How to Build Amazon FBA Business in 7 Steps in 2024
Do you want to get into eCommerce but need a tool that packs, picks, and ships orders for you while handling most of your customer service? Then you should consider Amazon FBA (Fulfillment by Amazon). What is an Amazon FBA business? It is a business model that allows you to ship all your inventory to Amazon, and they will take care of the storage, shipment, and customer service.
Many entrepreneurs (both beginners and veterans) are running profitable businesses set up this way, including successful seller Bart! Keep reading Bart’s story to learn his tips and tricks.
7 Simple Steps You Can Use to Start a Successful Amazon Business
Starting an Amazon Business [Without Being an Expert]
Bart, a professional photographer from Belgium, had no experience selling on Amazon. Still, he and his wife worked together to start an Amazon business. So, they created a seller account, leading to a journey to $25 thousand in monthly profit.
Bart, in his kindness, agreed to share the experiences he and his wife had together in pursuing this considerable number. In this article, you will get valuable guidelines about selling private labels on Amazon to become a successful merchant.
The Step-By-Step Amazon FBA Business Strategy to Reach $25 Thousand Per Month
In 2015, I began experimenting with Amazon without intending to become a serious eCommerce expert. What I lacked in a business or marketing background I made up in passion and a desire to earn extra income. It was a great experience to start this business on Amazon FBA.
Our first budget was €5,200.
We were lucky, picking the right product from the start. This meant we didn’t waste capital on failed products. Our first inventory purchase was 20-30 products, and we resold them rapidly without advertising. This experience revealed great potential, so we took the business seriously.
Using this experience, we recommend seven steps to help you earn money:
Step 1. Finding Great Private Label Products
Amazon product research is a crucial step for sellers looking to succeed on the platform. It involves analyzing various factors to identify profitable product opportunities.
You can use AMZScout’s Product Database to find initial product ideas based on your criteria. Here’s a quick set of instructions on how to use it:
1. Go to the AMZScout Product Database page.
2. Use the search filters to find products that meet your criteria. When choosing a product, I have found these factors to be important:
High demand (Monthly sales over 300)
Size and weight (Smaller, lighter products are easier to sell)
Price range: $30-80 (High-priced items might sell slowly, while low-priced items might not earn you as much)
3. Use the category filter to find products in your area of interest.
4. Click on “Trending Products” to find products with growing sales over the past one to three months.
5. Click the “New Products” checkbox to focus on recently added ones.
6. Select “Find Products” to get your results.
After getting a list of products using the database, you can find out more about these products using the AMZScout PRO Extension for Google Chrome. With the PRO Extension, you can look up competition levels, monthly sales data, reviews, sales trends, and more data for any Amazon product.
Here is how to use it:
1. Install the PRO Extension for Chrome and start a free trial.
2. Open Amazon and use the regular search box to find products.
3. Open the browser extension. Click the AMZScout icon in the top right corner of your internet browser to activate it.
4. Check the performance of the niche. Niche and Product Scores collect data from demand and competition levels, telling you if an item is worth pursuing. Scores over seven mean it is more likely to be profitable.
5. Check the demand for products. Click the Niche History icon for last year's niche sales data. Then, you can check the Product History to see how different products perform. This will help find out where the product is trending. It will also provide you with data on seasonal sales fluctuations.
6. Make the right decisions with the right information. You’ll also see average prices, monthly sales, reviews, and more.
The AMZScout PRO Extension is a real difference maker. It provides valuable information for any start-up business or a long-time seller needing ideas. The niche idea button is also fabulous if you want something on which to base your product plan.
The AMZScout Product Database, which requires no installation, also lets you look up products using a different search engine. You can combine data from the PRO Extension to make better purchasing decisions.
Competitive analysis is crucial in researching your products. If there is too much competition, it will be challenging to succeed. By checking a niche’s competition, it doesn't matter how many sales there are in the niche. You have a realistic chance of gaining a better market share through competitive analysis.
When analyzing competition, our team doesn't focus on the number of competitors. Instead, we look at the quality of competitors.
If the top 20 of a target product has very high-quality listings, we will more likely decide not to continue. But when you see that the top 10 competitors have listing improvement potential, we know we win against competitors because we know what a good listing looks like and how to improve it.
You can have 100 competitors, but if 90 lack great listings, you penetrate the top 10 quickly. The AMZScout tools help with this, giving us essential data on improving product listings. AMZScout's tools make it easy to see the listing quality for any Amazon product.
As I began to understand how it all works and come up with a strategy to find my own products, I started by learning from the experiences of other Amazon experts. Webinars can be super helpful, where coaches use real-life examples to show practical techniques and share valuable tips. This can be a big boost for beginners so they can get a better grasp on the topic and get their questions answered.
Step 2. Creating an Amazon Selling Account
If you take Amazon seriously, I recommend getting a Professional Amazon Account. It gives you access to Amazon’s advertising platform, which can be a potent tool for creating sales for a new product.
A Professional Account costs $39.99 per month but removes the $0.99 charge you must pay for every sale with an Individual account. If you sell over 40 products monthly, a Professional account saves you money.
Click “Sign Up” from this page to open your account. Follow the on-screen directions to complete your application. You’ll need an ID, credit card, and tax data, so have them available.
Step 3. How New Sellers Can Understand the Amazon Platform
The biggest frustration I had came from learning about Amazon. So-called "experts" told me how great they were, but none told me how to actually sell on Amazon. Whether your products are ready for sale now or later, familiarize yourself with where everything is on Amazon.
Crucial areas to learn are features of your Amazon seller account on Seller Central.
It’s essential to understand what’s possible with Amazon. In the future, your business might change. You may add products or make a storefront to display your product range. If you know your options, you'll know how to grow.
Step 4. Fulfillment by Amazon (FBA) - Making Prime Products
Like many new sellers, I was shipping products out of my garage. This was before Fulfillment By Amazon (Amazon FBA). FBA took my order numbers to the next level. This program turns your products into Prime items. So, Amazon handles storage, shipment, and customer service, which saves time.
This lets you concentrate on marketing your products and other fun stuff. You might like thinking of new social media ads, promotions, and product ideas. If you are like me, that's the good part.
Step 5. The Importance of a Strong Brand
A strong brand is crucial to success as an Amazon seller. Customers base a lot of buying decisions on brand reputation. Creating a brand story showing value and connecting with your target buyer would be best. Your brand’s image should effectively align with what you sell. Amazon is an excellent market for many items, so you can grow in almost any niche.
When building a solid brand identity, create a unique product (which is a significant factor). We want to enter markets to develop our product. Our current best seller is a new product. It was only available on Amazon after we sold it.
As product inventors, we can better maintain success over more extended periods (when compared to other sellers). It's easier to enter markets with new products, even when facing competition later. However, it's only sometimes possible to make new products. Knowing how to pick items based on existing options and what to include in your product range is also helpful.
Step 6. Amazon Search Engine Optimization (SEO)
First, Amazon SEO starts with keyword research. You must get a list of search terms your target customers use to find products. We do keyword research using Google and Amazon. Using these platforms helps us find more keywords while giving us a better feel for the whole market. I also use AMZScout's keyword tools to complete my list.
Once we’ve researched enough, we’ll list the best keywords. We choose based on the overall search volume for the keyword and how difficult it is to rank for. Some terms have fewer searches and are easier to rank for, such as with long-tail keywords. For instance, "men's running shoes black size 11" is easier than “running shoes.”
After our list, we’ll add keywords to titles, descriptions, and bullet points throughout the listings. We follow these rules when optimizing product listings with keywords:
Despite the fact that you should add keywords to the description and title, the listing should look natural.
No long, complicated sentences that might push away potential buyers.
Use keywords from your competition's listings.
Building an Effective Listing
Open the Listing Builder.
Enter keywords manually or export them from ASINs (yours or your competitors).
Enter your title, bullet points, description, and backend keywords according to the fields.
The tool will check your text for compliance with the criteria for an optimal listing and highlight any missed words.
With the Listing Builder, you can manage up to 100 product listings, and track changes in the search volume of your keywords so that your listings stay relevant and stand out from the competition.
Remember that SEO strategy takes time and effort. It takes time to reach the top of most search results, especially in a competitive niche. However, it will be well worth your efforts once you have a top listing. You’ll start getting more sales. Also, your listing will build a positive review base if your product is good. These factors will help you keep your position, and eventually, you’ll have a successful Amazon FBA business.
Step 7. Growing Your Business
We grew slowly and steadily by buying new items, growing our cash flow, getting business loans, and deciding on the next steps. We bought new items and gradually agreed on the next steps to take. This process is part of the natural growth effect on Amazon, not just because of our capital injection. Our growth was completely organic; other sellers can experience the same with the right work.
We eventually went full-time on Amazon. After nearly two years of selling, we could pay ourselves a salary. We still looked at the business as an investment, so we didn't take many of our profits.
We started our business by ordering products from one place and reselling them on Amazon. While researching further, we saw kitchen utensils as a promising niche, so we launched these products. It involved a complete process that included developing brands and working with manufacturers. It began as one Amazon private label and white label brand. It gradually moved towards a complete product invention system.
Is Starting an Amazon FBA Business Still Worth It in 2024?
Definitely, and now more than ever!
The best advice I can give those wanting to become an Amazon Seller is to avoid focusing on the end. Instead, new sellers should focus on the learning journey. Do things steadily and slowly. Start with one product, source a few things, and test various markets. Don't expect crazy results in a short period.
Jump into the market and let the business flow decide your pace. Don't focus on having a perfect product and insane revenue right away. Success will follow if you work diligently, focus on good research, and develop based on low-risk management. With this in mind, you'll learn what you need to succeed on Amazon.