How Amazon Seller Central FBA Works and Basics.
This article is all about Starting an Amazon FBA Business in 2021 – How can we Start an Amazon FBA Today. Amazon FBA is a business that you can start from anywhere in the world. We will discuss here what Amazon FBA is, how it works.
The majority of items being sold on Amazon are sold by third-party sellers like you and me. Whenever you buy something on Amazon, you’re buying the items from a private seller. It’s rare to buy items directly from Amazon. Anyone can become a seller on Amazon and start a business by selling their own custom products.
Amazon Cental sellers can ship the items in bulk to Amazon, Amazon will take care of shipping the items to the customers with a return policy. This is very beneficial because sellers don’t have to spend their time for shipping the items or hiring people for business. Instead, they can focus on expanding their business and making new products to sell.
Register in Amazon as a Seller
The first step is, Log in to Amazon Central .com and sign up for a seller’s account ( Given website link last ). Amazon central is different from the Amazon.com main website. It is not necessary to need a company or a business license to become an Amazon seller.
The professional account costs forty dollars a month, free Individual accounts are available with per sale charges which recommend only for trial purposes. Other free accounts for people who are already in the Amazon product catalog. So you need to choose your account type and register in Amazon central belongs to your business target geographical area like Amazon UK, Amazon USA, Amazon India, Amazon Middle East, Europe, Africa, etc.
Choose the right products for Amazon FBA
We should do research on which products need to select for selling, search in Amazon itself or other online platforms to find trending, best-selling products. Avoid seasonal products cause we are looking for long-term business and brand building. Also try to Avoid consumable, Electronics products in the beginning. DO NOT go with any established brands copy products with the same label and logo like fake Gucci belts and Nike’s etc,
Best Amazon Seller FBA Business Plan.
Once you complete your Amazon Central registration we start selling our own private label products. Private label means, we have our own logo and brand name for our products. The logo and brand name do not need to necessarily be legally registered trademarks. This is something that we will simply make in different ways like on Photoshop, other designing tools. You can make many categories of products that you sell with different brands and logos for each category. We need to list our products and make a page on the Amazon website. This can only do with a professional account.
Select best Ranking (BSR) products
The most important thing when it comes to selling on Amazon is ranking. Ranking products on the first page of Amazon is one of the most important parts of any Amazon business. 90 % of all sales made on Amazon comes from the first page. BSR stands for best seller rank. Every item that is in the Amazon catalog has a BSR number at the bottom of the page.
The lower the BSR number is the best-selling product. The Lower BSR number is the item that is more selling in that category. So if the BSR is one, that item is the number one seller in that category, anything under 10000 is good and anything under 1000 is usually selling over 100 units a day. Your goal when selling on Amazon is to have this number be as low as possible and be in the group of best sellers or lowest numbers in that category.
Get direct Manufacture from Alibaba.com
Find your own private label products through Alibaba.com ( All Links given last). Alibaba is a China-based website in which suppliers and manufacturers listed their products directly. Alibaba.com has a lot of suppliers and manufacturers that produce all kinds of products. if you want to make clothes, you go to an Alibaba clothing manufacturer. If you want to make kitchen accessories, you find manufacturers for that. If you want to make fitness products, you find a manufacturer who makes fitness products.
So the first thing you are going to do is, sign in to Alibaba.com for a free account. Alibaba.com has suppliers which can sometimes just be middlemen who are not real factories. One very important thing to look that make sure the supplier accepts PayPal. Usually, if a supplier accepts PayPal that means you’re dealing with the largest supplier. Find a product and contact the supplier then send a picture to the Chinese manufacturer and let them know that you want to ship DOP, DOP means the complete price of shipping, customs fees, taxes, and everything else. Remember, you always have to negotiate for a better price.
Use Amazon FBA Revenue calculator for pricing .
Always apply a rule when you make FBA products is that, make products that have at least a ten-dollar profit margin. Amazon has a tool called the Amazon FBA Revenue calculator, which will let us calculate our price. Go to Google and get the Amazon FBA Revenue calculator tool page. Check with the same category products price in Amazon and your cost.
Compare your manufacturer price
Check the price offered by Chinese suppliers on a website called 1688.com.This is basically a website of Chinese factories and manufacturers. This is the Chinese version of Alibaba. From 1688.com Chinese suppliers and middlemen go and purchase their products and resell them to US, European customers. Open 1688.com in Google Chrome and convert it into English. Prices are in Chinese yuan. Compare the prices and make sure sure you got a good price from your supplier.
Order a Sample product.
The cost of the sample will be basically free. If you paid fifty dollars for a sample and the total order price is one thousand dollars, you will have to pay 950 because you already paid fifty dollars. After that, you will tell the manufacturer all the details of your order. You will send them your logos, any box artwork, any paper artwork, and anything else you need to be done, such as custom colors by mail. If the sample quality is good and the price is good and you want to proceed with the order. you will send all the details of what you need and you will contact the supplier and let them know that you already place an order.
How your orders works In Alibaba.com
When you place an order, you will pay 30 % as a down payment for the manufacturer to begin production on your order. The manufacturer will send you a link and you will pay 30 percent. Always pay this amount with the credit card, never pay through wire transfer production will take about a month and shipping will also take two weeks to a month if shipped by vessel.
When production is done, the manufacturer will let you know, show you pictures of all the units and you will pay the remaining 70% and they will ship out your order once production is done. You can also pay Alibaba around one hundred dollars and they will do an inspection of the order to make sure everything looks correct. They will send the person down to the factory and they will inspect the finished product and make sure it matches what was agreed upon in the order.
Select a shipping Mode.
There are two main ways to ship products from China to the U.S. If you have light or small items by airmail or several heavy boxes by ship. There are two main ways to through by air, Standard air, and Express air. Standard air goes to passenger airplanes and is slower and will take a few weeks, express air by UPS, DHL, or FedEx and will arrive in three to five days. Make sure you tell the supplier to declare the value of each box under six hundred dollars so that you don’t have to pay customs fees after your products arrive in the US.
If you are sending out stuff that is large or heavy or that has a bunch of boxes you will have to send it through the sea by a vessel. This is called sea shipping. Sea shipping will be cheaper most of the time. If you got to ship from China to US Ports, it will take the vessel around two weeks to arrive. If it’s going to a port on the East Coast, such as New York, it will have to go through the Panama Canal and that will take about a month.
You can track the vessel by using a website called Marinetracker.com. You will simply enter the ship name and marine traffic will track it by satellite and tell you exactly where it is. When your orders ship by vessel, the supplier will give you a paper called the Bill of Lading, also known as the BOL. This will contain all the shipping info that you need, such as the ship name and the container number. You can also track all of the info about the shipment and the status using a free app called CRUX Systems. This app will show you everything, such as the estimated arrival date and the status of the container is.
After the vessel arrives at the port, it will take around two weeks until it reaches the Amazon warehouse. The goods will be transported to a warehouse to unpack the container and then send to rail or to the Amazon warehouse by truck. The logistics company will have to schedule a delivery day with Amazon. Two types of container loads you can use, LTL or FCL. FCL means full container load, meaning the entire container is filled with only your product.
LTL means less than container load. This means that your items are going to be shipped with other people’s products and will need to go to a special warehouse for repackaging. Prior to being delivered to the Amazon warehouse, most shipments will be shed by LTL. The only time you will have FCL shipments is when you order a lot of products to fill up an entire container.
You should negotiate with the manufacture for DDP Shipping Not FOB, you need to figure out who will do all of the logistics of the shipping and who will be paying for the shipping when starting out. Always do DDP shipping. This stands for all duties paid. This means the supplier will pay for all shipping and you don’t have to pay any customs fees or any other kind of fees. Everything will be completely paid for from their factory to the Amazon warehouse.
Listing your product in Amazon seller Central Catalog
The next step when production is finished, you have to list your products in Amazone central website Catalog option. Eventually, you generate product SKUS, ASINS barcode labels from Inventory. This barcode label pdf file should send to the manufacturer so that they can glue them onto each item.
The differences between SKUS and ASINS, SKUS is the number which Amazon will scan at Amazon Warehouse and ASIN is the Amazon product id number of the Amazon catalog page., SKUS is a stock-keeping unit. This is for the Amazon warehouse to keep track of your inventory and ASINS refers to the Amazon catalog page for your product. Go to Amazon seller central, in the catalog add your products to get barcodes in UPC Format.
Optimize your products in Amazon listing
The most important part of having a successful product on Amazon is to create an optimized listing. Optimized means that there are plenty of keywords so customers can find their products. The more people see our product, the higher chance we have of getting a sale. We want our product to ring for many different keywords, not just the product name.
When someone types these words or phrases into an Amazon search, we want these to show up on the first page as well. The more keywords we write for, the more sales chance we will get. So right here on the product name for the listing title, we want to squeeze in as many keywords as we can. When production is done, the manufacturer will let us know and we will send them labels to each box and product. When the products arrive at the Amazon warehouse, Amazon can scan and link the products to our account, it’s adding to our inventory.
After listing your products go to inventory from amazon central -> find the product select the edit option then -> select send/replenish inventory option. You can see right there the manufacturer’s address. Next, you’re going to ask the manufacturer how many boxes are being shipped and how many units are in each box and update it in inventory. The next step is to print the SKU labels, print the SKU labels from that page, take this PDF then send it to the manufacturer. Also, select the approximate shipping date
The next step is to rank your products. This is one of the most important parts of any Amazon FBA business. The ranking is basically how close we are to the first product on top of the first page. For example, in Search Dog Toys in Amazon, on the top of the first page coming products, these items are getting the majority of the sales. What we want is for our products to be in the front of these items. Amazon ranks based on sales velocity.
Get organic traffic and paid promotions.
You never depend only on Amazon to sell your products, you have to do kind of some promotion activities and tricks in the beginning. Ask your 10 to 15 friends to buy your item and leave a positive review. Make them buy everything on the same day if possible. Do not send them the product link, ask them to search in Amazon. When they review it, they can either keep it or give it back to you and you will give them their money back.
When you have your social proof or reviews your products start ranking slowly. Also, start a PPC ad in Amazon if you can, PPC means pay per click ads. You can set up an ad campaign, in this ad campaign you can set up keywords for your items to get rank for. When customers searching those keywords your ad products will pop up on the bottom of the first page as sponsored like the above image(these are not rank listings these are simply people running ads). Any time someone clicks on a sponsored ad listing what their customer buys or not, the seller will get charged. You will set the amount of how much you get charged per click.
There is a bidding system for keywords and different keywords have different prices. The closer you want your item to show up on the top of the first page, the more you will bet you can put daily limits on how much money you want to spend on advertising. It can be five dollars or can be a thousand dollars. The good thing is that you can set up different keywords and if someone buys that keyword, your item will start ranking.
Example, if you make an ad campaign for the keyword formula, someone who types in dog toys then Amazon shows your item first as a sponsored tag. And if they buy it, then your item will start ranking for the keywords dog toys. Use different keyword campaign ads, our goal is to rank for as many keywords as possible for your products.
Extra Tips for Amazon Selling and conclusion
The way the Amazon algorithm brings items is based on sales velocity, meaning how many sales that item is getting per day compared to other people. Similar products, things such as Amazon reviews, and a nice optimized listing of great photos also matter. Be sure to always keep your ratings above 4.8. Getting negative reviews can ruin your listing and the range of products, so always stay on top of your reviews. If somebody leaves you a negative review, contact the buyer and try to get them to remove the negative review.
One of the most important things is to not lose rank. One of the easiest ways to lose rank is about running out of inventory. You have to make sure you have enough inventory in stock at all times. You have to calculate approximately how fast the item sells and when you will run out of inventory and. Always be on top of when you need to reorder products. Start your FBA business by making a few products at once instead of just making one product. Your goal is to make a portfolio of products that make you passive income. For example, if you make 10 products and each one makes thousand dollars a month, you’re making ten thousand dollars a month.
Just like in any other business, you will run into different problems and have different kinds of headaches, but those problems are necessary because they will make you sharper and stronger. Do your best. Good luck.
Related Website Links
Amazon seller Central usa — https://sellercentral.amazon.com
Alibaba.com — https://www.alibaba.com
1688.com — https://www.1688.com