Why should you sell on Amazon FBA in 2021(How to do it?)

Amazon FBA | 0 comments

Should you start selling on Amazon in 2021

Advantage of being an Amazon Seller

Here are some advantages that you can enjoy being an Amazon seller:

Customer Base of 310 Million

Amazon has a customer base of 310 million of whom 90 million are Amazon prime users and the remaining 220 million are non-prime users. Prime users spend an average of $1300 per year whereas non-prime users spend an average of $700 each year. With this huge customer base of 310 million that are actively using Amazon to buy products, you can make your business earn more and more profits unless you know how to use the opportunity.

Earn Brand Recognition

Amazon allows every third-party seller access to its every customer, customers who trust Amazon. Amazon allows you to show your products in front of these customers. Using Amazon PPC and listing optimization, you can make your products rank higher on customers’ search results for related keywords. Again, there are a lot of efforts involved and factors considered by Amazon to rank your product higher. But, once your product starts getting sales, then your products and brand start getting recognized by the customers. In this way, Amazon helps your business to gain customers’ trust and build your brand.

Fulfillment by Amazon

Another great advantage that Amazon provides to its third-party sellers is the Fulfillment by Amazon (Amazon FBA) option. Using Amazon FBA, as a new seller you can concentrate more on marketing and growth of your business. Amazon will take care of your product packaging, shipping, customer service, and returns. You do not need to worry about these things and can just sit back and make plans for sales coming in.

Other Perks

Amazon keeps improving its algorithm to continuously provide great service to its customers. So, if any product is doing well, Amazon always recommends it to customers. In this way, Amazon provides unsolicited referrals. Amazon provides world-class customer service, trusted shipping options, an amazing shopping experience to all customers, and access to top resources and services, and many more for every third-part seller to leverage.

Clever ways to become a profitable Amazon Seller

Find the right products to sell on Amazon

You might have already decided on what products to sell or you might have not. In any case, before starting to sell your products on Amazon, you should check if your product qualifies for an ideal Amazon product or not. 

What are the characteristics of an ideal Amazon product:

  • The product has high demand but less competition.
  • The product has a price range of $18 to $50.
  • Product with low seasonality, means can be sold all year round.
  • Easy to manufacture and should not be fragile.
  • Lightweight and smaller in size.

These are some important characteristics that should be kept in mind to increase the profit margin of a product to its maximum. Use software like ZonBase to give you calculative and accurate results by digging deep into Amazon’s database of over 20 million products.

Take Advantage Of Amazon FBA

Amazon provides Fulfillment by Amazon option through which it will take care of the product’s packaging, shipping, and returns on behalf of third-party sellers. With Amazon FBA a new seller can concentrate completely on the marketing and growth of their business. Some of the great advantages of using fulfillment by Amazon are:

  • You do not have to worry about providing great shipping service to your customers, as Amazon takes care of it.
  • Amazon provides a discount on shipping rates while sending your products to inventory.
  • Amazon takes care of all the returns and transactions.
  • Amazon is known for its world-class customer service, and using FBA Amazon can do it on your behalf.
  • You can get unlimited storage to store your products on the Amazon warehouse.
  • Amazon provides super fast delivery to all its customers and using FBA you can give the service to your customers also.
  • Using FBA, Amazon can fulfill orders from another store like Shopify or eBay.

Find the best supplier and shipper

After finding your product, the next step is to find suppliers that can supply your products. There are two popular ways through which you can get your suppliers:

  • Local Wholesale
  • Alibaba

Invest productive time in searching for suppliers. Contact multiple suppliers instead of settling down for the first one you find. Prepare a template of questions to ask your suppliers, think of all the potential questions, search on google to get an idea. 

Get quotes from all your potential suppliers and evaluate them before selecting one. Do not just consider price as the only factor to choose your supplier. Other factors that should be given equal priority are high-quality products, supplier reviews, or feedback.

Investing and Reinvesting in your business

Starting an Amazon business needs investment. You can not get into Amazon selling business on a razor-thin budget. Investment should be needed for sourcing the products, signing up for the software, advertising your product on Amazon, etc.

Reinvesting is what makes a business from average to successful. Reinvest money in your business, but not without making any strategy. Amazon sponsored products, Facebook or Google advertising, influencer marketing, introducing new products are some steps to push your business to grow even bigger.

Build a private label brand

Building a private label brand is what makes your business stronger and will gain recognition. Private labeling will help you to outrank your competition. Customers trust private label products more than generic products.

Some of the pros of private labeling are:

  • Higher profit margins.
  • Make your products distinguishable.
  • Can customize your products according to customer reviews.
  • It helps to gain customer’s loyalty and trust.

Be a proactive marketer

Becoming a profitable Amazon seller depends on o how good you are at marketing and what strategies you are using. If you are just starting, enroll yourself in a good online course and learn how you can market your Amazon product and automate your sales.

  • List your product and optimize it for Amazon SEO.
  • Make a list of top keywords.
  • Get high-quality images
  • Use Amazon PPC to sponsor your products
  • Market your products using social media, Facebook advertising, and Google Ads
  • Test everything and strategize according to it.

Become a seller you would want to buy from

Always think from the perspective of your customers and how would you like to have the quality of the product or service. Always follow up with your customers and regularly check the reviews. Sellers who try to understand their customer’s issues and improve accordingly, become top Amazon sellers.

Building a bigger business and keep improving

When the best time comes, you should be ready to expand your business and make it bigger and gain long-term success. You can sell multiple products and start multiple online shops. Do not stop your determination and preserving and always keep looking to improve and grow bigger. Success on Amazon happens after you find ways to continuously climb higher either by improving your service, product quality, or expanding even bigger.


Submit a Comment

Your email address will not be published.