Starting an Amazon business is not as hard as most people think.
While some believe it takes a huge investment, the truth of the matter is that it’s possible to start out small and grow from there.
The first step is getting started. Taking this leap of faith might seem scary but with the help of these 8 tips, you’ll find launching a business on Amazon easier than you ever thought possible!
Here are some tips for starting an Amazon business the right way:
How to Start an Amazon Business
1. Know How Amazon Works and How to Get Started
Understanding the nature of this platform will put you in the right state of mind as you launch a business on Amazon.
While a lot of the products sold on the Amazon platform are brands the company owns, third-party sellers actually make up a huge percentage of the sales.
But don’t worry. Amazon still makes its money. The company makes a commission on every sale made, giving the company good reason to allow third-party sales.
The following are the basics regarding what it takes to launch a business on Amazon:
- Register for your Amazon account
- Craft your product listing – unless the product is already on Amazon, of course.
- FBA sellers will ship their items to Amazon’s warehouse
- Stock your own inventory
- Begin selling
- Ship out any products you sell
- Amazon fulfills and ships your orders if you’re selling through FBA
2. Don’t Break The Bank
Anyone first starting an Amazon business knows they’ve already taken a big step simply by starting!
At this point, capital is what you’ll need. If you’re planning on selling on Amazon FBA, you’ll need to ensure you have the capital to stock your inventory.
It’s recommended to begin with $2,000 and grow the business from that starting point.
This will give you enough money to cover your business’s initial expenses without completely breaking the bank.
3. Cut Costs When Possible
Wherever you can cut costs – without diminishing the quality of your service or products, of course – do it.
If you can find a better product supplier, try them out. Make sure you’re not cutting corners by cutting costs though.
Cutting corners has the potential to have a negative impact on your Amazon business and at this point, you need all the positivity you can get!
4. Cross-Reference Selling Prices & Cost Prices
Do your homework when it comes to spending and making money on Amazon. Look over the sale price of any products you’re considering and cross-reference them with the average cost price.
By conducting this extra bit of research, you’ll find the potential profit margins. Knowing what you can earn on your initial investment is a major key when working with a startup budget.
Starting out with fewer than $2,000 means every dollar saved and earned counts. And when it comes to purchasing your inventory, you’ll want to know exactly what to expect to make back.
5. Present Your Products The Right Way
Presentation is everything when starting an Amazon business. And when you’re making sales left and right, you’ll want the best packaging encompassing your products when they reach your customer.
This is where the right sales presentation boxes come in handy. If your product will fit in a box, make sure it’s the right one. There is nothing that drives repeat business like a beautifully packed box showcasing a product!
6. Opt for Smaller Brands
While you might think the big brands are where it’s at, Amazon usually already has those covered. And you definitely don’t want to compete with Amazon – you’ll lose 9 times out of 10.
Find some smaller brands and market them in a way that you don’t even think about the bigger brands Amazon is offering.
You’ll find more success in these smaller brands than you will by going head-to-head with Amazon!
7. Find Lightweight/Small Products
The name of the game is shipping and with smaller lightweight products, you’ll find shipping costs are cut significantly.
You’ll also find that they’re easier to ship, save money on packaging material, and might even allow you to change up your strategy to sell more products.
Free shipping on your items? This can be the difference between someone making a purchase and moving on to the next product down the list.
8. Don’t Give Up
This might sound like a no-brainer, but seriously. Don’t give up.
Over 90% of Amazon sellers throw in the towel within a few months. Understand precisely what you’re getting into and own it. Put your head to the grindstone and work at it!
You’re risking your money, your time, and your sanity. But if you work hard at it, you’ll overcome these odds and have a successful Amazon business.
As long as you’re willing to work at it and learn from your mistakes, keep pushing forward and you’ll find success.
Good luck with starting an Amazon business!
About The Author
Brandon Stapper is the Chief Executive Officer of Nonstop Signs & Graphics, a Los Angeles Printing Company. At 20 years old, with no formal education and only a few hundred dollars, Stapper turned a $400 custom decal machine in a garage into a printing powerhouse. Nonstop Signs & Graphics has made the Forbes Fastest Growing Companies Award 4 years in a row and services 10,000 clients yearly.