How To Sell At Amazon

How to sell at amazon
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Why Sell At Amazon?


Amazon is almost the perfect platform to sell your product, it offers a variety of advantages, especially for those who would like to reach more substantial and diverse customers one that spends a lot of money for shopping online.

Nowadays, peoples are getting lazy, or some are busy with their daily works, because of these they prefer to shop online. That’s an excellent opportunity for sellers to make money online without incurring a high cost. There’s two main reasons why you should start selling online at this platform with comparing to other e-commerce:

1. Huge Marketplace For Selling Online

Amazon has the biggest marketplace with more than 300 Mil of the customers. Selling on Amazon will give you a lot of exposure with high traffics and potentially you can earn more money by doing less work!

 

2. Fulfilled by Amazon

When you send your products to Amazon warehouse, all the works such as shipping, products arrangements, and refunds will be handled by them. You can run automatically without storing the products in your garage or sending to courier service every day. This also makes it a very easy to scale up your business because there is no limit you can make the sale in a day!

Products Research


This is the MOST critical step as the product you choose is the a foundation of your business. You want to find a product that lots of people are after, and isn’t too competitive. A mistake people make when starting, is just selecting products they like or that they think will do well. We want to try our best to minimise our risk and strongly recommend making data-driven decisions on what to sell.

The Best Business Model

There is a lot of various business model you can use for selling. The one we recommend is the so-called Private Label. The private label gives you the right to make a slightly modification and improvement on the product, and you can place your logo onto that product rebranded and sell it under your name.

There are also some other business model such as dropshipping, print on demand, wholesaling or arbitraging but all these are selling other people products.

We recommend the private label business model because it allows you to take full control over the product and listing and even with higher profit margins. This will gives you an excellent opportunity to create your brand and not someone else’s.

Demand and Competition


As a basic guideliness, we want to make sure our product should have at least 3,000 sales per month and relatively well spread out. The high sale is an indicator of high demand, so this will create a high-profit potential for us.

As we can see from the product listing, higher numbers of the good review indicated that a lot of people tend to buy that product. This is the reason we can use it as a metric to measure the competition level. Ideally, we need to focus more on the products that have 500 excellent reviews and below. Anything closer to 1,000 reviews is getting too competitive and challenging to compete with others.

For example, I went to Amazon search engine and typed in ” yoga mats”, and this is one of the products i found (Refer to the screenshot below). This yoga mat has a sales rank of #565 in sports and outdoor niche with only 215 customer reviews. I went to my Amazon sales estimator and keyed in the sales rank number, the estimator shown that this product has 3,341 estimated monthly sales. This product has fulfilled all the criteria I mentioned above, customer review below 500 and at least 3,000 monthly sales.

It’s important to spend some time on finding less competitive products with a lower review (below 500) and high monthly sales in order to get sale easily from there.

Pricing


Next, we are going to look at the price.So let make it simple, you are going to sell the products with the pricing ranging between $15-$60. Anything below $15, the profit margins will be very slim after the Amazon takes their cut, and above $60, it’ll become difficult to sell as a lot of customers are less likely to buy it without knowing the brand.

Seasonality


Imagine if you were looking for Christmas decorations during December, the quantity of the numbers would be huge! If you were going to sell that kind of products and thinking that you would make big sales all the time, then you are wrong! You’ll feel a bit of shock when coming to January as the sales would drop significantly.

As a result, we want to sell the products that can make sales all year around. The suggested tool for this is Google Trends. Just enter any relevant keywords in the search terms and view the past five years result. This would give you some ideas which products can sell for the whole year. Refer to screenshot below by using Christmas Decorations as an example, and you’ll see there’s a big spike around December month for every year, and we’re trying to avoid these kinds of products instead we should look for those products that can sell all year around.

Sourcing Your Products


It’s is essential to narrow down to a single product. Then the next step is how to source your product. Usually, most people go to Aliexpress for smaller size orders and Alibaba for bigger size orders.You can find much great product at Alibaba.com. It’s also the far the most significant marketplace whereby you can source your products. Our recommendation is to do product research by Supplier rather than individual products because most of the supplier have a bunch of listing that is all about the same. Finding a good supplier will help you to source the right quality products. You should narrow down your research to 10 to 15 suitable suppliers, then contact them one by one.

You may want to ask many questions as possible in your email to potential suppliers. There are many suppliers to contact, and you don’t want to always go back and forth with each one. It’s good to have a first test on how the suppliers answer your questions and find out which one gives you a generic response. From the way of supplier answer you, you’ll find out how many efforts they put in to answer your questions

You may want to request a free sample. How much if you purchase the products in bulk? Can you make the first order of small quantities and how much for that? Anything else specific to the product? Once you received some replies and you should start to evaluate them. Write down all responses whether they have good English for communication? Did they answer all your questions or they give you a very generic answer?

There are some other things you may also need to take note as suppliers will often ask to have a conversation in Skype or email. That’s normal! A sample usually will cost anywhere from $50 to $100. You may think that’s a lot for a sample product but try to treat it as a cost of doing business. You want to make money. First, you have to incur some costs. If possible, try to get a sample from different suppliers. This is because you might get a better price from one but better communication from another. Next, get a sample and make a simple comparison of the quality of the product between each supplier as well.

Once you have inspected the product samples, perhaps to follow up with any additional questions and let your supplier know how to going to place your first order. You can negotiate to pay the upfront cost at 30% then the remaining 70% will be paid before they ship the product. Or in some circumstance, it might be 50% upfront and 50% later.

For the paying method, Paypal is okay for sample products. However, there is a 5% fee for a large order, so you may want to stay away from Paypal. Telegraphic transfer (TT) is standard which it’s wire bank transfer. You can also pay with Alibaba. Some of the supplier offer trade assurance which it’s good to get as this will insure your shipment in case anything goes wrong. This is only if you order via Alibaba, so try this option if you can. We do not recommend paying via Western Union because there are no real means of recourse if anything goes wrong. Production usually will take about 2 to 6, and this gives you some time to get a bunch of other things done.

Product Listing


For listing copy, you want to come out with a specific title. Main product features perhaps in bullet point and description. Take your time to do some research on Amazon, look at some high rating seller to see how they write their listing copy and get some ideas to write your product descriptions. This is important because this is what is going to sell your product after people click onto your listing. Also, you have to include your main keywords in your product title and even your product description because this will help you to get higher ranking in Amazon’s search results.

Product Launch


When you have launched your product, there are two things you need to take note: Sales and Customer’s Review. This will give you the momentum that you need to rank your product with the most popular keyword search terms and get found by customers and make sales. Customer will be typing some words into the search bar on Amazon to find some particular product. Then they will select a listing that they like and purchase from there. So your goal is to make sure that your listing appears when they type in the name of your product.

Final Thought and Conclusion


There are a lot of reasons why you should start an Amazon business. If you want to reach a more significant size audience and increasing your volume of sales, then you want to consider selling on Amazon.com because it can be an incredible resource. Just keep in mind, it does have some drawbacks, and we will discuss this in one of our future articles.

We recommend to try it out by selling a few products on Amazon to see the result. Amazon might not work for everyone, but there is no doubt that this platform can grow your online business exponentially

The AAA Formula To Make $10k Per Month Selling On Amazon

Sell on amazon

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About the Author: Maxon

Hi, this is Maxon. I'm an online entrepreneur, financial instrument trader and stock investor. I started Success Life Mastery with the purpose of helping others to achieve success in their lives and create freedom of life for themselves. "Treat every failure as your valuable feedback, be consistency, and soon you will succeed" -Maxon
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