The FBA (Fulfillment by Amazon) business model continues to grow in popularity, and for a good reason. Basically, it is the same as traditional eCommerce businesses but instead of having to fulfill orders by yourself, the retail giant stores your products, and even packs and sends them out to customers.
But did you know that you can get an Amazon FBA Business running even with a tight budget? Once you’ve found an Amazon business worth buying, you might be a bit strapped for money, but that doesn’t mean you can’t start selling.
This post will tell you everything you need to know to get your Amazon FBA business running without breaking the bank, including how to choose the products you will be selling, where to source them from, and how to market your business.
1. Choose the Product You’ll Be Selling.
Choosing the first product you’ll be selling is the first and most difficult step. At the same time, it is the most important one, as picking the right product will determine the success of your Amazon FBA business. For instance, if the demand for your product is low, if it costs too much to buy in bulk, or if it’s in a very competitive market, chances are you won’t get the return you were expecting.
This can be avoided if you dedicate some time to brainstorming and conducting market research.
Start with something you are passionate about. You can find inspiration around your home or from something you are interested in. Do you like gardening or maybe you are into interior design?
If you already have a solid social media presence or you are running a blog, use them to help you determine your niche, i.e. see what your audience has to say about your potential new product. If you choose a product you are passionate about, it will be easier to talk about it on social media or write about it on your blog with genuine enthusiasm and knowledge.
Perform Market Research.
Starting an Amazon business on a budget means you don’t have much room for error, so you will need to be quite thorough and selective from the very beginning.
Once you have found a product you are interested in, it’s time to do some market research. Start by Googling it or searching it on Amazon, Alibaba, and eBay to cross-reference prices and get an idea of the potential profit margins of the item.
In addition, run a search on keyword research tools to get a general idea of how frequently customers search for a certain product keyword.
Next, check the BSR on Amazon. If a certain item is predominating a product category, it may imply that the category might be too competitive. However, bear in mind that the BSR shouldn’t be the only determining factor in your decision. This list simply shows if there is a demand for the product you are interested in at the moment.
The important thing is to search with an open mind and be creative. Write down your ideas, regardless of how unrealistic they may seem. Once you have narrowed down your selection to a usable shortlist, you can check out the FBA fulfillment fees associated with each product. The fees depend on several factors including the product’s weight, shape, and size, etc.
2. Source Your Product.
Since cost will be the key factor when deciding how and where you supply the product, consider sourcing from outside the States. If you decide to go with domestic suppliers, check out trade magazines or local tradeshows that host the big industry players to find the supplier that distributes the product you have your eyes on.
Once you have settled on a product or a list of products, order samples of them making sure to ask for minimum order quantities that fit your budget.
When looking into different suppliers, see also if they have other products you might want to sell in the future. Work on establishing a strong relationship with your chosen supplier from day one in order to ensure long-term success.
3. Market Your Product.
Although listing your selected product on Amazon is going to provide substantial traffic, you’ll still need to think about your initial marketing strategy. After all, Amazon’s marketplace is quite crowded; in order to profit as a seller, you have to stand out against more than 2 million merchants. However, if you manage to capture shoppers’ attention, you are bound to make sales.
Optimize the Product Description.
In order to let your audience know how great your product is, you’ll need to create an amazing (and optimized) product description. Start by coming up with a strong, searchable title making sure that it includes your product’s name and utilizes keywords that people commonly search for.
Next, you need high-quality images. This means that you’ll need professional photographs of your product, not ones made with your smartphone. Ensure that the images showcase all sides and features of your product.
Then, write a stellar product description. Start with concise bullet points that showcase all the details and characteristics of the product. The product description comes after the bullet points and sums up all the key features of the product while at the same time stressing its benefits and describing how customers could use it.
And what better place to find customers than Facebook? The social platform gives you an option to create PPC ads, customize ad campaigns depending on your budget, and target a specific audience for the ads.
PPC (Pay-Per-Click) is an excellent low-cost option that can help you reach a broad audience. PPC marketing is actually the “Sponsored Content” that shows up when you are searching for a certain product on search engines. You pay a small sum to the search engine for every click your product gets.
Amazon has an excellent PPC option that will boost your product so that it appears on the site’s search results as a “Sponsored Product” and help customers easily find it amongst the thousands of Amazon products.
Collect Product Reviews.
Let your product advertise itself through positive product reviews. Consider joining product review groups on FB to find individuals who’d be interested in writing great reviews of your product.
You could also send your product to a popular product reviewer or blogger to get endorsed by somebody who has thousands of followers.
There you have it — your brand-new Amazon FBA business is now up and running. Once you start building some traction, you’ll be able to reinvest in more products. And as you continue to grow, you can start reinvesting in other areas, such as packaging, email marketing, etc.