If you're looking to start or grow a business on Amazon, I can be the spark that sets you on the path to success. Therefore, I have a hybrid set of experiences, half of which stem from my failures on Amazon and the other half from the successes that stemmed from them.
Let me take you along on my Amazon adventure now.
1.) Initial Process
In 2019, when I was still too immature to really comprehend life, I decided to start selling on Amazon. The nicest part, though, is that I've recently begun doing it with a few coworkers who are experienced members of the Amazon FBA industry.
On Amazon, I launched a couple of private labels. My first investment was $1500 and later on I scaled up making $100k per month from a single product. Back then, there wasn't as much competition in the Amazon marketplace as there is now. There was no need to spend time thinking of a product idea, developing it, and then manufacturing it. The brands' approval is typically swift in the wholesale market. So, we were exposed to a lot less danger.
But rather than treating my experience as a whole, let's get down to the nitty-gritty of it.
Everything from the LLC registration process to product research to discovering improvement potential to Listing optimization to PPC advertising to cash flow management was all new to me as a seller. Listing optimization and PPC advertising, which is a game of keyword placement, were the most challenging stages for me. Even low-volume keywords need to be kept relevant and tested. However, if you're just starting out, or are in the "honeymoon" phase of your business with Amazon, it's a good idea to use the advertising service offered by the Amazon marketing agency.
2.) Sales on Amazon
Making a sale on Amazon is not like selling a loaf of bread. There are certain challenges that you have to face on this path. The following are some of the things I've learned the hard way.
I learned the hard way that you need to keep a few things in mind while listing your product to ensure its success.
You will need high-quality images. You can't get a feel for the product like you can in an actual store when shopping on Amazon. Therefore, if the product is presented in an appealing manner in your images, it will sell better.
The best product descriptions include all relevant information, which helps the customers make an informed decision. If you're selling a product, you may add a video demonstration, and if you're selling a book, you can provide a sample chapter for potential buyers to read.
Last but not least, your listing needs professional SEO services. Your product could easily be lost among the millions of others on Amazon USA if you don't use the appropriate keywords in your description.
You can also use Amazon Ads to have your product show up at the top of relevant searches; however, this service is not free and will incur a cost per click from Amazon customers.
3.) Order fulfillment
Now that your product has been launched successfully, you can expect to get orders. There are three methods that you can use for fulfilling your orders.
Let’s check which one is most suitable one.
Amazon offers three distinct fulfillment strategies.
1-Easy Ship
To use this service, you must first establish a shipping label in Amazon Seller Central before the pickup boy can collect your package.
2-Self-ship (FBM)
After receiving an order, you'll be responsible for shipping it out yourself and updating its status on Seller Central with the tracking number.
3-Fulfillment by Amazon (FBA)
What I've found to work best is having the products sent to an Amazon warehouse; from there, Amazon handles everything from picking and packing to shipping and returns.
The third fulfillment method is the most commonly used, and it is very effective as well.
In my case, I tried to use FBM as a means of managing fulfillment in the beginning. However, what I experienced is that you cannot manage your Amazon FBA business in this way. This is a road only e-commerce experts in business should travel. That's why I made the switch to FBA, which has been quite convenient for me.
4.) Your potential losses
Like I stated, I'm not the most mature person, so I have a hard time figuring out how to pay for and handle the costs associated with the return charges (Courier and Packing charges). Amazon is known for sending out return charges late and then having trouble keeping track of the money.
Furthermore, I have frequently received damaged returns, returns of an entirely different product, or returns of an empty shipment, and Amazon has always denied my claims. Amazon focuses on its customers, not its sellers.
Selling on Amazon has been a great learning experience for me personally, but I warn others to proceed cautiously because the market is shifting.
Bottom Line of My Story
From what I've experienced, starting out on Amazon is packed with peril. The key reason is the initial lack of expertise and the current market saturation. You'll need to come up with some novel ways to manufacture and launch your passion product if you're going the private label path. Otherwise, if you are just selling copies of existing products, you can't make a killing with this business.
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