How to make millions with Amazon FBA

 

How to make money with Amazon FBA and Dropshipping business (beginner guide)

This article covers all the details and guidelines you need to launch your Amazon FBA business and start making thousands of dollars. Read thoroughly and I’d advice you take notes too. Goodluck 

If you also want to know the secret of how people are making thousands of dollars with Amazon kdp, Click here

Table of Content

Amazon or Dropshipping ( Amazon FBA or Amazon Dropshipping)

Can Amazon FBA make you rich?

How to create an Amazon FBA selling account

How to find a winning product (Products that sales well) 

How to find a supplier

Amazon SEO: How to optimize your products

How to promote your products on Amazon FBA

Amazon FBA or  Amazon Dropshipping 

If you must choose between dropshipping and Amazon FBA when selling online. These two strategies each have specific benefits and drawbacks.

You can offer a product for sale on Amazon through the Fulfillment by Amazon (Amazon FBA) service. With Amazon FBA, your product will be sent to an Amazon warehouse and fulfilled there by the online store. 

The fulfillment cost charged by Amazon must also be taken into account when determining the price. Sellers who buy products in large quantities from a manufacturer or supplier use Amazon FBA.

How Does Amazon Dropshipping Work?

In the process of selling a product on Amazon and sending it directly to the client, this is known as "Amazon dropshipping." The cost of selling your item on Amazon will still be your responsibility. In contrast to Amazon FBA, the fee is lower. Furthermore, you are allowed to sell retail or name-brand goods that you get from a licensed reseller.

Significant variations between dropshipping and Amazon FBA

You need to be aware of the main distinctions between these two choices in order to select the best Amazon selling techniques. 

Comparing dropshipping and FBA, here are some key differences:

Dropshipping is a less expensive, lower-risk option. You don't have to deal with delivering a large quantity of goods to Amazon if you use dropshipping. All that is required is that you select a dependable vendor and arrange for the shipment of the goods when the buyer places an order.

Larger client base provided by Amazon FBA - Compared to dropshipping, Amazon FBA often offers a larger consumer base to start selling to, which gives you the opportunity to grow your business more quickly.

Dropshipping allows you to customize your website since you may send clients to your own direct Amazon page, whereas Amazon FBA sellers are limited to using the standard Amazon sales page listing.

Advantages and disadvantages of Amazon FBA

It's crucial to weigh the advantages and disadvantages of Amazon FBA. Here are some arguments in favor of and against Amazon FBA.

Advantages of Amazon FBA

• Easy shipping and logistics 

Amazon takes care of all the fulfillment for you. When you start receiving orders on a large scale, this will become crucial.

• Discounted delivery costs.

With Amazon FBA, you'll pay less for shipping, which will boost your revenue.

• Management of your customer service 

Amazon will take care of all of your customer service needs, saving you the effort of employing a virtual assistant or handling all of the customer service yourself.

Disadvantages of Amazon FBA

• Cost

Since you'll need to buy all the merchandise and send it to Amazon, there is a considerable up-front expense. Learn about Amazon FBA fees before you begin.

• Greater returns. 

Compared to dropshipping, Amazon FBA frequently has greater returns.

• Long-term storage costs.

If your products are not successful in moving any quantity, you will be required to pay Amazon for long-term storage costs. Your bottom line can be affected by this.

The benefits and drawbacks of dropshipping on Amazon

Let's now examine the advantages and disadvantages of dropshipping on Amazon. As you can see, there are several solid arguments against using drop shipping on Amazon, as well as some reasons to give it some thought.

Benefits of Dropshipping

• No need to place an upfront product order. 

With dropshipping, you must purchase the items and ship them to Amazon. You may avoid a major headache by doing this.

• Better for first-time sellers.

Dropshipping on Amazon will be more user-friendly for newcomers to online selling.

• A wide selection is also possible. 

You may sell dozens of different items. You may test which products are most likely to sell well in this way.

Negative aspects of drop shipping

• Lack of control over the product's marketing.

As a dropshipper, you will have less influence on the product's marketing.

• Dealing with customer support. 

As the point of contact, you will also be responsible for managing all customer support tasks.

• Slim profit margins.

Because you are ordering the product from a supplier rather than the manufacturer while dropshipping, the profit margin is smaller.

How to Decide Whether to Use Dropshipping or Amazon FBA

It's time to choose which tactic is ideal for you now that you are aware of the distinctions between the two options in the famous "Dropshipping vs. FBA" debate. To help you decide on an appropriate response, ask yourself the following questions:

READ ALSO: The secret of how people are making thousands of dollars with Amazon kdp

How much experience do you have? Dropshipping will make selling online easier for you if you are new to it because you can test out various things and figure out what sells.

How much money do you have available? If your budget is limited (under $5,000), dropshipping may be a better option for you.

What kind of job are you willing to do? Amazon FBA will be the preferable option for you if you don't want to handle customer service or shipping things.

What degree of business expansion do you want? The better option is going to be Amazon FBA if you want to build your own brand and sell in large quantities.

Can Amazon FBA make you rich?

Yes, but you have to be willing to put in the work.

If you have decided to go for Amazon FBA, then keep reading. 

How to create an Amazon FBA selling account

You need to create an Amazon selling account. And it’s available to all Amazon users. To sign up, click on the link below. 

Amazon seller account signup

How to find a winning product?

Things to consider in other to choose a winning product

1. Best seller rank 

Although this will differ by category, as a general rule you should look for goods with sales ranks around 50,000, ideally under 20,000.

You would anticipate selling a number of units per day if you had a product in a popular category with a Best Sellers Rank under 20,000. Ensure that you are viewing the category rank as a whole and not a subcategory rank.

2. Profit for each product sold

Utilizing both ROI and profit per sale is generally optimum. It's ideal if you're making at least $10 from each sale because it allows you wiggle room when rival vendors lower their prices.

If your profit margin is merely $5 or less, a competitor may cut their pricing right away and eliminate all of your profits when you go to list the goods.

How much cash you have in reserves will probably determine your ROI and profit per sale. ROI is less important if you have a large cash reserve.

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3. The product's size

The two main categories for Amazon items are "Standard" and "Oversize." Start out with smaller items and perform your own product preparation if you're just starting off.

Smaller products are simpler to handle, cheaper to ship to Amazon, and will incur lower storage expenses and taxes. They will take up less space and be simpler to manage if you need to store any in your home.

4. Risky Brands

For selling specific high-risk brands, many new sellers are being suspended. These are brands that you can list on Amazon, but the brand owner does not want you to.

The brand owner can pursue legal action to try to persuade you to cease selling their goods. This may entail legal action or an Amazon policy warning.

For sellers, having their account suspended might be disastrous. It is frequently tough to get your Amazon account reopened once you have been suspended.

Remove a brand from your selection and keep looking if you have any doubts about whether it is secure to sell.

5. Little Returns

10% or more of some products are returned. You should prevent returns because they cost you time and money. Avoid products that cannot be repaired and resold after being used by clients in particular.

Some products are wrapped in such a way that consumers must rip open the package in order to even see the product. These should be avoided as the customer might return them, forcing you to dispose of them or sell them at a loss.

Look at the product reviews before purchasing, and stay away from anything with less than four stars. In addition, stay away from technical products that are overly complicated.

What Amazon Categories Should You Sell In?

Toys are where most people begin. Toys are straightforward, inexpensive, and frequently have a low return rate.

The categories "Home & Kitchen" and "Office Products" are also important to take into account. Electronics might be a lucrative industry, but there are often more returns and issues.

Having a love for the goods you are selling will offer you an advantage in the marketplace even though this is completely business. You will be better at finding good offers and interacting with customers since you will have a greater "feel" for the products.

How to find a supplier 

The first recommendation is Alibaba. 

You can get tons of products from Alibaba. Just make sure any product you are buying meets the following requirements:

1. Ensure the supplier have been there for minimum of three years.

2. Also check if they are verified.

Second recommendation is Google. 

Google is an excellent tool to use while looking for suppliers for your Amazon business. Start by looking for the items you want to sell while including terms like "wholesale" or "supplier" in your search. 

You should now have a list of prospective vendors to look into further. To determine their dependability and suitability for your company, spend some time reading through their websites, reviews, and price details. 

You might ask other Amazon wholesalers in your network for tips on dependable vendors. The success of your Amazon wholesale business ultimately depends on selecting the correct supplier, so carefully consider and analyze your possibilities.

And there are other e-commerce websites to choose from. But whichever one you decide to go with make sure you must have carried out market survey to compare prices from different suppliers. You need the best deal from a reliable supplier with good reputation. 

Import your products

After you must have choosen the best supplier, the next step is to import the products. 

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Amazon Seo: How to optimize your products

How does Amazon SEO work?

Your listings should appear prominently in search results when a buyer conducts an Amazon search. It is possible to increase both the volume and quality of visitors to product listings on Amazon by using search engine optimization (SEO) for organic search results.

By focusing on SEO optimization, you may reach out to more customers, increase traffic to your product listings, increase product visibility, increase conversion rates, climb the search results page, and enhance sales.

Search for keywords

Make a complete list of keywords. When someone searches for something online, they use keywords to guide them. Put yourself in the customers' position while considering the things you provide. How will they search for the desired products on Amazon? What terms or phrases will they enter?

This perspective can help you begin to recognize patterns in sales data. Where can shoppers locate goods similar to yours? 

Try the following suggestions to choose which keywords to include in your SEO plan:

• Fill out the Amazon search bar with a range of words and phrases. Check out the drop-down choices after that, and begin constructing a list of pertinent keywords for comparable postings.

• As a beginning point for your own listings, use competitor results. Try comparable searches on Amazon.com to see what is currently available. compare product search keywords next.

• For further inspiration, look through the Amazon related and suggested item categories.

• Consider both long-tail and short-tail keywords while making your list.

• Long-tail keywords tend to be more precise. Because the consumer often knows exactly what they are searching for, they typically have low search traffic, little competition, and may have a greater conversion rate.

• Broader searches are short-tail keywords, which often have high search volume and significant competitiveness. Because the customer is looking at other possibilities, their conversion rate may be reduced.

Optimize the product name

A customer will only pay attention to you for a brief period of time. One of the main criteria that Amazon and search engines use to determine how relevant a detail page is to a customer search is the product title (also known as the product name). 

The title of your product should correspond to what is printed on the actual packaging.

Make product descriptions better

To assist customers in finding, assessing, and purchasing products, provide thorough information about product features and product usage in high-quality product descriptions. Additionally, you can draw attention to particular product details that aren't found elsewhere in the listing.

Here are some other pointers for writing excellent product descriptions:

• Mention any brand names.

• Include measurements like shoe size.

• Include the type of material, such as canvas in the case of a backpack.

• Include pertinent information like colors, packaging, and quantity.

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Avoid using the same keywords more than once.

Ensure that customers have a favorable experience. Focus on writing in a conversational style while providing buyers with the details they require to make a purchase.

Keyword stuffing, often known as keyword repetition, can be harmful and ineffective.

Target the customer in your sales copy.

On your product page, respond to queries from customers and past sellers.

As opposed to what you want to say about the product, try to anticipate and concentrate on what your buyer would like to know.

Product image optimization

Customers can evaluate and compare crucial aspects visually thanks to high-quality photos. They can view the product from various perspectives thanks to the several photos, which may influence a client to select one search result over another. A customer's imagination is aroused and is persuaded to make a purchase by well-designed product visuals.

Use the following basic styling advice for listings:

• Be descriptive, but also precise and succinct.

• Be convincing without coming off as aggressive or tacky.

• Regarding the state and caliber of the product, be precise and truthful.

• Refrain from making inflated or arbitrary assertions.

How to promote your products on Amazon FBA?

Once you have followed the Seo strategies, if you are not willing to wait for organic sales you can opt for Amazon ads.