How Amazon FBA Works ?
When it comes to the Start Amazon FBA Business model it’s very simple to understand as Amazon does pretty much all the work in the business relationship…
Here is the perfect explanation of the business model in a brief diagram:
Here is the Steps in brief:
1. You Get The Product That You Would Like To Sell Shipped To Amazon’s Fulfillment Centers Which You Can Easily Set Up With Your Supplier So That You Never Even Have To See or Touch The Product Shipment
2. Amazon Will Then Unpackage Your Product Shipment And Store The Product In Their Warehouse For You So Never Need To Handle Any Inventory Whatsoever Or Have To Store Inventory In Your Own Space
3. Then Once You Create Your Listing You Will Instantly Have Access To Over 350 Million People On Amazon’s Website Everyday That Are ONLY Looking To Buy Something. That’s The Best Part About Amazon… People Only Go To Amazon.com To BUY!
4. After Someone Buys Your Product On Amazon’s Website They Will Actually Then Pack Your Product Into Their Own Fresh Amazon Box And Prepare Your Product To Be Shipped Out With All The Necessary Shipping Info & Addresses
5. Amazon Will Then Ship Out The Product To The Customer That Bought Your Product On Their Website To Wherever They Live Within The USA Or Even The Entire World If You Decide To Sell Internationally
And Lastly The Absolute BEST PART…
Amazon Will Then Drop A Deposit In Your Bank Account For The Amount Of Sales You Have Made And There You Have It Your Own AUTOMATED ASSET That Is Putting Money Into Your Bank Account Without Wasting the TIME.
1. Finding Profitable Product To Sell
This first step is the absolute most important part of starting your Amazon business and can literally be the deciding factor on whether you will make $10,000s a month or make nothing at all
The top way of finding the bestselling product niches are to ride the latest hot trends that come up that you can capitalize on while they are still relatively low competition then completely dominate the market
A great method that you can use to find these hot product trends before anyone else is to use something you may of used before to actually BUY products on Amazon…
The top 100 best sellers list!
Just by looking at this best seller chart you can see the hot trend that has arisen with the different types of babtwipes which is currently over a half a BILLION dollar niche that has literally turned the toy industry upside down overnight!
These are the type of trends that you want to get into early so that you can take advantage of them while they are small and then dominate the market before anyone else even knows what happen with a highly differentiated product that is highly attractive to the specific audience using it DIFFERENTIATION is the absolute KEY to winning on Amazon…
You have to look at every product listing on Amazon as an individual OFFER that you are making to every customer that lands on your product page.
You want to make sure that your OFFER is the most attractive and differentiated from the rest of the people selling a similar product in your niche.
If you can do this you will be able to jump into basically any niche because none of your competitors will be able to out due your product OFFER and you will win over all of the customers.
The best ways to differentiate your offer from the rest of the market is to include extra bonus content around your offer such as:
- Including an Guide book with your product
- Sell a product with a different material than other products in niche
- Include extra accessory products bundled with your main product ( extra clean wipers in this case )
By using these exact strategies above you should be able to out due all your competition with a more attractive product OFFER making Amazon customers much more likely to buy from your product listing!
2. Finding A Supplier To Source Your Product From
Once you find the perfect product that you would like to sell the next step in the system is to find a supplier that you can source the product from for a quality price so that you can make a good profit for every unit sold.
One of the best ways to find a good supplier to source your products from would be to go to a supplier marketplace like Alibaba.com where you can type in the keyword of your product and 100’s of different suppliers will pop up that you can use to source your products from
For this example we will fidget spinners so if you look at the picture below we have typed the keyword into Alibaba and multiple different results of suppliers that we can choose to source our product from.
Then what we will do is go through the Alibaba search results looking for a couple different factors so that we know the supplier is a high quality seller and the product that we will be receiving is a good price, great value, and something that is highly differentiated & attractive to our audience of buyers on Amazon
After scrolling through the Alibaba search results you will eventually find a product that fits the description of the factors that we are looking for in a quality supplier and product.
In the picture above you see that we have found a good supplier that is highly reputable in the industry as they have been selling on Alibaba for over 7 years and also have trade assurance meaning that your payment will be held in escrow by Alibaba until you approve that your shipment has arrived and in good condition.
So basically if the supplier doesn’t deliver than you can easily get your payment back so there is essentially no risk in ordering product from this supplier which is great.
Now onto the actually product the supplier is selling, as you can see this product fits our differentiation requirements perfectly because there are a bunch of people selling normal fidget spinners on Amazon but this fidget spinner is highly differentiated because not only does it have Gradient color and there are also 12 different patterns.
so we know that our product will be highly differentiated and much more attractive to our audience of buyers on Amazon looking for cool fidget spinners.
Lastly, now that we know what supplier we are going to source our product from we can click start order and choose the amount of quantity that we would like to purchase for our first initial shipment to send into Amazon.
3. Setting Up Your Amazon Product Listing
Alright so now that you have found your perfect product to sell on Amazon and have also found a supplier to source the product from.
The next step is to set up your Amazon listing so that you can reveal your product to the hundreds of millions of hungry buyers on Amazon.
The two most important factors that you NEED to get right in order to make sure that you can out due your competitors and create a more attractive OFFER to the buyers on Amazon searching for your product are:
2. Product Photos
Beginning with the copywriting of your listing, you want to absolutely make sure that you are using all of the bullets on your product page to describe the best features of your product.
But this is very important, you don’t just want to include the features of your product, you want to write what the BENEFITS of your product are going to have for the buyer’s life…
The second most important factor to focus on when creating your listing is your product photos because the photos of your product are going to be what makes a buyer scrolling through the Amazon search results actually click on your listing.
So you NEED to make sure that these are PERFECT. There are two ways you can go with getting your product photos…
1. If your supplier’s photos were professionally done and look really appealing then you can ask them nicely if you could get a PDF of the photos of your product and 95% of the time they will actually give you them for FREE.
2. You can send one unit of your product to a photographer that will use their studio to get multiple photo angles of your product with professional photo touch ups so that your pictures look amazing in comparison to your competitors.
On Upwork.com you can find amazing photographers that will take photos of your products for cheap prices, you just have to search around for someone with great reviews which is very easy to do with Upwork’s website
So now that we know what the most important factors of your Amazon listing are.
Here is a good example of how you want to have your Amazon product listing page set up:
As you can see this listing hits both of our two most important factors perfectly…
First, the main photo displays the picture-perfect quality of the product and shows it actually being used to pour up a nice glass of perfectly aerated wine, then you have the supporting photos that display the different angles and uses of the product and even the product packaging which makes the product look highly attractive to buyers looking for a wine aerator
Second, the copywriting of the listing fully displays not only the best features of this wine aerator but also the BENEFITS of how this aerator is going to help make a wine enthusiast’s experience of drinking wine better.
For example, by just looking at the first bullet you can see that the seller doesn’t just include that their product will aerate your wine but how it will BENEFIT their life by doubling the value of the buyers wine just by using their product.
4. Launch Your Product On Amazon
Once you have your listing set up and your product is sent into Amazon your product should be LIVE on Amazon and now it’s time to officially launch your product so that you can get your product listing to start its path toward ranking on the first page of Amazon for your specified keywords
so that you can start getting organic traffic & sales every day from Amazon’s website.
The KEY to ranking your product on the first page of the Amazon search results for your product keywords is the sales velocity of your listing.
so if the products on the first page of Amazon for your product’s keywords are making 10 sales per day then you will have to start making 10 sales per day in order to get a spot on the first page.
In order to do this quickly many “gurus” will say that you need to purchase the expensive software Junglescout for like $49
but you can do this for FREE…
The software is called Unicorn Smasher and will literally help you do your product research in 1/10 the time of doing the research manually.
Here is a screenshot of using the software to see how many sales you will need to make to get on the first page for the keyword “glow in the dark fidget spinner”
As you can see the software has taken all of the info from each listing on the page and compiled in into a simple chart showing the price, best seller rank, estimated monthly sales, estimated revenue, amount of reviews, and much more.
What we are going to be looking at to find how many sales we will need to make in order to get onto the first page for this keyword is the estimated monthly sales From looking at the compiled data from Unicorn Smasher.
you can see that for this keyword of “glow in the dark fidget spinner” we are going to need to be making from about 28 to 758 sales per month which comes out to be about 1 to 25 sales per day which we can then estimate the average to be around 7-10 sales per day to get onto this page.
You may be thinking right now 7-10 sales per day that a pretty good amount how will I do that…
honestly, it really isn’t that many sales considering you should be making a couple sales per day just from Amazon’s organic traffic in the beginning that Amazon will be sending to your Amazon listing every day from their website.
so all you have to do is have a good one week launch strategy so that you can get those couple extra sales that will allow you to get on that first page
Best Strategy for launching Amazon Products
This strategy involves using influencers to push your product to a very large audience for just pennies on the dollar in comparison to the amount of sales you can make with each promo that you do
The best way to find these large influencer audiences is to use the social media platform INSTAGRAM where there are a bunch of accounts for every single niche imaginable that you are trying to sell on Amazon
For this example we will once again use fidget spinners our product that we are trying to create a launch strategy for:
First, we have to find Instagram accounts that related to our niche of fidget spinners which we can do by just typing in fidget spinner into the search bar where we will then find multiple different accounts with 100,000s of followers that are passionate about fidget spinners.
After searching fidget spinner in the search bar we will eventually find a great account with tons of engaging followers like the one below named fidgetly:
Once you find a good account like the one above with a bunch of engagement from their followers which you can see with each picture receiving about 70k views with over 100 comments.
you will want to DM this account, or if they have their email address in the bio you can email them.
Then after about a day or two the influencer should get back to you with what they charge for a shout out on their account which is basically a post on their page with a caption and a link to your amazon page in their bio.
Most accounts from about 100k followers to 500k follower should cost around $20 to $50 per shout out which is extremely underpriced in comparison to the amount of sales you should make from taping into these huge audiences of hundreds of thousands of followers.
Once you give payment for the shout out you can then email the influencer your promo post, caption, and link that you would like to use
For the picture, you could easily get done for you on a freelance website like fiverr for just $5:
You then want to create a caption for your photo stating.
Then lastly, you will want to send you will want to send the display URL link to your amazon page in the email so that the influencer’s audience can get to your product page (You may want to convert the URL to a bit.ly link so that it is shorter)
Then once you email all of your promotion information to the influencer they will post your promo on their page and sales should start to ROLL IN FAST!
To put into perspective the amount of sales that you should be able to make we can once again look at the account:
As you can see on average the photos on this account get about 70k views for every post that they do so hypothetically speaking let’s just say of the 70k people that view your post only 5k actually are paying full attention to your post (extremely lowballing
So if just 2% of the 5k people who actually completely acknowledged your post
buy your product: 5,000 x .02 = 100 SALES!!!!
Now let’s say you are making a $10 profit on every item that you sell…
100 sales x $10 profit = $1000 REVENUE
And Let’s highball your cost and say you spent $50 for the shout out
$1000 Revenue – $50 Ad Cost = $950 PURE PROFIT
This $950 PURE PROFIT is just from your launch too there’s even MORE!
Remember, that you need to make around 7-10 sales a day to get on the first page
Well you just absolutely blew that number out of the water and now not only have you made that $950 in pure profit but you also have RANKED your Amazon product on the first page of Amazon and are getting TONS of organic traffic and sales for FREE on Amazon’s website
How AMAZING is That!!
And there you have it the perfect launch strategy to not only make money from your launch promotion but also rank your product on the first page of Amazon and get tons of even more sales!
5. Turn On The Automated Sales Multiplier
Alright so now you’ve made a good amount of money from your influencer promotion and your product is ranked on the first page of Amazon so you should be making some good money already but there’s one last step to take your Amazon product to the NEXT LEVEL…
it is called Automated Sales Multiplier because that’s essentially what it is…
Amazon’s Pay Per Click Advertising is something you may have seen already when actually purchasing a product from it’s website:
You can use Amazon PPC to literally skyrocket your sales by putting your product in the very first spots on the first page where the most buyers will see your product.
if you have set up your Amazon listing like we have showed you in Step #3 you should have amazing photos that will GRAVITATE buyers to click on your listing and then since you have great copywriting for your listing and an attractive & differentiated OFFER that is better than all of your competitors you should be able to easily close the sale!
Amazon PPC ads are soo simple because Amazon actually has its own automatic targeting feature so they will actually go out and find the perfect keywords for you to advertise on
How AMAZING is that?
Literally all you have to do is come up with a campaign name, set your daily budget (starting with just $5 per day), select the start and end date for how long you want the PPC campaign to go on for, check the dot for automatic targeting, and then lastly just pick the product you are advertising
And there you have it, you have set up your sales multiplier and will now be in the top spots for all of the related keywords for your product and if you set up your listing correctly you should be making sales for pennies on the dollar.
Check more interesting Articles:
10 Best Amazon FBA Course ( Six-Figure Business )
How To Dropship On Amazon Step By Step – Complete Guide
Amazon Associate Program For Beginners
7 Ways To Increase Amazon Book Sales
As this guide comes to an end, I believe you’ve found it useful.
In order to make any progress, you must first take immediate action. Moreover, now is the perfect time to establish a business that provides the income you need to live the life you desire.
Best of luck to you and your Amazon FBA business. Thanks for taking the time to read this.
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