5 Top Tips on How to Make Money on Amazon
There are tons of great ways to make money on Amazon.
For years, Amazon has created millionaires through Amazon FBA business. And the numbers continue to grow each day.
While it may sound simple, making money on Amazon is nothing but easy.
So today, we will be sharing with you the top tips on how to make money on Amazon.
How to Make Money on Amazon: 5 Tips from Amazon Millionaires
Selling on Amazon requires more than strategies and skills.
For starters, you will need to have goals and milestones that will help guide you in your journey.
More than that, you also need to master the basic principles before you start dreaming of becoming a millionaire.
Here are our top tips on how to become successful at making money through Amazon.
Plan your business for success
It’s good to make money a goal. After all, it’s all about creating profit at the end of the day.
But money isn’t always everything. That’s why you need to create a timeline for your goals and milestones for you to have a benchmark for success.
Remember the SMART goals? That’s what you should aim for.
Just a refresher. SMART means Specific, Measureable, Attainable, Relevant, and Time-bound.
Setting relevant goals takes top priority, especially if you’re at the planning stage of the business.
Most beginner entrepreneurs set standards that are important but don’t matter as much to them.
For example, one person can prioritize earning for a house. While others set savings and investment as a priority instead.
Your goals should be focused on what’s important and relevant to you. So when things get difficult, you’ll still have the right motivation to keep things going.
One of our best advice is to set 90-day goals that you can immediately implement.
Whether it’s launching a product or starting your own Amazon store, it helps to plan and create a timeline you can follow.
Setting milestones also help you celebrate wins, no matter how big or small.
Goals and timelines help you get things done in a faster, more systematic manner.
- Create business plans that contain your goals and action steps that you can focus on.
- Create realistic milestones that you can help you achieve your next steps.
- When setting goals, it’s best to add ones that are relevant to you to help keep you going.
Make sure that your brands standout
There are tons of products available on Amazon. And one of the challenges of Amazon FBA resellers is standing out in the sea of sellers.
Truth is, successful Amazon FBA sellers put their customer avatars first.
Successful Amazon FBA sellers build brands that people trust. They know that branding goes beyond your logo or name.
Sellers focus on serving their ideal market and finding the right products that will serve them best.
To do this, you need to list down what your customers like, their motivation, beliefs, values, and ideals
Use this to pattern your product descriptions, headings, and labels to emotionally connect with your market.
You can also track your customer’s feedback and product reviews. These are raw insights about your customers.
Start with these steps first before deciding on what products you want to sell. These results will guide you instead of what to sell.
It also opens more avenues for you to expand and earn more money on Amazon.
Putting your customers’ needs first will also enable you to build loyalty. Remember, it’s not about you, it’s about them.
- Create your brand around the behaviors and mindset of your target market.
- Think of the bigger picture and drill down to the specific details that will help you stand out from your competition
Choose products that will make you money
Sellers often make the mistake of choosing products to sell based on what they want. Some choose products based on what they think their clients want.
This is why creating customer avatars is vital in any business. Learning about avatars can give you concrete ideas of pain points and desires.
It will also help you predict the best products that are essential for your audience.
While it might sound like a basic thing to do, choosing products can affect your success as an Amazon business owner.
If you’re in it for the long haul, then it’s best to do things right.
Learn about the inside and outside of your product and avoid running out of money.
Make sure to calculate your product cost and return of investments.
List options for sourcing companies and manufacturers. Look for factories that can both provide quality and quantity.
Learn to negotiate with factories for the best price to make your products. Don’t think twice to ask for deals.
Manufacturers are also on the lookout to Amazon sellers that they can develop a good business relationship with. Just make sure to put in the contract terms.
Also, don’t forget to include marketing and operational costs in your budget forecasting and planning. This enables you to manage your cash flow.
- Plan for the long term and not just short term success.
- Know the financial aspects of your product.
- Learn to negotiate win-win solutions for your business.
Read more about how to choose the best products to sell on Amazon here.
Make the best business decisions based on numbers
As the CEO of your company, you need to have an active role in your business.
We’ve been in the business for thirteen years, and until today we still make it a point to know if it’s a good day or a bad day.
Know your metrics and key performance indicators by tracking important metrics daily.
Define your key performance indicators for each metric. Set thresholds that you need to meet daily, weekly, and monthly.
Establish weekly and monthly reviews for forecasting and planning. Use your numbers to decide on improving, scaling and growing your business
This circles back to your SMART goals. Knowing where you are and where you are headed with your numbers to serve as your compass.
- Know your business metrics and KPIs.
- Track and review trends consistently.
- Use data to help you plan your next steps or to solve problems.
Focus and simplify your efforts on what you need to achieve
If you do all the tips that you have learned so far, you are already on the correct path to a successful Amazon FBA business.
One of the things you should also be doing is focusing on the right aspects of the business while delegating other tasks to virtual assistants.
Thousands of Amazon FBA sellers through the years have asked us for help. When we look at their business, they have one thing in common.
They are doing everything on their own.
From production, marketing, financial and operational tasks. They are doing it all by themselves.
If your business is taking all your time, then you are not running your business. Your business is running you.
Consider identifying tasks that you can outsource; social media, marketing, product listing, etc.
Create systems and processes that will help automate your business.
Leave only important tasks like contract approvals and money matters on your bucket.
Reclaim your time and your freedom.
But if you do not have the resources right now to delegate, include them in your action plans and future goals.
- Offload tasks that take time from you in running your business.
- Establish systems to automate processes.
- Strengthen your 3 legged stool (systems, people, and management).
Making money through Amazon can be challenging.
But as long as you’re willing to do the work and listen to these tips, learning how to make money on Amazon can be much easier.
To get more tips on how to become an Amazon millionaire, check out our podcast here.
Learn how to make money on Amazon! Get a step-by-step guide on how to generate income through your Amazon business here: FREE TRAINING here.