You've made a product; you've added a lot of value to it by creating your own brand around it and driving demand.
Now how do you get your product into the hands of customers? Through an online marketplace, of course!
Amazon FBA (Fulfillment by Amazon), with its 2.4 billion monthly visitors and over three-quarters of its sellers being profitable within a year of setting up an operation, is one of the best online marketplaces out there. After all, it allows you to reach millions of potential buyers, getting your products in front of them.
And when you start an Amazon FBA business, you don't have to worry about the logistics of shipping your products to customers. Amazon has that covered.
No more worrying about sitting on dead inventory and the money you're losing while it sits there.
And a Jungle Scout report states that 25% of people selling on Amazon for two years make at least $100,000 a year, and that number jumps to 60% for those with three or more years of experience.
It’s apparent that you can make a substantial income in just a few years of starting the business on Amazon FBA. One reason could be focusing more of your time and effort on running your business instead of worrying about the day-to-day issues that don't provide you with added value.
Now, it’s your turn to capitalize on the massive platform by becoming an Amazon seller and learning how to sell on Amazon FBA.
- What is Amazon FBA?
- Amazon FBA Business Models.
- How To Sign-Up For Amazon FBA?
- What Products To Sell on Amazon FBA
- How To Do Amazon Keyword Research
- How To Source Products
- How To List & Optimize A Product Listing
- How To Launch An Amazon Product
- Final Thoughts - Start Selling On Amazon FBA
What is Amazon FBA?
Amazon FBA, also known as Fulfillment by Amazon, is a program that allows third-party sellers to store their products in Amazon's fulfillment centers and then have Amazon pick, pack, ship, and provide customer support for them.
Here's how it works:
You find a product that you like and want to sell online. It could be a physical product that you manufacture or wholesale or a digital product like an ebook or a course.
Next, you send the product(s) to Amazon, which stores it in their warehouses until someone buys it. When someone buys your item, Amazon will package and ship it for you.
This is a great way to start your ecommerce business because it takes care of fulfillment for you, which means you can focus on other aspects of your business, like marketing and product development. It's also one of the best ways to start an online business without upfront costs.
According to BigCommerce, most third-party vendors see a 30-50% boost in sales with this program in 2021.
However, there are some pros and cons to an Amazon FBA business that you should consider before deciding if it's right for your business:
Amazon FBA Pros:
- High-end logistics and warehousing systems: You have access to Amazon's state-of-the-art warehouses, logistics network, and inventory management, which can help get your products to customers quickly and efficiently.
- Ship your inventory in bulk: You can ship your inventory in bulk to an Amazon fulfillment center, which saves money on shipping costs.
- Potential for high sales volume: With over 300 million active users, selling on Amazon allows you to reach a considerable number of customers for higher sales volumes and profits.
- Can win the Buy Box: This box will appear on your product detail page to allow customers to add items to their shopping carts. Winning the Buy Box means that your products are more likely to be seen and purchased by customers.
- Qualify for Amazon Prime: Customers who are members of Amazon Prime can get free two-day shipping on eligible items. It can be a great advantage if you sell products that customers need in a hurry.
- Increase product conversion with the Prime shipping badge: Attract more customers with a Prime shipping badge on your products. It lets customers know that they can get fast, free shipping from you.
Amazon FBA Cons:
- Have less control over the customer experience: Since Amazon is taking care of fulfillment, you'll have less control over the customer experience. For example, if Amazon makes a mistake with an order or delays shipping, this can be a problem.
- It can be costly: There are many small FBA fees that'll add up quickly, reducing your profits.
- Increase your pricing: Because of the added costs of using Amazon FBA, you may need to increase your prices to make a profit while competing with a lot of other sellers.
- Not suitable for all types of products: It can be expensive to ship and store in their fulfillment centers if you have large or bulky products. With products that require special care or handling, Amazon’s strict regulations may not be a good fit.
Amazon FBA Business Models.
If you are serious about Amazon FBA, you’ve most likely heard about the different operating models.
You will have four main choices: wholesale, retail arbitrage, online arbitrage, or private label products.
Nearly 6 out of 10 Amazon sellers use the private label method, which involves sourcing products from manufacturers and selling them on Amazon under their brand name.
However, other Amazon business models are growing in popularity — retail arbitrage has increased this year by 22%.
Here’s a quick overview of all the Amazon business models you can try:
Private Labeling on Amazon FBA.
If you're looking for a way to use your branding to get more sales on Amazon and create an authentic, sustainable business, private labeling is the best option.
That’s how it works: Private labeling is a process where the manufacturer of a product attaches your brand name to that product and sells it to you.
You then sell the same product, under your brand, with no competition from the original manufacturer.
Using private labels enables you to differentiate yourself from other businesses, build a better brand, and be seen as more trustworthy in your industry.
When you find an opportunity for private labeling on Amazon, you must do three things:
- Find a supplier willing to sell products directly under your brand name
- Have that supplier manufacture the products according to your specifications (or provide them with a product you want them to replicate)
- Use those products as inventory for your Amazon store.
The best part is that you control your items' design, packaging, branding, and marketing. Another benefit is building a solid relationship with your manufacturer to negotiate better terms, prices, and quality control.
Retail Arbitrage on Amazon FBA.
Retail Arbitrage entails buying products from retail stores and selling them on an online platform, such as Amazon. It’s essentially buying low and selling high.
Ryan Grant of Online Selling Experiment has sold products worth tens of millions of dollars – over $950k in December 2019 alone – via retail arbitrage on Amazon FBA.
According to Ryan, here’s a list of 16 of the best stores to source your products for retail arbitrage:
- Home Depot
- Big Lots
- Rite Aid
- Toys R Us
- Bed Bath & Beyond
- Office Depot
Online Arbitrage on Amazon FBA.
Online arbitrage is similar to retail arbitrage. This business model involves buying products at a lower price from other websites – rather than from retail stores – and selling them on Amazon at a higher price.
Like retail arbitrage, the goal is to find profitable items that can be bought and sold quickly, without much investment in time or money.
Wholesale on Amazon FBA.
Wholesaling is the Amazon business model where you purchase products from a supplier in bulk and then send them to Amazon FBA to fulfill.
Wholesale, for those who don't know, is where you purchase branded products in bulk at a discounted price and then sell them individually for a profit. Unlike private labeling, you’re not using your branding here.
How To Sign-Up For Amazon FBA?
It’s easy to get started with Amazon FBA. In fact, you can start selling products using FBA in just a few minutes.
Here’s a step-by-step process of signing up for Amazon FBA:
- Step 1. Register as an Amazon seller by creating a new seller account
- Step 2. Create a product listing in the Amazon seller central account
- Step 3. Prepare products to send to Amazon’s fulfillment centers
- Step 4. Assign inventory to FBA
- Step 5. Create a shipment to Amazon’s fulfillment centers
- Step 6. Send and track your shipment
Let’s dissect these steps for a quick overview.
Step 1 - Sign-up for a Professional Amazon Seller Account
Signing up for a professional Amazon seller account is free and easy. You will have to provide personal information such as your name, email address, business type, etc.
There are two selling plans you can choose for your Amazon FBA store:
- Individual plan: $0.99 per item sold; this plan is suitable for Amazon sellers who sell less than 40 items per month.
- Professional plan: $39.99 per month for an unlimited number of items; the professional plan is suitable for Amazon sellers selling more than 40 items a month
Once you sign up, you’ll have to enter more details and provide some documents. The list of documents and details can vary based on your country.
US-based sellers have to enter:
- Your credit card details
- A phone number
- Tax identity information, including your Social Security number or your company’s Federal Tax ID number
- State Tax ID
Step 2. Create a product listing
Once you've created an Amazon seller account and decided to use FBA as your fulfillment method, it's time to create your product listing inside of your seller central.
Simply head to Inventory > Add a Product inyour Amazon Seller Central account to create your listings.
After that, you’ll get three options:
- Add products already available on Amazon
- Create a new product listing to sell products that are not available on Amazon
- Bulk upload to add multiple products simultaneously
If you’re adding a new product, choose the “Create a new product listing” option and search for the product name using the search engine or browsing for its category.
It’s simpler to just search for your product’s category:
After picking your category from all the possible categories provided, you’ll need to enter:
- Vital Info - includes your product name, manufacturer & brand name, manufacturer part number, package quantity, material type, color & color map, shape, lens color, size, GTIN Exemption Reason, etc.
- Variations - Mention it here if your product comes in different colors, sizes, or other distinct varieties.
- Offer - import designation, country of publication, seller warranty description, release date, tax code, legal disclaimer, fulfillment channel, etc.
- Images - Upload your product images. You'll also find Amazon's guidelines for accepting product images.
- Description - Add key product features and product descriptions here.
- Keywords - Add search terms, platinum keywords (if you’re a platinum seller), subject matter, target audience, etc.
- More Details - Add additional details like sale price, manufacturer’s suggested retail price and more,
Not all of these categories are mandatory and may depend on your product and business.
Step 3. Prepare products to send to Amazon’s fulfillment centers
An important part of the FBA process is preparing your inventory for shipment to Amazon. You need to make sure that your inventory is packed and labeled correctly and in acceptable condition. They also need to be shipped to the correct fulfillment center.
Learn more about FBA inventory requirements here to ensure your products arrive safely at an Amazon fulfillment center.
Note that FBA uses UPC code to track inventory, so every item you send to Amazon’s fulfillment center requires a barcode.
This guide in the Amazon seller central account suggests that Amazon uses three kinds of barcodes for identifying products:
- Manufacturer barcodes (including UPC code, EAN, JAN, and ISBN)
- Amazon barcodes (example, FNSKU)
- Transparency authenticity code (brand owner only, may be required to help prevent counterfeit)
Step 4. Assign inventory to FBA on your seller central account
To assign inventory to FBA, follow these steps in seller central:
- On your Seller Central account, Go to the Inventory menu, then select Manage Inventory.
- Select the checkbox next to the item you want to assign to FBA.
- From the Action on the selected dropdown menu, select Change to Fulfilled by Amazon.
Step 5. Create a shipment to Amazon’s fulfillment centers
Once you assign inventory to Amazon, head to Inventory > Manage FBA Inventory to select all the items you want to ship to create a shipping plan.
After your goods arrive at Amazon's center, they will be stored until someone purchases them. Amazon will handle order fulfillment by picking, packing, and shipping your products to the customer when an order is placed. They will also handle customer service and returns for you.
You might want to follow this guide by Amazon for more details on the process.
Amazon FBA Fees
Amazon charges you varied transaction fees associated with each sale, which vary depending on the product category and size. The following are the standard FBA fees that you should know about before joining their program. You can find more information here.
Here are some selling fees you need to consider:
- Referral fee - It’s the commission you pay Amazon every time you sell an item. The minimum is $0.30, and it increases depending on the category.
- Fulfillment fees - It’s a per-unit charge that includes packing and shipping your goods and customer care, which is calculated based on the weight and size of your items.
Here are some examples of the fees associated with some products
- Monthly storage fee - It’s assessed based on the average inventory you have stored in Amazon warehouses.
- Long-term storage fee - It’s applied to units that have been in an Amazon warehouse for over 12 months, besides the monthly fee.
- Removal order fees and disposal order fees are incurred when you want Amazon to remove units from their warehouse.
- Return processing fee - You incur it when customers return items they ordered from you.
To calculate your total fees, start by determining the sale price, the size and weight of your products, and how many units you plan to sell. After that, use Amazon's Calculator tool to estimate your total fees.
Keep in mind that these are just estimates, and your actual fees may be different. But this should give you a good idea of what to expect when selling on Amazon FBA.
What Products To Sell on Amazon FBA
There are hundreds of millions of product ideas to start selling on Amazon. The Amazon catalog is so large it can be overwhelming; it’s hard to know where to start.
There are a few things you need to consider before deciding what product(s) you want to sell on Amazon FBA:
- Market size - How big is the market for the product?
- Competition - Are there other sellers already selling the product? How good is their performance?
- Profitability - How much margin is there to make money with the product?
- Packaging and preparation - Is it easy to package, label, and send into amazon's warehouses?
- Purchase frequency - High-purchase frequency products naturally sell faster.
- Price point - To sell fast, it is important to have a product that has a low price point since the lower the price of the product, the faster it will sell.
Let’s discuss these points (and more) in detail to determine what products to sell on Amazon FBA:
1. Review other listings
Before deciding what products to sell on Amazon FBA, do market research on other listings and see how they present the item or service they are selling.
Find out if others are already selling the item or service you want to sell. How much money are they making? Is it seasonal?
If you notice that there is a good demand for your product, then list it in your storefront. You can also try selling samples of your products to see if people buy them.
If you see many negative reviews, steer clear of that particular product and keep looking for something else.
2. Look for Popular Products With Low Competition
It may seem obvious, but avoid selling items that are hotter sellers than they are profitable. Some items just aren't worth the hassle of dealing with all the competition to sell them.
And don't overlook niche items that may sell fewer but could make you a nice profit margin on each sale once there is less competition for them.
Keep an eye on trends and Amazon Best Sellers Rank (BSR) for each product to understand its popularity. The lower the BSR, the better.
You can find your product's Amazon Best Sellers Rank on the product information detail page.
The Amazon Best Sellers Rank (BSR) is a good indication of how well a product is selling overall on Amazon, and it's displayed on the left-hand side of a product information page.
For instance, Susan, an Amazon FBA seller who used the Private Label model to make over $1,000 a month in profit, focused on finding products using the BSR.
She looked for a product with a Bess Sellers Rank of less than 2,000 and fewer than 1,000 reviews.
Susan suggests that a product with under 1000 reviews indicates that the competition is low, and a ranking of less than 2,000 means the product is in high demand.
You can also look for Amazon Best Sellers to gauge the latest trends in your niche.
3. Consider Profit Margins
You will want to look at the profit margins, how long it will take for you to break even, and how long it will take to start making a profit.
The first thing you need to look at is the product costs. You're going to have costs associated with the product, like inventory and delivery.
Consider these factors to find products with high-profit margins:
- Avoid buying expensive items
- Buy products that sell often and quickly
- Consider fulfillment costs
- Buy items that are small and lightweight to reduce shipping costs
- Avoid seasonal products
You should also check how many other sellers are selling the same items. If there are already a lot of other sellers, that means the market is saturated, and it might be harder to make a profit.
Finally, to calculate your potential profits, you need to determine essential costs and the units you expect to sell. Then subtract your expenses from the selling price to see your profit.
You can also use the Amazon FBA calculator to get an idea if the product is profitable.
The Amazon FBA calculator is a free tool that allows you to calculate your selling fees.
It also takes your monthly storage fees, shipping fees, and long-term storage fees into account, which will help you determine if using the Amazon FBA program is right for you.
4. Consider legal stuff like patents, trademarks, etc.
Selling products that infringe upon other people's patents, copyrights, trademarks, Amazon Brand Registry, or trade secrets.
Do your research and make sure you're not selling anything that might cause legal problems.
Search for it on the USPTO website to check if a product is legal to sell on Amazon. If you see that the product is patented or trademarked, you're not allowed to sell it.
In case you're not sure whether or not a product is legal, you can always contact an attorney to get clarification.
5. Using a product research tool like Jungle Scout.
Using a product research tool like Jungle Scout is a great way to analyze your market and see if you have found an opportunity worth targeting.
It can help increase your chances of success by ensuring that you are not wasting your time and money on a product that does not have enough demand or profit potential.
Using Jungle Scout, you can tap into a database of 475 million products pulled directly from Amazon.
The process for product research using Jungle Scout is also simple.
Just head to the “Product Database” tab after signing up for the platform.
Next, you can begin your search by specifying the average sales price, the number of reviews, minimum sales, rating, etc.
You can also specify subcategories or keywords to narrow down your results even further.
Follow this guide for a more detailed insight into how to conduct product research using Jungle Scout.
6. Look at Other Marketplaces
Go through eBay, Alibaba, AliExpress, and other sites to see if the items you want to sell are selling well.
This should give you a general idea of whether or not the item will sell well on Amazon.
7. Sell a Niche Product
Targeting a niche market is one of the best ways to increase your chance of success on Amazon or any other ecommerce platform.
You'll have less competition from similarly priced products, and you can focus all your efforts on developing a loyal base of customers for your particular brand or product line.
Avoid targeting something too broad like "gaming gear" or "makeup."
While these topics may have a large following on social media or within specific industries, they're too broad to target with any type of efficiency.
Instead, think about subcategories within your chosen industry – "organic beauty products” or “zombie apocalypse gear.”
How To Do Amazon Keyword Research
Picture this: You have an amazing product idea and can’t wait to get it up on Amazon! But before you launch, you want to make sure that people will be able to find your product. This is where keyword research comes in.
Keyword research is the process of searching for words and phrases that people are using on search engines while they look for products like yours.
Here are some tips to help you find the best keywords for your Amazon products:
1. Brainstorm Amazon keyword ideas
Brainstorming is the process of throwing out all the keywords and keyphrases you can think of that are relevant to your product. Your goal is to get as many words down on paper as possible.
During the brainstorming phase, don’t edit yourself. Don’t worry about whether or not a keyword or keyphrase makes sense, if it might be too competitive, or if you’ll even use it. Just write down anything and everything that might be relevant to your product or customers.
2. Look for keyword suggestions from Amazon’s search bar
One of the best places to get started with your Amazon keyword research is the search results bar. That's where shoppers go to begin their research, and you can use it to find what shoppers are searching for.
Type in your keywords and see what pops up. You'll get suggestions from Amazon that are based on real searches. For example, if I'm selling a coffee mug, I'll type "coffee mug" into the search bar:
Notice that Amazon suggests keywords based on what people have searched for in the past as soon as I begin typing. This is a great place to start generating your list of keywords because these are terms actual shoppers are using.
3. Analyze your competitor's product listing
If you want to find the best keywords for your listings, one of the first places you should look is at your competitor’s listings.
Here’s a hack for keyword research on Amazon: Use Jungle Scout’s Keyword Scout.
Keyword Scout is a tool that allows you to analyze the keywords your competition is ranking for. It also estimates the monthly search volume, number of competitors, and CPC (cost per click) for each keyword.
Search for a product or browse categories, then click on the "Keywords" tab.
Once there, enter your product and competitors' exact keyword or the ASIN (Amazon Standard Identification Number) into the ASIN field and click "Search."
You can find the ASIN for a product by going to the product page on Amazon and scrolling down to the Product Information.
JungleScout will then generate a list of keywords relevant to that product.
You can use the filters on the page to narrow down the results. For example, you can filter by easy to rank, search volume, category, etc.
Entering the ASIN also allows you to compare your product against your competitors’ products and see where you rank compared to them. You’ll also be able to find opportunities to improve your search visibility.
Pro Tip: Find keywords related to your products with high search volume and low competition — that means there are lots of people searching for these words, but not many sellers who are using them in their product titles or listings.
Here are some other handy tips:
- Find out the top 10 keywords (or ASIN) driving your competitors’ traffic.
- Based on your current sales velocity and reviews, determine if you can rank for those keywords.
- Add keyword filters to find low competition keywords
- If it makes sense to target those keywords, build out your listing with content optimized for those keywords.
Once you've found the keywords you want to get, you can also download them as a CSV file or copy them into your file for later use.
How To Source Products
A few options are available to you for sourcing products to sell on Amazon FBA.
You can choose to:
- Manufacture your products
- Source products from third-party sellers and wholesalers like Amazon Business, Alibaba, etc.
- Or dropship products from suppliers.
If you are looking for a low-cost option, sourcing products from wholesalers and manufacturers may be the best option. However, if you are looking for a hands-off option, dropshipping may be the best strategy.
Here, we will discuss everything you’d need to know and the step by step process to source products on Amazon:
1. Look for suppliers on Alibaba
Now that you've decided on the product you want to sell, it's time to find a supplier that can manufacture or distribute it.
Alibaba is one of the largest B2B marketplaces globally, which is why it makes sense to start your search on their platform. With over 150,000 suppliers and 5,900 product categories available for sale, Alibaba is also one of the best places to find products to sell on Amazon.
But how do you know if a potential supplier is reliable? Alibaba offers buyers a "Trade Assurance service," which gives you extra protection and provides a 100% money-back guarantee if your supplier doesn't deliver on time, the correct quantity, or the right product.
You can use the filter “Trade Assurance” under the “Supplier Type” section while searching for suppliers for your product. This will help to ensure that you are working with a reliable supplier.
As a buyer, you might also want to filter your search for verified suppliers because they pay a premium to be listed here and get verified by a third party.
2. Contact Suppliers
Once you've found a few potential suppliers that meet your needs, it's time to contact them. You can send them an email from their listing by clicking the "Contact Now" button and filling out the form.
This helps you quickly get in touch with the supplier and track your conversions. Besides, you can chat with them directly by clicking the "Chat Now" button.
3. Get quotes and samples
E-mail your contacts on Alibaba.com with a list of the products you want to purchase, including the quantity you want to buy.
Make sure to attach a spreadsheet listing your exact requirements for each product: what colors, sizes, and other specifications you need; the packaging requirements; delivery time; how much each item should cost, and payment terms
In a nutshell, you should articulate precisely what you’re looking for so that the suppliers can quote you accurately.
Here are common questions that you need to ask suppliers in your Request for quotation (RFQ):
- MOQ (minimum order quantity)
- Price per unit
- Shipping costs
- Production time
- Payment terms
- International shipping
- Special requirements that you may have.
Before you commit to a supplier, ask for samples of its work. This will help you decide whether the sample's quality and production lead time meet your standards.
4. Negotiate with suppliers
If you've ever bought anything from a large online store, you're probably used to seeing the price of every item listed. But if you've ever shopped at a flea market or a small "mom and pop" store, you know that's not always the case. On Alibaba.com, the situation is similar to the latter.
Alibaba.com is primarily a marketplace for businesses, where many sellers still operate according to traditional business principles — they don't list prices on their products and they expect buyers to negotiate.
When negotiating with suppliers on Alibaba, keep these tips in mind:
- Be realistic about what you need to pay. If the supplier quotes $2 per item, don't ask for $0.50 unless it's a very high-volume order.
- Be willing to walk away from the deal. If a supplier is not willing to give you the terms you want, you should be ready to walk away from the agreement.
- Know your bottom line. Before starting the negotiation, know the absolute lowest price and terms you are willing to accept. This will prevent you from making any concessions that you're not comfortable with.
- Be prepared to compromise. In most negotiations, both parties will have to make some concessions to reach an agreement.
5. Ordering & Manufacturing
Manufacturers on Alibaba.com offer a lot of options. If you’re going to succeed with your order, you need to be as specific as possible and put in all the details.
Your specifications will differ depending on your product, but you can usually start by entering the following basic information:
- Packaging material (Are you looking for boxes, plastic bags, or bubble wrap?)
- Certifications (Is your product certifiable? For example, CE for European devices or UL for electrical devices)
- Packaging size and weigh
- Product model number (if applicable)
After placing your order, try to keep an eye on it and follow up with the supplier to ensure that everything is going according to plan. If there are any issues with regard to the order (quality control issues or wrong materials used), these can be ironed out before your order gets delivered.
6. Shipping products to the Amazon FBA warehouse
You can ask Alibaba suppliers to ship products directly to Amazon's warehouses.
This is a very simple step, but it will make it a much more convenient life for an Amazon seller.
However, there are a few things and rules to keep in mind for shipping goods to the Amazon FBA warehouse. These rules are meant to keep your product safe.
For instance, you need to get them packaged appropriately and avoid sharp edges that could damage other products during shipping to the FBA warehouse.
If you have breakable products or have sharp edges, you'll need to take extra care in packaging. For example, use bubble wrap or packing peanuts to cushion the product and prevent it from moving around during shipping. You may also want to use double-walled boxes for added protection.
Here are some other essential tips to pack and label products for Amazon FBA:
In addition, ask your supplier to include the following information on your shipping label:
- Your seller name
- The fulfillment center address
- The correct shipping service (for example, UPS Ground)
- A valid phone number for the shipment's consignee
From your end, you’ll have to create a shipping plan as well (as already discussed), which includes entering your product's information and choosing the fulfillment center you want to ship to.
After that, you’ll have to provide the number of units you're sending and the weight of each unit. Then, hit "calculate" to see the shipping cost to Amazon. Finally, print out labels for each product on the "Print Labels" page.
Finally, send your products off (or ask your supplier to do it for you) to the FBA center. Once they arrive, Amazon will take care of the rest!
How To List & Optimize A Product Listing
A product listing contains all of the information necessary for a potential buyer to decide whether or not they want to make a purchase. The listing also includes the product title, description, images, and other relevant information necessary for a customer to make an informed decision.
For this reason, your listings must be optimized in order to get more sales and reviews
However, before optimizing your listings, make sure you do your keyword and market research to add relevant keywords to your descriptions and titles. The right keywords can help your customers find your product easily.
And as we’ve already discussed, JungleScout is one of the most popular tools Amazon sellers utilize to optimize listings.
And it’s a breeze to use. Just log into JungleScout, choose the tab Keyword Scout and enter your seed keyword.
After you hit "search," a list of similar keywords will pop up. It gives you keywords that customers ultimately use to find products on Amazon, even if it didn't have the exact phrase as your seed keyword.
Now that you’re armed with relevant keywords, it’s time to use them to optimize your listing and product detail page.
1. Optimize title
Optimizing a product listing title will improve the visibility of your listing and increase the likelihood that shoppers find exactly what they're looking for.
For example, if you have a calculator and simply list it as a "calculator," shoppers looking for a "graphing calculator" may not find your product. If you include those keywords in your title, however, those shoppers will be able to find your product and be more likely to purchase it.
When writing titles for Amazon listings, consider the following tips:
- Include relevant keywords in the title
- Use a maximum of 150-200 characters
- Include brand name at the beginning of the title
- If there's a feature that sets your product apart from others (e.g., color or size), include that in the title
- Don't use any special characters or ALL CAPS.
Here’s an excellent example:
Don’t forget to add main keywords in your title because it lets customers know what they're getting when purchasing your product.
2. Optimize the description
When it comes to listing products online, your product descriptions can be the difference between a sale and a lost lead.
The best product descriptions are informative and engaging. They tell your customers what your products are, what they do, why they’re special, and how you stand out from the crowd.
Here are some tips to help you optimize your product descriptions:
- Use Simple Language - Use language that helps the shopper understand what's going on and why they should care about your product.
- Talk About Benefits instead of Features - Remember that shoppers are buying from you because they have a problem they need to solve or a goal they want to achieve (even if it's nothing more than "I want that"). When you describe your products, focus on how they will help solve these problems and achieve these goals — not just their features.
- Format Your Description - Once you've written everything down, take some time to format it nicely so it's easy for shoppers to read and scan through the text quickly.
- Include details - Mention essential details, such as measurements, weight, and materials for physical products.
Remember to include suitable keywords in the description so that potential buyers can easily find your items when they're searching for them. However, don't stuff your description with too many keywords, as it's difficult to read and may turn potential buyers away.
3. Optimize Bullet points
The good news is that unlike a product title, which is limited to 200 characters, your bullet points have more flexibility to include keywords, product descriptions, and other information that will make your listing stand out from the competition.
What should you include in bullets?
The simple answer: everything the customer needs to know before they purchase your product.
Here’s an example:
While each category has its specifics, there are some general rules that should apply across the board:
- Product details - size, color, battery life, materials used, etc. If this is a new product or an update on an established one, list the upgrades/improvements.
- Benefits - what does this product do for the customer? List all of its features and capabilities so that customers understand how it can help them.
- Usage scenarios - how will customers use this product? Showcase any ways of using it that might not be immediately obvious.
- Seller details - who are you and why should people trust you?
- Keep the rules of optimization in mind - don't overdo it with keywords (i.e. don't throw them in just for the sake of it). Rather, weave keywords into sentences that clearly explain the value of your product.
4. Optimize Product Photos
Images are one of the most important parts of an optimized listing. Customers will be able to see every detail of your product, so be sure to include high-quality images that accurately represent what they'll receive when they place an order. Your images should be well-lit and showcase your product from different angles.
A video in your listing is also a great way to show off your items and give potential buyers a complete look at what they're interested in buying
5. Optimize Backend Keywords
Amazon's backend keywords are exactly what they sound like – the hidden keywords only Amazon sees but not the customer. These keywords have a lot of power behind them because they help Amazon determine what category or subcategory your product should belong in and help customers find it when they search Amazon.
This is like search engine optimization for your product detail page, but hidden.
You can fill them in by going to the "Search Terms" section when you're creating or editing your listing in Seller Central.
Ensure all the relevant keywords you can think of that buyers might use to search for your product. However, don't stuff your keywords with too many irrelevant terms, which could hurt your listing's ranking.
How To Launch An Amazon Product
The right way to launch your product depends on several factors: your budget, your timeline, the competitiveness of your product category, and the size of your audience.
Here’s a quick breakdown of the pros and cons of different launch strategies:
- Giveaway: you give away an initial amount of products in exchange for honest reviews. Pros: fast results; Cons: low-quality reviews; can be expensive.
- Coupon Code: you offer a coupon code to members of your email list or social media following (or both), in exchange for honest reviews. Pros: fast results; Cons: low-quality reviews; not scalable.
- PPC Campaigns: you run pay-per-click marketing campaigns to generate traffic to your listing and convert it into sales. Pros: fast results; Cons: time-consuming; can be expensive.
Different Types of Paid Advertising and PPC You Can Use
Amazon PPC (also known as sponsored ads) is a well-known online ad network that allows merchants to increase their product sales online.
According to AdBadger, sponsored ads can generate 90% of the daily traffic for a new product. So, as a seller, you might need to consider using PPC to position your product listing in front of your target customers.
PPC ads can be classified into three types:
- Sponsored product ads: Product ads on Amazon search results pages. They can include images, price, and the merchant name.
- Headline search ads: Text-based ads that appear above the search results on Amazon.com. They usually include a headline, two lines of text, and a URL link to the merchant's website or the product page.
- Product display ads: Banner ads that appear on Amazon websites and apps. They can include images, videos, or text and usually link to the merchant's website or the product page.
Sponsored ads can be a great way to increase sales, but they can also be expensive if you're not careful. Make sure you set a budget and track your campaigns, so you don't overspend.
Other tips to get your first amazon sale
There are a few things you can do to increase your chances of making sales on Amazon:
- Invest in some quality product photography to make your listing stand out from the competition and give customers a clear what they're buying.
- Make sure your product descriptions are thorough and accurate. Customers need to know exactly what they're getting, and if your product doesn't meet expectations, they're likely to return it.
- Use keyword-rich titles and descriptions to help potential end-users find your listing more easily.
Let’s hear from a successful Amazon FBA seller.
Spencer Haws, an outstanding FBA seller, made $4,399 from just one product in one month. He attributes 3 main reasons for his success.
- The first reason is that he used the private label model and picked a slightly unique product. This means he found a manufacturer that produced the item under his brand name and researched available reviews of an existing product to implement it.
- Secondly, he heavily focused on finding long-tail keywords for product titles and the description to ensure his listing appeared as the top result.
- And lastly, he utilized Amazon's promotional tools to drive traffic to his listing and increase sales by issuing $1 coupons to a group of Amazon product reviewers.
Provide great customer service to get good reviews
According to customer service statistics, positive feedback influences 90% of customers when purchasing a product, and an increase of 5% in customer retention can lead to a rise in profits by 25% to 95%.
It’s safe to say that providing great customer service is the key to selling on Amazon.
Here are some tips to provide great customer service and gain good reviews in exchange:
- Make sure you're responsive to customer questions and concerns. If there's an issue with a product, work to resolve it quickly.
- Offer great shipping options and fast delivery times. Customers on Amazon are used to getting their products rapidly – If you can't provide that, they'll likely go elsewhere.
- Check your seller feedback and respond to negative reviews regularly. This will show potential customers that you're active and care about your business.
When you provide excellent customer service, your customers will be more likely to leave positive feedback, which will generate new business.
How do I become an Amazon FBA seller?
First, create a seller account on Amazon. Then, list your products in seller central and set your prices. Once you have received an order from a customer, you will need to send the product to one of Amazon's fulfillment centers. When a customer order, Amazon ships your products without you needing to do anything.
What are Amazon FBA seller fees?
The first fee is the monthly subscription fee for the Professional tier of $39.99 per month. This includes unlimited sales and access to all the basic tools needed to sell on Amazon. The next fees are referral fees and variable closing fees. Referral fees are a percentage of each sale, ranging from 6% to 15%.
Can I sell on Amazon without FBA?
Yes, but you'll miss out on some of the benefits that make Amazon a good marketplace for sellers. The two primary advantages of using Amazon's Fulfillment by Amazon (FBA) service are lower shipping costs and faster delivery times. This can help you win the coveted buy box and increase your chance of selling more products.
What do I need to be approved to sell on Amazon?
To be approved to sell, you'll need a credit card, an email address, an Internet connection, and your Tax Information (your social security number or EIN).
What can I sell on Amazon FBA?
You can sell almost everything on Amazon except certain items that require special permissions or handling (hazmat materials and firearms, for example).
Final Thoughts - Start Selling On Amazon FBA
The great thing about selling on Amazon FBA is that it gives you the freedom to essentially run your own business and make money however you want. No matter what kind of products you want to sell, Amazon has a platform for you.
However, because Amazon has essentially taken over the ecommerce industry, there is a lot of competition out there. While that can be daunting and discouraging at times, it helps to know that there will be sales if your product is any good!