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Many types of business opportunities exist today, both on and offline. Yet, nothing is as fascinating and as potentially lucrative as starting an Amazon business. That’s not to say it’s easy – this is not a get rich quick scheme. Rather, it’s a process of determining what products you want to sell and launching a business on Amazon to sell them.
That sounds easy, but is it?
There’s a great deal that goes into the process of starting an Amazon business, including exploring a wide range of business models. If you have the dedication to make some key decisions, and you work with an Amazon consultant to smooth out some of the difficult areas, you really can launch a very successful business on Amazon without a lot of cost, time, or complication.
How do you do that?
Understand the Opportunities Available to You
At the heart of this process is understanding how to open a business on Amazon. The most common method is to use Fulfillment by Amazon, a business model that allows your e-commerce business to make the most out of selling your products on the largest retail site out there.
The difference here is that Amazon does most of the work for you – including filling orders and handling customer needs. This creates perhaps the most effective method of hands-off e-commerce building possible.
You don’t have to use Fulfillment by Amazon, but many business owners – especially those just starting out – recognize the advantages. You don’t have to worry about warehouse space for your products. There’s no need to compare packaging materials to find the most affordable, and you don’t have to deal with couriers either. It’s all handled for you.
That means your business can grow faster and with more success than is otherwise possible.
What Do You Need to Do First to Launch Your Business?
It’s a good idea to work directly with an Amazon consultant to help you with the process, but even if you go it alone, it all starts with some basic research.
Consider what specific type of product you wish to sell. It’s essential to know what type of product is going to perform well on Amazon. While the site allows for many types of products, there are some limitations. And, there are some items that tend to do well. Here are some tips:
Keep to products priced in the mid-range. Some of the best products, including impulse buys, are those between $20 and $50.
Heavy items are not ideal. The larger a product is, the more costly it can be to ship, which cuts into your profit margins.
Look at competitors. Who is selling the product on Amazon and how are they doing? Look at their reviews to see if you can do something – whether that is price or better descriptions – to stand out.
Determine what the product’s keywords are. This requires research, not just using the item’s name or branding details.
Look for products without a lot of reviews for less competition getting into the gate.
Once you have a good idea of what the ideal product for you to sell is, and you’ve lined up the suppliers necessary to do so, you can begin working on your e-commerce business model.
The Value of Private Label Products
One of the keys to doing well on Amazon is to establish a private label on the site. While you may not want to compete with companies like Apple or Ring, you can still find most of the products you hope to sell, rebrand them with your own private label, and build a strong business presence on the site. This helps you to establish a brand across more than one product.
Identifying the right products is an important step in doing well on the site. Most importantly though, you want to create a brand image so you can build a strong reputation for your company on Amazon. That takes time initially, but it’s one of the best ways to create a reliable, long-term business model using Amazon’s e-commerce sales to your advantage.
Get Started on Amazon
To use the site to sell products like this, you’ll need to sign up for an Amazon seller account. It’s easy enough to do – just look for the “Sell on Amazon” icon on the site (some pages have a “Make Money with Us” link instead).
You’ll have two options here – professional and individual accounts. The individual account does not have a monthly subscription fee, but there are limits to using it. If you plan to build a long-term business using Amazon, on the other hand, you’ll want the professional account. You’ll get an initial month free to see how well this business model works for you.
Having Some Help Can Make a Huge Difference
Having an Amazon seller consultant on your site is one of the most valuable investments you can have when it comes to establishing your Amazon e-commerce business. Once you have your account set up, there are onscreen questions you’ll need to work through to get the business up and running. With the help of an Amazon consultant, you can work through this process a bit easier.
This includes helping you optimize your product listings, which is one of the most important steps in ranking well on the site. You also need to build reviews on the site, create a presence on the site, and make the most out of your advertising spending. It can help to have a professional available to help you to do each of these steps as well as to give you advice on how to make the most out of every dollar you spend.
Amazon businesses can perform well because the company is so well established and so versatile. Yet, there is a lot of work that goes into the process of making it a true success. With the help of an Amazon consultant, you can create a winning business model that drives long-term sales and builds a brand.