Millions of people are now making money as Amazon FBA sellers, but only the best make huge profits. Here's how to become an Amazon seller and make big money.
Move over, eBay, there's a new work from home venture in town — Fulfillment by Amazon.
Now, more than ever, people are making their dreams of working from home a reality. New reports show that nearly three percent, or 3.9 million Americans, worked from home at least part of the time in 2017. One of the top ten work from home employers? Amazon.
If you're tired of the 9-5 grind, or if you're wanting to generate some extra income to help support your family or save up for that dream vacation, Fulfillment by Amazon may be the answer.
But how do you become an Amazon seller? Read on to find out!
Why Amazon FBA?
We've come a long way from the days of Nasty Gal Sophia Amoruso's eBay fashion empire. Amoruso made beaucoup bucks by buying vintage clothes from thrift stores and estate sales and reselling them on eBay.
Eventually, the momentum of her store outgrew eBay. But for years, Amoruso was in charge of obtaining inventory, listing all of her products, and then packing and shipping each item when it sold.
That's a lot of work, especially when you consider the number of sales she was getting. This is where Fulfillment by Amazon comes in.
FBA makes life so much easier for sellers because it takes away the minutiae of operating your own business. Once you have your inventory, ship it all to Amazon and Amazon will sell and ship your items.
Of course, you can sell your items through Amazon and ship them yourself, too, but it's less beneficial than FBA. The big perk of FBA is that items fulfilled by Amazon can be shipped via Amazon Prime. This means that customers won't think twice about ordering from you because they know and trust the Amazon name.
All that convenience makes you think there's a big expense to doing business with Amazon, but that's not the case. Sellers incur three expenses:
- The cost of shipping your items to an Amazon warehouse
- The cost of handling your products
- The cost of listing your items for sale
Amazon has partner carriers who offer you discounted shipping rates so you don't have to worry about shelling out a ton of money when you send a bunch of items out. Amazon charges you a flat rate of $39.99 per month if you sell more than 40 items a month. If you sell less, then they charge you $0.99 per item.
Are you ready to get started?
Become an Amazon Seller
The first step to becoming an Amazon seller is to open up a Selling on Amazon account. If you're already a seller, but you're ready to take the next step and have Amazon fulfill your orders, then you'll need to add FBA to your seller account.
When you're setting up your seller account, Amazon will ask if your product fits within 20 common categories. Don't sweat it if your product doesn't fit in any of them because there are plenty of other categories under which to list your products.
You'll need a credit or debit card as well as a U.S.-based bank account into which Amazon will make direct deposits. You'll also need a tax identification number such as an EIN or your Social Security number.
Once you're set-up, you'll create the item listing and ship the goods to Amazon to sell. They take care of refunds and returns, too.
Choose What to Sell
If you don't already have a product that you're selling, then this is the hard part. You want to make sure that you're shipping and listing items that customers are looking for and will buy.
The great thing about Amazon is that you don't have to have a creative bone in your body to make money as a seller. All you need is access to thrift stores or antique shops or even stores that are just having an incredible sale.
Buy high-quality products at bargain-basement prices then list them on Amazon to make a profit with minimal effort.
Not sure how to keep an eye on trends? Check out social media to get an idea for what's in demand. For example, unicorn-inspired goods are hot right now, so you would look for shimmery and holographic products to list in order to cash in on that trend.
When you create your listing, be sure to look for similar items for sale on Amazon in order to price your item competitively. Nothing sits in the warehouse longer than a $50 item that's listed for $100.
If things are going well, don't be afraid to shake things up and add new items to your inventory. More items mean more profits!
Marketing, Marketing, Marketing
All that time you save on order fulfillment leaves you extra time to effectively market your products. This step is hugely important! Amazon has hundreds of thousands of listings, so you can't just list your items and expect someone to stumble on it.
Use social media and blogs to your advantage.
How? Write a blog about why unicorn-inspired products are so in right now. Then include links to your super cool unicorn items so readers can buy them.
What about social media? Post attractive photos of your items on Instagram or Twitter with a link to their listing. Don't forget the hashtags!
#UnicornsAreTheBomb #Unicornucopia #NotJustAHorseWithAHorn
Want to make even more cash? Join the Amazon Associates program so you can add affiliate links to your marketing blog posts. Not only do you get paid for selling the item, but you get a commission for referring customers to your product.
It's a win-win situation!
See? It Pays to Sell on Amazon
Whether you're selling handmade products or just reselling things you purchased dirt cheap, it's never a bad idea to become an Amazon seller.
Long gone are the days of packaging and shipping items yourself. With Fulfillment by Amazon, you'll be on the fast track to raking in the dough without ever having to set foot in an office.
Interested in learning more about selling on Amazon? Check out the rest of our blog for more tips and tricks about making money on Amazon!