Selling items through Amazon FBA has proven to be a worthwhile and profitable venture for many people. Individuals with enough foresight, planning and business savvy could even turn this side gig into a full-time job. Learning how to earn money from Amazon isn’t an overnight process, though. To be successful, you’ll have to develop your business from the ground up.
Tips on how to earn money from Amazon
If you’ve already done some research on this topic, you’ve probably already found a few obvious or maybe vague tips on how to earn money from Amazon FBA. Some popular pieces of advice floating around the internet include “sell popular products,” “don’t sell damaged products,” and “consider your profit margins.” Even a beginner on Amazon FBA knows these things! In the following article, we’ve compiled some more nuanced tips from Amazon FBA experts that we hope will guide you as you continue to grow your business.
#1 Sell items that are affordable, simple and lightweight
Your first instinct when it comes to using Amazon FBA may be to sell items with expensive price tags. These could be items like TVs, kitchen appliances, computers, etc. What many sellers forget is that items like these come with more maintenance, and are therefore more susceptible to issues that could make a buyer return them.
When choosing what products to sell on Amazon, it’s suggested you invest your money in items that are relatively inexpensive, lightweight and simple. Buyers are more likely to buy your product if it’s cheap, but not just because it’s affordable. Keep in mind that buyers will put less thought and research when the dollar value is low, meaning they won’t be reviewing your competitors or endlessly skimming through product reviews. They’re also less likely to return a broken $15 scalp massager than a broken $1,500 flat screen television.
Selling lightweight items is also ideal as you’ll cut back on your shipping costs. You’ll see the savings right away when you start selling qualified items through Amazon’s “FBA Small and Light” program. Products that are eligible must:
- Measure at or smaller than 16 x 9 x4 inches
- Weigh no more than 15 ounces
- Sell for $15 or less
For these items, Amazon reduces your fulfillment fees, which means more money in your pocket. Additional information can be found at “FBA Small and Light.”
#2 Use apps like Scoutify, Product Bandit and Amazon Seller App to maximize your profit
When choosing a product to sell with Amazon FBA, there are a number of important factors you have to take into account first. These include product popularity, pricing history, projected gross profits, costs of shipping, and much more. Smartphone applications like Scoutify, Product Bandit and Amazon Seller App allow you to compile all of this information into one place by simply scanning an item’s barcode.
While each application has the same basic function, there are many differences between the three that you should take into consideration. For instance, Amazon Seller App is free while Scoutify and Product Bandit both come with monthly fees. These monthly fees come with more comprehensive data about your products, though, which could help drive business and maximize product down the road. Make sure to weigh the pros and cons before deciding on an app that’s right for you.
#3 Consider using Ebates for cash back
Ebates is a popular shopping portal that offers coupons and cash back from over 2,000 retailers. Incorporating Ebates into your business strategy won’t help you sell more products, but it will cut down on your overall costs.
Ebates gives you a percentage of money back every time you make a purchase through the Ebates link. They make this possible by requiring online stores to pay them a commission for sending customers their way. Using Ebates is a great way to save money in the long run, especially if you’re purchasing a high volume of products. Ebates can also save you money (and time) by providing you with available coupons for different online stores.
#4 Write effective product descriptions
An effective product description does a lot more than simply entice the buyer – they also make the product easier to find. With millions of items available on Amazon, your product description has to be thorough in order for buyers to find it. Ever wonder why some Amazon products have crazy long titles? It’s because the seller wants to provide as much information as possible to increase their chances of matching a buyer’s keyword search.
Here’s an example of a product with a long and effective title: “Crock-Pot 6-Quart Programmable Cook & Carry Slow Cooker with Digital Timer, Stainless Steel, SCCPVL610-S.” This is a great title as it contains all the important information that consumers want to know. According to Amazon, your product title should include the following:
- Product Line
- Material or Key Feature
- Product Type
Make sure you are equally thorough in the description below the title. Your customers will want to know exactly what they’re purchasing, especially if your product is considered pricey by their standards. Adding too much text could make it unreadable, though, so try and strike a balance between the two. Product descriptions can range between three and seven bullet points depending on the amount of information you need to convey.
#5 Find undervalued items at secondhand shops or mom and pop businesses
Many sellers on Amazon FBA find and sell their products through retail arbitrage, which is a method of buying items from retail stores (Walmart, Best Buy, etc.) and selling them online for a higher price. Retail stores have proven to be a popular choice as you are given a bigger selection and the option to buy in bulk. The downside, however, is that big retail stores are acutely aware of the market and what people will pay for a product. This means your profit margins are going to be smaller if you’re not taking advantage of coupons or special deals.
This is why many opt to hunt for products in thrift stores or mom and pop businesses as they may be less aware of an item’s value. You can also expand your reach to garage sales, block sales, and other outlets where your profit margin is more likely to increase.
Time to start growing your business
While these tips on how to earn money from Amazon are certainly helpful, there’s no one method for success. Remember that there will be a lot of trial and error along the way and that you may face some defeating moments before reaching your end goal. If you need some inspiration to get started, take a look at these Amazon FBA success stories from people who actually did it. Put in the hard work and the results will follow!