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Getting Started Selling on Amazon FBA

Amazon FBA Course Amazon FBA Ebook Amazon FBA Guide How to Make Money on Amazon

Money You Need to Start Selling on Amazon?

Introduction

This question comes up so often; I had to write an article about it.  The reason answers vary on this issue is due to many factors.  You have people who are trying to sell expensive courses and want to ease you in with lower start-up costs, and you have individuals who have invested different amounts into the Amazon FBA business and gotten different results.

I will tell you my general recommendation at the end of this article, but I also want to give you some insight.

The amount of money largely depends on the product and what level of competition you feel you can handle.  It comes down to wanting to go up against other small businesses, think iPhone repair shops versus going against the big guys like Microsoft or Coke.  Do you have the resources to battle giants (the Giants on Amazon aren’t that big) or do you want to go against other small businesses?

You also need to keep in mind the rewards that come with each type of competition come at different levels as well.

Let’s Look at Some Real Examples

Let’s looks at one of the popular products on “argan oil.”

Junglescout results

If you have no idea how sales work on Amazon when it comes to what products people generally choose, look at this article: Secret to Success on Amazon

Now if you take a quick look at the search result page, you will see your competition is quite stiff.  I count 16 products with over 1,000 reviews.   The winner when it comes to reviews has over 5,000.  Now the one’s with lower review counts are doing well, but we have to keep in mind they may be part of fledgling brand lines and are pickups by those familiar with the brand on other platforms or past purchases.

The fact here is to see your investment pay off you are going to have to unload a lot of product just to rank on the page, never mind the reviews, which will have to be the result of any more product sold.

Argan oil at 2 oz. can cost up as much as $4.00 a bottle to source, purchasing 500 units would cost upwards of 2,000 plus shipping, and that’s before adding packaging or launching.

Let’s look at something a lot less popular…a titanium whistle.

titanium junglescout

The average review count on the page is already a big difference.    The average review count on this page is just 59.   But you can already see the cost of picking such an unpopular product.  The top selling product sits at half the review count, but due to product design or brand name at just 63 reviews it sells about 4,000 a month.  A drop in the bucket compared to the $100,000 a month product in the argan oil SERP page.

Strangely, the cost of titanium whistle from a manufacturer can be at 4 or more.  But I have seen some that cost 0.99 with the right manufacturer.  So your cost for an order of 500 (I would not order that many on the first go around, as that could be a four month supply depending on fast you could get your reviews up) could range between $500 and $2,000.

Do you see why the money you need to start on Amazon fluctuates so much from person to person?

The factors that come into play vary.

  1. Product Competition
  2. Product Price
  3. Ease of access to product

These are just three factors that play a part in how much you need to invest.

My Recommendation

The bare minimum I suggest is $1500 but the more money on hand the easier it is to be successful.  If you wanted to be extra careful, you could put my recommendation up to $3,000.  The thing about an Amazon FBA business is the higher amount of resources you have to spend the easier your climb to the top will be.

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A note from Crushing Azon:  We believe no one should have to pay over $2000 for access to information that could change his or her life.

Everyone should have access to explore a business model that works.  For this reason, we put our entire flagship course on Skillshare where you can access it free for 30 Days: http://skl.sh/2nSevaF

Sign up and take a look and if you don’t like what you see, cancel it’s as simple as that (but we know you won’t).  🙂

Or get our flagship guide free with Kindle Unlimited: How to Crush it on Amazon: Create a Brand and Build a Million Dollar Business in a Year

*To own the course and get lifetime updates see our “Courses/Trainings” Page.

Amazon Product Launch Amazon SEO How to Make Money on Amazon

Get Consistent Ecommerce Sales with No Ad Spend (For Dropshippers, Course Creators, Anything eCommerce)

The Problem

Anybody who has had trouble selling anything, online and offline, has had a problem finding customers. To make any consistent sales, you have to find people who are in need or are in want of the product. The rule is the same online, and off, you have to drive traffic to make sales. For online, this usually means buying ads on Facebook, Google, Bing, and maybe even Instagram shoutouts.

But here lies another issue, those people may click just to peer in, but don’t buy, which can be detrimental to those with smaller budgets.

Every opportunity seeker knows the now classic Shopify + Facebook ads strategy, but you spend a good portion of your budget finding a good product and audience fit if you find one at all. It’s a wheel of spending money to make (or not) money. This fact is the reason I chose to go the Amazon FBA selling route as the “testing” has already been done for me, through the bestseller ranking system. Here’s a link an article where I explain this in much deeper detail.

Also many platforms like Facebook work on interruptive ad models. People go to Facebook for content rather than to buy things. It’s the same for Google and Bing unless a search has buyer intent, for example, “buy product z” or “Cheap product x,” for the most part they may just be doing research on the product and have not yet made a buying decision.

The Solution…

Is to have products on sites where the buyers go, people with their cards in hand. Also the best thing you can do once your product is listed is to turn off your ads…all of them…no Facebook, Google, or Bing ads.

Here are some of these buyer sites with how much they are trafficked globally:

Amazon (8th most visited)

Ebay (27th most visited)

Flippa (8,541st most visited)

Udemy (472nd most visited)

Upwork (433rd most visited)

Freelancer (1,119 most visited)

You feel that, that’s your traffic problem solved.

Social Proof

Another issue you have when it comes to eCommerce is trust. If people who reach your offer do not trust your site or the product itself you will lose out on the sale. This is why many eCommerce sites, particularly fly-by-night Shopify stores have so much trouble getting sales initially. You will encounter this very same problem on these sites, so when you start, you will have to engineer some social proof.

Check out this article: Gamified Marketplaces

For the most part, social proof comes in the form of reviews and ratings, the more you have, the better. You will find especially on Amazon those with the most reviews tend to get the most share of the sales; I will expand on this in the next section.

Ranking and Keywords

To benefit from the traffic generated by these sites, you’ll have to rank on these sites “search results pages.” You will find those that rank with the most social proof, especially on Amazon, soak up the most sales, but for the most part everyone on the page is a winner, but the further back you go the more difficult the battle.

Just look at the difference between these two pages for vitamin c serum:

Page One:

Page Two:

This is one of Amazon’s most popular products, and there is a clear difference in just averages between page one. Almost a 50% drop in the average number of sales per month and reviews. There is a clear correlation there, that is why I feel Amazon is one of the most underrated games in town, but at the same time, this isn’t just Amazon, it’s almost every site.

It is not all that difficult to rank, the driving factor for most sites is sales. The best way to rank is to target your product’s top-of-mind keywords there are tools like Terapeak or the suggested search terms that pop up on the site’s search box.

Once you have targeted the keywords, perform a sale (or heavily discount) your service, on the site you want to be sure to have those first few review, so people don’t believe they are getting something sub-par. For more in-depth strategies you should really see the article, I linked above.

So No Ads Ever? /“Going From Inside Out”

So no ads ever? No, but once you have sufficient reviews and rank on these sites, you have provided yourself a “profit base.”

So instead of having to rely on the efficiency of your ad spend, you can use the proceeds to fund business growth. This strategy is perfect for those just getting started in the eCommerce game. Not only that, but you can build everything off of these sites, you can use the profits, reviews, and ratings to get more business. For instance, imagine paying for an Instagram shoutout and the influencer, not only does he or she give your potential customers a coupon code, but also they arrive at a site they trust (Amazon), and 300 reviews are telling them the product is great. It will do wonders for your conversion.

————————

A note from Crushing Azon:  We believe no one should have to pay over $2000 for access to information that could change his or her life.

Everyone should have access to explore a business model that works.  For this reason, we put our entire flagship course on Skillshare where you can access it free for 30 Days: http://skl.sh/2nSevaF

Sign up and take a look and if you don’t like what you see, cancel it’s as simple as that (but we know you won’t).  🙂

Or get our flagship guide free with Kindle Unlimited: How to Crush it on Amazon: Create a Brand and Build a Million Dollar Business in a Year

*To own the course and get lifetime updates see our “Courses/Trainings” Page.

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