When most people think of ways to make money online, Amazon is usually one of the things that come to mind. This comes as no surprise, thanks to the number of people on the internet telling their followers how they managed to develop stable businesses just by selling on Amazon.
But, does selling on Amazon work?
Well, the answer is yes! Amazon is an oasis full of opportunities to make money. Selling through personal websites keeps getting tougher and tougher as the competition to rank for the right keywords becomes wilder. With Amazon, sellers are a given an opportunity to expose their merchandise to a broader audience than search engines can provide. What’s more, since this audience is wandering through the platform with the intent to buy, it exposes you to qualified leads, giving you a chance to make more sales than on any other platform.
How to make selling on Amazon work for you
Understand how it works
If you want to make money selling on Amazon, you need to educate yourself and understand how the platform works first. Familiarise yourself with Amazon policies, learn the steps to get started, and the fees associated with selling, including taxes before you make your first move. You also need to understand the different types of selling and fulfilment options available to you. Some of the most popular ways to sell on Amazon include;
- Retail Arbitrage: Purchase a product at a lower or discounted rate and resell it for a higher price.
- Wholesale: Buy directly from the manufacturer and resell them under their brand.
- Private label: Buy direct from the manufacturer and resell them under your brand.
- Merch by Amazon: This is a program that allows you to upload your design and sell it on Amazon, just like you would on Etsy.
Take the time to dig into the pros and cons of each selling method to choose the right one for you.
Find the right product
There are hundreds of millions of products on Amazon to sell. The goal here is to find those that make money. Choose products that move fast as posed to those that will sit for ages and only end up costing you more money.
Factors to consider when choosing a product to sell on Amazon;
- Knowledge of the niche: Choose products that you are familiar with and their intended buying pool.
- The market: Choose products that have enough demand to make selling them worthwhile. Consider exploring markets that are always strong like baby items, office supplies, tools or sports and outdoors for sustainable profitability.
- Fads: Stay on top of trends to know the latest and greatest products and capitalise on them. Just remember that fads die off just as quickly as they come up. So, your timing and inventory should be smart.
- Competition: Find out who your competitors are for a particular product. Typically, competing against national brands is not advisable due to loyalty and brand recognition. There is a big chance that you cannot outsell a national brand. While it isn’t always the case, it is risky.
Build up yourself for success by analysing the market and understanding all the barriers to entry.
Have a business plan
When looking to start selling on Amazon, it is crucial that you set your business goals right from the start. Knowing what you will sell, how you will sell and your end goal will likely change your approach. A solid business plan can help improve your profit margin. Make sure the business plan is scalable so that you can grow with the market.
Always remember that there is so much more to selling on Amazon than just the product you are selling. Online shopping takes away the customers’ ability to touch, smell and inspect. Hence, make sure your listing copy and photos display and describe the product in great detail to bridge the gap. Also, optimise your listing using the most relevant keywords for your products. This step is crucial to your selling success and your ability to hit your desired sales targets.
Increase product ranking
Finally, you need to make your great and optimised products rank on Amazon result pages. Products that rank are those that appear on the first page. A particular buyer behaviour study indicated that 70% of Amazon buyers don't scroll past the first page of search results. Hence, your goal should be for your products to appear on the first page. For you to rank on the first page, you need to work on improving your ranking through giveaways, Pay-Per-Clicks, Recaps, and high-quality keywords.
Amazon provides users with a couple of opportunities to make money through selling. How much you make solely depends on how much work you are willing to put into it and how ready you are to learn about how it works. Follow these steps to build a long-term business or earn some extra cash to supplement your income available to you to make all the smart business decisions.