You have probably heard how people started their own successful business by selling on this platform, and you’re interested in becoming an Amazon seller, but you’re not quite sure how that works or what do you need to start? There is a lot of confusing information on the internet, whether this business is actually profitable or how much money do you need to start selling. In this article, you will find useful information and instructions on how to sell on Amazon.
How much can you earn?
One of the first things that cross your mind is how much money you can earn by selling on Amazon. This is something very individual, and it depends on a lot of factors. Some people are earning 7+ figures, while others are earning really small profits. Probably it will sound like a cliche, but the most important factor is to determine what your goals are, what to sell on Amazon , and how much effort you are willing to give.
Anyone can earn a decent paycheck and make this business a primary source of income. It will be best if you start with the small steps until you learn everything and get on the top.
How much money do you need to start?
The second thing that crosses your mind is probably the question of how much money do you need to start selling on Amazon. If you want to find the best selling products IO Scout is the cost-effective Amazon product research tool in the market.
If you want to start a business and you’re not registering on this platform just to sell a few items, you should probably invest in a professional seller account. Although this action will cost you more than choosing an individual account, in the long run, it’s more profitable. You will have to pay a $39.99 referral fee, but if you are going to sell more than 40 items, this is a more beneficial option.
Besides the money you’ll need for your account, there is also a certain amount you will need to invest in purchasing or manufacturing your products for sale. Whatever amount you can afford to invest, it’s enough to start your first sales and get your business start running. Even if that amount is under $100, you can make a success, as long as you estimate your possible earnings right, and reinvest all of your profits. If you reinvest all of your earnings right on the start, you can grow your business enormously. The more capital you have to buy or manufacture your products, the more profit you will make with your sales.
Even if you’re pretty broke, you can try the flipping challenge. This way, you will spend 0$ and sell the things you already own, to use that profit as your starting capital for your up running business.
There are some additional costs, like shipping and marketing, but that is pretty optional.
Finding products to sell on Amazon
After registering and the setup of your account, you will have to find products for sale and suppliers. Finding the right products to sell is essential for your profit and business growth. There are a lot of useful tools that will help you estimate your possible earnings. You have three options from
where you can find products to sell:
- Wholesale – You will have to partner with the distributors and get bulk orders of their products.
- Retail Arbitrage – This is the easiest way to start, finding your local big store that’s doing the liquidation of their products, purchase them, and resell them for profit.
- Manufacturing products – by yourself or someone you know.
How to choose the right price?
When you have products you want to list for sale, you should choose the price similar to other available offers for that product, with the same fulfillment method. Don’t put a price lower than the lowest available, because this can trigger a chain reaction of reducing all prices, and profits. For a start, set the same price as the lowest one offered with the same Amazon fulfillment method, or 1% higher.
Shipping the products to your buyers
After listing your products for sale, you will have to choose a fulfillment method you want to use. FBA model stands for Fulfillment by Amazon, and it’s way better option than FBM (Fulfillment by Merchandiser). If you choose the FBA method, Amazon will take complete care of your order. Their employees will prepare, pack, and ship your products from Amazon’s warehouses, handling the customer care as well. The FBA model is great for beginners, as you will not have to juggle with all of the tasks by yourself, and you will be able to concentrate on your primary goal, earning money. Amazon will send you an e-mail whenever someone purchases your item, and your funds will be deposited every two weeks on your bank account.