system will be able to tell you if the product you have chosen is interesting and with a good probability of performance
these software are often paid for, but believe me they are worth all their price
- inquire about the influence and value of the product towards potential customers
to sell a product, it must be a popular and well-known product
many indices make it possible to identify a product with a good chance of success.
a large number of comments mean that the product is of interest to many people
you can inquire directly on Amazon through the “best sales” section
in this way you will see the best-selling items and you will be able to inspire yourself to find the products to put on sale
other useful information is available on the site. informing you about the number of customers who have bought a product , the platform makes available to you the other items bought by the same customers, similar or related items
you will have a huge list of products and choices according to your budget
ATTENTION : remember to check the seasonality of the chosen product, certain products can only be sold at certain times of the year
once you have chosen the product, all you have to do is choose a price and put it up for sale on Amazon
- Use the positioning strategy
you have to position yourself towards your competitors especially if you sell the same product
try to differentiate yourself in any way and try to convey to your product (via description or personalization)
a value greater than that of your competitors
CONCLUSION
Here we are at the conclusion, the sales platforms on the internet allow you to easily sell products to both individuals and companies,
Amazon allows all types of sellers to sell quickly using the platform’s influence on potential buyers.
Thanks to the Amazon FBA service, the seller can confidently confide in Amazon the activities concerning the storage, preparation and shipping of the products. but to earn these on Amazon you must be able to choose the right products by informing yourself on the site itself and using different tools and software available on the web I hope this article has been of help to you 🙂
leave your questions or doubts you had below in the comments while reading
SEE YOU SOON
your friend Jean