Making a profitable Amazon FBA business is a trend nowadays. That’s because you can make money at home or anywhere, even without having a physical store. The concept of Fulfillment by Amazon (FBA) is that you can sell anything on Amazon’s platform, while Amazon fulfills the shipping process for you. This can be a great advantage especially if you’re just getting started with your business.
If you’re thinking about starting up your business on Amazon FBA, you can consider the following tips to make your business more profitable:
1. Know How To Choose Your Product Niche
Before setting up an account, you must already have a product niche in mind. Your profitability relies on the products you’ll sell. You have to consider the overall costs to startup your business, doing so may help you generate the selling price of your product, as well as the estimated profit. Here, you may have to list down all the related startup costs of selling products such as packing, shipping, and other fees you might need to incur. By doing this, you can price your products better without the possibility of losing profits over unknown expenses.
That being said, you must choose products which may yield more profits. You can do this by conducting an objective analysis of the niche. You can start by searching the product on search engines to identify the number of brands selling such items. If it shows more than 30 large retailers in the market, it may be too saturated. Thus, you may want to reconsider such a niche.
Moreover, you need to check the seasonality of the product. Some products are only in demand during specific times of the year, such as Christmas or other holidays. This means you may have to apply a different approach to products on demand throughout the year.
2. Find A Supplier
Once you have found the right product to sell, the next thing is to find a reputable supplier. They should be responsible for both providing and shipping your products to customers. In doing so, you need to ensure that the supplier has the following qualities:
- Follows the rules and regulations, such as the Trade Control Laws (including US and Non-US)
- Willing to welcome third-party inspections
- Maintains open communication
- Produces high-quality product
You can source a supplier on online search engines, wholesale directories, professional networking platforms, industry associations, or trade shows. Then, make a list of potential suppliers that you want to contact. Here, you may need to ask them questions related to the qualities above. It’s also best to ask for quotes that you can use to compare which ones will fit your budget.
3. Advertise Your Brand
Another good thing about Amazon FBA is that it provides an advertising platform for its sellers. You can find and use the ‘Sponsored Ads’ feature in this platform to boost your sales, especially for newly launched products. You don’t need to use these paid ads all the time, but increasing your products’ visibility from time to time is a good marketing strategy.
With such, you can increase the ranking of your products or gain reviews. That’s because paid ads appear on the first pages of Amazon. This can help you generate traffic to your products. When more people check your products, there are more chances of converting them to buying customers.
4. Maximize Social Media
Even if there’s an embedded advertising feature on Amazon, it’s wise to use other platforms like social media. Thus, you may have to create a social media account or page for your business. Here, you can post informational photos or videos about your products. That way, you can entice social media users to check on them.
Alternatively, you can use it to show that you have a good following. A social media following may strengthen your brand because it may imply that you’re providing good quality products.
5. Track Trends
Most importantly, always be in the loop of what’s trendy. Every day, there are new product releases from Amazon stores. Knowing what’s in and out will help you stay ahead of the competition.
You can use the following to check trends:
- Amazon product research tools
- Current ‘Movers & Shakers’
- The ‘Best Sellers’ Section
- The Amazon Trend Report
By knowing these updates, you can acquire some ideas on what products are selling the most in your niche.
Being an Amazon FBA seller may require some effort in the beginning stages of your business, but when you consistently apply the tips above, you can gain profits. By then, you may not have to spend much time marketing your products. Instead, you’ll have more time to track market trends to help you stay in the competition while doubling your profits.