how to sell on amazon for beginners

How to Sell on Amazon for Beginners: A Complete Guide

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Herlene Somook

There are many ways to learn how to sell on Amazon for beginners. 

It seems intimidating at first, especially if you don’t have an idea of where to start. There’s a lot of information available online but you don’t really know what’s working or not. 

As Amazon FBA coaches, we have created a proven and tested process to help you learn how to sell on Amazon successfully. 

How to Sell on Amazon for Beginners: The Basics 

Selling on Amazon is pretty straightforward, just like any other business. You need to determine the market you serve and how will you do it.

Before you jump into anything, you need to know the basics of being an Amazon seller.

Here’s a step-by-step guide on how to sell on Amazon for beginners.

Setting goals

how to sell on Amazon

You need to define what you want to accomplish. This is essential to your efforts and decisions.

If you don’t have a clear goal, chances are you will have a hard time tracking your progress and results. This could eventually affect your business and your customers.

Setting a SMART goal improves your Amazon seller central business, one goal at a time.

Your SMART Goal should be: 

  • Specific – has a specific goal. Use numbers, deadlines, and actionable steps on how to achieve it. 

For example, set your income goal in Amazon for the next 12 months. You can also include how much capital and time you’re willing to invest in.

  • Measurable – you can track your goal or progress. This would help you determine how you perform. 

You can measure your progress by setting a monthly income goal to see if you’re on the right track. 

  • Achievable – it should be realistic and possible to attain. Doing this on your own could be challenging if you’re just starting out.  Asking an experienced seller such as Real Coaching can help you determine if your goal is doable.
  • Relevant – it should be aligned to your brand and its long term objectives. In this case, setting an income goal can help you have an idea if your business can be sustainable or not.
  • Time-bound – it should have a deadline. This would encourage you to dedicate yourself to your business. There should be a time-limit on your goals in order for you to move on and set a higher objective.

After defining your goal, you need to know how much money and time you’re willing to invest in the business. 

The more effort and money you put in means there would be more opportunities and options for you to scale. 

Get top tips on how to make money on Amazon here.

Understanding your target market 

Finding the right market should come first before you choose your product. After all, they’re the ones who will keep your business up and running.

You need to think of your ideal client and what’s the best solution for their problem. Creating a customer avatar can help you zero in on your target customers. Establishing the avatar early can guide you in your business decisions along the way.

Also, this opens to the possibility to cross-sell other products to your customers. If you know who your clients are, you have a better understanding of what they need. 

Choosing the right products for your target market 

choosing the best products to sell on Amazon

When you have an idea about what your market wants, it’s time to choose what to sell. 

There are many things to consider when choosing the right product.

First, there are your competitors. In most cases, there’s already an existing seller that sells your product. 

You need to evaluate if there’s enough demand for you to jump in. 

Also, you need to assess how the product performs in the market.

Sometimes there’s a lot of competitors that are selling but most of the products are sold out. This might be a great indicator that you can still compete and there’s plenty of customers for the listing.

Lastly, you should consider the profit margin that your product provides. There are products that sell fast but the operational fees are just as costly. 

Considering how fast you sell the product will determine the growth of your business.

Read more about finding the best products to sell on Amazon here.

Creating and designing your brand 

Defining your brand is important especially when you have a lot of competitors. There are business owners who fail because they don’t give enough attention to marketing.

Creating a customer avatar can help you determine who’s your target market. This is important because every marketing effort is for your ideal customer.

Without defining who your customers are, your efforts will be a hit or miss and we don’t want to take that chance in business.

This technique will give you a competitive edge even if you sell the same product.

Creating and designing your brand creates a top-of-mind solution to your customer’s problems.

Sourcing your products 

There are many ways to get a product. 

First, you can buy from retail stores and resell it for a higher price. This is the best way for you to try selling on Amazon without too much capital.

There’s also wholesale or buying in bulk. This could lead to higher profits than buying in retail stores but it will cost you more money. Also, you should consider the cost of shipping, storage, and other fees to handle the products.

You can also sell private label products. This is a great way to make your product unique and stand out. This could cost you more, but its potential profit is high with the right marketing effort.

Lastly, you can manufacture or make your own product. This could be advantageous depending on what market you have. Before you start your production, do some research on manufacturing costs first.

Stocking and logistics 

how to start selling on Amazon FBA

Once you know where to get your products, it’s time to set up your inventory. There are two ways you can manage your product. 

There’s Fulfillment by Merchant (FBM) or Fulfillment by Amazon (FBA).

Fulfillment by Merchant requires Amazon business owners to ship their products from their own storage facility to customers. Business owners have the responsibility to sort, pack, and ship their orders.

If you’re just starting on Amazon, there are pros and cons in handling the product by yourself. Consider if you have enough storage, resources, and time to manage your products. If not, you have the option to ship it to Amazon fulfillment centers.

Fulfillment by Amazon means shipping your products to Amazon and they will handle all the transactions for you. They sort, pack, and ship it to your customers without you doing the heavy lifting.

Another perk of FBA is you can utilize their excellent customer support and give you more time to focus on improving your business.

Gauging what’s best for your business can be tricky, we recommend that you hire an expert to give you practical advice and to reduce your losses.

Selling on Amazon FBA 

If you decide to sell using Amazon FBA, there will be a lot of saved time. You could enjoy a vacation, or think of ways to scale your business. It’s up to you.

Fees can be charged almost $1 per item for an individual account and over $40 per month for a pro account. 

We suggest that if you plan on selling more than 40 items, it’s better to register for a pro account. If you’re just starting out, creating an individual account will reduce your risks.

Fulfillment centers are strategically placed all around the world. It has the resources to get your brand to customers globally. 

Your products can reach multiple markets and put your brand on a global scale. On top of that, you don’t have to worry about steep shipping fees, delivery time, and 24/7 customer support.

Learn how to sell on Amazon as beginners using FBA here

Takeaways

  • Setting a SMART goal is key to a sustainable business.
  • Understanding your market and setting up a customer avatar can determine the right products to sell.
  • Know the best approach to your business between Fulfillment by Merchant and Fulfillment by Amazon.

What to Expect When Selling

After you have an idea of what to sell in Amazon, you need to set expectations for your business. This is a crucial step because you don’t want any surprises that will negatively impact your business.

Here’s what to expect when selling on Amazon:

Research is key 

Having a complete understanding of your brand takes time. You have to research every aspect of your offer, competitors, and customers.

Expect that your product isn’t going to be unique most of the time. You can dig deeper into what your market is currently selling and have an idea of what’s working or not.

You can check if the product has good reviews, a sufficient profit margin, and easy to manufacture. Finding out these qualities can help you decide if this product is worth pursuing.

Then, there are your competitors. You can simply search for a product on Amazon and it will show you the top sellers and their goods. See if the product is selling fast, the number of sellers, and the cost of marketing to compete.

Checking your competition can help you measure the time and effort needed to dive into the market.

Lastly, you need to understand who your customers are. Creating a customer avatar can give you a clear idea of who your product caters to. In doing this, you can find out what their desires, problems, and needs are. 

Building a connection with your customers would help them see the value of your product better.

  • You need to have a buffer on your budget 
have extra budget for Amazon FBA marketing

If you plan on investing with your savings, you need to know that it’s enough for capital and operational costs. Putting all your money in the business without a fallback is very risky. 

There are always unforeseen circumstances in business that you need to spend on. Also, the profit of your business is not guaranteed and it might need to wait to start earning.

Learn how to manage your ad cost and increase your Amazon sales here.

Be extra patient

Knowing that you’re just starting, your business might take time to pick up the pace that you wanted. Your products won’t be selling at a moment’s notice. 

The time to process the products shouldn’t be rushed and risk the quality. 

If you’re already selling in a booming market but not hitting your goal, it’s okay. 

You need to analyze the aspects of where you’re lacking. You can look into your competitors and see what they’re doing. A great marketing effort is getting one step ahead of your competition.

Make sure you give ample time for your business to get the momentum and exposure.

Plan for success 

Everyone wants to succeed in business, but few are willing to do the dirty work. Success doesn’t come overnight and you need to invest your time in order to be profitable. 

That’s why setting a goal is critical, everything you do should be connected to your main objective. Also, being consistent and proactive can help you adapt to any challenges your brand might face.

The more you feed into your business, the higher chance it gets in reaching your ultimate goal.

Takeaways:

  • Backing up your business with in-depth research would help you understand your market better.
  • Anticipate that there will be setbacks in setting up a business. Always prepare to have an extra budget and patience.
  • Have a mindset that your business will only succeed if you’re willing to invest your time and money.

Check out How to Sell on Amazon FBA as Beginners here

Three mistakes to avoid as an Amazon seller 

If you’re already selling on Amazon and still not hitting your target sales, it’s time to rethink your strategy. 

Here are three mistakes to avoid as an Amazon seller:

The broken product selection process

The market is always shifting and it’s challenging to get the right product at the right time. To determine the best market to join, you have to analyze the exact numbers and metrics of a product after marketing costs.

You can focus on how much income you want to make and not what you want to sell. Sticking to a product will limit your growth as a business. What you can do is reverse engineer what products are available within your target income and test your theory.

You can also check your keywords if it’s hitting the right market. There are many sellers having the right product but couldn’t put it in front of the right customers.

There is also the speed of the return of income. You could have a hard time if your product is not selling as fast as it should be. The longer you have your items in your inventory means higher maintenance costs and lower sales.

Broken marketing message

Sending your message to everyone will get you no one. If you don’t know who’s your ideal client, you’ll be having a hard time promoting your brand. 

This will show in your sales, a good conversion rate should be more than 20% of your current goal. You need to learn how your audience speaks and use it to connect with them.

The customer avatar is the key to finding the right way to communicate with your audience. With established connection, it’s easier for the customers to buy your brand.

Broken sales and launch process

A lot of sellers jump into selling without a proper process and they fail most of the time. You must have an actual system that you can follow if you want to scale your business. 

If you’re looking where to promote, there’s already a ton of audience on Amazon platform alone. Focusing on your marketing efforts within Amazon will already yield great results.

The process of marketing a product will always have complications. Without the right guidance, it could lead your business into setbacks and more costs.

Seeking help from the Real Coaching team can help you develop a proven, step-by-step plan that can help you fast-track your Amazon business.

Read How to Sell on Amazon for Absolute Beginners here

Takeaways:

  • Learning how to select the right products can give you a boost in improving or scaling your Amazon business.
  • Knowing how your customers behave will yield the right marketing tactics.
  • Developing a system that works in running a product will help you scale faster. Getting a proven, step-by-step guide from an expert can help you minimize your losses.

Conclusion

Learning how to sell on Amazon for beginners can be a tedious process at first. With the right guidance and mindset, it will lead you to your financial success.

Learn a step-by-step guide on how to sell on Amazon FBA. Sign up for our free webinar and learn the #1 hack that the top 1% Amazon sellers use today.

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