Amazon is churning out millionaires like clockwork.
The good news? This huge marketplace is open to any private seller. And making it work for you is actually pretty straight forward.
Here's the recipe for success:
The best way to achieve success as an FBA seller is to learn what you need to know about selling on Amazon and then implementing what you learn. These things include choosing a proven product, branding it, creating and optimizing a listing for the product and then advertising the product using Amazon's sponsored ads platform to drive traffic to the product.
And here's the recipe for success broken down into steps:
In this quick post, I'm going to list all the resources you need to accomplish each of the steps.
Let's get started:
I used to strive to choose the perfect product. I would do extensive market research and tripple-check every stat, until I realised that there's a very simple way to do this, without having to resort to using expensive research tools.
In the video below, I will walk you though choosing proven products you can sell as a private label seller. As you're about to see, you can actually start doing the research yourself straight away - you already have everything you need.
Many would be sellers skip this step without even realizing they're skipping it. They think listing their products is a case of typing some text and uploading a few images, but the thing to realize is that the job of your listing is to convince a cold prospect - somebody who hasn't seen your product or brand before - into becoming a customer.
That's a critical role.
If you were about to give a presentation that could make you a ton of money, you probably wouldn't just stroll in unprepared and start talking. More likely, you'd sit down and plan a few things.
Your listing should be treated the same way. It is, after all, the point of contact between the visitor and your brand. It's the one place where you can entice somebody to click on the add to cart button, and that makes it the most important page in your entire sales funnel.
So don't just type a few things that come to mind on the fly, and don't do what many sellers do, which is to try to get the listing creation out of the way as quickly as possible. In fact, I encourage you to review your listing multiple times a year, like I do.
It's that important.
When it comes to the actual writing of the listing, I recommend investing some time and money on learning the basics of good copywriting. I'm not talking about breaking the bank here… nothing like that. You can pick up a few decent books on copywriting from most book retailers, both online and offline.
Incidentally, many successful marketers say that the one skill they would learn first if they had to start again is copywriting. If you can persuade a cold prospect to become a customer with just words, you have a valuable skill that will serve you well wherever you apply it.
I can't stress how important this point is. A good title and a good product description can be the make of break of a product. Sure, the images and the price play a key role too, as does your profit margin, but those things are almost predetermined during the sourcing stage (the cheaper you're able to source the product, the bigger your profit margin potential) whereas the copy on the sales page is pretty much a separate thing (and skill).
Take a look at the best selling products on any platform and note how well written the sales pages are. So copywriting it is. It's never too late to learn this skill, so don't skip this step.
Ok, let's keep moving…
Advertising is key, at least in the beginning stages of any product launch. This applies to anything, of course. Getting the word out brings traffic to your product, and yet, many sellers don't advertise because they think only of cost.
Well, the reality is that there is a cost to everything, and advertising is no different. There is a cost to get a customer from one end of your sales funnel to the checkout. That cost is known as the Cost of Sales.
For example, if you advertise your product via sponsored ads, and you determine that it's costing you $2 to get somebody to buy your product, then your cost of sales is $2. This figure is crucial, because it's one of the data that determines your price point (i.e. you need to sell your product for more than your cost of sales + all other costs, such as production, shipping, delivery and marketplace fees. This is how you ensure you're profitable.
Luckily, Amazon makes this figure known in your advertising dashboard. You can see the Cost of Sales clearly, so all you need to do is add all your other product costs to the cost of sales to determine how much money it's costing you, generally, to sell a product.
But it all starts with advertising. Don't be like those sellers who, after all the effort of sourcing a product and creating a decent listing, skip advertising because they think it's an expense. It's not. It's a business cost. Missing this step will, in almost every single case, leave you with a dead product that nobody can every find. And that means zero sales.
Advertising doesn't have to be done only inside good old Amazon of course, you can use other platforms such as Facebook and others, but I advise against doing that unless you have a proven product that's already profitable or you really know what you're doing.
Going wide on your advertising can deplete your cash pot faster than you can say ouch.
I recommend advertising only using sponsored products (Amazon's own ad platform) because those are the most cost effective ads when advertising a product in Amazon. The logic is simple: you're advertising to people who are actually looking for the product you're selling on the platform you're selling it on. When it comes to flogging inventory in Amazon's marketplace, you're just not going to get that kind of intimacy on an external platform.
This is perhaps the most crucial step, because most won't make it to the finish line without a guide. Education is key, even if it comes from free resources such as videos, although I always recommend a paid training program. The simple fact is that how much you invest in your education needs to be aligned with the kind of results you want to achieve. Don't be the person who wants to be the next FBA millionaire but spends only a few minutes watching free videos on YouTube on how to become a successful FBA seller.
Instead, get the best education you can afford. It will pay back dividends. It baffles me sometimes why anybody would want to skip learning from somebody who has already cracked the formula. Paying for that information is a shortcut that will save you a huge amount of time, stress, and also give you the best chance to succeed.
Personally, I recommend the ASM training program. This is the very same program I invested in years ago, and I've never looked back.
Selling on Amazon successfully and turning private label into a business is relatively easy compared to other business models, but it's not different in that you need to acquire the right education in order to make it work for you. Just because becoming an FBA seller is accessible to almost anybody doesn't mean we can guess our way to the top.
There is, however, like in all businesses, a recipe for success. That is, a set of proven steps that you can follow to stack the odds in your favour. These steps are:
Lastly, the one thing never to skip on is education. In most cases, how far you can take your business will depend on how much you know, as well as the quality of the information you consume. If you're going to spend time making Amazon work for you, then you owe it to yourself to be educated by the best
The fact that you can buy a good FBA training course online and learn in your underpants while sipping coffee without leaving your bed is massively underrated. There really is no excuse not spending the time to learn what you need to know to make this a viable business venture.