How do you start making money by selling goods on Amazon?
To start selling through the most popular online platform in the U.S. you need to learn the rules of work, register on the site, choose a product, have an advertising budget.
Editor's note: These material contains basic information on how to start a business on Amazon for a newcomer, if you are interested in the topic, write in the comments, we will prepare a rolled out lifehack for you.
I welcome the readers. A lot of people want to work online so they don't get attached to the place. Earning in dollars is even more pleasant: with such an income you will feel confident anywhere in the world. That's why I want to talk about business on Amazon, as it's a convenient way to earn in dollars online. IOScout all-in-one solution can help you to make and growth your business on Amazon.
The essence of the case.
Amazon.com is the largest online shopping platform in the U.S. with more than 50% of online purchases made in the United States. Each year there are more transactions (already 30 million daily). IFRS revenue for 2018. - $232 billion (plus 30% by 2017) (source: ru.investing.com).
Anyone can register with Amazon as a seller and start working. Step by step, this business looks like this:
Choose a product.
Typically, you buy products for sale in China, but if you have manufacturing in Russia, you can send from here. The main advantage of "Amazon" - customers trust this site and pay for orders on the site, you do not need to communicate with them. And he delivers the purchases. It is necessary to be engaged only in promotion and maintain the commodity balances in warehouses.
Amazon is very competitive, but there are enough customers: 15-20 sales per day - not so difficult. With a properly selected product, they will bring net profit of $2-3 thousand per month.
The first thing to do is to study the rules (https://sellercentral.amazon.com), so as not to get a bank for violation, here without knowledge of English nowhere.
Product choice is the basis of business
Let's move on to the most important thing - finding a product for sale.
If it is selected incorrectly, further work will not bring results. So you need to understand what products are worth promoting.
It is necessary to enter the formed niche, where there is supply and demand.
Do not deal with cheap products, choose products with a price from $ 15, ideally - $ 25-30. In this price category come with a small budget and get a good profit.
Do not work with things that break and break easily, as this is a higher return risk.
Look for a lightweight and compact product: you will pay less shipping and storage fees.
Look for a niche where there are no strong players with a lot of feedback.
Don't go into areas with low demand and competition: the first one should be high, the second one should be medium.
For example, if you sell cases for mobile phones, you will not make money on it, because they are cheap and all profits will eat the commission. If you sell glass vases, you will spend a lot of money on returns, because the product will beat and customers will return it. These are examples of inappropriate products. But if you sell bowls for animals that do not beat, weigh little, take up little space and cost $20, then the profit is secured.
Programs for selecting products
Next, you need to deal with software that will help you find the right niche. First I would recommend Jungle Scout and AmazeOwl.
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It's a useful program that selects potentially interesting products with its help. Set parameters (e.g. competition, price, reviews) and it will show the most promising products. It also allows you to go to a competitor's page and see what they have changed in their listing and how this has affected their business.
IO Scout sales estimator for Amazon sellers can also be very useful for select potentially interesting products.
Browser plugin to assess competition and sellers' turnover, to determine demand. It allows you to understand whether it is worth entering a niche, shows the following parameters by competitors: the average price in the selected area and the number of reviews, the level of demand.
If you found an interesting product, you need to calculate its financial model. Consider commissions with the Amazon Calculator, possible refunds (3% on average) and don't forget to pawn advertising costs. By compiling a financial model, you will be able to see if it is profitable to deal with the product.
How to promote a product?
I highlight 2 work strategies (there are others, but I prefer these): online arbitration and private label.
You launch a product under your own brand, make a selling ad (listing), set up and optimize your advertising. To do this, you need to find a product in demand, refine, come up with a design, make selling photos.
The launch takes more time, but also the potential is impressive: you will need an investment of $4-5 thousand, which if you choose the right product will return in 3-7 months. Payback of dollar business for such a period is an excellent indicator.
Online Arbitration .
It's a strategy to find a product that's already selling well and its supplier. We need to send the product to an Amazon warehouse and sell it through a ready-made sales channel. To launch according to this strategy will be enough $1.5 thousand. It is easier, but you need to constantly look for new products to maintain income at a high level.
How much can you earn
There is no ceiling in this business: you launch one product, make a profit, launch the following. It all depends on working capital only. Let's say you invested $1000, after selling you got $2.5 thousand. Of this money, $1000 was reinvested, $1000 was other expenses, and $500 was net profit (50%, very good indicator). With an increase in working capital, as in any commodity business, income increases.