No one starts a business with the intention of not making money, yet loads of businesses find it hard breaking even talk more of making profit. We’re sure you wouldn’t want that for your Amazon business, and that’s why you are searching for the right information. You’ve come to the right place, this is going to be the first part in a series that will show you how to make money selling on Amazon.
A lot of people sell on Amazon these days, because let’s face it, it’s a whole lot easier selling on Amazon as compared to starting your own e-commerce platform. You don’t necessarily need to start creating your own e-commerce platform, and of course the Amazon brand is strong. Whoever sells on the website is covered by the strength of the brand. It’s not free though, all these Amazon perks come at a fee(s).
So how do you start making money on Amazon? Well just sell something. Ok, it’s not that easy, but that’s the long and short of making money on Amazon.
At this stage we assume you have signed up to be a seller on Amazon, if you haven’t, now is a good opportunity. Here are some steps to start making money selling on Amazon.
Some of the best items to sell on Amazon FBA include children’s items, toys, apparels, electronic gadgets and health stuff. Make sure you can get it cheap enough to make a decent profit after you’ve paid all the fees that should be paid to Amazon. You can liaise with the manufacturer of a product locally or source for it abroad. You can also buy wholesale and retail on Amazon.
Amazon won’t do the adverts and marketing for you, that’s to be your responsibility. Depending on your budget, you can start by telling your social media followers and email list about your product. Having a blog too will definitely help, just look for every means possible to get the word about your products out there.
Not every product, category or niche is profitable. Some niches are already overpopulated, some, the big brands which are very difficult to compete against have taken over it. However, if you do your research properly you find several categories with few reviews where you can sure of making some money.
Check out your competitors, see what they are doing, what they are offering and how you can improve on them. It’s actually advisable that you check out the most successful sellers in your niche and see how you can take their offerings a step further. Remember it’s a cut throat business, you’ll never be given an inch here, and you’d have to take it with your ingenuity.
Some products trend only for a season, some trend for a long time. To make maximum profits, you should offer different kinds of products across different niches. There’s no limit to the products you can sell on Amazon, so your research shouldn’t stop at just the products that are making you profits. Things shift, it’s better to have a whole myriad of products across various niches than just one.
You should have a blog for this, or someplace where you can post content. The thing about product reviews is that when they are done properly, they do have a way of endearing people to the particular products. This is therefore more traffic for you and then more sales.
A product review will help draw the attention of your readers to a particular product. Be sure you actually have a link to these products so with one click they can be redirected to your Amazon page.
If you have a blog or a website, then you can use it to increase your click through rates. Whenever your put out content, text content that is, make sure your links are embedded in the posts anywhere possible. You always have to create as many opportunities as possible for people to see your products. Include links to your products in your articles, do this for every product your write about, it just makes it easier for customers to click and get to your page.
Are you thinking of how to make money on Amazon without actually selling, then here’s a way. You can refer someone from your site or social media page to a product which belongs to someone else on Amazon, when the person buys you get a commission. You’ll need a website or a blog to do this. So basically you add your Amazon affiliate links to suitable products that is products that you have content on. Whenever someone clicks on that link you get a commission or you can get a commission for purchase depending on the type of payment you’ve chosen.
This is still under the affiliate program. In the past, your Amazon commission increases as your referrals to Amazon increase. So if 7 out of the people I refer to Amazon make purchases I receive a commission of 4.5% of their purchases, however when it climbs to 1500, then my commission climbs to 8% or more. For some reason Amazon has changed that policy, this change took place in February 2017.
Now commissions are based on the categories of goods you sell. Products like wine and Amazon gift cards have zilch commissions on them, toys have 3.0% and the commission percentage go up all the way to 8.00% for furniture and some other products.
So you see, you can choose your affiliate products based on the products that have higher commission rates.
The idea here is to find goods that are being sold for very cheap in a brick and mortar store. You know selling clearance items on Amazon is another to make some good profit. Let’s say the store is trying to do some kind of clearance sales, one of those things where you can find stuff at really ridiculously cheap prices. You buy them at that give away price, you’re aware they’ll not always be available at that price, so you go on Amazon and sell at a profitable price. Another way you do this is to buy products that are indigenous to a certain town, which might be difficult to purchase in anther town. You buy it off the shelf at of course the regular price and then sell it for a handsome profit on Amazon.
Amazon FBA means fulfilled by Amazon. Here the idea for white label products is for you to design a product, get it manufactured and of course add it to your offerings on Amazon. If you choose well, you can have less competition on the product, because you can actually control distribution. So on the long run, its more profit for you. With the FBA program you don’t have to bother about the shipping, and packaging for individual customers, Amazon will handle that.
The fact is that you’re not the only one interested in making money from Amazon. Every one of the numerous sellers on amazon want a chunk of the shoppers’ money, so you guys are actually going to have to fight hard for it. One way to cut out competition is to sell that which no one sells on Amazon, but there’s a market for. Now that’s the ideal situation, which rarely exists. The more achievable option is to sell a unique product that only a few other sellers offer. It might also mean just improving on an existing product or solving an old problem with an easier and faster means. The goal here is to reduce competition to the barest minimum.
Holidays are some of the biggest cash haul for retailers both online and offline - Christmas holidays, Black Friday, Cyber Mondays, Valentine ’s Day and all the others. First you should know that some of the goods you’d be selling during this period are seasonal, once in a year kind of stuff, like Christmas Gifts and valentine gifts. Secondly, Amazon preps for these days, they create anticipation in their customers and they also create sales pages for these days. If Amazon prepares for these days, there’s no reason you shouldn’t.
You should create special content for these holidays, describing your offerings for these holidays, discounts and freebies they’d get if they make purchases. Of course don’t forget to add links to your products, not just text but also the images, you want to make everything as easy as possible for those who visit your page.
Make sure you have enough inventory for such days, because there’s almost nothing as bad as not having products to sell anymore just on the morning that’s supposed to be your cash haul day.
It’s not going to be easy, no one said it will be. However, it can be done, it’s been done by others, so you can do it too. Whether you’re looking at selling on Amazon on the side or as a full time job, with the right knowledge you’ll earn some good bucks.