Be Your Own Boss Selling on Amazon
Millions of people dream of being their own boss and working from home. The majority of these people never pursue their dream because they simply don’t know where to start or how to do online marketing or selling. Well, there is a hidden gem for making a healthy living online that’s been right in front of our faces for over 2 decades now: AMAZON!
The reason most people don’t know they can make money with Amazon is because they think that Amazon is the retailer and they don’t know that anyone can load up products and make money selling on their site. Amazon is an online market place and while a large portion of the products for sale are being sold and fulfilled by Amazon themselves, the rest of the products for sale are loaded up by individuals and businesses.
Why should I be selling on Amazon?
Amazon is the largest online retail store on the Internet and in the US alone, they have over 183 million people visiting their site per month. For any online marketer having access to an audience of that size who are ready to shop is a dream come true. Beyond the market size of Amazon, they are a trusted global brand; this means shoppers have little hesitation in making a purchase from Amazon and support is on hand. Amazon also makes it simple for shoppers and have figured out the winning formula for converting shoppers into buyers. Probably, one of the best reasons to sell on Amazon is you don’t need to build your own e-commerce website which comes with a multitude of tasks and costs including payment processing, marketing, search engine optimization or any of the other tedious tasks involved in selling online.
What can I sell on Amazon?
If you browse around their site, there are millions of different products, so the sky is the limit. If you have an existing business or product well then, it’s pretty clear what to sell on Amazon, but if you’re still deciding, your first step is probably identifying some niches you have an interest in. Another angle is to research what products are most in demand but bear in mind, the more in demand, the more competition. If you’re just getting started, you should probably focus on some low-medium competition niches. Visiting the Amazon Best Sellers page can give some inspiration: . Another fantastic resource to find out what is hot, is Jungle Scout. Now, you are probably wondering where can you source products from? Once you have chosen your niche/s, there are various options, from sourcing direct from China through sites like Alibaba or Aliexpress. You could also look for local suppliers in your town and negotiate some discounts to leave you some profit margin. Another alternative is to look for drop-shipping companies. Drop-shippers have a huge catalog of products and when you receive an order on Amazon, you can then place the order with the drop-shipper who takes care of the rest, by fulfilling and delivering the products on your behalf.
Can Amazon do the fulfillment and shipping for me?
Amazon has an awesome program called FBA (Fulfillment by Amazon). FBA removes most of the hard work of making sales. Firstly, you don’t need your own storage or warehouse, Amazon holds all your inventory for you in their fulfillment centers. Then, when you get an order, they do everything from picking, packing and shipping. This means you can focus on other things and never need to worry about storage or shipping. Another great benefit of FBA is many shoppers prefer to order items that are fulfilled by Amazon as it means they can often get their purchases much quicker, plus you automatically have your products eligible for Amazon Prime. Amazon Prime is an offering that many Amazon members subscribe to for a fee; in return, they get special offers, free 2-day shipping and more. If your products are offered through Amazon Prime, they will get more exposure, again giving you more opportunities to make more sales because buyers want their goods delivered fast and free. Another great benefit of FBA is you don’t only have to sell through Amazon for them to fulfill the orders. So, if you decide to expand your sales channels, let’s say you want to sell on eBay too, no problem, send the order through to FBA and they take care of it. You can learn more about FBA here.
Isn’t Selling on Amazon expensive and will this cut into my profits?
Selling on Amazon does come at a cost and sure, they take their cut, but the pros outperform the cons. Assuming you decided to go the route of building your own e-commerce store; there is a cost to doing this, from designers to developers, hosting and maintenance, the tasks and costs go on and on. But while the cost of setting up your store is one thing; the biggest consideration is marketing.
Today, there is no such thing as free traffic, everything comes at a cost. You need visitors to your site and a lot of them in order to make sales and while it’s not impossible and there are clearly millions of online stores, shoppers won’t know you exist if you don’t do marketing. Performing marketing tasks yourself is an option, but your time is money and this should also be factored into the equation, plus if you have little knowledge of online marketing, there can be expensive learnings to be had. Now, let’s assume you got your store up and running and you are doing a sterling job of generating traffic to your site, you now need to fulfill the orders. Bear in mind, payment processing fees, storage, picking, packing, shipping, dealing with returns and many other tasks. Bottom line, you must consider all the costs including your time. Would you rather have 10 sales with $10 profit on each sale, giving you a total of $100 doing the sales and all the heavy lifting yourself or would you like 100 sales with $5 profit per sale that gives you $500 and Amazon does all the hard work?
The above information is just scratching the surface about selling on Amazon. There are entire books written on the topic and Amazon also has vast resources on their site. If you are serious about selling online and making a real living then go for it! There are many entrepreneurs who have become millionaires by selling on Amazon. So, roll up your sleeves, do the research, educate yourself and you too could soon be working from home and be your own boss!
Good Luck and Good Selling!