The Truth About Amazon Affiliate Program

There are tons of affiliate programs on the internet and one of the most popular ones is the Amazon affiliate program. However, a lot of people are very reluctant to promote Amazon products because commission payout is a small percentage.

Yet, on the other hand there are actually many people that are earning a full time income just by promoting Amazon products.

So what are the advantages of being an Amazon affiliate? Can you actually make a lot of money with Amazon?

Amazon products are perfect to promote because they sell themselves. Most of their products are highly sought after and a lot of the customers have already decided to buy the product, they just need you to send them there!

But what about the low commission rate?

Yes Amazon does have a low commission rate but it gets a little higher as the number of sales you make increases. Ultimately if you can promote pricier products then you are very likely to earn higher commissions.

But here’s the thing… Even if you are promoting lower priced products you can still sell higher price products.

For instance, I have a website set up that promotes a diet book through Amazon. That simple book sells for around $10 and only gives me roughly 60 cents of commission per sale. So why would I sell such a low commission product?

The first sale that I made from this website was for one of those Kindle products. Even though I’m promoting a diet book in my website, someone arrived at Amazon through my affiliate link but didn’t buy the book; instead they bought this Kindle product, which gave me a much higher commission.

Very often when someone visits the Amazon website through your affiliate link, while they are there on the site they might remember something else that they had in mind to purchase. You not only earn the commission on that particular product you are promoting, you get paid commission on anything that customer browses and buys at Amazon.

There is a large variety of products to promote

There are literally thousands of products on Amazon that you can select to promote. Most of these products have very little competition making it easier to rank well in the search engines for a product that doesn’t have many affiliates promoting it.

Also because the products include descriptions, it is actually very easy for you to write about them, you can even reference the reviews to help in your content creation.

Amazon has high conversions

The conversion rate on Amazon products is quite high compared to a lot of other affiliate programs. A high conversion rate results in great commissions.

Sure not all products are big commission makers, but many Amazon products are. Selecting the right products to sell is one factor that will determine your success rate, but if you do choose the right products then you can earn a nice income with the Amazon affiliate program.

Success and Your Journey to Making an Amazon Kindle Book

Everyone should consider making an Amazon kindle book and start their journey to success. If your goal is to be successful, this is the course for you. Success comes in many forms.

The success you will experience in writing is fulfilment and completeness. The financial success that you will get from this endeavour is a bonus for your hard work and fulfilment. When you make an Amazon kindle book, the goals that you have set for yourself will help you gain effective sales.

But the goals that you set for your market, will determine how you will leave an impact on your readers. Upon writing, you always set goals especially aimed at your market.

Here are some of the goals that most successful writers set:

Informative. The book you write should be informative. Mostly, readers search for information so you should be able to provide them with the information they need.

Factual. Information is not enough, it should be accurate. The readers would be discouraged if the information you provide is inaccurate. So be very careful with this one.

Inspirational. Most readers want to be encouraged especially when daily events put them to a test. They want to find something that will help inspire them.

Entertaining. Entertainment is one of the goals a writer should set for their readers. Remember that your market would not want to be bored while reading your craft, they want to enjoy while reading so provide them with the right entertainment they need; one that is suited to your topic.

New. Every day, new things are born. Readers want updates on new and latest things so be well versed on the latest developments in what you are writing about.

Innovative. Some topics may not be new but readers want to read over the same topics. So bring new spice to a topic that has already been discussed. You may write about old topics but bring a new ‘spin’ so it won’t be redundant.

When you make an amazon kindle book, try to consider the goals stated above. The center of your work is your readers so if you won’t fix a goal you might be lost in the middle of your writing. The successes of a lot of writers always depend on their objectives.

It is hard to write and finish a piece if you do not have objectives to follow. You will keep on wondering what your writing is about and what target you are hitting.

Start your amazon kindle book now. Set goals and be on your way to being the next kindle top author.

FBA – Fulfillment by Amazon

You may have read about FBA on many websites, especially on Amazon. FBA stands for Fulfillment by Amazon. What is it and how does it work? Can you save money or enjoy other benefits with this offer or process? If you are looking for answers to these questions, you are on the right page.

FBA is a process through which Amazon keeps a stock of a seller's goods and then list them on their site for sale. Aside from this, the company receives payments for each order placed online and the delivers the required goods to each buyer.

With the help of this process, a lot of stores have enjoyed a good deal of growth in their sales. Some stores have Amazon complete the orders for goods. Typically, the goods are sent directly to the buyers by the sellers selling directly on Amazon. At times, it happens by the sellers on other websites, such as Etsy, eBay that move to the FBA. So, it's interesting to know how this offer by the big store has benefited people all over the world.

According to many sellers, they have experienced a significant rise in their sales volume. On the other hand, buyers believe that they are purchasing from a trust worthy company instead of an individual. In other words, buying directly via FBA adds to the trust of the buyer in the supplier. So, they may buy again down the road.

Aside from this, sellers can make use of this offer in order to achieve many other benefits. If you use this service as a seller, you won't have to worry about the promotion of the product. Moreover, it will be Amazon's responsibility to deal with buyers and fulfill orders. On the other hand, you can focus on other tasks, such as getting new products and do other tasks that may make your business even bigger.

Additional benefits:

If you are a product owner, you can take some days off without worrying about who will take care of your business while you are away. Your business will keep running while you are having a great time with your friends in Paris. So, you can stay away from your office for as many days as you want. As long as Amazon has your products in their stock, you are good to go and you don't need to worry about anything.

Some people just don't like to deal with buyers directly. They find it hard to deal with difficult customers. Dealing with stress is not their cup of tea. All of these things will be handled by Amazon.

If you don't know anything about FBA yet, know that learning to use it is not hard at all. You can go to the official website of Amazon to download the pdf documents to know more about how to get started. Within a few minutes, you will be familiar with the whole system.

So, if you have your own store, you can benefit from this great service offered by Amazon.

Amazon Gift Cards – Where to Buy Amazon Gift Cards

Now obviously you know that you can buy Amazon gift certificates at Amazon itself, so the question about where to buy Amazon gift cards that occurs to most people is really about where to buy them offline. Sometimes you just can't buy one online. Often, if you have a party you suddenly need to attend and so you need a last minute gift, it is just easier to find a place locally where you can buy a gift card, rather than futz around with figuring out how to do it online .

Thankfully, a lot more stores today are selling gift cards that can be used online as well as at your local brick & mortar store. CVS, for example, carries gift cards for dozens of different companies, including Amazon. All you need to do is take the gift card to the cash register and the clerk will activate the card once you pay for it. You can usually find Amazon gift cards at CVS for the values ​​$ 25 or $ 50.

If you don't have a CVS pharmacy near you, there are several other chains that carry Amazon cards too. Rite-Aid and Longs Drugs both carry them as well, in the same dollar amounts. So just get a nice birthday card to go with it, and you will be all set. They work just as well for anniversaries and wedding gifts too!

If you are in a pinch and none of these stores are near where you live, or they are just out of the gift cards you want, Coinstar also issues Amazon codes when you turn in your change. Many supermarkets now have Coinstar machines so you should be able to get that gift card taken care of before you have to arrive at the party.

Amazon Associates – Affiliate Programs

Amazon.com has one of the most well know and most popular affiliate programs on the net, but this does not mean it is the best.

What are the good things about Amazon associates?

– Amazon sells everything, you can do the same. Just about any product you can imagine is stocked by Amazon and you can sell any of them through their affiliate program for a commission.

– The program is 10 years old and so is very well developed. The help menu and FAQ have all you need to know about using the oldest of all affiliate programs.

– There are lots of different set-up options to choose from. For example 'Omakase links' are targeted to suit the content of your site, where as using 'Product links' allows you to hand pick specific products.

– You can tailor the color schemes of the Amazon ads to suit your site.

– You can simply use text links instead, which saves space of your web page and statistically have a higher click through rate.

– The new 'aStore' allows you to set up a free site to display Amazon products.

– As long as the customer followed your link to Amazon.com, what ever they buy will count and you will earn commission.

The Negatives

– The percentage of commission is very low. You start off at a mere 4% rate, which increases up to a maximum of just 8.5%. This is a major bummer and makes it difficult to justify using the program.

– Everyone knows what Amazon.com is. I say this is a bad thing, because when they click through your ad the first thing they will think is 'oh it's just an Amazon advert'. Arguably you could say that Amazon is a trusted brand and so would increase the rate of sales but I would disagree. People know it can't be a special bargain if it's on Amazon.com.

– There is a lot of competition. A Google search for 'Amazon associates' reveals over 42million results.

Conclusion

Amazon are a household name and clearly is not a 'scam'. Amazon associates is solid, reliable affiliate program but I still would not recommended it. This is simply because the commissions are too low. As a rule of thumb 20% and above is a good commission, anything else, especially 4% is very low and not worth the effort. For this reason Amazon Associates isn't in my 'recommended sites' section.

Everything You Need to Know About Selling Your Product on Amazon

Amazon is one of the most trusted online businesses. As leaders in the field on internet retailing, Amazon has the e-commerce technology and the traffic to sell your products to a global market. If you’re an internet marketing newbie, quickly read through following features that Amazon offers for product sales.

Amazon Features

To give you a feel for the site, let us first take a look at the basic features offered by Amazon. Feel free to visit the site right now – do a search for any product and see what appears on your screen.

Features to notice:

  • Results always contain a professional photo or some sort of graphic of the product.
  • The price is made visible and it is combined with an offer, i.e. free shipping. Notice how the amount that is saved off of retail is made visible. This is an established advertising strategy – Amazon is telling people what the product is worth and that it´s presently selling for less than the amount that it is worth.
  • Amazon mentions the number of items that are in stock and the estimated time that the product will take to get to the customer. Shoppers are more inclined to buy an item when they are aware that the product’s quantity is limited. Time expectation is also a useful feature for most customers and sellers.
  • Amazon makes use of Cross-Selling and Up Selling. This refers to a concept of selling that is based on product similarity or asking the customer if they would to purchase another product that compliments the first one that they bought i.e. when a customer considers one product; Amazon makes a mention of another product that might also interest the customer.
  • A ‘Look Inside’ feature is offered to customers who are shopping for books. This life-like feature allows the customer to have a closer look at the book.
  • Reviews – The ‘Editorial Review´ section describes the product in great detail.
    Amazon also allows customers to review a product. These reviews are usually reliable, fair and act like testimonials about the product. All kinds of feedback can be useful for the seller.
  • Added Extras – Amazon includes various other types of cross-selling and interactive devices i.e. customer discussions, a Listamania feature, Wiki Info etc. All these extras can be used to create interest around specific products or topics.

What CAN and CAN’T be sold on Amazon

Amazon permits sellers to place their products in the following categories: Books, Music, DVD, Video/VHS, Automotive, Baby, Camera and Photo, Electronics, Everything Else, Health and Personal Care, Home and Garden, Musical Instruments, Office Products, Software, Sports & Outdoors, Tools and Hardware and Video Games.

Please note that you will need to get a prior authorization in order to sell in the following categories: Apparel, Beauty, Cell Phones and Accessories, Gourmet, Grocery, Jewelry & Watches, Personal Computers (in Electronics category), Shoes & Accessories and Toys & Games.

The following products cannot be sold on Amazon: Magazines and Newspapers, Adult Toys, Gift Cards and Gift Certificates, Guns and Ammunition, Photo Processing, Prescription Medication, and Tobacco and Alcohol.

How it all works:

  • Registration
  • For you to start selling your product on Amazon, the first thing you need to do is register. This is a simple process that requires you to fill out a short online form to register as an Individual seller.

    If you think that you will need to process more than 40 orders per month you should register as a Pro Merchant.

  • Upload Product Inventory
  • Amazon has made it really simple for you to upload your product inventory. After your registration, you have three options for submitting information that is related to your product:

    Option 1: Use the Add a Product feature on Seller Central to create one product at a time. If you are unfamiliar with Seller Central, all you need to know is that it is Web interface used to deal with all aspects of selling on Amazon.com. You can use this tool to add product information, make inventory updates and later on, handle orders as well as payments though it.

    Option 2: Make use of the Seller Desktop. This is a free and user-friendly desktop application that you can use to add products in bulk or individually to your inventory.

    Option 3: If you want to submit info about many products simultaneously, make use of the inventory files to create multiple products.

  • Your Products get Spotted
  • By listing your products on Amazon, they reach millions of potential customers 24/7 – Amazon’s traffic, now also becomes your traffic.

  • Your Product gets Purchased
  • Buying a product from Amazon is not only convenient, but also really simple and quick. Your product is easily purchased at the click of a mouse.

  • Shipping
  • Essentially, you are in charge of shipping your product to its new owner. Amazon will notify you about the purchase via email when an order has been placed. All you have to do is, pack and ship your product to the customer.
    If you would prefer not to handle this section you could opt for the Fulfillment by Amazon option.

  • Money in Your Pocket
  • Amazon then does the payment to you via a direct deposit into your bank account. You will also be notified about this deposit via email as soon as your payment has been sent.

While we are on the subject of money, let me give you an outline of Fees involved in becoming a Seller on Amazon…

There are 2 major ‘seller’ packages that have been made available by Amazon.

If you are looking to sell only a few products or expect to have less than 40 orders placed per month, you would want to register as an Individual seller. The only fee involved here is a ‘per product sold’ fee of $0.99 – this means that you only pay $0.99 per product that you sell.

On the other hand, if you think that you will be selling much more than 40 products per month, you should sign up to be a Pro Merchant. Here you should expect to pay a standard monthly subscription fee of $39.99 as well as a minor referral and closing fee when your products sell. These fees are related to your products category.

Remember, for both selling options, there are no individual item listing fees and no credit card processing fees.

If you are new to e-commerce, you may be a bit concerned about the idea of doing financial transactions over the internet. Not to fear though- Amazon has developed a few handy features that may help set you mind as ease.

  • Fraud Protection
  • Amazon offers its sellers a world-class payment fraud protection service. They have devised a system that is ridden with personalized notifications that tell you exactly what is going on with your orders and payments at any given time.

  • Credit Card Facilities
  • Naturally, Amazon is licensed to perform secure transactions with most major credit card providers.

  • A-to-z Guarantee Program
  • This program is particularly designed for the safety of the customer but it is important to be aware of a program of this nature as it has been created to establish a sense of business confidence between the customer, Amazon and you.

    The A-to-z Guarantee Program has been fashioned to handle situations where a customer:

    1) Never receives a product or
    2) Receives a product that is different to what was ordered.

    The customer is initially encouraged to contact you (the seller) personally if this type of product arises. If you cannot resolve the problem, the customer can then file an ‘A-to-z’ claim to Amazon. Amazon then sends you an email, which outlines the customer’s claim. You are requested to respond by mailing the order’s basic information and an outline of the fulfillment process. Amazon will then decide how the claim will be settled – this may result in you having to refund the customer.

So now that you know how to get yourself started, you need to learn a few tricks of the trade…

It’s all about the SALES, so what can you do to make sure that your products sell like hot cakes?

Tip 1) Keywords

Appropriate keywords are vital to high product sales over the internet. Keywords drive potential customers to your product, thus it is important to try to add product specific keywords to your Amazon product description as well as anywhere else that you may be writing about your product. If you want to get really high traffic from search engines, you might need to do a keyword phrase analysis of your main product. This can be done by using Google’s external keyword tool, or WordTracker’s free tool. It is essential that you choose suitable keywords, with the highest rankings.

Tip 2) Write about your Products

The more online content available about your product, the better it is for sales. It is important that you write interesting content that will appeal to your market, and make sure that it contains your product’s keywords. The next step is to publish this info all over the web. You can make use of the ‘Listamania’ or ‘So you’d like to%u2026guide’ features provide by Amazon, but you can also feel free to blog about your product or make use of social media sites for further product publicity i.e. make friends or start a group with people on Facebook who possibly have an interest in the type of product that you are selling.

Tip 3) Online Product Promotion Companies

Feel free to do a Google search to find a list of top product promotion companies. There are many companies available that will aggressively market your product online – with this type of external help; you won’t have to personally take on the marketing of your product. The only downside about making use of these types of companies is that most of their services require you to fork out a hefty bundle of cash.

Is Amazon Kindle 2 a Green Product?

Whenever a new gadget comes to the market many people are eager to know about the features and read a review before buying the product. Amazon's Kindle had a great success with book lovers. Amazon is launching the latest generation of Kindle with extra features and more battery life.

Is Kindle 2 a green product? The answer to that is yes it is a green product. Paper and plastic is the worst enemy of our environment. Plastic is not easily bio-degradable. To make paper lost of trees are being cut down. In many ways kindle 2 helps the environment. Each book that is published uses paper means more trees will be cut down. Kindle 2 is can prevent that.

Basically, kindle 2 is digital book reader. You can do more that read a book with this new kindle 2. You can read blogs, magazines and newspapers. You can save a lot of tree just by using the kindle 2. It has many new features compare to the older version. It can hold 1500 books. So you can carry your library with you without the weight of books.

If your favorite book is being published, you do not have to drive your gas guzzling car to the book store and buy it. You can download the book for less without leaving your house. So you save money on gas. That way it is a green product too. It also has improved battery life, so you can read for up to 2 weeks for a single charge. The new streaming design is thin and light weight. It feels like you are holding a magazine. It gives you a luxury of traveling with your favorite books, magazines and newspapers that do not use much space in your luggage.

You can hear your favorite music while you are reading a book. It can read to you, so if you are making a delicious recipe from book, kindle 2 will read it for you. In case you want to book mark any article for future reference, you can do that with kindle 2.

How To Make Money With Amazon – 3 Simple Strategies For Earning A Substantive Side Income

Amazon's third party marketplace gives anybody the opportunity to offer products – either first hand or second hand – to the "organic" Amazon audience.

The reason this is important is because of how the Amazon behemoth has grown substantially over the past 10 years – becoming one of the most popular and trusted destinations in the e-commerce world.

The good news is that if you have the gumption to do it – you can piggyback the success of the company with your own products. This opportunity is currently being taken advantage of by millions of people around the world, from high-flying executives to mom-and-pop setups … the underpin of it all is that if you have a high tolerance for risk, you should be able to make significant progress with it.

Ultimately, if you know what you're doing (with marketing), are assiduous in how you approach the challenge, and ultimately come out with a substantive product – you should be able to provide people with the ability to buy high quality items from you through the Amazon store.

This is the crucible of wealth, and lies at the core of all success stories.

However, understanding * how * to do it is by far more important than just following a simple checklist. This tutorial is going to divulge 3 strategies everyday people can use to take advantage of the Amazon marketplace to make their own money from – providing a substantive side income, if not a full time vocation for you …

1) Selling "In Demand" Products

The first – and probably most common – way to make money with Amazon is to sell "in demand" products which are already being purchased en masse.

It's very easy to spot these – just look at the likes of JungleScout or even some of Amazon's "Best Sellers" lists – in order to determine any products which may be being bought in significant numbers.

The trick here is that if you're able to buy the same products either directly from the supplier / manufacturer, or from some other source, at a cheaper price than is listed on Amazon – you'll essentially be able to buy in bulk quantities products that are popular, listing them for sale on the platform for a profit.

As mentioned, this is the most popular way that people enter the "Amazon" arena – with most people typically gravitating towards products they either know a lot about, or have access to (from their employment or similar). It's quick and simple … but is not hugely profitable (very competitive), and typically requires decent capital investment up front.

2) Creating White Label Products

The next level-up for the world of Amazon is to create "white label" products.

These are basically where a company (particularly in China) will manufacture a product and then just apply another company's logo / brand / stick to it. It's called "White Labeling" because of how the manufacturer will simply create a "white label" on the box, allowing the third party client to apply their own branding as required.

The problem with white labeling is that it typically requires a significant MOQ (Minimum Order Quantity) to be purchased before the company is able to produce enough at a profit. This means that you will typically need a significant amount of capital ($ 10,000 +) to get it going.

White label has a number of benefits over just selling "normal" products (as per step 1) – it allows you to build a "brand" off the back of latent demand, as well as ensuring that you are able to provide a tested product without any R&D. You'll typically make a lot more money, because you're able to buy the product directly from a manufacturer – not a middleman.

Most people typically progress into White Labeling after they've had some success with another product; typically as a way to solidify the gains they've had in that area. This means that if you're looking at getting the most out of a market, it will give you the ability to take some market share without needing to completely design a new product from scratch.

3) Creating Your Own Products

Finally, you can create your own products. This is done * either * to cement a market position, or to create a new market. Whilst by far the most profitable, it's also the most risky strategy listed here.

Not only do you need to ensure you have a "bulletproof" product (one that won't infringe patents / trademarks etc), but you also need to be sure about being able to cultivate demand for said product.

The key with this step is that if you're looking at introducing a new product into the market (be it Amazon or anywhere), you need to be able to cultivate a group of people already interested in buying it.

This initial audience will provide the basis onto which the bulk of the buyers are able to justify a purchase (as a "safe" investment) – which is where the momentum of the product will come from.

As mentioned, this method is by far the most rewarding, as you literally own the entire supply chain. However, it is obviously quite tenuous in the sense of how it will encourage users to sign up to the system.

Ultimately, Amazon is one of the biggest opportunities we have today. If you have a global audience, you're basically able to attract 1,000's of buyers from around the world. The key is understanding when to – and not to – invest.

Transparent Leaves on Amazon Swords

A common experience with Amazon Sword plants is that you will find them growing well, otherwise completely healthy, but with almost transparent leaves. Over time, the general health of the plant begins to degenerate.

This problem is caused by the chloroplasts in the leaves beginning to die, how badly the plant is affected depends on how advanced this has become. Unfortunately there are a number of causes of this particular problem, so it may be necessary to try a number of different approaches before a remedy can be found. If the plants in your tank are overall generally healthy, then do not worry too much, it is most likely that there will be no serious long term damage you need to be concerned about. The most likely causes are a lack of soft, slightly acidic water, lighting conditions and either an iron or potassium deficiency.

One of the most important aspects of plant keeping, outside of maintenance needed to keep water chemistry balanced, is ensuring that plants have the correct level of lighting. It is particularly helpful if lighting used is in the red or blue spectrum, as it is this wavelength that is used for photosynthesis. Amazon Swords will need roughly 2 to 3 watts per gallon of light to grow properly, if you have a tank greater than 18 inches in depth you will need a little more to penetrate to the bottom. If your tap water is hard and alkaline, consider using distilled water for water changes. A decent fertilizer with Iron and Potassium as some of the macronutrients it provides should eliminate any deficiencies.

It is advisable to make sure that everything in your aquarium has very similar needs and the closer this is, the better! It is always important to strike this balance, particularly if things begin to go wrong with one or more aspects of the aquarium. This is the point where you may change lighting intensity, the balance of water chemistry and other factors of the aquarium. Providing that you have done your research beforehand, trying to treat problems with your Amazon Swords should go smoothly, just make sure to be vigilant on how the aquarium fares with changes in water chemistry, lighting, hardness and acidity.

Keeping Amazon Swords can be very rewarding. If you begin to have this problem with them, once you have worked out what you believe has gone wrong or may be causing the issue, you are well on the way to treating them successfully.

How To Make $ 10,000 + Per Month With Amazon FBA

Amazon FBA (Fulfilment By Amazon) is a business opportunity provided by Amazon to encourage business-owners to list their products in its marketplace.

The model works by Amazon providing users with the ability to send their products to its warehouse, and having them "fulfilled" by the retain giant (it sends them out) upon successful purchase.

The reason why Amazon would do this is partly to get free niche products which are both unique and valuable (you own the products – they just ship them for you), and partly to make use of their massive infrastructure (which they would be paying for anyway).

It also adds to their offering as a business, as it gives them an even more diverse array of products to add to their portfolio (which is pretty much their core competitive advantage).

The important thing to consider about the "FBA" model is that it is indicative of the new "digital" business culture that seems to have become even more prevalent after the 2008 crash. Rather than keeping large amounts of stock, overheads and a large team … companies have taken to the Internet & social media to find buyers & create lean enterprises.

Gone are the days when distributors determined the fate of products. Now, new businesses, entrepreneurs and everyday people are able to create $ 10,000 + a month income streams without even having to own any land. All the infrastructure, marketing and fulfilment is handled by a completely independent company (Amazon) – to which you just do the work of sourcing a successful product.

To determine if you'd like to gain advantage from this method of investment, I've created this tutorial to explain the process of utilizing Amazon FBA. Rather than trying to get by on scraps from a local market, the new "digital" realm with all its promise is one of the best ways to get your foot in the door of the new world of enterprise.

How It Works

All businesses work in the same way – buy / build a product, offer the product to a market and any "profit" you're able to make can either be used to live off, or reinvest into more / better products.

The problem for most people is two-fold: 1) they have no product 2) they have no access to a market.

Whilst both are legitimate problems – which would have been a significant drawback in a time without the "digital" medium – times have moved on to the point that barriers-to-entry are so low that you only really need to be able to invest several $ 1,000 to have the opportunity of selling to a global audience.

And despite the fact that the "Amazon" opportunity has existed for almost 10 years now (anyone can list products in its marketplace), the "FBA" model (which is truly hands-off) has only started to become popular in the past 24 months-or-so.

If you didn't go to business school, to briefly explain how to run a "successful" business, you basically need to be able provide a product / service to a large audience. You'd typically aim for around 30% net profit margin (after COGS & advertising costs). How you do this is up to you – the key is to buy low, sell high .

Now, just because the "digital" realm is large doesn't mean it's devoid of the way in which "markets" typically work. Competition is obviously a major force, as is the idea that because something is "easy", it can be replicated relatively simply by others (leading to an erosion of your profits).

Selling on Amazon typically works by providing access to products which people either don't have access to locally, or are able to obtain locally but with major restrictions (such as color / size issues), or with problems in reliability of supply. In other words, whilst the Amazon marketplace is vast – don't think you can outwit supply / demand.

The real trick with "digital" businesses is to provide access to unique products (typically made by yourself or your company) which are only available through you. These products have to be focused on providing a solution that most people have no idea about, and thus makes the proposition of buying it through the Internet legitimate.

Obviously, creating a "unique" product is 1,000x easier said-than-done – the trick with it is to work on solutions to your own problems. Work towards sharpening a skillset, which you're able to apply to a wider audience, from which you'll be able to identify "products" which can be created and offered as a means to simplify / solve problems you've experienced yourself.

Steps

To begin selling on Amazon, there are several steps to take:

  1. Sign Up For Amazon Seller Account The first step is to get a "seller" account from Amazon. There are two types of seller account – "individual" and "professional". Individual is free and allows you to "list" items which already exist in the Amazon catalog. You pay a small fee each time a product is sold. Professional costs $ 40 / mo, and has no extra "per sale" fees (although other fees such as a stocking fee etc may apply). This is the only account which allows you to list new items in Amazon's catalog.
  2. Sign Up For GS1 This gives you the ability to * create * barcodes. They come in two formats – UPC (Universal Product Code) and EAN (European Article Number). Whilst these can be bought relatively cheaply ($ 10), Amazon, Google and eBay strongly recommend using GS1 for standardization. By using GS1, you're able to have your products recognized by the likes of Amazon. The downside is the cost, but it shouldn't really matter – we always recommend setting aside ~ $ 500 for admin costs, of which this would definitely be one.
  3. Create A Legal Company (Optional) If you're looking to set up a real FBA operation, you'll need a legal business (and bank account). Apart from giving Amazon the ability to open a business account, it allows you to better manage taxes (which are notoriously bad for investing your own money in a personal capacity). This is very easy to setup, but is only necessary if you want to actually deal with Amazon on an FBA basis only. If you want to just sell products on the system, you're welcome to do it under your own name.
  4. Buy / Build Boxed Products You then need to get a set of boxed versions of the product. If you make the product yourself, you need to get them into standardized boxes. Because thre are so many ways to do this, we'll just say that you should look for a boxing / printing company to handle it for you. There are many capable ones. You must also follow Amazon's guidelines on what types of packaging they accept.
  5. Send The Products To Amazon Once you have the boxed products, you need to send them to Amazon. This is arranged through the Amazon seller system, allowing you to pick a time when the products should receive at the Amazon warehouse. Again, due to the level of variation in the process, it's best to say that you should follow the Amazon guidelines in order to do this.
  6. Start Selling This is the hardest part, which is explained below.

Selling The Products

The last step is to get the products sold. This is the hardest as you're almost entirely at the whim of the market (both Amazon's and any other market you may bring to the platform).

The trick to getting products bought from Amazon is effective marketing .

Marketing comes down to several points – the most notable being that you need to be able to firstly attract the attention of potential buyers and then build demand – giving them the opportunity to buy your product as a means to satisfy that demand.

Whilst there are many ways to do this, you must remember that if you're going to do it effectively, you need to be able to go out and market the product independently of whether it's going to be popular on Amazon. The less you need Amazon, the more likely it will be that you'll actually get people buying through the channel.

– Hey.

Finally, we must also point out that any sales you make must not be counted as pure profit.

Your profit ONLY comes after your other costs have been accounted for (such as the actual products themselves, boxes and marketing). It is a rookie mistake to think that the money you receive from Amazon will actually be your "take home" profit – it's not.

You need to accumulate your initial principle from the gross revenue and then decide what to do with any profits made (as mentioned – this comes in the form of either paying yourself, or putting back into better / more products).

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