Amazon FBA Explained

This article explains 3 simple steps you need to know in order to make money on Amazon FBA.

Fulfilment by Amazon (FBA) is a service offered by Amazon, as a means for third-party sellers to fulfil their orders and delivery services. Anyone registered with Amazon FBA can allow Amazon to handle all shipments, including returns and refunds, as well as product warehouse, picking and packing, and more.

Step 1: Figuring Out What to Sell on Amazon

Start by using the plethora of information readily available to you on the platform itself. 

  • Research which categories and products are best sellers: You could use Amazon’s best-seller ranking. The higher the ranking, more popular, fast-growing and affordable product.
  • Check the total number of product reviews: This will give you a brief idea about market demand and supply.

Step 2: Sourcing Your Product to Sell Through Amazon FBA

Once you’ve found a product that you think may be a good opportunity, the next step is to find a manufacturer.

The easiest way is to use Alibaba and search for a manufacturer that creates the product you want to sell. If you’re a new Amazon seller, it’s advantageous to work with a manufacturer that has experience with other Amazon sellers (which is more common). So ensure to ask them if they’re familiar with Amazon’s rules and if they can prep the products for FBA, which includes a barcode on the package.

Step 3: Create Effective Product Listings

Product listings on Amazon FBA contain a name, description, image, and other valuable details for each product you sell. Maintain product titles shorter than 200 characters and capitalize the first letter in each word. Provide any other clarifying details in your product title — which includes product dimensions, color, or the number of items per package.

In your product description, Amazon allows five bullet points to further explain product specifics. Use popular industry keywords so that your product appears in relevant product searches across Amazon. Include benefits customers would receive when using your product, to help them envision a happy post-purchase outcome.

Use clear, high-quality product images preferably with white backgrounds. Product images should be at least 1,000 DPI (dots per inch) so that they maintain their integrity when customers enlarge them.

Step 4. Make Sales

Once your product is live, the next step is to upscale your sales. If you had chosen a product with low competition you would be able to start making sales within a few days, just by customers finding your listing through Amazon search results.

Once you have made a fair amount of sales, Amazon will rank you in the search results. So initially, you just need to focus on getting the ball rolling. Here are a few things you can do;

  • Strategy #1: Pay for Amazon Ads
  • Strategy #2: Run Ads on Other Sites
  • Strategy #3: Use Your Email List
  • Strategy #4: Use Discount Sites

By following the above steps and strategies, you could leverage your online sales, make massive earnings and ultimately make money on Amazon FBA.

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