I’ve heard of Amazon FBA for years now and although I had a bit of an idea of what it is, I didn’t really think much of it. Mostly because I was doing just fine with FaceBook and Teespring/Drop Shipping.
Lately, I’ve interviewed 4 Amazon FBA sellers, (podcasts will be released on ecommerce9.com soon), and they’ve ALL recommended me to get on board the Amazon FBA train. For those that don’t know how it works, I’ll write a quick run down but first, take a look at how much sellers are making on some random product on Amazon FBA,
Check their Monthly Sales
Crazy isn’t it?
Here’s a quick run down of the model,
- Find a niche that doesn’t have too much competition but still has demand so you can sit somewhere in there and get a piece of the pie.
- Search through different types of products within that niche to see if there’s anything you can improve on. This could be as simple as just changing the packaging, adding another color, making a small tweak or design change.
- Contact manufacturers that can make the product for you, order a test batch.
- Send it to Amazon Fulfilment Centres
- Get reviews, sales, traction
- Rank and reap continuous sales
Of course this is the simplified version and FBA comes with it’s own set of hurdles like communicating with suppliers, inventory issues, larger than usual outlays but there’s a reason why I want some of that Amazon FBA action.
Simply put, Amazon is a BEHEMOTH of a websites.
Did you know Amazons Net sales in 2016 were $136 Billion!!?
100s of millions of users visit Amazon every month, almost everyone has an Amazon Prime account and they’re just an overall ecommerce powerhouse.
If you get your product on Amazon then the worst case scenario is you waiting a little longer than expected to sell your inventory.
But best case scenario you can sell 100’s of units a day and as long as you’re sitting somewhere in the top few pages of decently popular niches you should be making good sales.
They’re also coming to Australia and I, being Aussie, need to prepare for that.
So What Am I Going to do to Get a Piece of the Pie?
If you know how I roll, you know I like testing something before I put all my chips in.
I like to start broad, I never choose a niche and stick to it unless I know, from feedback on my product sales that the niche is a killer.
I’ve searched 3 products that are doing well in different industries,
Jewellery, (His and Hers Gifts)
Mens Fashion, (Ties and Cufflinks, etc)
The idea is to get 30-50 pieces of each product, (they cost about $5 each so around $500 per experiment), on Amazon, spend money on PPC and aim to get sales and reviews to increase rankings and take it from there.
Each product has a unique reason why it has been chosen for the test. Either they’re currently selling like hotcakes on FaceBook or they’re selling well on Amazon but can be improved on packaging and generally, my products just look cooler.
What Have I Done so Far?
Spend hours on end contacting suppliers on Alibaba and Aliexpress to get my product. Most suppliers were charging $8-$10 for one of my products that sells for around $15 on Amazon. I knew that in order to make a profit I need to get this near $5 so after literally 10+ hours talking to over 20 suppliers I finally found someone willing to do $5.60 per unit shipped!
That was just for the Mens Fashion Product.
For the Luggage Product I’m in discussions with a contact I have in India who’s getting me a quote per unit of this product that will have my custom fabric on it. It’s amazing how every part of the process makes a big difference from the cost of your logo sticker to the material. I like it. It’s like I’m building my own product/brand.
So I’ve ordered 1 batch of products, have samples for another 2 coming soon.
Once they arrive I’ll slap a logo on them and send them off to Amazon.
That’s just the beginning, the next part of the game is to generate sales which I know how to do so I’m hoping it shouldn’t be to much of a learning curve.
Luckily, I have an Advantage
I know how to work paid traffic and Amazon has a paid traffic platform. Winning! Not many sellers on FBA know about good targeting, split testing ad sets or generally working external traffic to drive sales. I, and most of my blog readers do. If you don’t, I’ll be sharing my tactics once my product is up there.
Basically Amazon Rankings work like this.
The more sales and reviews you get, the higher you rank. How to beat your competition? Run paid traffic on Amazon even if you’re running in the red till you get higher rankings and then let it sit there organically making sales.
Again, easier said than done but it’s a base I can work with.
The next few weeks.
I’ll be sharing more updates about this journey. It’s not uncommon to sell 100s of units of products a day and make $5k-$10k per month just for one product! Imagine you have 10? $.$