Private label is the online business model that's getting the most attention right now (and with good reason). But finding good information on how to sell on Amazon can get tricky.
In this guide, I'm going to reveal the only things you need to get started as an Amazon seller, even if you have little money to begin with.
And get this...
I'll show you all you need to start your FBA business.
So let's get to it:
The key ingredients to make this work are:
But before we dive into those 3 points, let's look at what Amazon thinks about all this…
It's no secret that Amazon is a huge marketplace. What you may not know is that they are growing massively each year, with countless customers joining the marketplace.
[clickToTweet tweet="According to Reuters, Amazon says that they shipped over 5 billion items in 2017." quote="According to Reuters, Amazon says that they shipped over 5 billion items in 2017." theme="style3"] Source: Reuters
And here's the thing...
A lot of the sellers in the Amazon marketplace are not big brick-and-mortar brands. They're private label sellers - everyday people like you and I!
And this matters because...
Amazon are very aware that a large chunk of their revenue comes from private label sellers.
So guess what?
Amazon wants you to sell in their marketplace. They actively encourage people to join and sell products, and they showcase great success stories from Amazon sellers on their website.
Ok, so let's get back to the 3 steps:
Signing up to become a seller is easy. All the steps are on Amazon's website - click here to see.
This is what the page says:
And here's part of the secret sauce...
Join the FBA program when you sign up, so you sell using Amazon's own distribution (I'll get into this next).
FBA stands for Fulfilled by Amazon. Essentially, this is their distribution service, which is second to none.
Here's how it works:
If you ship your own products, you're at a disadvantage for the following reasons:
And there's more...
The bottom line is that you're loosing out by not using Amazon's own fulfilment and by taking care of that process yourself.
This is why every Amazon course you see on private labelling recommends you use FBA for your distribution.
Ok, let's put it all together:
To get started selling on Amazon you simply sign up as a seller on their page.
TIP: choose a professional account, as that will give you the right tools to market your products inside the Amazon marketplace.
Here's a video showing you how to register as a seller with Amazon:
Just so you're aware of the difference, here's a video explaining how to sign up for an individual seller account:
And finally, here's a video explaining the different types of accounts:
Things you'll need to sign up:
It's easy, it's straightforward and you can always click the support tab if you have a question.
Once you sign up, you're effectively registered as a seller in Amazon.
First, let's take a moment to familiarise ourselves with the Seller Central dashboard:
Next, you need to list your product.
If you already have a product, then the next step is to list it.
If you don't yet have a product, fear not.
First, you need to find products that you can sell. This is not as difficult as some may make out.
Here's my entire process on how to Find Best Sellers on Amazon:
Next, you'll need to find a manufacturer or a company that supplies that product. The most popular way of doing this is to head on over to Alibaba which is the world's largest b2b marketplace.
If you have little money to start out, you can invest as little as $100 to buy some inventory to test. Even if you bought only 20 units of a product, you can sell those units on Amazon and make a little profit. But more importantly, the experience will serve you well.
Ok, let's move on.
At this point in the process, you have:
Now you have a product to sell!
It's time to list it in the Amazon marketplace.
1 - in your Seller Central dashboard, select inventory from the menu and then click on Add a Product from the dropdown menu (see image below):
Next, click the link named Create a new product listing (see image below):
Next, it's time to classify our product. All this means is choosing a category so that Amazon knows where to list it.
Scroll down past the Find it in Amazon button and go straight to the categories list, then choose the category that makes sense from the left.
Note that this will expand into subcategories. Simply keep choosing the subcategories that make most sense until you run out of subcategories.
In the example below, I listed a mobile phone holster:
Here's the path I took:
Note: don't worry about being in a 'perfect' category. There are often different paths you can take to arrive at one particular category and often times, several categories can apply to one particular product.
Next, you'll arrive at the product listing wizard. Here you can finally enter the details of your product (see image below):
All you do here is complete each mandatory field, then click on the next tab at the top of the wizard and fill each mandatory field there until you reach the last tab.
TIP: don't sweat it if something seems confusing. Remember that support is one click away, and Amazon support agents are generally very good and eager to help you get moving.
Remember also that you can save your product as you go and come back to it later on.
When you finally complete your product, click Save and Finish.
At this point, we have a product listed on Amazon, but it won't be live until you physically send in the products you ordered from your supplier into Amazon.
Let's deal with that now...
When you finally receive your product from the supplier, inspect it and, once you're happy, create a shipment inside your Amazon Seller Central account to let them know what you're sending in.
In your Seller Central dashboard, go to Inventory in the navigation menu and select Manage FBA Shipments from the dropdown menu (see image below):
On the Shipments screen, create a new shipment and follow the instructions.
TIP: you'll need to know the weight of your box or boxes as well as the dimensions, so have a tape measure and some weighing scales ready.
Once you complete the shipment, you're ready to prepare the box for delivery.
TIP: I always choose the UPS option, which means UPS come and collect it from me.
Here's a set of videos showing you how to pack your products the right way before you send them into FBA:
Once your shipment is off to Amazon's warehouse, all you do is wait until you receive an email from them letting you know your product arrived and is now in stock.
Here's how Amazon receives your shipment:
Remember to also spend some time thinking about what type of brand you want to create for yourself.
Once your product is received by Amazon, you'll receive an email. This is usually the first of two.
When they finish processing your shipment and make the product available for sale, your listing will automatically become live.
Now it's time for the final step:
When it comes to selling on Amazon, it all boils down to one thing: visibility.
[clickToTweet tweet="The more people that see your product the more sales you're going to make. It's a game of numbers." quote="The more people that see your product the more sales you're going to make. It's a game of numbers." theme="style3"]
And the best way to get eyeballs on your product is to advertise.
For this, I recommend you use Amazon's Pay Per Click platform, also known as sponsored ads.
Selling on Amazon is a great online business model to get into because it doesn't require any prior experience of selling or dealing with products or even running a business.
Maintaining the business once you have products listed is relatively easy. I spend about half an hour or less per day checking my stats, and that's optional.
Although the setup process is easy, when you first go through it some things may seem confusing. Remember that Amazon's support is always one click away. On many occasions, they call you back and talk you through any issue on the phone.
Lastly, you can always invest in some FBA training to help you get a massive shortcut and - in many cases - give you an edge over most of the sellers in the marketplace who didn't bother to invest any time on professional training.
I recommend ASM - this is the training program that I myself invested in.