1. Determine your products and range
Spending time on product selection at the outset will help you make informed business decisions further down the track. Take the time to look at existing products from other Amazon sellers to make sure you have a good chance of being able to sell your products at a price that allows you to make a profit & build solid passive income from Amazon
2. Calculate Amazon revenue
This would require you to first estimate your monthly sales volume for Amazon products, based on the product’s Sales Rank and current price. You can also add your Shipping Cost and Cost Price to get your total revenue and potential profit figures. This will enable you to get a guide on whether a product opportunity is worth pursuing before identifying and placing an order with any supplier.
3. Find a supplier
Unless you manufacture products yourself, you’ll need to find a business to make or supply your products. There are a number of supplier directories you can look for, but be sure to research any you find on an aggregator site thoroughly. Alternatively, you could reach out to other sellers you admire on Amazon and ask for recommendations.
4. Open an Amazon Seller account & sign up for Amazon FBA
You’ve identified your product range. You’ve found a good supplier. Now it’s time to sign up to Amazon!
Once you’ve become an Amazon Seller you’ll also need to sign up for FBA, which has a huge number of benefits:
2-day Amazon Prime shipping
Managed customer service and returns
Send products from your supplier directly to Amazon
Shipping costs from Amazon to your customer are included in your FBA fees
Multi-channel fulfillment if you have an eBay or Shopify store
It’s worth noting that some businesses prefer to have more control over their distribution and fulfillment processes as an Amazon Vendor. If you’re not sure which is best for you, see our guide to being an Amazon Seller vs. an Amazon Vendor.
5. Create and optimize your Amazon listings
Product listings are one of the most critical aspects of your Amazon store, but unfortunately, they don’t often get the love they deserve. For each listing, pay close attention to the following:
Product Title –Keep it clear
Features and descriptions – Should be concise, and contain relevant keywords
Categories – List in all relevant categories and sub-categories
Images – Should be high-quality and professional
Reviews – Encourage customers to leave feedback about your products
Ratings – Make sure you’re maintaining a good rating on each of your products, and, if not, look at what you can do to improve the product or remove it altogether
SKUs – All products sold on Amazon are required to have SKUs that you can either generate or have Amazon generate for you.
6. Create an FBA shipping plan
The buck stops with you when it comes to ensuring the quality of your products, so make sure they’re in good condition by inspecting them thoroughly before they move into Amazon’s hands and following Amazon’s FBA guidelines.
Regarding shipping costs, in many cases, the products you sell are more impactful to profit margins than keeping shipping costs as low as possible – which is why it’s so important to choose the right products at step one. With that said, shipping costs should be reasonable based on factors like delivery time and item weight. It goes without saying that a heavy item being express-shipped will be pricier than a standard letter.
7. Generate your first sale!
Here’s the fun part: making a sale! Now that you’re up and running keep an eye on which products are selling well and which just aren’t cutting it so you can refine your offering over time and ensure you’re selling products that your Amazon customers actually want.