It is no secret that Amazon has established itself as an industry giant. Amazon’s net worth has rapidly risen thanks to innovation in technology and a rise in digital buyers across the globe. In fact, it is ranked as the number one eCommerce marketplace in the world, with 89% of buyers being more likely to purchase items on Amazon compared to other eCommerce websites.
So, if you are exploring options for running a side hustle to increase your disposable income, we have just the answer: Amazon FBA business.
Fulfillment by Amazon (FBA) is a storage and shipping service designed to help businesses sell their products on Amazon. This has many benefits that include low cost of business and access to Amazon customers. Additionally, it also allows you to leverage Amazon’s established reputation and credibility in the market to gain potential customers.
If you’ve been wondering how to start an Amazon business as a side income successfully, keep on reading to find out the basics.
Define Your Strategy
First things first, you need to carefully read Amazon’s terms and conditions and understand the agreement you will be entering into. This will allow you to strategize a way to go about launching an FBA business.
For this purpose, it is essential that you write a comprehensive and well-researched business plan that highlights your goals, future objectives and milestones, and key operational areas such as marketing.
To make this easy, consider using a business plan software to help concentrate your efforts on answering vital and important questions. This can also help you save time and energy by giving you a step-by-step guide in writing your business plan.
Your strategy should be a roadmap that contains future projections for your business. Additionally, make sure you develop a strategy that is customer-centric and values customer needs and preferences. This can help you better perceive and fulfill customer requirements, thereby setting you up for success.
Market Your Business
As with any other business, it is essential that you follow a well-thought-out marketing strategy and use the right channels to promote your products.
One way is to create an ad campaign on Amazon using their Creating Campaigns feature, which allows you to create and manage tailored messages with keywords using scheduled push notifications for target audiences.
Alternatively, you can utilize the power of social media to market your products by creating and maintaining a presence on platforms such as Facebook and Instagram. This will require creating content that is consistent with your brand identity and reflects your brand ethos.
For instance, you can engage in influencer marketing using Instagram by partnering with individuals who have a follower base that largely reflects your target audience.
By investing time and resources to create engaging content that resonates with your customers, you can increase conversion rates, improve repeat purchases, and develop a loyal customer base.
Optimize Your Amazon Page
It is critical that you pay close attention to optimizing your Amazon pages in order to increase traffic on your product pages.
This involves basic strategies such as including relevant keywords in product listing title and description, having multiple professional high-resolution images focusing on the product from different angles, and answering all questions related to your product.
Furthermore, you may also want to focus on gaining customer reviews in order to encourage customers to buy your product. By getting authentic and organic reviews, you can dramatically increase your customer conversion rates.
Monitor and Track Trends
The cornerstone of any business is being able to adapt to a changing environment. This is also true for an Amazon FBA business, where you should pay close attention to key trends in order to stay ahead of the competition.
For instance, remember to regularly check the Best Sellers section and review the Amazon Trend report to stay up to date. This will allow you to gain insights into what customers want so that you can adjust your product offerings accordingly. You should also pay close attention to the reviews on your products and address grievances professionally and swiftly.
Generally, keep track of all business activities so that you have data that can enable you to adjust your strategy in line with changing customer behavior.
Avoid Common Mistakes
As an Amazon FBA business novice, remember to avoid common mistakes that can harm your profit margins.
For instance, avoid sourcing low-quality products that lack functionality and overall durability. While this can seem like a tempting idea, you are likely to incur massive losses in the long run.
You should also abide by the Amazon marketplace rules and regulations to avoid suspension or losing your rights as a seller. This will require adhering to established standards and maintaining transparency in your business operations.
Moreover, keep track of the competition and try to offer better prices and superior quality whenever possible. This may require carefully studying the marketplace and consistently adapting your strategy to stay on top.
Conclusion
We hope that these tips and tricks have encouraged you to start your own Amazon FBA business. Remember to invest time and energy in building your business and to be patient in waiting for the results. As long as you adopt the above-mentioned strategies, you can hope to be successful in running a profitable Amazon FBA business.
Ingrid Maldine is a business writer, editor and management consultant with extensive experience writing and consulting for both start-ups and long established companies. She has ten years management and leadership experience gained at BSkyB in London and Viva Travel Guides in Quito, Ecuador, giving her a depth of insight into innovation in international business. With an MBA from the University of Hull and many years of experience running her own business consultancy, Ingrid’s background allows her to connect with a diverse range of clients, including cutting edge technology and web-based start-ups but also multinationals in need of assistance. Ingrid has played a defining role in shaping organizational strategy for a wide range of different organizations, including for-profit, NGOs and charities. Ingrid has also served on the Board of Directors for the South American Explorers Club in Quito, Ecuador.
