Amazon FBA has become a passive income source for huge number of people now-a-days and people earning like $1000, $2000 upto $50k per month. Ohh! that's crazy, Isn't it? You are here means maybe you wanna learn about amazon FBA or you've already started amazon FBA but not able to generate more sales or something else. Okay no worries, In this article I'm going to tell you step-by-step how to sell with amazon FBA. Now quick note here the truth is you don't have to spend any money in order to learn about amazon FBA. It's still very much alive and well in 2022 and I'm going to tell you everything that you need to know, this is a beginner's guide on amazon FBA.
But it's important to note as well that this is not a get-rich-quick type of idea while this is still very much alive and I know people who are selling hundreds of thousands of dollars worth of products on amazon and you can also do that. So let's start.
First of all let me just tell you a couple of things that we're gonna see in these article. Firstly we'll talk a little bit about amazon FBA and essentially what it is Then, we're going to talk about how do you find products that have a lot of demand and not very much supply, there are couple of great techniques to find in-demand products. Then, we'll talk about how to find those different types of products. Then, I'll tell you how to actually source those products. Then we'll discuss about how to find manufacturers, should we deal with trading companies? should we go straight to the manufacturer? how do we get that over to India or wherever you're based in? and so we'll go over many things in regards to sourcing products, buying those products, it sounds pretty scary by maybe ordering pallets of products from one side of country on the other side of the world. But it can actually be a lot easier and simpler once you get the process rolling. So if at any point you feel intimidated from this just know that, it's going to take some time. And believe me you'll become a successful amazon FBA seller after reading and following those thing which I'm gonna tell you right now in this article.
Let's start off by understanding fulfillment by amazon. So amazon FBA that's what it stands for it's fulfillment by amazon. Now this is the most popular route for people who are selling on amazon especially in 2022. There's also another option though. If you don't want it fulfilled by amazon meaning that amazon is actually shipping out the packages for you, you're not the one putting those packages in the mail. When people do amazon FBA you'll see prime option as well. There's also something called amazon FBM which is fulfillment by merchant which is essentially you can list something on amazon and then you can ship that product out yourself, you can totally do that. I actually know a lot of people who might prefer to do that when they first start off selling on amazon. But there are some pros and cons to each one of these.
In amazon FBA maybe you'll save some time and actually you'll probably end up selling more, from my experience. Because you have that prime shipping that's available in most cases. So it might end up saving your time as well as you don't have to run to the post office to ship those things out. But the problem with amazon FBA is that it can actually be a little bit more expensive because amazon does take quite a few fees and you'll notice that as a common theme throughout, they take a lot of fees in a lot of different areas because they are in a lot of cases promoting your product for you. The amazon search engine is the largest search engine for shopping in the world. So when people want to buy something they go to amazon and amazon can promote this product for you so it's great to have that on there.
Now fulfillment by merchant(FBM) can probably going to save you some money in fees because you might be able to do this yourself you don't have to pay all these various amazon fees. But I found that you actually end up don't selling as much and people really do want to have that prime two-day shipping included there. They don't wanna have to pay an extra $5.95 for shipping. So I suggest going with FBA can be good idea.
How To Find The Best Products To Sell On Amazon?
Now let's get into the section where we'll talk about finding products. How the hell do we find a product to sell on amazon. Now basically it used to be a lot easier to find products with good profit margins. So one strategy that we could use which is probably the beginner strategy is, just going through and randomly searching for things and kind of guessing. I used to do this actually, way back when I used to sell a lot of products on Amazon. What I would do is, I would buy something, I would look at the product cost and then I would go and try to source the product and I would try to compare that and just see if I could get it for a lower price. This isn't the best method right! this is gonna be really difficult to just kind of go throughout amazon and find products without any type of software or any kind of help. So what I recommend to you is, just go through amazon and blindly starts searching for the piece of software called jungle scout. It's going to cost you a little bit of money. But basically, what is jungle scout? Jungle scout is a really awesome software. What it does is, it'll show you the average monthly sales, on average they're obviously extrapolating a lot of this data. They don't have all of this data on hand but they're doing as much as they can to give you this information. This is the number one tool for sellers on amazon I mean it's an absolute beauty of this tool.
If you don't want to go through and use this software, if you don't want to pay for the software, you can still do this. But i think it's probably going to be worth an investment to be totally honest with you, to do some initial product research.
But you'll ask me actually how to use that software? no worries, here I'm gonna tell you. Just sign up to jungle scout after purchase and open it. After that look for the new opportunities, right to the product opportunities there's a tab on that site, that will allow you to do product research. So once that page loads, just go to opportunity finder and now once you have the opportunity finder, these is where you can start to discover different types of products that we might want to consider selling. Now I urge you to not just try to sell products that you love or that you use or that you're passionate about because those products might not have good margins. We need to find products that it doesn't matter if you like it or not. It doesn't matter if you yourself using that product. For example if i'm selling women's razors, I don't use women's razors but that's okay because as long as it makes me some money and it's a good product because at the end of the day you know if it's a bad product, you're not gonna be selling on amazon for very long. That's true!
So now what you're going to do is you can select all categories. But I actually like to target a couple of different categories. So home and kitchen for example maybe office products is one that we found to be pretty profitable. So decide which ones you want to go for or I probably would suggest is try to discover certain types of products. Now once we do that we can go and look at the average monthly units sold. I would suggest going for a product that's selling at least 100 units per month. You know if there's 5 per month because you're trying to sell some type of weird obscure fly trap thing that nobody's ever really heard of. It's probably not going to be worth your time or anybody else's time to spend energy on a listing that's not selling anything because nobody's searching for it. So for this let's just set up a minimum of 100 monthly units sold. This is a pretty low number you know you could even set this closer to 500 or closer to a 1000 if you would like to. But for our first product we'll start with just 100 units. Now we can also look at the average monthly price, I would suggest setting a filter for this can be good option because if you're selling a product on amazon for $10 or less what we find is that your profits will be almost non-existent meaning that amazon take a lot of fees. But there's also shipping, there's the cost of actually making the product getting it to amazon, there's going to be product returns, there's going to be other problems. I would not suggest selling anything less than $10 with amazon FBA. You're just not going to have good profit margins at all unless you're getting your actual product for like 10 cents and you're able to sell it for $10 which is pretty rare.
So we're going to set a minimum price for $10 and a maximum price we're going to set at about $80. So that we don't have too many products showing up but also what we find is that if you have a product on amazon for $500 you're gonna get far fewer sales on that. Most people aren't gonna be able to just convert on cold traffic. So my suggestion is to keep that from a $10 to an $80 range. The other reason why we're keeping this range is, we're capping this average monthly price at $80 because if you're just starting to sell products on amazon you're probably not going to be able to afford to sell at $500, probably most of you don't have that much money to invest into something like amazon FBA. So we want to keep this price a little bit low for our first round of products that we are trying to sell and you can go through and add some more filters. If you would like, what I would suggest you is, turn that competition down from very low down to about medium competition. They run a number of different factors in this to decide what's going to be competitive and what's not competitive but this is going to help you tap into those niches or those industries that everybody's not. Like if you try to sell cutting boards everybody's selling cutting boards it's really hard to tap into that because so many people are searching for it so we're going to go for something very low to medium competition. You can also look at seasonality as well which is going to be important. Christmas just happened so you probably don't want to sell a christmas item or it could actually be a way to get into the market. And then atlast you'll see there a lot of products based on you search criteria after you clicked search button.
How To Source And Buy The Products?
Now after searching for products you can go over to alibaba this is where we're going to source a lot of our products. Alibaba is going to allow you to connect directly with a manufacturer or sometimes in some cases a trading company so there's a difference between a manufacturer and a trading company on something like alibaba and you're going to want to know the differences between these two. Now a trading company, you're likely going to end up paying more for a product because this is not actually a company that actually makes your specific product but you're actually just kind of buying it from them and they're like a middleman and then they go talk to the manufacturer and get it made for you. So it's not the best option, the good thing about dealing with the trading company over a manufacturer is that their customer service tends to be a bit better from my experience. But you really want to probably go and find a manufacturer.
Okay so let's go ahead and search for the product that you've found on jungle scout. We might not still sell this right, we still need to do more research and see how cheap can we actually source this product. So after searching the product and after you find the one manufacturer with low price, just read a little bit about the company and some of their different things that they have available. So what you can do now and what I suggest you to do is order from at least 3 to 5 of these different manufacturers or if you buy it from a trading company you want to order these and source these from a couple of different ones and when I say this, I don't mean you should be ordering thousands from each different supplier, but rather you're going to order a sample from each one of these companies. So go ahead through this and what I think you should do and what we like to do is pick 5 different companies. A important tip here you'll see many companies or manufacturers who sell their products in very cheap price. That's good! but, in some cases you want to be careful on how cheap they are because sometimes if you're just going for the lowest price you might get some pretty bad quality. But you should order a sample from each one of these 5 and the way that you should do this is, you just have to send a message to these companies. You can reach out to them and can contact them and say "hey this is what i'm looking for, i'm looking for a thousand of these items, i'm looking for x amount of these items to ship over to me. So that I can sell them can you do it for this price blah blah blah and can you also send me a sample is there a price for the sample." because sometimes they're going to charge you a little bit. Actually in a lot of cases it's free to get a sample from these companies they might just ask that you pay for shipping so that they don't lose a ton of money sending out samples to a potential buyers so go ahead and maybe look for 5 different products that you can experiment with. Then you're going to end up getting those to your home wherever else you're gonna inspect each one of those 5 different products as a sample and then you're going to decide based off of the price based off of your negotiations with those companies which one you think is the one that you want to use for your FBA business.With Whom You Should Deal - Manufacturers or Trading Companies?
Once you make that decision, then we'll go through the process of actually putting in an order with one of the companies. Now in most cases we end up just wiring money to these companies and in a lot of cases you're going to do 30% up front and then you're going to pay 70% once that product gets shipped. But you can of course negotiate these terms. I've seen people pay 50% up front and then 50% once the product is shipped. But that's really going to be the way that you can source products you can deal directly with manufacturers. If you want to private label something for example, let's say that we're selling like workout equipment so let's just look up for workout shorts and after we find the one then perhaps we can end up actually private labeling. These means that we can work with the manufacturer to slap our label on the side of the shorts. So this is also another option that people like to do because this can actually build your brand as a whole and then you can end up selling these brands.
So once you discuss your different deals with the manufacturers or the trading companies that you're working with through alibaba or through some other type of source then what you're going to do is you're going to actually discuss how those products are getting shipped to you this is an important step of the process because we have two different options, you're probably going to get this stuff shipped to you from the other side of the world in most cases. In a lot of cases this is coming from china so we really have two big options here the first option is to have these product shipped to you via by sea. So if you're shipping products by sea, from just my experience you'll find that the average price that is going to run tends to be roughly like 25 cents to 50 cents per pound. It really depends on what you're selling and how much space it takes up as a whole as well. But you can end up getting a lot of products over by sea for relatively cheap in terms of shipping. The problem here if you're getting your products shipped from the manufacturer to amazon by sea the problem here it can take a pretty long time, I mean it's going to take a lot of time in some cases over a month. Now the faster way to do this is by air. The problem with air though as you'd expect when you're getting it in like five days rather than a month is that, it's going to end up costing you more. I've seen that this can end up being closer to like a dollar or 2 dollars per pound. But of course like I said it does depend on the overall space that the product takes up as well.
How To Make A Good Product Listing?
Okay so once you've done that let's talk about what makes a good listing because we're going to wrap up here soon but we want to go over, what makes a good listing. So firstly you want to stuff a lot of keywords into your title. This is going to be a great tactic. You want to do some keyword stuffing, if you want to learn more about what keywords you should be using you can do 2 things, you can look at your competition. Don't copy, don't totally copy other sellers that's just not very cool you don't want to be that person but you can borrow some ideas right you can switch around the order you can decide. Just start to change things up and you can borrow those ideas or you can go back to jungle scout and you can go up to your keywords and you can look for different types of keywords.
So once you've stuffed in quite a few keywords into your title, you're also going to want to look at your description. To be honest I've never seen emoji's in descriptions very much, but I actually like the bullet points. Okay so what you should do while writing the description is, write all caps for the first couple of words and then follow it up. But, wait! I want to show you another cool thing that you can do that most people won't tell you which is when you scroll down the amazon seller's page, you'll see some frequently bought together tab this can be some secret sauce because you can actually look at the items that are bought together and you can actually end up creating a separate listing that has both of those bundled together, which can save people a lot of money. So for example, what if we ended up making our own product and actually bundling both together(for example second item we'll take gnomes) and selling them as one item where people will get that gnomes and also the another product. Belive me people will love these thing and there will be huge increase in sales. That's a cool thing that a lot of people don't tell you about, I've seen a lot of success with something like that.
Then after that the questions part comes into play. It's very important if you have people asking questions, you want to be fast with your response time, this helps out a lot of other people not just the people asking the questions but prospective buyers in the future as well and then also the most important thing by far is going to be the reviews. I don't know about you but, this is the one thing that I look at all the time. I've to see the reviews if they're good or bad. I personally rarely buy anything that has less than a 4 or 3 & half star review. So you want to make sure that you're selling good quality products and you're getting reviews from your customers. Now you can't just go out and ask your customers and say hey, if you like the product make sure you review it nad if you don't like the product, don't review it. You cannot say that so what you want to do is you can say hey don't forget to review the product and you can just do this by putting like a little piece of paper in each one of the products that you're shipping out. You can have your manufacturer do this for you if you'd like to, when they're bundling that together and just say you know here's the contact information, If you have an issue with the product feel free to leave a review. if you'll do this one thing, really I've seen that helps to get a lot of reviews.
How To Start Selling & Generate High Sales On Amazon?
But let's actually talk about how to tap into the market basically, how to start selling because a lot of people find issues with this. They find it's very difficult to start to actually sell products because it's difficult to tap into it, like how do they get to the top spot on amazon when somebody searches for something? it's really hard to get that spot so there are basically two strategies that we use to get our product to the top and start to sell products immediately even if we don't have a lot of reviews. Now the two strategies are as follows:
The first one is probably going to be, I would say the easiest one. But it's going to cost you some money and that's basically PPC, which is pay per click, which is going to get you towards the top. So let's say for example that somebody is looking for cutting boards and you're selling cutting boards. So if somebody's looking for cutting boards what's going to happen is, amazon will show sponsored posts firstly to people then rest of the posts. So you can sponsor your post, this is going to cost you money. You might lose money on this but in turn you can end up getting some decent reviews. So it's an option, it's not the best but it's something that you know maybe if you have some money to spend, you have some money to invest into this, you could consider sponsoring your post and getting it to the to top so you can start getting some reviews. Maybe once you get 5, 6 or 7 reviews you feel like you don't have to really have it sponsored anymore because it'll already do well on its own but that is one strategy to start to get some reviews to start to get some sales. But keep in mind if you're sponsoring it, it's costing you money you're probably not going to be making nearly as much and in some cases you might end up losing money which is not the overall long-term goal.
Now the other option for you to do is basically undercut everybody else who's selling the products. So that you can end up positioning yourself higher on the list and then eventually raise your prices once you get those reviews, once you get that kind of credibility. This is a tactic that I've used for many many years and it works pretty well the issue with this of undercutting your competition is that you might end up forcing your competition to also cut their prices because let's say that everybody in here selling cutting boards for $20, $25 or $19 and let's say you starts selling cutting boards for $12. What's going to happen you might sell a ton of cutting boards. Your profit margins might be pretty bad you might only make like a dollar or $2. But now your competition is going to look at you and say, "well wait a minute we're losing a lot of money here because we could have been getting way more sales. So they start to lower the prices as well to compete with us." and then everybody kind of ends up losing because you drove the prices down. So you want to be careful with that. Really the lower price strategy for the first maybe dozen the sales and many people will write some reviews. Then you can raise the price that's a tactic that I've always used. But just be careful on how long you leave that low price in there on amazon. This is a little bit of a risky move but it's something that does work, if you know what you're doing.
Conclusion
So in this article I've told you everything about How To Make Money With Amazon FBA In 2022. To sum up we've firstly discussed about What Is Amazon FBA(Fulfillment Of Amazon)? then, we discussed about How To Find The Best Products To Sell On Amazon? then, How To Source And Buy The Products? then, With Whom You Should Deal - Manufacturers or Trading Companies? then, How To Make A Good Product Listing? then atlast How To Start Selling & Generate High Sales On Amazon? belive me if you followed these steps one by one correctly you can also generate an high passive income with amazon FBA like other people. Hope you understood these How To Make Money With Amazon FBA In 2022 - A Complete Beginner's Guide.
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Vrushal,
(Freelance Writer and Web Developer)
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