When my husband and I decided to use building an Amazon FBA business, little did we all know we'd grow it to over 1 million dollars in revenue within 12 months!
We'd one small kitchen product which from our research seemed to be in fairly high demand on Amazon. It cost us less than $2 to purchase it and ship it to Amazon. We sold it for $15 and in just a year we'd sold over 84,000 units.
I'd never seen anything like it.
I'm not saying it absolutely was easy. We worked our little buns off over that year, but it absolutely was incredible to see the way the Amazon machine worked.
We continued to cultivate the business enterprise to revenues topping $3 million (net profits in the region of 18%) until we sold the business enterprise in 2020.
In this post I'm planning to break down the steps we took to cultivate the business enterprise, lessons we learned as you go along (including some mistakes not to make), the key sauce of Amazon FBA, what works now to cultivate an Amazon FBA business in 2022.
What is an Amazon FBA business?
An Amazon FBA business is a setup where you, as owner, get to decide on what product you intend to sell, locate a supplier, order the products, package, and ship. Everything is housed in one of Amazon's many Fulfillment Centers, and then they take care of the rest.
(It's a little different from as an Amazon Affiliate.)
Whilst it has its pros and cons, alongside many details to comprehend as a seller, the FBA business design is a pretty enticing one, especially when explained in great detail.
So, if you've decided that the Amazon FBA business design is right for you, what's the next thing? To really get your business up and running, of course!
To launch and be successful from the beginning, you need to create an Amazon FBA business plan. Having this may not only provide you with a stage-by-stage guide to follow along with, but if you ever need to raise capital to fund the growth of your organization, then you'll have business plan to present to investors.
If you'd like to see some How To Start An Amazon Business that are already successful, register for a totally free account on our marketplace. To learn which form of buyer you might be, take our buyer persona quiz.
Pick Your First Product
The first faltering step in this technique may be the hardest (and could be pretty time-consuming), and it's picking your first product.
Not to place too much pressure for you, but choosing the right product to begin with is likely to make or break your business.
Okay, it probably won't break it, but if there is minimum demand for the first product, if it is competing in an ultra-competitive market, or if it is expensive to purchase in bulk, then may very well not begin to see the profitable returns you're hoping for.
You are able to avoid that heartache by finding the time to brainstorm, do market research, and explore different supplier options (we'll get for them next step).
Remember: this first product might function as the start of an ongoing means of trial and error. Even although you try your absolute best to choose an item that feels like it would have been a winner, there can be better products to list or better methods to supply or market it. Nevertheless you gotta start somewhere, right?
Source Your New Product
You probably feel pretty relieved now that do you know what your FBA business's first product is going to be, but don't relax too much. The next step is to determine where you're going to really get your product from, and this step is practically as time-consuming as picking the product.
Market the Hell Out of Your Product
Alright. You've picked an item, you've figured out where you're setting it up from, so it's finally time to start spreading the term about your kickass product that you're super excited to be selling on Amazon.
Whilst having it listed on Amazon has already been going to provide it a fair level of traffic, there are still several items to bear in mind when crafting your product's description and marketing your product.
Final Thoughts
For Amazon FBA beginners, it's a tough job to start your personal business. However, the aforementioned tips will allow you to determine the complete means of the business. If you're stuck in your sales, you can incorporate some of them to grow your ecommerce business. Now, it's time for you yourself to go ahead.
