Making the decision to sell using Amazon’s FBA program is a smart one. With this program you are going to have the ability to scale up your existing business or at least delegate all the hard work to someone else who will be more than glad to do it all for you.
Sure there are fees involved, but the added sales volume you can do is going to more than make up for that. Using fulfillment by Amazon does not automatically mean you are going to make more money though. You have to know what you are doing.
If you have certain type of items you plan to sell or if you have certain item you are thinking about buying because you believe it will be a hit, you will want to make sure you follow a few guidelines before using Amazon’s FBA program.
Researching what is selling and what is not
Researching what is selling on Amazon is going to be important. The last thing you are going to want is to use the FBA program and have products sitting in a fulfillment center not moving. You would prefer they move fast. In order for this to be the case certain conditions have to be met.
You have to be selling something that is in demand. You also have to make sure the price is good. Lastly you would want to make sure the market was not too saturated. All of these factors are going to be crucial in helping you decide which products you should list using the Amazon FBA program.
Selling products that are branded
If you decide to sell products that are not branded on using the Amazon FBA program they can sell, but if you sell branded products they have a much better chance of selling.
If you are researching products and you saw that a certain branded product had low competition and low rank for its category, then this is a product that would work well for the program. Branded items might not offer as big a return, because they cost more upfront. But as long as you had a good source to buy them from this should not be an issue.
Making sure there is demand for a product before buying it
One of the worst mistakes you can make if you decide to use the Amazon FBA program would be to purchase a lot of product without knowing if there is demand for it. Researching is key like mentioned before. But sometimes there might not be any existing listing for your product.
If you would be the first to create a listing, then you will want some way to know that there is a market for what you will sell and that the demand would be there. Otherwise it would be wise for you to test with only a small amount of product first. You would also need to make sure the price point was good.
Differentiating your product in order to have the best success with the program
Amazon is very competitive and in order to do well with it you have to set yourself a apart from the crowd. You can do this by creating products listing that compete based on seller rating, price, condition, seller name, seller image, description notes, the diversity of product offerings you might have as well as other dimensions that a potential buyer can see when checking out your listing.
The cheapest price is not going to always be the one buyers choose. There are other factors you will want to consider.