How To Sell On Amazon FBA For Beginners – The Complete Guide 2018!
There are many resources available that tell you how to sell on Amazon. We are going to focus particularly on how to sell on Amazon effectively. We will not cover the basics of getting an account setup, you can go to Amazon for it.
Instead we are going to focus on how to sell on Amazon effectively. What kinds of things to sell, what you can actually expect, etc. Once you are 18 years old, you can set up a seller account and start.
- 1 The Basics of Selling on Amazon
- 2 If You Want To sell On Amazon, FBA is The Best Way To Go
- 3 The Secrets & Advantages of Amazon FBA Selling
- 4 Top Tools & Resources For Amazon FBA
The Basics of Selling on Amazon
Amazon is the property of online retailers. What you may not know is that besides selling many of their items, 1/3 of the items sold are sold by third party vendors. Like most other sites, if you sell through them you will pay a service fee.
There are 2 ways to sell on Amazon. One is that you can list the item and when you sell, you ship the item directly to buyer. The buyer pays Amazon and Amazon pays you, after the fees have been deducted. If there is any return, shipping issues, etc. You need to solve it with the seller.
The other option is called how to sell on Amazon by sincere Amazon (FBA). In this setup, the seller sends their products directly to the Amazon which keeps them in their warehouses. When the item sells, use Amazon’s distributed system to ship the item to the seller and also handle the customer service and return if necessary.
The buyer still pays Amazon, then Amazon pays you after deducting fees. Because of the increased level of service, there is a higher amount of FBA selling fees. However, we will investigate the case that the fee increase is more than worth it.
If You Want To sell On Amazon, FBA is The Best Way To Go
Once you have signed up for an account, you will have the option to use a standard free account or using a professional account. A professional account is $ 40 a month and will save you $ 1 per fee per sale. So the easy question is if you w Amazon Logo – How To Sell On Amazon Bad sell more than 40 things a month. If the answer is yes, then it will save you money to be a professional seller. If there is not, just stay with the basic account.
The Secrets & Advantages of Amazon FBA Selling
I have mentioned that additional fees are worth it when it comes to FBA. This is because all the built in features that come with the sale of FBA in exchange for selling at checkout. Here are some of the main advantages:
You can sell more. If you’ve sold many things online before, one of the restrictions on offering one man is that you end up with a full garage of things you plan to sell. Think about how much more you could sell if physical storage space is not an issue. By sending your inventory to Amazon, you do not have to worry about where to store it in your home.
You also may feel some pressure if the items are sitting in your home for your discount rate quickly, just to get rid of it. If you send it off to Amazon, you’ll be more likely to cling to your price since you are not bothered by the item being on your way.
You can sell for the highest price. People love to buy from Amazon. This makes the answer to “how to sell on Amazon” very simple. If you purchased from Amazon, you know the feeling. In fact, many Amazon enthusiasts pay $ 79 annually to be a prime member that entitles them to free 2-day shipping and some other benefits. When you sell FBA, it is very clear that the buyer that Amazon will deliver the item. This means that it is a “qualified head” which is a great deal for many buyers. They trust the Amazon. They do not necessarily trust Bob Car Parts in Illinois Carbondale to deliver the item in 2 days.
Since your item becomes eligible by default, free shipping works in your favor. Let’s assume that you have 10 boxes of K-cup coffee for sale, listed for $ 50 each with free shipping. If you sell this out of the house, you may include it for $ 42 + $ 8 for shipping. First, if these 2 items have been competing, although the cost of the buyer is the same, buyers will choose the FBA item 9 times out of 10 built on trust.
For the FBA seller, they probably paid about $ 10 to charge one case of all the coffee to Amazon. For sale from a home person, not only do they sell for $ 8 less, but they have to pay to the post office and pay to ship each sale individually, including items like a box to put in. In the end, you will probably make a sale of FBA because of this higher profit. Here is the collapse of the cartoons and another example.
Besides the financial cost, there is the cost of the time it takes as well. In the previous example, you have to make 10 separate visits to the post office. People also expect fast shipping, so you’ll be ready to bring this up within a day or two. There is a much higher burden on you than doing “one doing and doing” the FBA and forget about it.
One other thing worth noting is that people often pay premium to get something sold by the FBA. Going back to the same example, in my experience you could list those coffees for $ 55 – $ 60 if not more and easily sell them to individual sellers who are priced at $ 50 total. It may seem hard to believe.
Why does someone pay more for the same product?
I was very skeptical at first, but at this point I saw it myself again and again. All this is due to trust and reputation. If something goes wrong, people know that Amazon will take care of it. They also know Amazon mastered the distribution process, the item will be on its way quickly. That certainty has value; The value of the dollar.
You do not deal with customers
One of the biggest troubles for many is dealing with customers themselves. If the item did not arrive on time, something goes wrong, they have a question, send confirmation emails, etc. The customer is close to helping someone. If you are a seller, you will be doing all this work. When you sell FBA, Amazon takes care of it all. This is great for the peace of mind your time.
What Can I Sell To Make Money From Home
Almost anything. The cool thing about Amazon is that most of the time (ignoring books, which are the most important of the competitive) you sell tools that are brand new. These are not like eBay or Craiglist where you sell a bunch of used stuff. You really should just be looking for anything you can sell to make a profit.
The simplest way to find products for sale on Amazon is to get products in wholesale and then sell them at retail. The key is to deal with a reputable wholesaler – not a “middle man”.
Another way to source products is to find deals locally. Target, samsung club, big lots, etc. They are all great places to find items on sale or clearance that are taking place for a much higher price on Amazon. No doubt you will be skeptical at first and think, if I can get that goal in for $ 10, why would someone buy it on Amazon for $ 30. Here are couple reasons:
1. Sometimes lazy people. They Google search some item they want, Amazon is the first thing to pop up, trust Amazon and the convenience of buying them without driving around the city to find it in the store.
2. There are gaps in the market. Just an item not sold well in the local target, does not mean that the item will not sell for retail price in another location across the country. How can a person in Minnesota be able to get a clearance element on a target in Miami? They can not afford, which is why they might buy it on Amazon.
3. Like a click, not everything is available everywhere. There are some specific regional items that people can not get to where they live, so you will more than gladly pay for the internet. A great example is the Joe grocery store dealer. They have like the following cult, and very sporadically located across the country. They have home brands with many unique items, and they do not sell their products online. So, if you live 4 hours of Joe Trader and really want something like Butter Cookies Special, Amazon is your only realistic choice.
As a general rule of thumb, if you find something to buy for $ 10 you’ll be able to sell it for $ 30 on the Amazon. You can estimate $ 10 for the product, $ 10 for the Amazon fee, and $ 10 for the profit. This is a good target to shoot for. Here are some specific examples of how to sell on Amazon by buying products that you can find all around you.
Tools, toys, food, household appliances, or anything else that you find the way without retailing; These are all things you can sell on Amazon.
Real Examples of how To Sell On Amazon 2018
The first items were actually sold K-cup coffee cups from Sam. I made a small profit on them, but they had a really high sales rank. To give some details, Starbucks K-Cup was for $ 36 in Sams and was selling about $ 55 on the Amazon. This margin was stricter than I recommend, as I stood to profit about $ 5 a square for. So I went, since sales were rank about 2,000, a really high percentage. I bought a few to try out, shortly after their arrival at the Amazon sold, almost immediately.
I spare the details about shipping things to Amazon, but in summary you walk through the Amazon seller site and find the item you are going to sell. You set your price and select that you want to sell the FBA. Amazon tell you where to ship it, and you can pay for UPS mail at its rate – print your tag, box it up, and send it on.
The first big win I had on Amazon also came from Sams, and was the most obvious image foot massager. At the time, there were no FBA sellers at the lowest price + shipping was around $ 80. I bought 2 of them from Sam for about $ 48, just to try them out because he had a great sales rank. These 2 were sold within a few days at $ 84, which took advantage of me for $ 10 for the item. At this point I had to become a believer, although I only made about $ 50 profit on my trip to Sam. For some reason I went crazy and bought every massager they had – which was about $ 1,000 worth.
Another good benefit of FBA which ultimately saves you money and makes the fees worth it completely in my opinion, is that you can ship cases of items together. Here is a real example of how this works in Sales.
I used the large shipping boxes I had purchased at Wal-Mart and shipped 5 massagers in a box for about $ 10 each. If I had sold those same 5 massagers individually, I had to ship them to the buyers on my own, not only that I have to go to the post office 5 times and buy 5 boxes, but maybe you’ve paid about $ 10 a box for standard shipping on. Charging it to Amazon all at once allows you to charge more, because you are competing against people who have to charge that extra $ 10-12 for shipping.
Long story short, this time I decided to test the theory discussed earlier to see if people pay a premium to buy from the seller only FBA. I priced them at $ 99 this time and gradually they started selling. After about 10 days, I kept getting emails from items that were sold and were on their way very quickly. At $ 99 you would earn about $ 25 each. However, my prices jumped again for $ 119 and sold the last 3 at this price, earning $ 45 each. All in all, I made about $ 450 in profit on a massager and they sold within 2 weeks.
Another great success I had was actually a book collection I bought at Amazon, shipped from it and then back and sold on Amazon. I know that crazy sounds, but sometimes the Amazon will have such a great deal that this is possible. In this case, the product was Ivy & Bean Children Book Collection. Dealnews and where usually check in on a daily basis to see if there are any deals over the web that you should not miss out on.
This morning they mentioned that Amazon was selling Ivy & Box Box beans every 10 books for only $ 9. These were 90% off what the price was the day before. I checked all the individual books for sale on the Amazon, and most of these were about $ 9 a piece, new. Encouraged by my foot massager experience, I went great and bought 25 sets.
I got boxes of books in 2 days, opened them and put stickers on every item that you have to order to revive your inventory, and ship them right back to Amazon. I was in my possession for about 3 hours. Two days later I had a package for sale for $ 49, while Amazon had bumped its price up to $ 99.
I figured that others would do the same, so prices were temporarily low because people would always get in price wars down. Since I was taking advantage of the FBA sale, I was not too concerned with the passage of time before. Month for month storage rates are very reasonable. I sold a group or 2 within the first few weeks, but this would take a moment to change the course.
All in all it took me about 6 months to sell all 25 sets, but I was profiting at $ 25 on every sale, to do almost anything. The key is to be patient when it makes sense. In this case the books will not expire, and the item such a request is unlikely to fall off the table. I did not want to compromise my margins, so I just waited for some low ballers at a price I was comfortable with.
Amazon.com: Getting Started with Selling on Amazon
At this point you are probably convinced that Amazon has the ability to become a full-time job, but more realistically can be a source of part-time or additional income for people of any age. Here are some tips on how to start selling on Amazon:
Applications make life easier. That is, smart phones must really have to achieve maximum efficiency. The quickest way to find things to sell is to go to stores like those listed above and scan the barcode to see what the item sells for in Amazon. If you want to jump in with both feet, there is an app called Profit Thieves on the iPhone that will scan the items and tell you all the relevant information that you will need to make a decision. This application is about $ 15. You can also use Amazon’s own application, but not built with sellers in mind, it takes a little longer to figure out what you need to know.
Know what to look for. I mentioned this at the last point, but you have to know that the element has the ability to sell well. How do you know this? One key is the sales rank. Amazon publishes this, the lower the number and more often they sold recently. Here is a reply to sales rank that describes it well. Another thing is how many other sellers are offering this item. If you are the only FBA seller, this is ideal. If there are other FBA vendors, you should plan to match their price. You also must focus on the elements that are smaller / lighter when possible. Amazon has high fees for items that are huge and heavy, so you need higher margins.
Buy boxes at Wal-Mart. I found that getting a shipping supply is more affordable here, and you’ll have to get boxes for things to ship to Amazon.
Top Tools & Resources For Amazon FBA
Here are some great books and other resources that can take you more in-depth about how to sell on Amazon. Many of these I have used myself.
SaleHoo.com – A site to find wholesale products. This can reduce the time spent searching for deals and will allow you to expand your business.
eCom Success Academy 2018 – Adrian Morrison System which is a kind of godfather selling FBA. A lot of insight.
FBA recipe for success – 2 working mothers who have found Amazon success have written a 130 e-book page with every detail about how to be successful.
FBA Forum – Users Exchange ideas and questions about selling FBA
Camel Camel Camel – Not sure what the deal is with the name, it is a great tracker of historical prices on Amazon. Find out if the price you currently see is relatively low or high, setting alerts.
Profit Bandits – This is the iPhone app (also on Android) I mentioned earlier. It does all the math for you so you can know what your profit would be assuming this item sells for its current price. This saves you tons of time.
If you have any questions, please let me know in the contact us form and I would be happy to help.