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How to Sell on Amazon FBA for Beginners (COMPLETE COURSE!)

Jungle Scout・121 minutes read

Amazon's fresh approach for 2024 includes a roadmap outlining private label business strategies for successful product launches. Factors like demand, profitability, competition, and improvement potential drive the selection process, with a focus on cost-effective shipping methods and marketing to maximize profitability.

Insights

  • Jungle Scout achieved significant success under the private label model by creating a brand around a great product, garnering 1200 reviews and over half a million dollars in sales within two years.
  • The private label model involves branding generic products with a unique logo, utilizing FBA for storage and shipping, and allows for scalability, making it suitable for both full-time businesses and smaller ventures.
  • Selecting successful products for Amazon involves considering factors like high demand, profitability, and low competition, with products ideally priced between $20 to $70 to ensure healthy margins.
  • To effectively manage an Amazon business, sellers should focus on optimizing product listings with keyword research, utilizing advertising and promotions, and continuously seeking customer feedback for improvement.

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Recent questions

  • How can I start a successful Amazon business?

    To start a successful Amazon business, begin by identifying at least ten product ideas and narrowing them down to find the best one. Ensure the product has high demand, high profitability, and low competition. Aim for an average monthly sales target of over 300 units and price the product between $20 to $70 for healthy margins. Use tools like Jungle Scout Product Tracker and Opportunity Finder to discover profitable product ideas. Evaluate potential improvements for products based on customer reviews and discuss these with suppliers. Choose the top five products based on various factors, including demand and profitability. Secure a supplier by requesting quotes, understanding Inco terms, and calculating costs using a profit calculator sheet. Aim for a 33% net margin on Amazon and consider factors like shipping, packaging, and communication methods. Create an Amazon seller account, set up an LLC for protection, and apply for brand registry to safeguard your brand. Utilize UPC barcodes, select the correct category for listing, and ensure product details are accurate for visibility and sales. Optimize your product listing with Keyword Scout, lower prices during the launch period, and promote your product with coupons and advertising on Amazon to attract customers and increase visibility.

  • What factors should I consider when selecting a product to sell on Amazon?

    When selecting a product to sell on Amazon, consider factors like demand, profitability, competition, and improvement potential. Ensure the product has high demand, with an average monthly sales target of over 300 units. Price the product between $20 to $70 for healthy margins and assess the competition by examining the number of reviews competitors have. Look for products selling over 300 units monthly with few reviews, indicating room for new entries. Use tools like Jungle Scout Product Tracker to compare and select top product ideas. Evaluate products based on breakability, return likelihood, ease of use, durability, and potential negative reviews. Consider legal and liability issues like patents, trademarks, and Amazon restrictions. Rank product ideas based on improvement potential, ease of selling, and profitability to determine which to sell on Amazon.

  • How can I ensure the quality of products from my supplier for my Amazon business?

    To ensure the quality of products from your supplier for your Amazon business, consider running an inspection to check for specific issues and conduct standard checks. Third-party companies like Kima and V Trust can assist in inspections. If unable to afford a formal inspection, request your supplier to send pictures or video chat during the production process. Include inspection terms in your purchase order to hold the supplier accountable for fixing any issues. Payment methods typically accepted by suppliers include ACH transfers, wire transfers, and credit cards, with credit card payments incurring fees. Utilize Alibaba's trade assurance program for added protection when making large payments. After making the initial payment, your product will enter production, taking 4 to 6 weeks to complete. Choose sea shipping over air shipping for cost-effectiveness, with freight forwarders assisting in managing the shipment process efficiently and cost-effectively.

  • What are the essential steps to take before listing products on Amazon?

    Before listing products on Amazon, ensure you have a UPC barcode for each product, purchased directly from GS1. Select the correct category for listing on Amazon to enhance visibility and sales. Fill in product details accurately, including the number of units, country of origin, item dimensions, and item type. Generate an FN SKU barcode for product packaging and display the country of origin on the product and packaging. Set the price, item condition, and fulfillment method as per your preference. Choose a unit count type that makes sense for the product, like piece, pack, or count. Enter the number of boxes, typically one, on the office screen. Ensure the seller's SKU is easy to remember for identification. Confirm and print FBA box labels for the supplier or freight forwarder to attach. Track shipment status in the shipping queue tab and optimize your product listing with Keyword Scout before the inventory arrives at Amazon.

  • How can I effectively promote and sell products on Amazon?

    To effectively promote and sell products on Amazon, lower prices during the launch period to improve keyword rankings and gather reviews. Promote your product with coupons on Amazon to attract shoppers and increase visibility. Utilize advertising on Amazon by bidding on high-volume keywords to reach potential customers. Increase review rates by asking customers for feedback, enrolling in Amazon's Vine program, and using product inserts in packaging. Optimize your product listing with Keyword Scout to research top keywords, track trends, and create keyword lists for listing optimization. Click on the Net column in the FBA profit calculator to adjust the selling price and reach break-even or a small profit. Aim for a 33% net margin on Amazon, with one-third of the sales price covering Amazon fees, one-third covering landed costs, and one-third as profit. Ensure Amazon fees and landed costs are less than two-thirds of the sales price or $22 for profitability. Choose the right shipping mode based on the supplier or freight forwarder's plan and track the shipment status to optimize product listing before inventory arrival.

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Summary

00:00

"Private Label Success on Amazon: 2024 Strategy"

  • Amazon has evolved significantly since last year, necessitating a fresh approach for 2024.
  • The video outlines a revised roadmap for launching a first product on Amazon, drawing from Jungle Scout's experiences.
  • Jungle Scout achieved 1200 reviews and over half a million dollars in sales within two years by creating a brand around a great product under the private label business model.
  • The private label model involves purchasing a generic product from a factory, branding it with a unique logo, and utilizing FBA (Fulfilled by Amazon) for storage and shipping.
  • FBA allows Amazon to handle inventory, shipping, and customer service, enabling business management from anywhere.
  • The private label model offers scalability, allowing for a full-time business or a smaller venture to supplement income.
  • To start a brand, the initial step is to identify at least ten product ideas and narrow them down to find the best one.
  • A checklist emphasizes three crucial factors for selecting a successful product: high demand, high profitability, and low competition.
  • High demand is determined by consistent sales, with an average monthly sales target of over 300 units.
  • High profitability is crucial, with products ideally priced between $20 to $70 to ensure healthy margins and sustainability.

12:40

Challenges and Strategies for Selling Online

  • Convincing shoppers to make big purchases from unfamiliar brands above $70 is challenging.
  • Starting with zero reviews makes it difficult to secure initial sales.
  • Setting product prices between $20 to $70 is recommended, with $20 as the minimum.
  • Lower prices generally mean lower profit margins.
  • Checking that average monthly sales are above the competition is crucial.
  • Assessing low competition involves examining the number of reviews competitors have.
  • Products selling over 300 units monthly with few reviews indicate room for new entries.
  • Filtering by date first available and maximum number of ratings helps identify successful new products.
  • Using tools like Jungle Scout Product Tracker aids in organizing and comparing product ideas.
  • Opportunity Finder by Jungle Scout assists in discovering profitable product ideas meeting specific criteria.

25:11

Optimal Product Pricing and Selection Strategies

  • Recommended price range for products is between $20 to $70.
  • Higher-priced products require more upfront capital.
  • Products priced between $40 to $70 can yield similar revenue as lower-priced products with higher sales volume.
  • Search volume trends are important to monitor, with a current downward trend being a concern.
  • Seasonality indicates peak sales in December for some products.
  • Presence of other product types for a keyword may suggest patent restrictions.
  • Analyzing specific products like a golf pad mat reveals high sales volume and steady pricing.
  • Trending up filters can help identify products with increasing demand.
  • Product tracker tool aids in comparing and selecting top product ideas.
  • Factors for selecting winning products include demand, profitability, competition, and improvement potential.

37:45

Improving Products Based on Customer Reviews

  • Use customer reviews to identify specific improvements for products
  • Take identified improvements to suppliers for discussion
  • Repeat review analysis process for all products under consideration
  • Evaluate potential improvements per product to rank them
  • Consider ease of improving products and potential costs
  • Rank product ideas based on improvement potential
  • Consider ease of selling products, focusing on lightweight, standard-sized items
  • Evaluate products based on breakability, return likelihood, ease of use, durability, and potential negative reviews
  • Consider legal and liability issues, including patents, trademarks, Amazon restrictions, and potential liabilities
  • Choose the top five products based on various factors, including demand and profitability

49:52

"Efficiently source suppliers for Amazon profitability"

  • To determine if a supplier is a trading company, check if they offer different products or machinery.
  • Request the best price per unit for a trial order of 500 units from the supplier.
  • Ask for three separate quotes based on Inco terms, which clarify responsibilities for shipping insurance, customs duties, and taxes.
  • Understand Inco terms like FOB (Free on Board), XW (Ex Works), and DDP (Delivered Duty Paid) to know who handles shipping responsibilities.
  • Freight forwarders manage logistics and can provide quotes for shipping.
  • Inquire about sample costs, lead times, payment terms, packaging options, customization charges, and preferred communication methods.
  • Use a template from a guide on selling on Amazon to streamline communication with suppliers.
  • Utilize the Jungle Scout Supplier Tracker to organize quotes, sample costs, and supplier notes.
  • Calculate costs including upfront expenses, fixed landed costs, and Amazon fees using a profit calculator sheet.
  • Aim for a 33% net margin on Amazon, with one-third of the sales price covering Amazon fees, one-third covering landed costs, and one-third as profit.

01:01:09

Maximize Amazon profits with strategic selling tactics.

  • To achieve profitability, aim for Amazon fees and landed costs to be less than two-thirds of the sales price or $22.
  • Paid ads may not always be necessary as products can gain visibility organically over time.
  • Evaluate multiple products by analyzing margins and profitability before selecting one to sell.
  • Rank products on a scale of 1 to 5 based on profitability to determine which to sell.
  • Order samples from suppliers to compare quality and consistency before making a final decision.
  • Create an Amazon seller account to manage your business operations.
  • Consider setting up an LLC for added protection and tax benefits.
  • Choose between a professional or individual seller account based on your business needs.
  • Apply for brand registry to protect your brand and gain control over your listings.
  • Secure domain names and social media handles to enhance the value of your brand.

01:12:28

Brand name, trademark, UPC: Amazon essentials explained.

  • Securing your brand name is crucial for increasing its value to potential investors.
  • Choosing a broader brand name allows for selling a variety of products under it.
  • Applying for a trademark through your state can take 1 to 2 years for approval.
  • Utilizing Amazon's IP Accelerator program can grant instant access to brand registry before trademark approval.
  • The program is cost-effective with pre-negotiated rates for legal services.
  • To list products on Amazon, a UPC barcode is necessary.
  • Purchasing UPC barcodes directly from GS1 is recommended.
  • One UPC barcode is needed per product, even if multiple units are sold.
  • Different variations of the same product require separate UPC barcodes.
  • Selecting the correct category on Amazon for listing is crucial for visibility and sales.

01:25:15

"CPSC Warning, Manufacturer Field, SKU: Product Listing Tips"

  • CPSC warning is applicable if product has hazard, select "no warning" if not applicable
  • Manufacturer field confusing; for private label, enter own brand name
  • Model number can be anything, recommend making it easy to remember
  • Enter number of units in product, country of origin, and item dimensions
  • Choose unit count type that makes sense for product, like piece, pack, or count
  • Add item type, like "dog toy basket," and check for included components
  • Enter number of boxes, typically one, on the office screen
  • Seller's SKU is crucial for identification, make it easy to remember
  • Set price, item condition, and fulfillment method as per preference
  • Generate FN SKU barcode for product packaging, display country of origin on product and packaging

01:38:09

Tips for Safe and Efficient International Shipping

  • Some suppliers use a payment term of 50% upfront and 50% after shipping, but it's advisable to negotiate for 30% upfront initially.
  • Consider running an inspection to ensure product quality and avoid receiving unsellable inventory.
  • Inspections can be done by third-party companies like Kima and V Trust, who check for specific issues and conduct standard checks.
  • If unable to afford a formal inspection, request your supplier to send pictures or video chat during the production process.
  • Include inspection terms in your purchase order to hold the supplier accountable for fixing any issues.
  • Payment methods typically accepted by suppliers include ACH transfers, wire transfers, and credit cards, with credit card payments incurring fees.
  • Utilize Alibaba's trade assurance program for added protection when making large payments.
  • After making the initial payment, your product will enter production, taking 4 to 6 weeks to complete.
  • Choose sea shipping over air shipping for cost-effectiveness, with freight forwarders assisting in managing the shipment process.
  • Consider using Amazon Global Logistics or freight forwarders like Freight Scope to handle the shipping process efficiently and cost-effectively.

01:50:32

"Amazon Inventory Delivery: Shipping Modes and Keywords"

  • To prepare for Amazon inventory delivery, select a shipping mode based on supplier or freight forwarder's plan.
  • Choose between smaller speed shipment (no pallets) or larger shipment (requires pallets).
  • For pallets, opt for LTL (partial truck) or FTL (full truck load).
  • Select Amazon's partner carrier (e.g., UPS) for inventory pickup if needed.
  • If supplier ships directly to Amazon, no need to pay Amazon for delivery.
  • Indicate the expected arrival date of inventory at Amazon, not requiring precision.
  • Confirm and print FBA box labels for supplier or freight forwarder to attach.
  • Track shipment status in the shipping queue tab.
  • Utilize time before inventory arrival to optimize product listing with Keyword Scout.
  • Use Keyword Scout to research top keywords, track trends, and create keyword lists for listing optimization.

02:02:57

Maximize Amazon Sales with FBA Profit Calculator

  • Click on the Net column to access the FBA profit calculator.
  • Enter your total landed cost, including manufacturing and shipping, and adjust the selling price to reach break-even or a small profit.
  • Lower prices during the launch period to improve keyword rankings and gather reviews.
  • Promote your product with coupons on Amazon to attract shoppers and increase visibility.
  • Utilize advertising on Amazon by bidding on high-volume keywords to reach potential customers.
  • Increase review rates by asking customers for feedback, enrolling in Amazon's Vine program, and using product inserts in packaging.
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