HOW TO SELL ON AMAZON – YOUR FBA SUPER POWER
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HOW TO SELL ON AMAZON
Have you ever wondered how Amazon always seems to have an abundance number of products to sell? How do they get so much inventory?
Well, I’ll let you in on a little secret … Amazon doesn’t waste time creating their own products or go around searching for their hottest ticket item. They hire people like you to do the shopping for them! And the best part is – they do all the heavy lifting. They will pay you per sale for items you find at discount shops, on clearance racks, – even garage sales and thrift stores!
So, if you want to get on the FBA, or Fulfillment By Amazon, train – strap in and see how easy it is to open your Amazon store Today!
WHAT IS FULFILLMENT BY AMAZON
Have you ever noticed the little ‘fulfillment by Amazon’ button under the delivery options when checking out prices for a specific item?
The sellers might be ‘xyz’ but the shipping is directly from Amazon’s warehouse. That means that someone went out and found the product, shipped it to Amazon’s warehouse, and listed it under their own Amazon store. When someone buys the item, the seller gets paid!
Amazon holds the product in THEIR warehouse, so you don’t have to worry about storing anything!
What’s in it for Amazon? They take a cut of the profits (this is different depending on how many times you sell a month and what type of membership you open – see below for the different cost options) but it’s generally $.99 per sold item + seller’s fees.
(Remember that Amazon sells millions of items per day. According to Business Insider, Amazon sold 306 items per second last year on Cyber Monday alone! So even if they were only making $1 per item they sell, that’s millions of dollars a day!)
AMAZON STORE VS. ECOMMERCE
Yes, you could realistically go out and buy the same products, create your own ecommerce website, sell the item, and keep ALL the profits. But think about the benefits of selling through a FBA store:
Amazon already has huge credibility – people know it, they trust it, they shop there regularly
Your buyers can take advantage or PRIME through the FBA model
Amazon does all the work – shipping, packaging, customer service, etc…
No need for your own storage or warehouses
First, head on over the Amazon and set up your seller’s account.
From the Homepage, scroll down to the bottom and click on Sell on Amazon (it’s under the Make Money with us Headline)
Set up your account – have your phone nearby for the verification methods. You will need 2 separate phones to verify your account, so have your spouse’s or friend’s nearby too!
(My husband wasn’t home when I tried to set this up, so I used our Google Voice Hangout Number)
There are 2 ways to open a store.
You can open a Professional Account or an Individual Account.
The professional account will cost $39.99/month + selling fees.
If you have an Individual account it costs $.99/item you sell + selling fees.
This is a cheap way to get started, but if you sell more than 40 items a month you are losing money in the long run.
Each membership option also comes with its own pros and cons – you are allowed to sell in more categories with the Professional Account.
Obviously, you have to have the item in stock to be able to start selling – so you will have to initially invest out of pocket to obtain those items. The more money you have upfront to invest, the more money you can potentially make. But even starting with $100 can make you a great profit!
You will also have to buy basic shipping items – packing tape, etc.…so you can ship your items to an Amazon Warehouse.
But that’s the essence of opening an Amazon FBA store! Once you have your account set up, you can start listing your items!
Bonus Ninja Tips
1. Price Your Items Competitively…but play nice!
Look and see how other sellers have priced similar (or the exact same) items. Try and match those prices. If you try to low-ball other sellers, then eventually everybody will have to start dropping their prices to compete – this is good for the buyers, but eventually you’ll run out of room to make a profit.
2. Finding Cheap Inventory!
Retail arbitrage, or RA for short, is the simple concept of buying low and selling high. If you can find great sells at your local shopping centers – then you can turn around and sell those items for a hefty profit!
Go to liquidation sales, clearance racks, outlet stores, garage sales, and thrift stores to find your items. You can buy them at a discount and sell them for a profit. Just make sure they are in good condition and they meet the requirements for each category. (most require you to have new/packaged items, but sometimes used in ‘like new’ condition is also acceptable)
3. Get the Amazon SELLER’S APP!…IT’S FREE!
If you’re out at a local store, you can simply scan the item with your smart phone to see what it’s selling for on Amazon. If your local store has it cheaper, then you know it’s a good buy and you can make a profit!
4. Sell you passion!
If you’re going to be in this for the long haul, try and find a product you are passionate about and one that you will enjoy trying to find to sell over and over again! Don’t limit yourself, by all means, but if finding discounted medicines is going to be a soul-sucking activity then it’s one that won’t last.
Research what the hottest items are and then try and find those on sale! Don’t be afraid to go into a new niche to find products that seem quirky – someone want it, just find that someone! If you are interested in ramping up your research then I recommend using a program such as Jungle Scout.
They simplify your research specifically for AMAZON to help you track products, see what items are selling fast, and give you that competitor’s edge.
But you can also use my Keyword Research Tool to see what people are searching for on Google too!
If you want to learn more about keyword research, click HERE.
Here are some other resources that can help you make the most out of your Amazon FAB store! Happy Selling!
Are you interested in other ways to make money from home? Check out my #1 Recommendation for starting your own money-making website Today!
See how Easy it is to open your own Etsy store and Sell on Etsy!
Do you own an FBA store? What makes you successful?
Want to know more? Questions? Comments? Let me know below! I’d love to brainstorm ideas with you!