You might have been tempted to try your hand at Amazon FBA after seeing some of the inspiring success stories available all over the internet. These individuals have obviously done something right, and no doubt have invaluable nuggets of information to help others follow in their footsteps.
To stay up to date with all things Amazon FBA, we keep tabs on these exemplary entrepreneurs and want to help you share in their success.
So, if you want tips on how to make money selling on Amazon, this article is for you.
How to make money selling on Amazon? First, use Amazon FBA
This should be a no-brainer. However, it’s useful to go read how other successful sellers started out on Amazon and how FBA helped them achieve success. Just check out some of these success stories to see what they have to say about Amazon FBA.
A common theme among most of them is that they could never have expanded their business beyond a small scale enterprise without the logistical support of Amazon FBA. Joseph Jaconi from Tech Armor always talks about how all his and his partner’s time was swallowed up by licking stamps and driving parcels to the post office.
Although many successful sellers branch out into other things, Amazon FBA was the platform that gave them the boost they needed when they needed it most. Without it, we might have never heard of The Selling Family, MyWifeQuiteHerJob (Steve Chou) or The Amazing Seller (Scott Voelker) who we now turn to for advice.
Make amazing photos part of your selling strategy
You could be forgiven for not realizing the full importance of your product photos when it comes to sales conversions on Amazon. Too many sellers still have no clue that the graphics you include in your product listings have a massive impact on your overall sales.
In fact, it’s so important that many pro sellers even invested in professional photography services for their Amazon product listings! The positive effect of proper sales images is so pronounced that it can be just as influential as a massive marketing push through other channels. Just that it’s so much easier, less time-consuming, and affordable.
You don’t necessarily need professional services to get sales-ready product photos. All you need is a good camera, a willingness to learn, and a little bit of extra time. MyWifeQuiteHerJob has created a practical guide to help beginner photographers take better product photos right away.
Put effort into protecting your brand and products
There is always someone looking for an opportunity to make money. Such as, by taking advantage of someone else’s hard work. This threat is particularly pervasive on Amazon. You’ve probably seen it for yourself. Many people sell the same branded products that aren’t their own when browsing on Amazon.
Most experienced Amazon sellers urge newbies to take this threat seriously. Also, to take the necessary steps to protect their merchandise.
One way you can do this is to register your brand with the Amazon Brand Registry service. Registering your products here requires that you already have a registered trademark from your country’s patent office. Amazon will give you access to powerful tools that you can use to find possible infringers and report them.
However, this goes both ways. You should do the same due diligence to make sure you aren’t infringing on someone else’s trademark. Similarly, branding while creating or selling your own products. Whenever selling a branded item, you should ensure that it either comes with the right permissions. Or obtain these permissions from the trademark owner.
Try out and make use of online tools
One of the best things about selling on Amazon FBA is that a lot of the heavy lifting is taken off of your shoulders. Without needing to worry about physical infrastructure, you can get the core business aspects up and running as fast as possible. Additionally, keep evolving them.
However, you’ll realize what you need to do for the next level. There are a lot of concerns to deal with on this side of things as well. You might feel yourself get swamped while trying to balance: accounting, taxes, competitor research, SEO research, product research, customer feedback, and sourcing, etc.
As part of a new breed of entrepreneurs working in the fast-paced industry of e-commerce, one of the most important tenets is not to reinvent the wheel. Nowadays, there is a tool for just about anything. And you can find one for all the aspects we listed above. All successful Amazon sellers have a whole list of tools that they use that helps them maintain their success. Just look at this list of resources from “The Amazing Seller,” Scott Voelker.
Some of the most popular tools for Amazon sellers are:
- Junglescout: This is one of the best product research tools out there. Period. You can use it to find products to sell via private or white label as well as gauge their performance. It comes with a handy web extension and data exporting tools.
- AMASuite: Has some of the same product research features as Junglescout but focusses on keyword research.
- Google Keyword Planner: An indispensable free keyword research tool from the search engine giants themselves.
- Salesbacker: One of the best tools to help you respond to customer reviews and collect emails for future leads.
- TaxJar: TaxJar makes doing your online sales taxes much easier with a mix of tools and hands-on services.
Make sure you know where you stand on taxes
No one likes to pay taxes. And it seems like this extends to Amazon FBA sellers. This isn’t helped by the fact that few people know exactly how online sales taxes work. Moreover, until recently, Amazon themselves haven’t really enforced any tax commitments on their sellers. As of last year, they have affirmed their intention to start working with tax authorities to reign in those who aren’t paying their taxes.
Being behind on your taxes can get you in a lot of trouble with the revenue service. Furthermore, your business can sink or stop you from selling it in the future.
Without a doubt, getting a handle on your taxes can be very difficult if you haven’t been doing so from the very beginning. That’s why you should star as early as possible. Make use of tools like TaxJar that make it easy for you to do your taxes and give you access to expert advice.
Do your research
We just gave you a list of tools to use to help you research some aspects that involve your Amazon FBA business. As you can infer from this, it’s crucial for your business that you always take the time to do your research.
The Amazon marketplace is dynamic and never ever stands still. There are always new opportunities for the taking.
In general, knowing how to research trends, competitors, and products are top keys to take hold of every time. You shouldn’t go into a new niche or start selling new products blindly. Make sure that you have the right information on hand to validate any decision you make.
Using the tools above will help you immensely. It’ll open your eyes to things you didn’t even know could be researched. A good place to start is by seeing what your competitors are up to. We have compiled a guide to help you spy on Amazon competitors.
Don’t compete with the big boys (or Amazon)
Most extremely successful Amazon entrepreneurs make their mark by selling unique products (or at least their uniquely branded products). Although very popular products from well-known brands have a consistent target market and proven worth, you will need to compete with a lot of other sellers, including some big ones.
Remember that they operate at very high volumes. Furthermore, they have dedicated staff for inventorying, customer service, and marketing. Try as you might, you will find going against them very tough. Amazon has also started selling certain products across popular niches. You should tread carefully in these zones as it will be impossible to beat Amazon at their own game.
Therefore, it’s no surprise that the majority of successful Amazon sellers sell in one of these ways:
- Private labeling
- White labeling
- Original products
There are a few sellers who have achieved surprising success using retail arbitrage. But it’s a tough method to master and will take a lot of time and involve plenty of risks.
Keep yourself well-informed
We have already included a few links to some of our favorite Amazon bloggers that share amazing tips, tricks, and information with their readers. For more sources of advice, refer to our list of 5 Amazon FBA Podcasts to Start Listening to Right Now. These podcasts are frequently updated. Also, they often feature star guests, and make staying up to date with the Amazon FBA industry fun and engaging.
We hope that you’ve enjoyed this article and find these tips taken straight from the playbooks of the most successful Amazon FBA sellers to show you how to make money selling on Amazon. There is no better place to learn than from those who have done it themselves. Good luck, and happy selling!