Want to Sell on Amazon? Read This
The most common problem I hear from people who want to start making money online is, “Where do I even begin?!” The information and resources available is overwhelming, but in reality the steps to building and launching a profitable online business are actually straightforward .
I have built numerous businesses on Amazon that sell over six figures every month…it is a repeatable and scalable process with a very simple blueprint. This is all that you need in order to get started selling on Amazon:
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There you have it! At a high level, that is really all that you need to know in order to find a product, identify and negotiate with suppliers, and launch on Amazon. Totally doable, right?
The Profit Margins of FBA Products
How much can you expect to make on Amazon? It totally depends on the product you pick, the competition, and the profit margins. But this is my baseline criteria for assessing a good product opportunity:
-I want to sell at least 10 units per day (which averages to 300 per month).
-I want to make $10 per unit, after paying for the product to be made, paying Amazon FBA fees, shipping, promotions, etc.
-I want a niche that is not so competitive, so that I can hit 10 sales per day within four weeks.
That means if all goes to plan, the product would be selling $10 profit/unit x 10 units/day x 30 days = $3,000 per month in profit
Assuming even sales through a year, that is $36k per year for one product, and $36k for each additional product. Now layer on a few additional products once the first is running smoothly, and you can see the business scale nicely. All without touching inventory!
What are the next steps?
I created this infographic to provide a high-level overview of how the process of launching on Amazon works. But the devil, and the opportunity, is in the details! I have recently launched my own private label product–bamboo marshmallow sticks–and I have shared every step along the way. You can read all about it here. Other helpful resources:
- Watch me do product research [VIDEO & TEXT]: I walk through step-by-step how I come up with product ideas. There are several techniques that I’ve found very effective, and show you in real time what the key criteria for success are.
- Ask Me Anything: [TEXT] I had the privilege of hosting an open Q&A session on Reddit, and covered everything from the very beginning of product research to more advanced aspects of expanding and scaling an ecommerce operation. Definitely some great insights to help you regardless of what stage of Amazon seller you are.
- The Quick and Dirty Tour of Jungle Scout [VIDEO]: A great place to find your way around Jungle Scout’s Extension to see how a data-driven approach to product research can guide you to finding profitable product opportunities.
- Get Ideas: I have put together a list of hundreds of products and niches that you could use right off the bat to launch a business! Click here to get the list here.
- Take Action: Now is the time to start selling on Amazon! The early-mover advantage is a tremendous benefit. Get Jungle Scout’s Web App to find lots of opportunities…right now!
I hope that this was a helpful resource for you. If you gained anything from this, I would really appreciate it if you shared it with your friends so you can open their world up to the vast opportunity on Amazon. Best of luck in your entrepreneurial journey, let me know how I can help as you move forward!
-Greg Mercer, Ring Leader @ Jungle Scout