In this blog post we are going to talk about how to start an Amazon FBA business with little money and what are some of the essential things you need to do to start moving in the right direction.
We have been selling on Amazon since 2017, built 4 brands and sold two of them. We have made every possible mistake you can make with your Amazon FBA business and learned from them. We have also made a lot of things the right way. In this post we will share how to start an Amazon FBA business and hopefully make you hundreds of thousands of dollars or help you from losing thousands of dollars by avoiding some of the mistakes.
This guide is probably the best tutorial to learn how to sell on Amazon because we go into the small details that are usually not covered anywhere else.
Table of contents
- 10 Steps how to start an Amazon FBA business
- How to register an Amazon seller account?
- How to do product research on Amazon?
- How to find suppliers for your products?
- How to ship your products to Amazon warehouse?
- How to create your product listing on Amazon?
- How to take Amazon product photos?
- How to launch your product on Amazon?
- How to get product reviews on Amazon?
- How to scale your Amazon FBA business?
- How to start an Amazon FBA business FAQ?
How to start an Amazon FBA business with little money?
Nowadays almost anybody can start selling on Amazon. All you need to do is register your Amazon seller account, find a product to sell, ship it to amazon, launch and off you go. Simple as that. Not exactly. Actually it requires a lot of detailed planning and researching to launch your Amazon FBA business successfully. I wish it was as easy as I just said but unfortunately it’s not. But don’t lose hope yet because with the right tools and resources you are ahead of most of the people.
How to start selling on Amazon?
The first thing you need is to register an Amazon seller central account. For that you need your ID, tax information, credit card and business details. Simply follow the steps during the registration and you should get your account registered in a few days. We will also show you the exact steps on how to register an Amazon seller account in this blog post.
What is selling on Amazon?
Seems like everyone is talking about selling on Amazon but what does it actually mean? Most people don’t even know that they can sell products on Amazon. Yes, you can do it too! That would be the most direct answer but of course there are a lot of things we need to talk about. We’ll talk about it all in this long blog post. But simply said you can sell almost anything on Amazon and start by yourself only with your laptop. Sound quite good opportunity or what?
What products to sell on Amazon?
There are two options (business models) to choose from when you want to start selling on Amazon. You could start out as an FBA or FBM seller. We’ll explain everything in this blog post. So keep on reading. We have also written a separate blog post where we talk about what products to sell on Amazon.
What is Amazon FBA?
Fulfillment by Amazon (FBA) is a service that allows businesses to outsource order fulfillment to Amazon. Businesses send products to Amazon fulfillment centers and when a customer makes a purchase, we pick, pack, and ship the order. We can also provide customer service and process returns for those orders. (Amazon)
What is Amazon FBM?
Fulfillment by Merchant (FBM) refers to a method of selling where a seller lists products on Amazon, but manages storage, shipping, and customer support in-house or through a third party. Merchant Fulfilled Network (MFN) is Amazon’s terminology for FBM. (Amazon)
Is selling on Amazon saturated?
You might be thinking that it’s too late to start selling on Amazon. It’s much harder than it was 3 years ago but it’s not impossible. Of course there’s a lot more competition but there’s also a lot more customers and with the right strategy it’s doable. Almost anything was easier 3 years ago and we can say the same thing after 3 years. So the best time to start selling on Amazon is today! We have also written a full blog post about this topic as well. You can read it here – Is it right time to start selling on Amazon?
What are private label products?
Private label products are the products that most Amazon sellers sell. You can also resell someone else products but in this article we are mostly focusing on private label products.
A private label product is manufactured by a contract or third-party manufacturer and sold under a retailer’s brand name. As the retailer, you specify everything about the product – what goes in it, how it’s packaged, what the label looks like – and pay to have it produced and delivered to your store. (Shopify)
10 Steps how to start an Amazon FBA business with little money
There are many things you need to do to start selling on Amazon. In this guide we share everything you need to know when starting your Amazon FBA business. If you have any questions then leave a comment below or send us a message. Let’s get started!
How to register an Amazon seller account?
The first step you need to do is register an Amazon seller account. You can do that on this link. Once you are there then you will see the following view.
Click that sign up button and start your Amazon seller account registration. Then in the next step you need to click on Create your Amazon account.
The next thing you need to do is enter your email and password. These would be the first steps to get started selling on Amazon but there are some extra things you need to do to be able to sell on Amazon. You need to do your tax and address verification!
From my experience this can go really smoothly or it will take some time to get things right. You might not pass the verification with the first try.
Things to keep in mind when registering Amazon seller account
You can start selling on amazon as an individual or a professional seller. What’s the difference?
We highly recommend you to start selling as a professional seller on Amazon because it gives you so many benefits. The main thing is that you want to be able to advertise your products on Amazon when starting out because there’s no other way to get traffic when you are just starting out. You could also start out as an individual seller and start really slow and grow in time. The decision is yours to make.
You don’t need to form a company to sell on Amazon. You can start selling under your personal name (registering a company is highly recommended). These rules may vary from country to country. Also consult with your local tax advisor to make sure you are doing everything correctly.
You need a utility or phone bill to verify your address with Amazon. These rules may vary from country to country. If you don’t have your utility or mobile bill under your name then you probably even need to sign up with a mobile service provider just to get your address verified. I know people who have done it just to get their Amazon seller account verified. Don’t be surprised when you need to do it.
If you are trying to register an Amazon seller account in the EU then you need to provide your VAT number as well. For that you need to register a company because you can’t get a VAT number under your personal name.
You might need to translate your documents to English and have them notarized by a local notary. This especially applies for the EU markets. Make sure you are translating the right documents. Otherwise you need to do it again and pay the translation and notary fee more than once. This could get as high as a few hundred dollars.
You could start selling on Amazon from almost any country. We have written a separate blog post where we talk about what countries can sell on Amazon? The list has grown a lot in recent years. Over 100 countries can now start selling on Amazon!
How to do product research on Amazon?
There are multiple tools that you can use to do product research on Amazon. One of the most popular tools you can use is Helium10 google chrome extension. We have written separate posts about the best product research tool for Amazon FBA and what products to sell on Amazon? You can also read our blog where we share Helium 10 Coupon code.
Simply said you need to do the following when trying to find the best products to sell on Amazon:
- Focus on the smaller niches (max search volume 3000-10 000 per month or lower)
- Stay away from really competitive products (where products have thousands of reviews)
- Find products that have less than 200 reviews and doing ok sales (10-30K/month)
- There has to be a way to stand out with your product (with your product and main image)
How can you see search volumes on Amazon?
Another important thing when looking for what products to sell on Amazon is analyzing search volumes on Amazon for different keywords. As said already, you want to find a niche where the review/search volume ratio is not too high.
For example if the search volume is 1144 as below and products have already thousands of reviews then that might not be the best niche to enter.
You can see search volumes on Amazon with Helium10 google chrome extension. For example as below for a bike wall rack.
The tool I am using to see this data is Helium10 Google Chrome Extension. It’s one of the best product research tools for Amazon FBA.
Helium10 Google Chrome Extension review video
How to sell products on Amazon in a competitive niche?
If you find a niche on Amazon and it already has products with thousands of reviews and a good amount of sales. Then what to do? Should you skip that and move on?
There’s a way to sell there as well but before check the following things.
Can you stand out with your main image?
If you can then that could be a good opportunity. Because the first image matters a lot. But not only that can make you succeed. You need to check other things as well (number of reviews, search volumes, seller ratings, rankings etc.)
Can you improve the product?
If you have a product that really is better than other products that are already selling for thousands of dollars a month then that could be an opportunity. But it really needs to be better. It can’t just be that you “think” that your product is better. You need to have it tested and proved.
How to improve your product on Amazon?
For that you first need to read a lot of negative customer reviews on Amazon and analyze their feedback. Then write things down how you could improve the product. If you find a way to do it then go to your supplier and ask if they can fix these issues for you. If they can then you really are a way ahead of your competition.
How to find good products to sell on Amazon?
Amazon product research is the key to finding good products to sell on Amazon! You need to write down a lot of product ideas before making your final decision. What first seems like a good idea might not look like it if you have a list of 10 potential products. You might find a better opportunity if you keep doing your research.
Some items might look good until you find out that the manufacturing or shipping cost is too high. You need to consider all these things when doing your product research. There’s no point finding a product to sell on Amazon with which you can’t make any profit.
Above is a sample form to write down product ideas. As you can see then product 2 is selling the most per month but also has the most reviews. In this graph Product 1 might have the most potential on Amazon because it’s has the least amount of reviews.
Of course there are other factors you need to consider as well when looking for what product to sell on Amazon. We have also written three detailed blog posts what will help you a lot.
How to do product research on Amazon?
Best product research tool for Amazon FBA
What products to sell on Amazon?
How to find products to sell on Amazon tutorial
How to find suppliers for your Amazon products?
You could source your products locally or internationally. If you’d like to source products internationally then the most popular site for sourcing is Alibaba.com.
PROs of sourcing products locally:
- You can add a “Made in the USA, Sourced locally” or any similar label to your products
- You don’t need to pay tariff rates
- You don’t need to pay for overseas shipping
- You can source you products quicker and don’t need to ship your product across the sea
- You can visit the factory yourself and check the products quality
CONs of sourcing products locally:
- Local suppliers are just a middle man and the price is much higher than sourcing directly from China
- The responsiveness could be much worse than dealing with Chinese suppliers on Alibaba. A lot of times local suppliers don’t take you seriously because your order quantities are not that big when you are just starting out.
How to source suppliers from Alibaba?
Alibaba is the biggest online platform to find suppliers for your products. To find suppliers for your products simply enter the main keyword to the search bar and click search.
After that you will see hundreds of suppliers. Make sure you set the following filters as well.
What is Alibaba Trade Assurance?
Trade Assurance is a free service offered by Alibaba.com that’s designed to help create trust between buyers and suppliers. Trade Assurance covers you in the event of shipping or quality-related disputes. You’re covered if: Your products are not shipped on time as per the contract with your supplier. (Alibaba)
What is Alibaba verified supplier?
Verified Supplier is the membership tier for high-quality suppliers on Alibaba.com. This exclusive designation is meant to create more trust amongst buyers. The program provides suppliers with on-site verification services from an independent, professional certification institution. (Alibaba)
When first looking for suppliers don’t pay too much attention to the prices they display because this all can be negotiated when you make your final order.
How to ask quotes from Alibaba suppliers?
When you are negotiating with suppliers and asking quotes then there are few important things you need to know.
- A lot of suppliers are also trading companies (or just trading companies). Trading companies are the middlemen between the main factory. That could be ok when you are ordering small quantities when starting out. You could order directly from the factory as your orders grow. Usually you always get better prices when ordering directly from the factory.
- When asking quotes then always lay out your plan for the next 12 months. For example if your first order is 1000 units then say that you will order 6000 units in the first year and ask for better prices and terms.
- Make sure you negotiate the payment terms. The usual payment term is 30% upfront and 70% when the goods have been finished. It’s always wise to ask for better payment terms. For example 20% deposit and 80% against the BOL or even 30 days after the BOL.
- Don’t forget to inspect your products before making the final payment for your goods. Also negotiate that if the goods fail the inspection then the manufacturer needs to fix the products and pay for a new full inspection. This is quite a normal term and it’s crucial because you don’t want to send your final payment and then discover that the goods are defective.
- Not all the defects come out with the final inspection in the factory. Some defects come out after customers really use the product. In the factory they do visual inspection, test the product and make sure that everything needed is in the boxes but things might break when they are being used for a week or two. If that happens then it’s a clear sign of bad quality. If that happens then ask for replacement products from your supplier or reimbursements for the products.
- Try to look bigger than you are. Always say that you need to confirm things with management or a business partner. Don’t say that you are the final decision maker.
- Once you have contacted a few suppliers then some of them are very active and messaging you everyday and asking for updates. They know that you are probably contacting other suppliers too. It’s wise to say that you are comparing different samples and payment terms. Even when you like the supplier with whom you are talking and want to make a deal with them. Then say that you got better prices and payment terms from somewhere else. Most of the time they offer you better prices or payment terms after that.
Things to keep in mind when dealing with suppliers
Even when people are nice over the email or on the phone then the quality of the products could still be bad. If this is the first time you are ordering products from a factory then this is something you need to know.
There’s a big chance that you might need to change your supplier after your first order. Don’t be surprised when it happens, be ready for that. Always look for multiple suppliers for your products. One of the main reasons why it could happen is because of the quality of the products. Some defects might come out and your current supplier can’t fix these or you might just get better prices from somewhere else. That’s very common.
How to ship your products to Amazon FBA warehouse?
There are few ways to ship your products to Amazon and in this section we’ll break it down for you:
- Ship directly to Amazon by sea
- Ship to 3pl and then to Amazon
- Ship directly to Amazon by air
- Use Amazon global logistics to ship products to Amazon
Whatever way of shipping you use. Always ask quotes from different freight forwarders and carriers to compare the prices.
How to ship products to Amazon by sea?
Sea shipping to Amazon is the most popular way of sending products to Amazon FBA warehouse and the most cost effective as well. You could send full containers or smaller quantities directly to the Amazon warehouse. This way you’ll save multiple costs. For example you don’t need to pay for the 3pl expenses that could add up to thousands of dollars. To ship products like that you need to plan your inventory really well.
How to ship products to 3pl warehouse?
When you are shipping your products to a 3pl warehouse then 99% of the time these products get there by sea. You might be wondering why people don’t ship directly to Amazon instead? There’s multiple reasons for that:
- They might have an inventory limit on Amazon (note: you can’t just ship thousands of products to Amazon. You need to have a proven sales history to send bigger quantities to Amazon).
- They might have made a really big order from the supplier and are storing some of the products at the 3pl and then shipping it directly to Amazon.
- They might be doing other fulfillments from their 3pl warehouse (Walmart, Shopify, Etsy etc.)
- They might do one more inspection of the products in the 3pl before shipping it to Amazon.
These all can be the reason for using 3pl warehouses before shipping your products to Amazon FBA warehouse.
How to ship products directly to Amazon by air?
If your product is small size and light weight then this could be an option for you. If you are selling oversize products then shipping by air is too expensive for you. This could be a great way to save some time when you can ship you products by air to Amazon. This way you could stock up your products within a week. If you ship by sea then it usually takes you about 6-8 weeks before your products arrive at Amazon warehouse.
To ship products directly to Amazon by air we’d recommend you to ask quotes from your supplier, different freight forwarders and carriers directly (DHL, FEDEX, UPS). After that you can really compare the costs and choose the best one for yourself.
How to ship products with Amazon Global logistics?
Amazon global logistics launched some time ago and is really a great way to send products directly to Amazon, usually with a much cheaper rate. You can read more about it here.
One of the downsides of using Amazon Global Logistics is that they don’t have really good customer service or exact delivery details. If you book your shipment with someone else then they’ll tell you exactly when they will pick up your shipment in China, when the ship leaves and when it should check in at the Amazon warehouse. With Amazon global logistics these dates could change during the shipment +- 60 days and there’s nothing you can do about it.
If you want to ship with AGL (Amazon Global Logistics) then our advice would be to send some products with other carriers as well. Just to be sure that you don’t go out of stock.
How to create your product listing on Amazon?
If you got this far then congratulations! In this step we are going to talk about how to create your product listing on Amazon and what are some of the mistakes you need to avoid. Here are the steps you need to know:
- How to do keyword research for Amazon
- How to optimize your Amazon listing title
- How to write an Amazon product listing description
- How to take Amazon product photos
- How to design Amazon product listing that sells
- How to create Amazon product listing
- How to create Amazon A+ content
- How to do keyword research for Amazon?
This is one of the really important things that you need to do the right way when you are creating your Amazon product listing. Actually you should start doing your keyword research for Amazon right when you have found your potential product to sell. You need to be sure that the keywords are not too competitive.
Use Helium10 Cerebro for Amazon keyword research
With Cerebro you can see all keywords that are relevant to certain products selling on Amazon. The list can contain thousands of keywords. You can sort all keywords by competition, search volume or anything else. You can also see what keywords your competitors are ranking for. This is really useful information. We have also written full guide about how to do keyword research on Amazon. We gave also written full blog post about Helium 10 Cerebo tutorial what you can read here.
How to do keyword research for your Amazon product tutorial
How to optimise your Amazon product listing title?
Your Amazon listing title should contain the most relevant keywords to your product. The most important keywords should be at the beginning of your product title.
By doing that don’t make your Amazon product listing look just like a punch of keywords stacked up together. It needs to look natural and easy to read.
Really great way to write your listing title is with Helium10 listing builder. We’ll talk about it more in the next steps.
How to write an Amazon product listing description?
Amazon product listing has two parts: bullet points and description.
In your bullet points you should write about the most important features of your product. Also look at your competitor listings and see how they have written their product listings. It is important that you analyze the top sellers in your niche and find a way to stand out.
The same applies for product description but there’s no need to write again about the same things that you already covered in the bullet points. Write about other things that you haven’t mentioned already.
If something is really important then you can bring it out in multiple places.
How to take Amazon product photos?
Nowadays people buy with their eyes and read text only if they like the images first. So your product images need to be really good. We have written a separate blog post about how to take Amazon product photos.
The main things you need to do:
- Have a really good main image. It needs to stand out from the crowd.
- Second image should get right to the point and tell customers why your product is the best deal on the market.
- Create a comparison table and compare your product to your competitors and show how your product is better and the best choice from them.
- What’s in the box image
- How to use the product image
- Lifestyle image and showing some of the features of the product
- Lifestyle image and showing some of the benefits of the product
- Before and after image
Amazon product image requirements
- Images must accurately represent the product that is for sale.
- Images must match the product title.
- Product must fill at least 85% of the image.
- The optimal zoom experience for detail pages requires files to be 1600px or larger on the longest side. Zoom has been shown to help enhance sales. If you are unable to meet this requirement, the smallest your file can be for zoom is 1000px, and the smallest your file can be for the site is 500px.
- Images must not exceed 10,000px on the longest side.
- Images must be in JPEG (.jpg or .jpeg), TIFF (.tif), PNG (.png), or GIF (.gif) file formats. JPEG is preferred. Our servers do not support animated .gifs.
- Images must not be blurry, pixelated, or have jagged edges.
- Images must not contain nudity or be sexually suggestive. Kids’ and baby leotards, underwear, and swimwear must not be shown on a human model.
- Images must not include any Amazon logos or trademarks, or variations, modifications, or anything confusingly similar to Amazon’s logos and trademarks. This includes, but is not limited to, any words or logos with the terms AMAZON, PRIME, ALEXA, or the Amazon Smile design.
- Images must not include any badges used on Amazon, or variations, modifications, or anything confusingly similar to such badges. This includes, but is not limited to, “Amazon’s Choice,” “Premium Choice,” “Amazon Alexa,” “Works with Amazon Alexa,” “Best seller,” or “Top seller”. Refer to trademark usage guidelines for more details.
How to create an Amazon product listing that sells?
You can’t just design an Amazon product listing. You need to bring out the details about your product and show how it’s better than other listings on Amazon. You really need to show the value you are offering.
When people come to Amazon then they are already ready to purchase. They are just looking for the best product to solve their problem. So really think through what exactly you need to bring out to show that your product offers more value to customers.
To design your Amazon product listing you also need to hire a designer. You can find plenty of designers from Upwork.com or just from google. When you are hiring a designer then there are few things to keep in mind.
You need to give the designer exact instructions on what there needs to be on the design and what ideas you have. Don’t leave it all up to them because you probably know your product better than them. You need to work together with the designer to make your listing a true masterpiece.
How to create an Amazon product listing?
To create an Amazon product listing you need to log in to your seller central account, go to catalog and click add products.
Then you need to choose a new product (currently not available on Amazon) and move to the next step where you need to choose a category.
When you have finally chosen your category then now it’s time to create your Amazon product listing and enter all other details. This is the first view you’ll see when you start creating your product listing on Amazon.
You need to write your product ID (EAN, UPC, GTIN or ASIN).
What is EAN code?
What does ‘EAN’ mean? EAN stands for ‘European Article Number’. It was introduced by the predecessor institution of today’s GS1 with the aim of providing all European products with individual article numbers. In 2009 the EAN was replaced by the 13-digit Global Trade Item Number (GTIN). (Weber-Marking)
What is UPC code?
A UPC, short for universal product code, is a type of code printed on retail product packaging to aid in identifying a particular item. (Shopify)
What is ASIN on Amazon?
An Amazon Standard Identification Number, or an ASIN, is a 10-digit alphanumeric product identifier code issued by Amazon to every unique item offered in its catalog and housed in its warehouses. If you want to sell on Amazon, you’ll need to create a new ASIN for each product or assign it to an existing one. (Lab916)
Where to buy UPC codes for Amazon?
Now Amazon requires all barcodes to have GS1 registration. You can buy your barcodes from their website here.
Next thing you need to enter is your product name. That would be your product title. If you are just creating a listing for the first time then write whatever you want there. You can change it later once you have finished your keyword research.
In the brand name section you need to write your brand name. Once you write it, you can’t change it anymore. If you have an idea in mind about a brand name then our advice would be to check with a trademark attorney if that brand name is available and register it right away with Amazon IP accelerator.
After that there’s a lot more sections where you need to enter different information. For example your product weight, length, height, width, target audience, bullet points, keywords etc. Just follow the steps and enter all information you have available. You can always update your listing later as well. You don’t need to do it right away when you are creating your listing the first time.
How to create Amazon A+ content
To create A+ content on Amazon you need to have a brand registry. To design your A+ content you need to login to your seller central account, go to advertising and choose A+ content manager.
You can create the basic A+ content or brand story. Our advice is to do both. But when starting out then choose the Basic 5 modules of enhanced content. Once you’ve done that then you have an option to choose from different modules.
Our advice is to use a professional designer to create your A+ content on Amazon.
What is Amazon brand registry?
Amazon Brand Registry helps you protect your intellectual property (IP), manage your listings, and grow your business, regardless of whether you sell in our store – for free. (Amazon)
What is Amazon A+ content?
Amazon A+ content helps sellers share their brand story in a much better way than just with text. Below is a sample of regular product description and Amazon A+ content. Which one do you like more?
A+ content on Amazon from one listing
Seller without Amazon A+ content below
How to design Amazon A+ content?
Usually the person who is designing your product images should be able to design your Amazon A+ content too. It’s also good if the same person is doing both things so they match in style. We’d recommend you to look around on Amazon and try to find some good examples of A+ content and send these to your designer for style inspiration.
How to use Helium10 listing builder to create your Amazon listing
With Helium10 listing builder you can make sure that you are using all the search terms from your keyword research in your listing title, bullet points and description. You should use every possible way to optimize your listing and use as many keywords as possible.
For example as the listing below. You can see that the generated search volume is 85K but maximum with these keywords could be 263K. So there’s much more room to grow. Then you need to play around with your tile, bullet points and description to make sure you get maximum exposure on Amazon.
How to sell on Amazon and make money business launch guide
It’s really important that you are already thinking about how you are going to launch your product on Amazon when you are doing you product research. For example you need to know how aggressive are you going to be when launching your product on Amazon.
Are you going to sell your first 500 items with a really low price to gain better ranking or starting with a full price and betting on your Amazon PPC skills?
There are many things you need to think about.
How to launch your product on Amazon?
If you got this far then the next thing we need to talk about is how to launch your product on Amazon? There are many things that you need to do right before we are going to talk about launching your product on Amazon. Before the launch you need to double check following things:
Is your Amazon listing optimized the best way?
- Is your title, description, bullet points and search keywords the best they can be?
- Double check it and use Helium10 listing builder to make it as good as it can be.
- Are your product photos right on point and eye-catching?
- Your main image needs to be attractive! That’s one of the most important parts of your amazon listings because people see your main image before anything else on your product listing. Also make sure your other images really tell the customer why your product is BETTER!
- Is your listing copywriting the best it can be?
- If you are not a good writer yourself then hire an Amazon listing copywriter who knows what they are doing.
- Is your pricing attractive?
- When launching a product on Amazon we’d recommend to start out with a lower price than with what you’d usually sell your product.
If you have done all that then the next things we need to talk about below.
How to use Amazon coupons for Amazon product launch?
You can create different coupons on Amazon. You can create -% and money off from the price. If you do it then it will look as below. We have tested it many times and coupon discounts can increase sales a lot. When you are launching your product on Amazon then make sure your coupons are active.
How to launch products with Amazon PPC?
When you have done everything you had to do and your listing is on steroids then now it’s time to turn on your Amazon PPC. Before doing that you should know what are the keywords you are going to target and how much budget you have.
When we are launching products on Amazon then we are spending at least $100 a day on PPC. That could really depend on the niche and level of competition. We’d not recommend you to go after the biggest keywords in your niche when launching your product.
For example if the biggest keyword in your niche is 20K search volume then we’d recommend finding long tail keywords that have a search volume around 2000-5000 per month because it probably has less competition.
We have also written a full post about how to grow sales with Amazon PPC where we are talking about the exact steps that you can do today to grow your sales on Amazon.
General rules for Amazon PPC setup when launching your product
We’d recommend you to start following campaigns when launching a product on Amazon:
- Exact match campaigns where is maximum of 5 keywords
- Phrase match campaign where is maximum of 5 keywords
- Auto targeting campaigns with a low bid ($0,5)
- Product targeting campaigns 1 (target products that have a low rating)
- Product targeting campaigns 2 (target product that are prices higher than yours)
The cost per click depends on the category where you are selling your product. It’s really hard to tell how you need to set up your Amazon PPC bids. We’d recommend you to start with bids around $1 and then move up from there.
How to manage Amazon PPC when launching a product
When you have just launched your campaigns then let them run for at least a week and see how they work. What keywords are working and which ones are not. If you see right away that some keywords are burning money then close them. For example if your product is priced at $20 and you have already spent $20 on a keyword without any sales. Then we’d recommend you to close it.
Now if you are generating sales then congratulations! If you are not, then we’ll dive into it very soon. But before that let’s talk about another thing that can really help you boost your sales on Amazon.
How to get product reviews on Amazon?
Reviews are the most important factor on Amazon. You need to have reviews and your reviews need to be with a good rating as well. Some time ago Amazon launched Amazon Vine which helps sellers get their first 50 product reviews. This is really helpful if you are just launching your product on Amazon. You can read more about Amazon Vine here.
How to get Amazon product reviews on autopilot?
There are softwares out there that send automated messages to your customers after they have purchased your product on Amazon and asking for a review. We have been using Helium10 for that because that’s included with their plan already. We’d recommend you to go with that as well. There’s few links in this guide with what you can get Helium10 with discounted price.
What to do if your product is not selling on Amazon?
If your product is not selling on Amazon then the first thing you can try is to adjust your price or PPC strategy. PS: Do that only if your listing is fully optimized and with the best images. If it is not then fix your listing before moving to that step.
If your listing is fully optimized then try to target other keywords that are not that competitive in your niche. If it’s not working then try to get more positive reviews and send some outside traffic to your product listing.
We also written a separate blog post about how to grow sales on Amazon which is really helpful when you aren’t getting any sales.
How to get extra traffic to your Amazon product listing?
You could try to get extra traffic to your Amazon product listing with Facebook, google, Pinterest, Youtube or any other ads. Especially when you have just launched your product on Amazon.
Special hack how to get extra traffic to your Amazon product listing
Let’s say if you’d be selling “Pool covers”. Then a great way to get extra traffic is by going to google and type in “Best pool covers” and look at the websites that are showing up and directing traffic to Amazon. Message these sites and ask them to put your product there in the top positions. There’s usually a fee with that as well but it could be worth it if they can increase your sales on Amazon.
How to scale your Amazon FBA business?
Amazon is such a powerful marketplace and the first steps to scale your business are there as well. If you are currently selling on Amazon USA then look at other marketplaces as well. For example Canada, Germany, Italy, Spain, France, Japan, UK, Australia and others. Once you have learned how to sell on Amazon and know the steps you need to do to be successful then you can easily duplicate your success in other marketplaces.
Make sure you do your keyword research before entering new marketplaces and go to the market that has the most potential for growth.
How to sell on Shopify?
If you are selling on Amazon then you should also set up your Shopify store. Even if it’s not your main focus. You need to do it because some customers want to validate your brand. If you don’t have a branded website with an e-commerce solution then you are just a product on Amazon. You can also fulfill your website orders from Amazon.
How to sell on Etsy?
Etsy is also a great marketplace where to sell your products. Of course it depends on the niche because some categories are not that popular on Etsy. But it doesn’t hurt you if you list your products there.
How to sell your Amazon FBA business?
Did you know that you can also sell your Amazon FBA business? In recent years good Amazon FBA businesses have really captured buyers’ attention and they are willing to pay quite good money for that. Usually 3-5X your yearly profit. For example if you are making 10K a month profit on Amazon then that’s 120K a year then you could sell your Amazon FBA business between 360K-600K + inventory.
One of the main marketplaces to buy and sell Amazon FBA businesses is Empire Flippers. They have sold over 400 million worth of online businesses. Check them out here.
How to sell on Amazon and make money FAQ
Below is a list of answers to some of the most frequently asked questions about how to sell on Amazon. We hope that you find these answers valuable. If you have any other questions about how to sell on Amazon then feel free to send us a message.
Is selling on Amazon free?
When you want to sell on Amazon then you can either use a professional or individual selling account. Individual account is free but with a professional account you need to pay a monthly fee to sell on amazon.
What is the most profitable way to sell on Amazon?
The most profitable way to sell on Amazon is selling small size items with high prices and low manufacturing cost.
What is the first step to start selling on Amazon?
The first step to start selling on Amazon is finding a product to sell on Amazon. We have written a full post about what products to sell on Amazon and how to do product research on Amazon.
Can you actually sell on Amazon?
A lot of people don’t even know that they can sell products on Amazon but yes you can! You can start selling on Amazon your own products or reselling someone else’s products.
Is selling on Amazon expensive?
When you are selling on Amazon you need to pay different fees to Amazon. Fees are bigger when you are using the FBA business model. You can calculate exact fees with the Amazon FBA revenue calculator here.
How does Amazon pay you when you sell?
Amazon deposits funds to your bank account.
How long does it take to start selling on Amazon?
If you start from scratch then you could spend about 3-5 months before your products finally arrive at Amazon FBA warehouse.
Does Amazon take a percentage of your sales?
Amazon referral fee is between 8%-15% but they also charge other fees. The average Amazon fees are between 30-40% depending on the category where you are selling your product.
Do I have to pay taxes for selling on Amazon?
Yes you need to pay taxes for selling on Amazon. Depending on the country where you are located.
Do I need to be self-employed to sell on Amazon?
You can start selling on Amazon as an individual or as a business entity.
What kind of tax ID do I need to sell on Amazon?
If you are from the US then Amazon asks for your social security number. If you are from other countries then Amazon asks for your passport.
Do I need an ID to sell on Amazon?
Yes you need an Id to sell on Amazon.
What items can you not resell on Amazon?
You can not resell products on Amazon for what you don’t have permission from the trademark or product patent owner.
Do you need a bank statement to sell on Amazon?
Yes, you need a bank statement to sell on Amazon. Not for all the countries but mostly for the DE and UK.
Can I start Amazon FBA with no money?
It’s difficult to start selling private label products on Amazon without money but you could start doing dropshipping on Amazon if you don’t have enough capital.
Why do sellers leave Amazon?
Sellers leave Amazon because they want to be in control of the website where they are selling their products.
How much can a beginner make on Amazon FBA?
If you are selling $5000 a month and make 20% profit then you are making $1000 a month. That could be a good goal when you are just starting out.
What is the best product to sell on Amazon?
Best products to sell on Amazon are products that don’t have too much competition so you can still make sales. You also need to have enough profit margin.
Is everyone successful on Amazon FBA?
Almost 25% Amazon sellers make less than $500 and almost 30% sellers make around $5000 revenue per month. 10% of Amazon sellers make between $10000 – $25000 a month. Only 1% of sellers on Amazon make more than 100K a month.
Can you make a living off Amazon FBA?
Yes you can but you need to do it the right way from the start. The best way to start an Amazon FBA business is to learn from someone who has done it. For example from the Freedom Ticket Training course that comes with Helium10 monthly subscription.
What’s the best Amazon FBA course?
One of the best Amazon FBA courses you can watch is Helium10 Freedom Ticket that comes with Helium10 monthly plan. It’s a very detailed online course that has almost 200 videos and goes total of 11 weeks. We have written a separate blog post about Helium10 Freedom Ticket review.
Things to keep in mind when starting an Amazon FBA business
When we are talking about building an Amazon FBA business then there are some other things you need to know as well besides doing product research, keyword research, PPC and other things.
You need to take Amazon FBA business very seriously. It’s not a joke. There are many things that could go wrong when doing this. We have made many mistakes with our Amazon FBA business and this guide will save you from making a lot of mistakes as well.
Keep learning all the time when starting an Amazon FBA business. Things are changing every year and some things that worked last year might not work this year. You need to learn and grow all the time.
Top mistakes we have made with our Amazon FBA business
Not doing 100% product inspection with your first product order. Even if your supplier is nice and friendly then that doesn’t mean that the product quality is as good as the person you are talking to. We have made that mistake and it cost us thousands in defective products and negative reviews. Always calculate your risks and if there’s a chance that the product quality is not that good then do 100% inspection in China.
Taking too big risks. We have made that mistake and took a bit too many loans and ordered too much inventory and then the defects appeared and we received too many negative reviews on Amazon. It affected our cashflow so much that we were almost drowning because of this. What we learned is that never take such a big risk that can knock you out. If you take that risk then at least add a term in your purchase order that if certain % of products are defective then you will get 50% or more money back from your supplier.
These are the main two mistakes that have hurt our business the most in the past. We hope that you can learn from these mistakes as you grow and build your Amazon FBA business.
How to sell on Amazon and make money conclusion
As you can see there are a lot of things you need to know before starting your Amazon FBA business. We hope that you got enough value from this blog post and now you can launch your Amazon FBA business. If you have any questions about how to sell on Amazon and make money then feel free to send us a message.
