How to sell on Amazon FBA in 2024

Selling stuff online is a fantastic way to kickstart a business and rake in some cash. And if you're thinking of diving into the online sales game, Amazon should be your go-to destination.

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Posted by Dragon Dealz Amazon FBA Expert
How to Sell on Amazon

Selling stuff online is a fantastic way to kickstart a business and rake in some cash. And if you're thinking of diving into the online sales game, Amazon should be your go-to destination.

Posted by Dragon Dealz Amazon FBA Expert

Sharе

Why Amazon?

Because the Amazon marketplace is huge and it’s growing like crazy, especially as folks are increasingly shopping online for just about anything.

Here are some eye-opening facts:

  • Fact #1: Two out of every three Americans are Amazon shoppers, and a big chunk of them are loyal Prime members.
  • Fact #2: In the third quarter of 2023, a whopping 51% of U.S. shoppers started their online product hunts right on Amazon. And over half of them admitted that if they had to stick with just one store, it would be Amazon.
  • Fact #3: Back in 2022, Amazon ruled the U.S. ecommerce scene with a massive 38% market share.
Despite all the economic ups and downs, ecommerce is on fire, especially Amazon. A solid 57% of U.S. consumers are hitting the “buy” button on Amazon every week or even more often, with 18% shopping there 2-3 times a month.

Now, if you’re wondering how to jump into the Amazon selling game, here’s the lowdown: Amazon’s Fulfillment-by-Amazon (FBA) program.

With FBA, it’s a breeze.
You send your products straight to Amazon’s warehouses, they store them, and when someone places an order, Amazon ships it out (yep, 2-day Prime shipping), and they handle all the customer service stuff.

Is it really as simple as it sounds?

Absolutely!
If you pick the right product and put in some time and effort, you can rake in tens or even hundreds of thousands of dollars a year by selling on Amazon, even if you’re just starting out.

So, how does it all come together?

Jumping into selling on Amazon?

Jumping into selling on Amazon?
It’s a wise choice, especially when compared to platforms like Shopify, eBay, and others. With Amazon, you’re diving into a massive pool of ready-to-buy customers. The tools and support outshine the competition, streamlining everything so you can focus on making your product the best out there. Plus, Amazon’s trust factor and global reach are unmatched. It’s like having a friendly, powerful ally in the e-commerce jungle. If you’re all about making your brand big and reaching customers far and wide, Amazon’s the champion you want in your corner.

Posted by: Jonah Harrison Amazon FBA expert

So, what's the deal with Amazon FBA?

Amazon FBA stands for Fulfillment By Amazon, and it’s a sweet service Amazon offers to help out sellers. Here’s the lowdown: they handle storing, packing, and shipping your stuff for you. You send your products over to one of Amazon’s fulfillment centers, and they keep your items safe and sound until someone snags ’em.

Now, why is this a big deal?

Well, it makes your life as a seller way easier and helps you reach more customers. No more dealing with packing boxes and running to the post office!
To become an Amazon seller, all you really need is something to sell, a seller account, and a way to get your goods to the buyer.

And guess what? Amazon’s got some different ways you can sell your stuff:

  • Private Label: This is where you create your own brand and slap it on a product. Like having your own line of goodies.
  • Wholesale: You buy a bunch of stuff in bulk either straight from a brand or from distributors with extra stock, and then you sell it on Amazon.
  • Reselling/Arbitrage: You snag discounted stuff from retailers or online and flip it on Amazon for a profit.
  • Dropshipping: You buy products directly from a manufacturer, and they handle the shipping directly to the customer.
  • Handmade: If you’re crafty, you can make your own products to sell on Amazon.

But hold on, let’s dive deeper into the private label game ’cause it’s a real winner.

Top Advantages of Amazon Private Label Brands

  • #1

  • You’re in Charge of Your Brand: With Amazon’s private label, you get to run the show. You decide how your product looks, feels, and how you want to present it to your customers.
  • #2

  • More Money in Your Pocket: Selling your own branded products usually means you’ll make more profit. That’s because you’re cutting out the middleman and selling straight to your customers.
  • #3

  • Less Competition: When you sell your own branded items, you’re not fighting tooth and nail with a bunch of other sellers over the same product. Your brand stands alone, which can mean more sales for you.
  • #4

  • Customers Come Back for More: If people love your product, they’ll remember your brand and keep coming back. That’s how you build a fan base and keep your sales rolling in.
  • #5

  • Quick Changes, Quick Wins: Got feedback? Notice a new trend? With your own brand, you can quickly tweak your product to keep up with what your customers want. This keeps your brand fresh and relevant.
So, here’s the deal in a nutshell: you hunt down the perfect product to sell on Amazon, and once someone buys it, Amazon takes care of the rest.

Here’s how you sell private label products on Amazon FBA:

  • They get your products (either from you or your supplier) and stash ’em in their massive robot-run warehouses.
  • When someone orders your product on Amazon, they handle the transaction, grab your item from their warehouse, pack it up all nice and snug, and ship it off to the customer.

Now, if you don’t go with Amazon FBA, you’d be doing all that fulfillment stuff yourself, and trust us, it’s a whole different ballgame.

Wondering what to sell on Amazon?

Let’s break it down: finding a hot product, making sure folks will buy it, and setting the right price.

First things first, here are some tips to supercharge your product research:

  • Validate Your Idea with Data: Don’t rush. Take your time to research.
  • Use Tools Like Jungle Scout: They help you sift through millions of products. Now, let’s dive into how to find that profitable, high-demand, low-competition gem to sell on Amazon:
  • Profitability: When you’re assessing a product, ask yourself: Can I acquire and deliver it to Amazon at a cost significantly lower than its selling price? You can typically apply the “rule of 3’s” to gauge this. Break down a product’s sale into thirds: one-third goes towards fees, one-third covers landed costs, and the final third is your profit.

For instance, if an item is sold for $15, you should anticipate a profit of $5.

Enroll in Amazon Brand Registry for multiple advantages. It reduces the risk of counterfeit products under your brand.

Cost Breakdown

Landed Costs

These are the combined expenses related to producing and delivering your product to Amazon’s warehouses. They include:
  • Cost of inventory
  • Any costs associated with preparation or inspection
  • Shipping expenses
  • Duties or import taxes
  • Amazon’s Fees
  • Referral Fee: This is essentially Amazon’s commission for each item you sell on the platform, typically a fixed 15% of the product’s selling price.
  • Selling Plan Fee: Professional Amazon sellers are charged a monthly fee of $39.99, while individual sellers (those who typically sell fewer than 40 units per month) pay $0.99 per sales transaction, with no monthly fee.
  • Fulfillment Fee: FBA sellers pay a per-product fee to cover Amazon’s costs for packaging and shipping products. This fee varies based on the product’s weight, dimensions, and the marketplace where you’re selling.
  • Storage Fees: FBA sellers may incur either a monthly storage fee or long-term storage fees.
  • Other Costs
  • Additional business expenses may include advertising and packaging expenses.

Generating Revenue

Naturally, your earnings from each sale will hinge on the product’s purchase cost and the various fees incurred along the process. As a general guideline, targeting products priced between $20 and $70 is advisable to maintain healthy profit margins.

Products priced below $20 may yield minimal profit margins, potentially making them less worthwhile. Conversely, products priced above $70 may deter some customers, especially if they are unfamiliar with the brand.
To calculate your profits, simply deduct the fees and expenses from your anticipated revenue.

Demand:

Do people actually want this thing? Look at sales data to find out.

Competition:

Next, we should assess the competitive landscape by gauging the presence of similar products and identifying potential opportunities for newcomers like yourself.

The essential metrics for evaluating competition include the volume of similar products available and the quality of their reviews and ratings. In simpler terms, we need to determine if the existing products on Amazon are well-received by customers.

So, how do you actually do this? Here’s the scoop:

  • Start by searching Amazon’s product database using filters for price, sales, reviews, rating, listing quality, product tier, and seller type.
  • Keep an eye on size, weight, ease of sourcing, seasonality, and uniqueness.
  • You can also use Jungle Scout’s Chrome extension while browsing Amazon to gather data on products you’re interested in.
  • With these tips and tools, you’re on your way to finding that winning product to sell on Amazon. Happy hunting!

From my experience with Amazon FBA…

From my experience with Amazon FBA, getting those first reviews is a game-changer. They’re super important – they build trust and kickstart your sales. Plus, remember, without reviews, your PPC campaigns just won’t hit the mark. So really, those early reviews? They’re the secret sauce for your product’s success.

Posted by: Alissa Kimball 6-year Amazon seller

Which Products Are Amazon
Bestsellers?

Amazon's top 10 bestselling product categories include:

Home & Kitchen

Beauty & Personal
Care

Clothing, Shoes
& Jewelry

Toys & Games

Health, Household
& Baby Care

Baby

Electronics

Sports &
Outdoors

Pet Supplies

Office Supplies

hese 10 categories have the highest
number of FBA sellers

Let's kickstart your product research process

We’ll guide you through the steps to generate and refine a list of potential product ideas based on the key factors of profitability, demand, and competition.

To begin, we recommend using Helium 10/ Jungle Scout’s tools that allows you to delve into Amazon’s extensive product catalog, which comprises hundreds of millions of items. You can efficiently filter products to narrow down your options based on specific criteria, helping you identify promising product ideas.

*Screenshot taken from Jungle Scout.

Here's how to get started:

Define Your Category:

Select the category you’re interested in exploring.
For instance, if you want to discover opportunities in the Pet Supplies category, choose that category as your starting point.

Apply Filters:

Utilize various filters that align with our primary criteria of profitability, demand, and competition.

Here are the key filters to focus on:

  • Price (for profitability): Aim for products in the price range of $20 to $70.
  • Sales (for demand): Target products with a minimum of 300 units sold per month, which roughly equates to around 10 sales per day.
  • Number of reviews (for competition): Among the top 10 products, look for an average of 500 reviews or fewer. Ideally, 3 to 5 of them should have fewer than 50 reviews.
  • Rating: Seek products with low star ratings, preferably a maximum of 4 stars. These present opportunities for improvement and outperforming competitors.

By applying these filters, you can streamline your list of potential products that merit further investigation.
This will help you focus your research efforts effectively.
If you’re unsure about which category to explore, feel free to explore multiple categories.

Additionally, you can refer to our comprehensive product category research guide for more insights on honing your product research process.

There are several additional factors you should take into consideration during your product evaluation process:

  • Size and Weight: Assess the physical dimensions and weight of the product. This information is crucial for determining shipping costs and ensuring affordability.
  • Sourcing and Manufacturing: Evaluate how easily you can source or manufacture the product. A smooth sourcing process is essential for maintaining a consistent supply.
  • Seasonality: Ideally, your chosen products should have year-round demand. Consider whether the product’s popularity fluctuates with seasons or holidays.
  • Uniqueness: Check if the market is already dominated by a single brand or multiple well-established brands. A less competitive market can be more favorable for newcomers.

While many Amazon sellers follow similar criteria in their product research, you can gain a competitive edge by delving deeper into these aspects.

How to Source Products for Amazon FBA in 3 Steps:

  • Research and Compare Suppliers
  • Evaluate Product Samples and Make Improvements
  • Order and Ship Your Products to Amazon’s FBA Warehouses

Research and compare Amazon suppliers

There are countless manufacturers worldwide capable of creating a wide range of products.
Your goal is to shortlist suppliers capable of delivering top-quality products at competitive prices.

Here are some methods to locate such suppliers:

  • Alibaba.com: Alibaba is the world’s largest B2B platform. It features a search function similar to Amazon’s, allowing you to discover products and their respective manufacturers.
  • Sourcing Agents: Sourcing agents play a crucial role in helping you find high-quality products at competitive prices.

They often have expertise in the language of the country you’re sourcing from, providing you with an advantage in negotiating favorable pricing.
Reputable sourcing agents can be found online.

What to Consider When Choosing a Supplier:

Product Quality

Maintaining high product quality is essential for positive Amazon reviews and sustained sales. Prioritize suppliers that offer top-notch products.

Experience

Look for manufacturers with a minimum of 3 years’ experience in producing your specific type of product. You can check their import history in the Supplier Database.

Communication

Opt for a factory that communicates effectively and responds promptly to your inquiries. Assess their responsiveness when requesting a quote.

Pricing

Seek fair pricing for your products. Be cautious of suppliers quoting significantly higher or lower prices than others, as it may raise concerns.

Contacting Suppliers for a Quote:

  • Create a Shortlist: Begin by comparing suppliers and compiling a list of 5-10 potential partners you’re interested in working with.
  • Initiate Contact: Reach out to these potential suppliers by sending an initial email.
  • Evaluate Responses: Assess the responses and communication from suppliers to refine your list further, ultimately selecting your top 3 preferred options.
  • This process helps you identify suitable suppliers efficiently.

Evaluating and Customizing Product Samples:

Once you’ve identified potential suppliers through your initial communication, the next step is to order product samples.
This is a crucial phase to ensure you’re making the right investment in a quality product.

Order Samples

You can anticipate spending between $50 and $150 for a sample, with delivery by air typically taking 1-2 weeks.

Dragon Dealz tip

When requesting samples, consider asking for multiple samples to ensure consistency in quality.
Some suppliers may credit the sample cost if you proceed with a bulk order, so inquire about this possibility when placing your sample order.

Inspect Samples

Upon receiving your samples, thoroughly examine them for quality, adherence to specifications (ensuring they meet all requested details and features), and functionality (confirming the product functions as intended).

Modification Requests:

If the sample doesn’t meet your exact requirements, you can request modifications (often at an additional cost). Modifications might involve adding a logo, adjusting dimensions, adding or removing components, and more.

Packaging and Branding:

Consider whether you want branded packaging for your products (such as custom boxes, bags, or stickers). If so, have your design ready to provide to your supplier at this stage. Your supplier should provide packaging dimensions for your graphic designer to work with.

Ordering and Shipping Your Amazon Products:

Once you’re satisfied with the product and ready to move forward, it’s time to proceed with selecting your supplier, finalizing order details, and arranging to send your products to Amazon’s warehouses to kickstart your sales.

Ordering and Shipping Your Amazon Products:

#1

Pricing Your Products

Decide on the pricing strategy for your products and agree on pricing terms and payment methods with your supplier. Be prepared to settle the invoice for your order.

#2

Quality Inspection

Prior to sending your products to Amazon’s warehouses, conduct a thorough quality inspection to ensure they meet your specified standards and requirements.

#3

Shipping Arrangements

Determine your shipping logistics, which may involve collaborating with a freight forwarder, especially for international shipping.

#4

The manufacturing process for your product typically takes between 2 to 6 weeks. During this period, you can prepare for the launch of your business on Amazon.

  • Use this section for additional keywords, details, or brand information.
  • Reiterate important points mentioned in bullet points.
  • Utilize the 2,000 characters allowed.
  • On the Amazon app or mobile browser, the description is shown before bullet points.
  • If you’re brand registered, consider using A+ Content for more customization and branding, including additional images and text.
  • For assistance in generating an optimized listing, Jungle Scout’s Listing Builder with AI Assist tool can help create a title, description, and features using your keywords.
Creating your product listing is a critical step because it’s how customers discover and buy your item on Amazon. Let’s go over the essential steps to set up a successful listing:

Research keywords for effective listing.

Having the correct keywords in your listing is essential because they help your product reach the right customers who are ready to make a purchase.

Buy a UPC barcode for Amazon.

Amazon needs you to have a Universal Product Code (UPC) barcode to list your product on Seller Central.
This is the barcode you see on most packaging.
You can buy UPC barcodes from GS1, the global organization that sets these standards.

Here’s how to create your listing in Seller Central:

  • Add your product and choose the most relevant category and subcategory.
  • Include your UPC code under product ID.
  • Enter your product title and brand name.
Dragon Dealz Tip – You can edit your listing later as needed.
After you start selling, you can make changes to test different product details and optimize your listing.
Additional sections in the listing setup allow you to add product variations (if applicable), SKUs for inventory tracking, and provide product description details, including keywords and images. Once you click “save changes,” your listing will appear in Seller Central under “Manage inventory.

Here's how to write and optimize your Amazon product listing:

Draft your listing’s title:

  • Include top relevant keywords with high search volume.
  • Ensure the title is readable, not stuffed with keywords.
  • Use up to 200 characters but aim for fewer than 80 for readability.
  • Include high-volume keywords your competitors are ranking for.
  • Avoid using all caps, capitalize the first letter of each word, except prepositions, conjunctions, or articles.
  • Start with your brand name and use numerals (e.g., “2” instead of “two”).
  • Avoid subjective commentary like “Best Seller.”

Draft your listing bullet points:

  • Focus on informing customers about product features and uses.
  • Include relevant keywords that couldn’t fit in the title.
  • Concisely explain main selling points and benefits.
  • Address common questions.
  • Provide information like sizing, quantity, and materials (if applicable).
  • Keep bullet points under 1,000 characters each.
  • Use sentence fragments without ending punctuation.

Draft your listing description:

  • Use this section for additional keywords, details, or brand information.
  • Reiterate important points mentioned in bullet points.
  • Utilize the 2,000 characters allowed.
  • On the Amazon app or mobile browser, the description is shown before bullet points.
  • If you’re brand registered, consider using A+ Content for more customization and branding, including additional images and text.
  • For assistance in generating an optimized listing, Jungle Scout’s Listing Builder with AI Assist tool can help create a title, description, and features using your keywords.

Ensure your product listing stands out and attracts customers with high-quality image.

it’s crucial to have high-quality images and videos.
Customers often prioritize images, especially on mobile devices, before reading the description.

Here's how to get the best visual content for your listing:

Consider Professional Photography:

While you can take pictures yourself, it’s advisable to hire a professional photographer. They can present your product more effectively than your competitors.

Follow Amazon's Photography Requirements:

Accurate Representation:

Images must accurately represent the product for sale. Main Image: Your main product image should have a plain white background, without props or watermarks.

Product Dominance:

At least 85% of the main image should showcase your product. Size: Ensure your image is at least 1000px by 500px to enable zooming. Amazon recommends image files of 1600px or larger on the longest side.

Multiple Images:

You can include up to 9 pictures, and it’s advisable to use as many as allowed. No Amazon Logos or Trademarks: Images must not feature Amazon logos, trademarks, or anything confusingly similar, including terms like AMAZON, PRIME, ALEXA, or the Amazon Smile design.

No Amazon Badges:

Avoid including badges used on Amazon, such as “Amazon’s Choice,” “Premium Choice,” “Amazon Alexa,” or any variations. By adhering to these guidelines and investing in high-quality visual content, you can enhance your product’s appeal and increase its chances of attracting customers.

Develop a Launch Strategy

Once your product is listed on Amazon, it’s crucial to generate traffic and sales from the very beginning. This not only enhances your Best Seller Rank (BSR) but also improves your listing’s organic visibility.
Therefore, it’s essential to create a robust marketing strategy before listing your product on Amazon.

Let's break down the essential steps:

1. Launch Strategy:

To improve your Best Seller Rank (BSR) and start strong, focus on these factors:
Maintain well-stocked inventory to prevent going out of stock.
Optimize your listing with relevant keywords throughout.
Track customer success metrics, including click-through rate, add to carts, purchases, and reviews.

2. Conversion Rate Optimization:

Enhance your conversion rate by following these steps:

  • Ensure your listing is optimized with keywords and images.
  • Price your product competitively but profitably.
  • Offer discounts to attract new customers.
  • Accumulate as many positive reviews as possible.

Getting Reviews:

  • Gathering good reviews is crucial for your product’s success.
  • Consider these methods:
  • Use Amazon’s “Request a Review” feature.
  • Utilize Dragon Dealz’s “Review Zone” service.
  • Participate in Amazon’s Vine Program, where verified reviewers share unbiased opinions.
The “Keepa” graph below illustrates the direct correlation between review growth and sales improvement.
Need Help Boosting Your Reviews? Click Here to Start Enhancing Your Ratings and Reviews!

Amazon PPC Advertising:

Amazon PPC is a powerful tool to drive traffic and sales.

Understand the basics:

Sponsored Products:

These ads appear at the top and bottom of search results.

Sponsored Brands

For brand-registered sellers, these ads display your logo, headline, and products.

Sponsored Display

Target consumers who have viewed your listing or similar products on external websites.

Creating a PPC Ad

When creating a PPC ad, follow these steps:

  • Prepare a list of relevant keywords through keyword research.
  • Choose between automatic or manual campaign types.
  • Name your campaign for easy tracking.
  • Set a daily budget, typically $50 to $100, depending on your budget.
  • By implementing these strategies and understanding the intricacies of Amazon selling, you can enhance your product’s visibility, conversion rate, and overall success on the platform.

Offer Discounts to Boost Sales

As a part of your launch strategy, consider offering discounts and special deals to attract buyers. There are three main types of offers you can utilize:

  • Percentage Off: Offer a percentage discount on your product’s price.
  • Discounted Coupons: Provide coupons that customers can apply to get a discount.
  • Buy X Get Y (BXGY) Offers: Offer promotions where customers receive additional items when they make a purchase.
  • Additionally, you can run giveaway campaigns on Amazon. The winner receives a free product, while other participants who don’t win can still enjoy a percentage discount on your product.

Honestly, I totally recommend the FBA model…

Honestly, I totally recommend the FBA model. It’s a no-brainer. You store your products with Amazon, and they handle all the shipping and customer service. It’s like having a powerhouse team without the hassle. Plus, your products get Prime status, which customers absolutely love. It’s a smooth, worry-free way to scale up and keep your customers super happy.

Posted by: Alissa Kimball 6-year Amazon seller

Final thoughts

Now that you have all the essential information to start your Amazon selling journey in 2024, consider exploring Dragon Dealz.

It’s a top-notch platform for Amazon FBA sellers designed to improve your selling strategies and simplify your path to success.

Begin your journey to success in the ever-changing Amazon marketplace by leveraging Dragon Dealz’s valuable resources and solutions.

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