How To Sell On Amazon FBA
For Beginners :
The Complete A-Z Guide
Are you interested in becoming your own boss?
Want to take ownership of your future, and build a valuable asset that you can grow into a profitable, scalable business?
Perhaps you are looking for additional income, the freedom to travel, choose your own schedule, or spend more time with friends and family.
If any of this applies to you, you are in the right place!
We have put together a comprehensive A-Z guide to selling on Amazon. You won’t find a guide this easy to follow yet so packed with advice anywhere else on the web. So let’s dive in with Lenny!
How to Sell on Amazon FBA for Beginners
Hopefully, you’ve had a chance to review my video on how to sell on Amazon FBA above. In addition to the video, the full transcript is below. If you’re pressed for time, here’s the TL;DR version of how to sell on Amazon FBA for beginners:
- Find a product to sell that’s already selling well with very few competitors in the marketplace.
- Source the product with manufacturers. We recommend requesting quotes from 10-15 suppliers and order samples.
- Negotiate with the suppliers on the price and place an order with the supplier you feel best fits your business’ needs.
- Create a product listing and start pre-marketing for your product.
- When your product arrives at the Amazon fulfillment center, launch your product.
- Use early promotional sales to accelerate your product’s position in the search engine and get early reviews.
- Turn on pay-per-click ad campaigns and track ad costs.
For more details on how to sell on Amazon FBA for beginners, be sure to watch the video and read the full transcript below.
Hey, guys. My name’s Lenny from Jungle Scout. Today I’m going to be talking to you about exactly how to sell private label products on Amazon.
Firstly, why would you want to sell on Amazon?
Well number one is their market place. They have millions of customers with credit cards, ready to purchase. Number two is their distribution. You can actually send your products to Amazon, they will store it in their warehouses then ship it out to customers, handle the returns, the customer service, all of the fulfillment. That means you’ve got a physical products business that you can manage completely remote. You don’t need to fill your garage full of inventory and you’ve got a very scalable business.
As an example, we launched these bamboo marshmallow sticks 19 months ago as part of a public case study.
They were extremely successful, selling well over $50,000 worth of profit in the first 14 months. Today I’ll share with you some of the best insights from that case study.
What this video will cover:
So what am I going to cover in this video?
- Number one, how to find a profitable product to sell
- How to source a supplier to make your product
- How to set up an account on Amazon and a listing
- How to ship your product to Amazon
- And then number five, how to optimize your listing and get more sales
- STEP 1: Product Research
- STEP 2: Finding A Supplier
- STEP 3: Create A Product Listing
- STEP 4: Launching Your Product
Step 1: Product Research
First you need to find a product to sell. Now product ideas can come from anywhere. They can from when you’re over at your mate’s house, when you’re out doing shopping. The best thing to do is create a long list of product ideas, let’s say 50 and then you can narrow it down from there.
The approach that we recommend is to find products that are already selling well and that we can verify selling that same product, perhaps with a slight modification and then adding your logo and your brand to it.
We don’t recommend going after products that you think might sell well, or that you would just like to sell. You’re starting a business, so you don’t want to make a big business decision based off of a hunch. You want to go off the numbers.
Here at Jungle Scout, we offer a number of free and paid tools to assist with product research. I’m going to go through a few free strategies. What you’re looking for is a product that has high demand or sales and low competition or reviews. To do that, let’s start with your list of fifty product ideas, now let’s go to Amazon.com
Competitor Analysis: The Clue Is In The Reviews
Let’s do a search for your first product. We’re going to analyze the top ten listings under that keyword. So in terms of competition, ideally what we’d like to see is that 8 out of the top 10 results have less than 100 reviews. It’s okay if there’s a couple of listings that have maybe 500 reviews, 1000 is probably a little bit too much.
We gauge competition by the number of reviews that a listing has because that’s how customers make their purchasing decisions.
Reviews take a while to accumulate so if you’re going up against listings that have thousands of reviews, it’s going to take you a very long time and a lot of money in order to compete with those listings.
To check the sales, open up the listing, go down to the product detail section. Now you’ll see that Amazon gives every single product in it’s catalog a rank. It’s called a best seller rank. This is called a parent category, and this one is called a sub-category.
Demand Analysis: Find Estimated Sales
Copy the number from the parent category, paste it into our free sales estimator tool and it will give you an estimate for the monthly sales of that listing.
Now go ahead and do that for the top 10 listings under that product. Now there’s a couple of things we’re looking for here.
As a combined total, we’d like to see at least 3000 sales per month. Why, because if you average that out, that’s about 300 sales per listing and if you could get 300 sales per month, that’s about 10 sales per day. That’s a good number to shoot for.
Anything less than that, the sales are starting to get pretty low and there’s not much demand for that product. The other thing that we want to check is the depth of the market. What I mean by that is how well those sales are spread out.
If there’s 3000 sales combined but the top two listings have, you know, 2500 of that sales. That means the sales aren’t very well spread out, that means that unless you’re in the top one or two position, you’re not going to get many sales at all. So what we want to see is that the sales are fairly well distributed amongst that top 10.
Seasonality Analysis: Does It Sell Year Round?
The next consideration in your product research is seasonality. You might look at Christmas tree lights in November and think wow, this is an amazing opportunity. They sell 6000 units per month, and it is a great opportunity.
That is until January first, when there’s no more sales. So you want to identify if a product is seasonal and only sells at certain times of the year or whether it sells all throughout the year, which is what we’re after.
A great tool to do this is Google trends. Type in the product that you’re wanting to look at and it will give you a nice little graph that shows you the search volume for that product.
Now it does show you the Google search traffic as opposed to the Amazon search traffic so it’s not 100% correct, but it will give you a really good idea. If you see consistent spikes every year, that means it probably is a seasonal item.
A little bit of seasonality is okay, but you want to verify that there is search data, all throughout the year.
Just quickly, if you’re enjoying this video, and finding it helpful, please give us a big thumbs up below, really appreciate it.
Now I know I’m racing through this really fast. There’s a lot to cover when it comes to selling on Amazon and what I’m doing here is giving you the big overview. There are a lot more micro details, but we’ll go through those in other videos. What you see in the description below is that I’ve given time stamps for everything that I’m talking about so you can come back and re watch any section that you like.
There’s also going to be links to more detailed videos that cover all the little micro details that I don’t have time to cover in this video, otherwise it would go for hours. I hope you’re still with me. Let’s get back to it.
Verify Your Product Idea
So now we’ve analyzed the top 10 results of a product. We’ve looked at the competition levels and we’ve also looked at the sales for it, and it looks okay.
The next step is to verify those sales, which means checking those numbers over time so that you can be confident that those sales are consistent.
Again, you wouldn’t want to make a big business decision and purchase a lot of product, thinking that it’s going to make a lot of sales, when it might have just been one fluke day.
So all that involves is doing that exact same process with the free estimator tool, and doing it for a period of time, I’d recommend at least one or two weeks.
Write down the estimates for each of those days and then see what the average is, see how much it changes. If it’s showing 4000 sales per month today, but then it evens out to about 2000 for the next five days, then that’s more likely to be the consistent sales that that product is getting.
Speed Up Your Research & Get Accurate Sales Estimates
I just want to show you, real quickly, one of our paid tools. Now you don’t need this tool although it does make this product a lot faster. It’s called the product tracker, which is part of our Jungle Scout web app. Let me show you an example.
Let’s say you were interested in the baby hooded towel niche, and let’s say I want to track the number of sales that this first product has got. I come over to the listing, I can copy the URL, come back to the web app and now I can paste this URL into the product tracker and click add.
So as I mentioned, you want to track the sales over time, and I showed you the process of finding the estimated sales, which you can come in and repeat every single day, or you can use a tool like the product tracker that does it automatically for you.
So let’s open this one up here, now in addition to doing this automatically, the product tracker can actually go a step further than the sales estimates and can actually get you real sales data. We do this by tracking the inventory levels, which are here in blue. So the difference in industry, is how many sales have happened for that particular day. So those are the big advantages of using the product tracker. You get real sales data and it does the process automatically for you.
You can view your data anywhere between seven days, or up to 60 days. So you’ll see in this example here, that we’ve got a lot of the black bars here, which represent the real sales data.
So because this product’s been tracked for such a long time, we’ve got a lot of data there. We can be very confident in the average sales, which is 46 per day.
There are lot of other advantages to using our web app but that’s just a glimpse. If you’d like to find out more, you can head to our website at junglescout.com to learn more about it.
Our Advice: Just Get Started!
You see, the hardest thing about starting an Amazon business is, well… starting an Amazon business. When it comes to a later stage, you’ve got an invoice from a supplier, and you’re ready to make that first payment, it can be really hard to actually, you know, pull the plug and do it. That is why this product research process is so important.
The more you can verify the sales now, the easier it will be when you finally have to pull out your credit card and make that first payment. One more note on product research, it’s hard. It wouldn’t be product research if there isn’t some point where you’re pulling out your hair, wanting to give up, or it’s been hours and you’re frustrated.
We’re not saying it’s easy, it will take a lot of time, but this is the hardest part. If you can spend the time here, and find a really solid product, it will make your life a whole lot easier down the track.
So we’ve covered how to find your product, how to source it, how to send it into Amazon, set up your listing, optimize that listing and get sales.
That covers how to launch a product on Amazon. In order to scale your business, you just rinse and repeat that process by launching more and more products. I hope that breaks down the process for you and you’re excited to start your own business on Amazon.
If you’d like any further information on any of the topic I’ve talked about today, visit our website at junglescout.com. We’ve got a heap of content there that goes into even more detail. Thanks for watching today.
If you are excited about the freedom, income, and ownership that you can achieve by selling on Amazon, it’s time to find those high-potential product ideas!
Here are a few ways that you can get started now: