I get it. You’re determined to reach financial independence, and because of this, you’ve tried selling almost all of your personal belongings online. Although you’ve made a few hundred bucks and feel darn proud you figure there has to be a better way to grow your income. After reading a few blog articles hinting “Amazon FBA” and you begin to ask- How Can I be successful selling on Amazon?
Is it even possible to create a sustainable income through Amazon FBA?
After all, it’s hard not to get excited after hearing success stories of people building 6-figure businesses using Amazon FBA. It all sounds gravy but when it comes down to start selling on Amazon you feel like you don’t have enough money to start. Plus, you easily become overwhelmed with the mass amount of resources available making everything seem more complicated.
You continue selling on familiar online platforms, and decide to wait until you feel the time is right to start selling on Amazon.
The truth is that you’ll be waiting for a for awhile for the right time. Instead, put your best foot forward and take a leap of faith. If you’re willing to invest in yourself to learn the end to end process of how to sell on Amazon and work hard then you too can find success.
The Truth About Amazon FBA
Amazon FBA (Fulfillment by Amazon) isn’t as complicated as it sounds. With Amazon FBA you ship all of your items to Amazon and let them take care of shipping your items to customers.
The process is as follows: (high-level overview)
1. You find an item(s)
2. You list the item(s)
3. Prepare shipment according to Amazon FBA guidelines
4. Ship item to Amazon
5. Item(s) are listed live on Amazon website once your items(s) are stored
6. Amazon handles shipping to the customer(s)
You’re probably wondering- Why Amazon FBA?
A big reason why many people are attracted to this business model is that it’s scalable. You can sell on other online platforms, but you’ll have to deal with shipping orders and dealing with customers. Plus, if you have low traffic or traffic that doesn’t convert to sales on your website then you’ll have to spend more money hoping something works.
Tapping into Amazon’s proven shipping infrastructure allows you to sell to more customers without having to do this yourself. You simply find an item and ship it to Amazon.
There are some fees involved which include the storage of your items. This can range from $.64-$2.35 depending on the time of the year.
Note: You also have the option of fulfilling the orders yourself (merchant fulfilling), but you’ll be competing with Amazon Prime’s 2-day shipping model.
Is Amazon perfect for you?
Well, yes and no. Just as with any business you’ll have some challenges. Amazon is a great platform to start making money but it isn’t for everyone.
If you enjoy challenges and have an entrepreneurial spirit then it may be a great option for you. On the other hand, if you like steady income and want to take a little risk then Amazon FBA may not be a viable option for you. Amazon FBA isn’t a get-rich-quick scheme neither.
To be successful selling on Amazon it will take hard work, creativity, and perseverance.
I’ll leave that up to you to decide.
How To Become Successful Selling On Amazon
Before you start selling anything on Amazon you must shift your mindset to think like an entrepreneur. If you fail to do this you’ll end up creating a hobby for yourself where you’ll only make extra money on the side.
Other things to consider include:
You can probably start selling on Amazon with less than $50, but you won’t make much progress. It’s suggested that you save at least $200-$1000 to start purchasing items and utilities. This allows you to buy a bulk of different products which you can test.
You’ll want to use apps like Scoutify to easily scan items and view their profit after all expenses. This will help you determine if an item is worth purchasing or not.
It would be smart to start selling items that you’re most knowledgeable about. This will help you spot great deals, and sell items at their peak price.
Most importantly, you’ll stay in business longer. The chances of you staying motivated selling knives are slim unless that’s something you’re passionate about. The key is to build consistency, and creating an advantage in this crowded business space.
Instead of researching the web for other useful tools, here are the top 10 recommended tools from the family who’s crushing it with Amazon. The Selling Family has managed to generate 6-figures in profit by creating a successful business using Amazon FBA.
Awesome Amazon Perks And Possible Set-Backs
The way most people talk about Amazon FBA makes it seem like it’s a no-brainer to jump on the Amazon bandwagon. However, Amazon FBA has its ugly side as well. Here is a breakdown of some key Amazon FBA features that will help you determine if this business model is right for you.
1. Automatic Prime
Opting in for Amazon FBA vs Self-fulfilling your orders will qualify your items for 2-day Prime shipping. Amazon Prime members expect to receive most of their shipments in 2-days or less, so taking longer can create extra hurdles for your customers.
2. Cheap Shipping
Becoming a seller on Amazon gives you some shipping discounts. Averaging shipping from other companies can vary from $7-$20 depending on the carrier you choose.
3. Limitless Marketplace boundaries
You’re not only limited to using Amazon’s marketplace to sell your items. If you have an established e-commerce website you can still have Amazon fulfill your orders. This gives you the flexibility to collect your customer’s information and not be bound to be 100% dependent on Amazon to run your business.
If you use Amazon’s marketplace you won’t have to create your own e-commerce website, and benefit from Amazon’s large website traffic.
1.Losing Track Of Inventory
Losing track of your inventory won’t be challenging in the early stages of your business. However, once you begin to scale to selling hundreds of items monthly you can easily begin to lose track of the items that haven’t sold. Since you pay for storage it’s in your benefit to sell your items as quickly as possible to avoid high maintenance fees.
2. Your Inventory May Get Lost With The Rest
When you ship your items to Amazon they will store them with other items that are similar to yours. When your item sells it won’t be a guarantee that the original item you shipped to Amazon will be the one your customer receives. This opens the possibility for your customer receiving a counterfeit or bad quality item.
3. No Control over Amazon
You’ve heard the saying that you shouldn’t put all of your eggs in one basket. If you only use Amazon’s marketplace to sell your items then your business becomes completely dependent on Amazon. This means if you mistakenly break one of Amazon’s strict guidelines you can be banned, and lose your entire business in an instant!
Got What It Takes To Sell?
The next time you decide to sell something online you’ll feel more confident selling on Amazon. You now have a mini-blueprint on how to become successful. People like Jessica from The Selling Family have paved a path for you on the possibilities for creating a thriving business using Amazon FBA.
However, your mindset is everything. No tool or course can help you create a successful business generating 5–6 figures with the wrong mindset. For this reason, don’t let debt or past business failures stop you from becoming financially independent. You only need a few hundred bucks to get started.
You don’t even need to create a website for your business since you can start using Amazon’s platform. The only thing holding you back from becoming successful is yourself. Click To Tweet
Start with the right mindset by downloading your FREE Essential Guide To Exercising Your Mind T0 Becoming Financially Free to start creating the right mindset.
I challenge you to create your Amazon FBA account and buy $100 worth of inventory to sell.
If you need more inspiration then you can also listen to this podcast episode from Smart Passive Income hosted by Pat Flynn.
In this episode, you’ll learn how 2 successful partners were able to take a leap of faith and eventually build a successful Amazon FBA business.
Good luck on selling your first item on Amazon, and reaching financial freedom!