Listen to the article here:
How to Start a Business with Amazon
You are here on my blog because you are looking to start a business on amazon and earn some money for yourself. But before we see the steps to starting a business on amazon, let us face this: Entrepreneurship is not a nice idea at all. While it is good for society that people are innovating and doing a lot and taking risks by working long hours, mostly 18, a day, it is not always in the best interest of the individual.
The potential payout is really big and huge but the chances of success are so low in the world of entrepreneurship. There is a lot involved with being an entrepreneur.
It is always difficult to be taking salary especially when you are always seeing success stories of entrepreneurs everywhere that most times sound too good to be true. But what if there are ways that you can start a business without having to sacrifice your sleep, blood, sweat, and tears?
Thankfully there is. Amazon has provided that opportunity for you to start a business without having to sacrifice too much. You can start an amazon business online by just spending an hour a day and about $2,000 on building your business. You can start a multimillion-dollar business that can help you to be financially free and have some free time. Let us take a look at how you can do that.
How to Start a Business on Amazon
#1. Research Product Sample
Search through the different categories on amazon and the products that will sell. Look for the ones with best seller ranks between 100-6000 in the high-level categories. It means there is a good market for such products and they are less competitive.
You can search for a product on amazon, and check the product’s best seller rank, if you are okay with it then you can head to alibaba.com and contact a manufacturer then negotiate on the price with them. You can first order samples of the product to see how they are. You shouldn’t order more than 2 or 3 of the product. This can cost you about 100 to 200 dollars to accomplish.
#2. Order Inventory
Your primary cost is the product inventory. It includes the costs required to deliver the product to your customer. Packing from the manufacturer can cost about a dollar for a 10 dollars product. If your product is coming from another country like china you might need someone to take care of the customs fees for you. Fulfillment by Amazon (FBA) is the best option for receiving your orders. It will be sent to amazon upfront. Amazon will handle the shipping fee and customer services, and they take a percentage for every sale made.
#3. Design your Branding
You can sell your product with the manufacturer’s brand name. Many of them will let you white label the product and sell with their name. But creating your brand will help you stand out from others and also help you build a business brand you can decide to sell later. This can cost you close to $5-$800.
This means that you have to design your business logo. You can hire people from any of the freelancing sites to help with the logo design.
#4. Start Marketing
When you are done with your logo design and other necessary things it will be time start to launching your marketing.
You can start with a few hundred dollars. If you want to be a little more aggressive you can spend a little more than $500 on marketing on amazon which has about a 20 to 30% conversion rate. You can also use Facebook and Instagram ads, using coupon codes to offer discounts to drive traffic to your listings on amazon.
If you will be selling light and small products which do not take long to ship to your customers then your business can be up and running between one and three months. If you launch a very successful marketing campaign then you will be in massive profits within six months of your launch.
The money you will use for marketing is only your expenses upfront because you will use your profit to invest more in the business like marketing, getting a website, buying more products, and more.
#5. Stay Consistent
Consistency is free. You don’t have to invest any money into it. The greatest thing that keeps a business growing and gaining more customers is consistency. starting a business with amazon is not different from other businesses where being consistent is the key to staying in the business.
You don’t have to be a workaholic to scale your business with amazon. Investing one or two hours a day for a start can be more than enough especially if you start it as a side hustle.