5 tips for new amazon FBA sellers
Are you thinking about starting a business on Amazon? Great! Amazon is a fantastic platform for entrepreneurs. But it can also be a bit overwhelming, especially if you’re just getting started. To help you hit the ground running, here are 5 tips for new Amazon FBA sellers:
Don’t Be an Amazon FBA Noob: Do Your Research First!
So you want to be an Amazon FBA seller, huh? You’ve heard all the stories about people making a killing selling on Amazon, and you’re ready to get in on the action. There’s just one little problem: you have no idea what you’re doing.
Don’t worry, we’ve all been there. The allure of easy money is hard to resist. But before you go rushing into the world of Amazon FBA, there are a few things you need to know. Here’s a quick crash course on what you need to do before starting an Amazon FBA business.
Don’t spend top dollars for Amazon FBA courses! You can find free resources here!
Pick a Niche
The first step in starting an Amazon FBA business is picking a niche. This might seem like a no-brainer, but trust me, it’s not as easy as it sounds. There are a few things you need to keep in mind when picking a niche:
– What are you passionate about? If you’re not passionate about the products you’re selling, it’s going to be very difficult to succeed.
– What is the market like? Is there room for another player? If there are already a million other sellers in your niche, it’s going to be very difficult to stand out from the crowd.
– What are your margins like? Make sure you have a good understanding of your costs and profits so that you can make a profit!
– What is your competition like? Take a look at what other sellers in your niche are doing and see if you can do it better.
There are some great tools that you can use for free to find a profitable niche. Make sure to read our post about Helium 10 and Jungle Scout – the best Amazon FBA tools!
Find a Supplier
Once you’ve picked a niche, it’s time to find a supplier. This is arguably the most important part of starting an Amazon FBA business, so don’t take it lightly. There are a few things you need to consider when finding a supplier:
– Do they have good reviews?
– Are they reliable?
– Do they have good customer service?
– Can they provide high-quality products?
– Do they have competitive prices?
Starting an Amazon FBA business might seem like easy money, but trust me, it’s not as simple as it sounds. There’s a lot of research and legwork involved in setting up a successful business. But if you’re willing to put in the work, the rewards can be huge! Just remember to pick a niche, find a reliable supplier, and create killer listings.
Read our guide on how to find suppliers on Alibaba!
Create a great listing
You’ve done your research, you’ve found a great product, and you’re ready to start selling on Amazon. Congratulations! The next step is to create a listing that will not only attract buyers, but also convince them to purchase your product over the millions of other options available on Amazon.
Here’s where a lot of would-be Amazon sellers trip up: they think that simply throwing up a few photos and a brief description is enough to get the job done. But if you want your listing to really stand out, you need to put in the time and effort to make it great. Here’s how.
Use High-Quality Photos
The first thing potential buyers will see when they land on your listing is the photo, so you want to make sure it’s high quality and catches their eye. If you’re selling a physical product, invest in a white background and some professional lighting so that your photos look clean and polished. If you’re selling a digital product, consider hiring a graphic designer to create an eye-catching image that accurately represents what your product is all about.
Write Compelling Copy
Your photo might be what initially draws someone in, but it’s your listing copy that will convince them to buy. Take some time to really think about what makes your product special, and then craft copy that highlights those features in an engaging way. Be sure to also include relevant keywords so that your listing comes up when people are searching for products like yours.
Offer unbeatable value
If you want people to purchase from your listing instead of one of the millions of others on Amazon, you need to offer them something they can’t find anywhere else. Whether it’s free shipping, a lower price point, or some other type of discount or incentive, find a way to make your listing irresistible.
Provide stellar customer service
Finally, remember that once someone has purchased from you, their experience is not over. If they had a positive experience with your listing and their purchase arrives quickly and as described, they’re likely to buy from you again in the future. On the other hand, if their purchase arrives late or damaged, they probably won’t be back. So do whatever you can to ensure that every customer has a great experience from start to finish.
Conclusion: Creating a great Amazon FBA listing doesn’t have to be difficult—but it does require forethought and effort. By taking the time to craft high-quality photos, write compelling copy, offer unbeatable value, and provide stellar customer service, you’ll be well on your way to building a successful Amazon business.
Price competitively
One of the keys to success on Amazon is pricing your products competitively. Amazon is the 800-pound gorilla in the room when it comes to online retail. In order to be successful on Amazon, you need to be competitive with your pricing. But how do you do that? Here are a few tips.
Research the Competition
The first step is to research the competition. Take a look at what other sellers are charging for similar products. If you’re selling a widget that has 50 different sellers, take a look at the prices they’re charging and find the average. Once you have the average, you can decide if you want to be above average, below average, or right in line with the competition. There are pros and cons to each approach.
If you’re above average, you need to have a good reason for it. Maybe your product is better quality or maybe you offer free shipping. Whatever the reason, make sure it’s clearly stated on your listing so customers know why they should pay more for your product.
If you’re below average, you need to be careful. You don’t want to lose money on every sale, so make sure your margins are still healthy even after accounting for Amazon’s fees. Selling at a loss can sometimes be a good strategy if you’re trying to gain market share, but it’s not sustainable in the long run.
Finally, if you’re right in line with the competition, you need to make sure your product is just as good or better than what they’re offering. There’s no point in being middle of the road if your product isn’t as good as what the other guys are selling. Remember, on Amazon, customers have a lot of choices and they’ll go with the option that gives them the most value for their money.
Consider Shipping Costs
When pricing your products, don’t forget to factor in shipping costs. If you’re shipping internationally, those costs can add up quickly. And even if you’re shipping domestically, shipping costs can eat into your profits if you’re not careful. The best way to offset high shipping costs is to offer free shipping on orders over a certain amount. For example, if your product costs $10 and it costs $5 to ship it, consider offering free shipping on orders over $25. That way, customers who buy multiple items from you will get free shipping and you’ll still make a profit on each sale.
Pricing your products competitively on Amazon can be tricky business. There are a lot of factors to consider and it’s easy to make mistakes that will eat into your profits. But by taking the time to do your research and price strategically, you can be successful on Amazon and make a healthy profit margin on each sale.
How to be an Amazon Seller that Customers Actually Like?
We’ve all been there. You’re scrolling through Amazon, looking for the perfect thing. You find it, you click “add to cart,” and you eagerly await the arrival of your purchase. But then, disaster strikes. Your package arrives, and it’s not what you ordered. Or it’s damaged. Or it never arrives at all. Ugh. Bad customer service is the worst, whether you’re on the receiving end or the giving end.
If you’re an Amazon seller, it’s important to focus on customer service as a way to set your business apart from the competition. After all, Amazon is a huge marketplace with millions of sellers vying for attention. So how can you make sure that your customers have a positive experience with your business? Here are a few tips:
- Make sure your listings are accurate and up-to-date. Nothing is more frustrating than ordering something online, only to have it be different from the listing when it arrives. If a customer feels like they’ve been misled, they’re not likely to do business with you again in the future.
- Respond to customer inquiries promptly. Nobody likes being ignored, especially when they’re trying to give you their money! If a customer reaches out to you with a question or concern, do your best to respond as quickly as possible.
- Be proactive about solving problems. If a customer received damaged goods or if their order never arrived, take responsibility and do whatever you can to make it right—even if that means eating the cost yourself. The customer is always right, after all!
- Go above and beyond whenever possible. Little things can make a big difference when it comes to customer service. If you can include a handwritten note or small freebie with every order, your customers will appreciate it (and they’ll be more likely to remember your business next time they need something).
Great customer service is essential for any business—but it’s especially important if you’re an Amazon seller competing in a crowded marketplace. By making sure your listings are accurate, responding quickly to customer inquiries, taking responsibility for solving problems, and going above and beyond whenever possible, you’ll win over customers and keep them coming back for more!
Stay on top of your inventory
As an Amazon seller, it’s important to always stay on top of your inventory. Why? Because stockouts cost you sales, and we all know that sales are the lifeblood of any business. Here are the top reasons why you should never let your inventory levels fall below what is necessary to meet customer demand.
Stockouts Cost You Sales
This one is pretty obvious, but it’s worth repeating. When you run out of a product that a customer wants to buy, you’re losing out on a sale. And every lost sale is money that you’re never going to get back.
Stockouts Hurt Your Reputation
When customers come to your listing and see that you’re out of stock, they’re not going to be happy. This is especially true if they were planning on buying multiple units of the product. Not only will they be unlikely to buy from you again in the future, but they may also leave negative reviews which can further damage your reputation.
Stockouts Increase Your Shipping Costs
If you’re constantly running out of stock and having to ship products from your suppliers as soon as possible, your shipping costs are going to increase significantly. This is because expedited shipping is usually more expensive than standard shipping. In addition, if you’re frequently running low on inventory, it may be worthwhile to invest in a faster shipping method such as Amazon Prime.
Stockouts Lead to Canceled Orders
If a customer orders a product from you and you don’t have it in stock, Amazon will cancel the order and refund their money. This not only costs you the sale, but it also costs you the fees associated with the canceled order (usually around $1-2 per order). In addition, if this happens too often, Amazon may suspend or even close your account.
Stockouts Waste Your Time
Constantly having to monitor your inventory levels and place orders with your suppliers takes up a lot of time that could be better spent on other aspects of your business such as marketing or product development. In addition, if you’re constantly running out of stock, it’s likely that you’re not ordering enough products from your suppliers which can lead to even more time wasted chasing down new inventory.
As an Amazon seller, it’s important to always stay on top of your inventory levels for a variety of reasons. The most important reason is that stockouts cost you sales which are essential for keeping your business afloat. In addition, stockouts hurt your reputation, increase your shipping costs, lead to canceled orders, and waste your time—all of which can have a negative impact on your business. So make sure to always keep an eye on your inventory and order more products from your suppliers as needed so that you never run into any of these problems!
Final Thoughts
Starting a business on Amazon can be a great way to get your entrepreneurial career off the ground – but it’s important to go into it with your eyes wide open. There’s a lot to learn, and things can move quickly! By following these 5 tips, you’ll be well on your way to success as an Amazon FBA seller.
