E-commerce is gaining a lot of popularity post-pandemic, but everyone does not poses all the resources and the funding required for the E-commerce setup, for them reselling could be a blessing, and what better brand to start with than amazon. Amazon Reselling is a great platform for individuals looking to start their e-commerce business with the least investment. Let's take how to start your reselling journey with Amazon from scratch. #TWN
Amazon is a huge platform with tremendous opportunities, and one of those is Amazon reselling or Amazon FBA. Now, people want to start FBA but are confused about where they should start. Sometimes there is no information available on the internet, but in this case, there is too much information available which creates utter confusion and, everyone has a different opinion and has different tips on how to start with the FBA store. Therefore, we are here to provide you with the exact steps to start your FBA store from scratch.
Let’s first discuss the four major points that you require to set up a sustainable Amazon reselling business:-
Product
Analysis
Supplier
Scaling your Business
Let’s break each of them down. First, we will discuss how to find the right product.
It’s pretty much impossible to have success on Amazon FBA, but thankfully, there are tons of new products getting added on amazon every single day, so the opportunities are always going to be there. There are three types of products available on Amazon. The first one is the Arbitrage product. These products are easily available at the supermarket and local stores near you, which you can buy and resell on Amazon for profit. The second category is a Wholesale product. Wholesale logic is simple. Buy products in bulk and get the quantity discount and sell them individually on Amazon for profit. The third type of product is a Private Labeled Product with a private label, you have to create your product, and you have to do marketing all by yourself. Hence this type of reselling is not recommended. One thing that you should always look for is the profit margin. Choose those products that provide you with at least a 10% margin, and the more, the merrier.
Now that you have found the right product, you must do a product analysis to determine whether your product is even good or not. Just because the product is good-looking does not mean your product will drive your sales., Hence, you must do a product analysis to determine whether that product will make you money or not. As soon as you find a product on amazon, immediately look for BSR, which is be found under the product description. The best products are usually under 100,000 BSR. The lower the BSR, the more the product will scale and sell.
The second analysis you should do is of the weight of the product. The heavier the product, the heavier is your charge for shipping and delivering. The recommended weight of your product is less than 2 lbs. Finally, make sure your product is not seasonal. Seasonal products make your selling window limited. You are bound to sell the product only when they are in season. Hence, you will earn from that product only for six months or less.
Finding a good supplier is one of the most crucial steps of your Amazon Reselling business. Finding a product is easy, but always spend a good time finding a supplier. A good supplier delivers you the cheapest product but does not compromise on the quality. Large suppliers are generally reliable suppliers, as they have good resources and availability. But if you want all the things to run smoothly, always build a close relationship with your supplier to become his priority. Always have communication with your supplier. It will help you not only with the relationship-building but also with the fluent running of your business.
Scaling could be a challenge as you are a one-man army in the reselling business. You have to manage everything from packaging, shipping, marketing, which could be a bit challenging. To solve this problem, you could start delegating. The first thing is to find out which of your process is consuming the most time. According to many resellers, the packaging is what consumes the most time, and hence this could be the first thing to delegate, and the time you save could be spent more on the research and admin part of your business. Secondly, what you can do to scale your business is by recycling your money. Recycling money means when you start making money on Amazon instead of using it for your usage, using it for buying more products and making more sales. And the final thing recommended is never to stop learning and keep learning from the mentors as what works today may not work tomorrow. Hence, learning can help you to keep up with the trend.
Amazon’s reselling business is tricky, but if done properly, you can make a fortune out of it. Amazon is a giant in the business world, and it will make you loads of money if utilized rightly. Just make sure that you have done your research right, and your product reselling will go off the roof. I’ll conclude the article by telling you that work on the four pillars mentioned above and you will be golden.