Starting an online business can be a great source of income. Unlike traditional brick-and-mortar stores, ecommerce allows you to reach consumers all over the world. On top of that, you can even generate revenue in your sleep. Pretty awesome, right?
If you’re looking to dip your feet in ecommerce, Amazon can be a great place to start. After all, why compete with the ecommerce titan when you can utilize them to bring yourself business?
Here’s what you need to know to launch your small business on Amazon.
1. Conducting Product Research
Before you launch your business on Amazon, you need to determine what product you’re going to sell and the quantity of product. You also need to decide if your business will be a side stream of passive income or a full-time ecommerce store. Depending on what you choose will affect how much time, money, and product you will need to invest.
Once you have a gameplan, gauge your potential success on Amazon by conducting some product research with one (or more) of these tools.
Jungle Scout. A web app and chrome extension that makes product research feel like a breeze. This sales estimator tool will spit out how many transactions your product will generate each month. It even computes the Amazon fee that each of your products will be subject to. (It’s like doing product research after you’ve drank five Red Bulls.)
Pricing ranges from Startup ($29 per month) to Business ($69 per month).
Source: Jungle Scout
Unicorn Smasher. While similar to Jungle Scout, there is one caveat. Unicorn Smasher doesn’t pull in sales data from any page on Amazon like Jungle Scout does. But Unicorn Smasher is free to use, so this is clearly a case of you get what you pay for. And who doesn’t love free stuff?
Source: Unicorn Smasher
Algopix. Instead of being solely focused on Amazon products, Algopix gives free insights for Amazon and eBay sellers. If you’re looking to expand from Amazon to incorporate eBay in your mix, I definitely suggest this tool.
These are just a sampling of the tools out there. Choose the one that makes the most sense for your brand and needs.
2. Setting Up Your Amazon Account
Now that you have selected a product and quantity, it’s time to set up your Amazon account.
Head over to Amazon.com and register for a professional selling account. When you register, you will be required to pay a small monthly subscription fee. This fee saves you the hassle of building a website, hiring staff, renting space, and processing transactions. So, it’s definitely worth it.
Related Post: The Communication Process: Getting Your Messages Heard
After you’re registered, next you’ll create your business profile. Here, you’ll craft your brand’s story. Once your profile is complete, then you’ll set up your products and choose your level of control.
3. Choosing Your Level of Control
Are you the type of person who needs to be in control of every aspect of your business? If you’re not, you have a convenient option. It’s called FBA (Fulfillment by Amazon).
When you use FBA, you ship your inventory to Amazon and they do all the work. They store, pick, pack, and ship your order. Plus, they offer 24/7 customer support and returns. This saves you not only storage space but precious time, too.
Related Post: 7 Financial Apps to Help With Your Small Business
Through FBA, your orders are also eligible for customers to select free shipping. And if you’re an Amazon Prime member, you know how convenient that can be. Of course, Amazon doesn’t do all of this for free. It will cost you. For an estimate, you’ll need to use Amazon’s FBA Revenue Calculator.
4. Marketing Your Products
As a seller on Amazon, you have the option to take advantage of their onsite advertising. However, 68% of sellers choose to not use Amazon’s ad marketplace. Most sellers attribute it to lack of understanding with regards to Amazon’s ad platform coupled with tight advertising budgets. Others explained that the platform just wasn’t the right fit to promote their products.
Related Post: What Is Demographic Targeting and Why You Need It
If you decide not to use Amazon’s ad marketplace, consider doing your own social media marketing. Set up an account on Facebook, Instagram, and/or Twitter and try reaching your desired audience. This could even segue into launching your own ecommerce site down the road.
Related Post: Top 5 Shopify Apps to Boost Your Ecommerce Sales
No matter what you decide, Amazon is a great starting point for opening your own online business.