Selling on Amazon is a great way to make money online. It’s easy to do, especially if you have the right tools and information.
But before you can get started selling on Amazon, there are some things you’ll need to know about how it works, what makes a product profitable, and how to find products that will sell well.
This guide will cover all these topics and show you exactly how we use them in our business.
Step 1: Find a profitable product to sell on Amazon.
This is the most critical step of the process. You’re setting yourself up for failure without finding a profitable product to sell on Amazon.
It would help if you were passionate about your product. If you have no interest in it, there are no guarantees that you will be able to find enough interested buyers who will buy your product at an attractive price point so that it makes sense for both parties involved (seller and buyer).
It would help if you understood what it takes to source your product from Alibaba or the UK to know how much it costs and where most sellers are getting their products.
Step 2: Source Your Product From Alibaba or a UK Supplier
Next, you need to find a supplier who can provide you with your desired product.
The best way to do this is by using Alibaba, which is a global marketplace for small businesses, but there are a few things you should keep in mind when sourcing products:
- Ensure your supplier has a good reputation and a completed track record of working with other Amazon sellers. You need to trust that they will do right by you as well!
- Check out their reviews and see if anyone else has had problems before—the more negative reviews there are, the less likely they’re trustworthy (and vice versa).
- If there are no reviews from customers who’ve purchased from this particular seller before, then ask why not? These types of questions often come up during negotiations, so make sure yours does too!
Step 3: Create your listing.
Now that you have your product and a plan, it’s time to create the listing.
This is where you’ll use your knowledge of Amazon’s rules and regulations to ensure your product meets every need, then get creative with your title, description, bullet points and other elements.
Let’s start with the basics:
Title: The title is what will be seen in search results. It should include keywords that customers would likely type in when looking for similar products on Amazon.
It should also be unique enough to avoid confusing customers with titles of other products (although this happens ).
Also, remember that if someone searches for a specific brand name (i.e., “Apple iPhone XS Max”), don’t put that brand in the title – instead, focus on keywords related to features or functionality (e.g., “wireless charging”).
Description: The description is visible on search result pages but below the title.
Be sure it includes all necessary details about what makes your product great—in short sentences or bullet points if possible—and link those key points back into why they matter (“why” is an important word here; try asking yourself that question before writing anything).
This can also be used as an opportunity for humour or more selling points like free shipping or a warranty; keep it relevant!
Step 4: Calculate your potential profit.
The next step is to calculate your potential profit. This means you need to know how much money you will be making and how much time it will take to achieve this goal.
Calculate your profit margin by dividing the cost of goods sold (COGS) by the sales price.
The COGS includes all expenses related to creating a product or providing a service not paid for by customers or clients.
These include direct materials, direct labour costs and other indirect costs associated with producing the goods or services sold.
Calculate your estimated monthly sales by multiplying your daily average sales amount (from step 2) by 30 days per month; if you only sell on weekends, multiply that number by four instead of 30 days per month).
Calculate your estimated monthly expenses by multiplying them out over 30 days per month; again, if you only sell on weekends, multiply those numbers by 4).
You may want to estimate these amounts based on what happened in previous months so that when year-end tax filings came up in April 2020—for example—you don’t get surprised!
If nothing else, put down arbitrary numbers until we have actual data from Amazon – like $6k/month for shipping and fulfilment costs alone!
Calculate your estimated monthly profit after subtracting all projected expenses from projected revenue (projected revenue = estimated monthly sales * margin).
Step 5: Purchase and ship product to Amazon warehouse.
Shipping the product to the Amazon warehouse is a critical step in selling.
- Quality Control: You must ensure that your products are up to Amazon’s standards and approved for selling on their marketplace. If you’re selling on Amazon FBA, this refers to quality control of your products at all times—from when they’re created until they are sent out for sale.
- Shipping: To get feedback from customers about your product once it has been delivered, you need to ensure that it gets to them. It would help if you also kept shipping costs down by finding ways of getting discounts or lower rates with carriers like UPS or FedEx Express Services (which includes things like Priority Mail).
Step 6: Promote and rank your product.
Promoting your product on Amazon can be done in two ways. The first is through paid advertising, and the second is through free marketing tactics.
- Paid marketing tactics:
- Use your social media accounts to promote your product.
- Use Amazon SEO to rank your product higher.
- Free marketing tactics:
- Run giveaways on Facebook and Instagram, and post about them in relevant communities on Reddit and Quora.
Even though selling on Amazon is easy, several steps must be carefully considered if you want to make money.
Even though selling on Amazon is relatively easy, several steps require careful attention if you want to make money.
This is especially true when you consider some of the best sellers on Amazon have been selling for years and still know what they’re doing.
If you want to sell products on Amazon, this step-by-step guide will give you all the information you need to get started and ensure your business lasts longer than it would if it were done.
Suggested Articles