How to Start an Amazon Business in 2021
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Do you want to learn how to start an Amazon business successfully for 2021?
2020 has been brutal for all of us. We’ve encountered so many restrictions and challenges that it changed the way we live.
Despite all of this, online businesses like e-commerce and online selling survived and thrived.
And more people are becoming interested in learning this pandemic-proof business model.
So how do you start and succeed as an Amazon business owner?
We’re giving you five steps to making it happen for 2021.
Planning for an Amazon Business in 2021
Starting an Amazon business is overwhelming, to say the least.
There are a lot of things to learn and understand before you can successfully find the right product to sell.
But when you do find the right product, an Amazon business is worth it.
The key to any successful business is in the planning.
You need to have a strong vision and objective. You should also have a rolling goal to increase your profit over time.
As Amazon coaches, we always stress the importance of planning and analyzing the numbers you get.
You need to check on your results and adjust the strategy as you go. You also need to know which part of the business is growing.
This way it’s easier for you to identify which parts of your business you need to focus on.
Five Steps to Building a Strong Amazon Business
Most Amazon FBA sellers get into the business for a reason.
Some want to have the freedom to earn at their own pace. Others want to get out of the rat race and run their own business.
Some want to diversify their income with a lucrative side gig.
Whatever your reason is, you will need to treat Amazon as a business that has the potential to grow.
Here are five steps that you need to follow to build a strong Amazon business.
Step 1: Go back to your why
According to the book Think and Grow Rich, our visions and desires have a strong impact on how we take action.
Everything starts from the thoughts in our heads. The more we think about these ideas, the more vivid it becomes.
These vivid visions create a stronger desire in us to make our thoughts real.
As a business owner, you need to create this vision and strong desire consistently. And to do that, you need to go back to your why.
You need to have a strong reason to be motivated to learn and try new things. You also need to take calculated risks to succeed.
Having a clear purpose and goals will give you fewer reasons to quit, especially when the going gets tough.
That’s why your why should always be personal.
Whether it’s quitting your job, traveling the world, or building a good life for your family, your purpose should always be specific to the lifestyle you desire.
Step 2: Create SMART Goals
Peter Drucker once said, “You cannot manage what you can’t measure.” And we couldn’t agree more.
That’s why we always tell our students to set SMART goals to serve as a guide for their Amazon journey.
Your goals must be as specific to you as possible. You should be able to articulate your goals so you can create a step-by-step process.
It’s not enough for you to say you want to be rich.
You’ll need to declare how much you want to earn and how you will earn it. This way you’ll know if your methods are working and what you need to change to make it happen.
You’ll also need to set measurable goals.
Measuring goals by the number give you a clearer picture of your performance. The more you analyze your numbers, the better you can be at setting goals for yourself and your business.
Your goals must also be attainable to help motivate you to achieve them.
You must ask yourself, how close is it to attain? Is it possible to reach this goal in a few months?
Can you achieve these goals with your current resources?
If the answer to all of these is yes, then it’s a good goal to pursue.
Relevance is also crucial in goal-setting. Your focus should be to decide based on what’s important for you.
Some may want 10 sports cars while others want a cabin in the woods.
Others want to buy a private plane so they could fly to a new destination at will. While some just want to make sure their kids have a secure future.
The best goals in life are those that drive you to do it even without the applause and approval of others.
That way when things get hard, you still get up and go because it matters to you.
Last but not least, your goals must be time-bound.
When you put a limit on yourself, you become more accountable to make it happen.
It gets rid of the blocks that you may have and takes away the excuses that hold you back.
Step 3: Strategize how your business will grow
Now that we’ve set goals and identified your purpose, it’s time to identify the ways you can grow your Amazon business.
Most Amazon sellers make killer mistakes early on. And one of the easiest mistakes to make is with the product selection process.
Check out more information here: https://goteamreal.com/podcasts/ep-25-amazon-fba-killer-mistake-1-broken-product-selection-process/
You don’t need to overcomplicate the process of selling on Amazon. All you need to do is to focus on three things to reach your specific goals.
Here’s how you can ensure your Amazon store’s success in 2021.
- Sell more of the same stuff
The key to selling is to find winning products in your store.
You need to identify the key metrics in your business, like the sales results, pricing, and even your competitor results.
Check into conversion rates, store traffic, and cash flow.
See how engaging your posts are to your target market. Are they asking questions? Do your products resonate with your chosen market?
Identify the products that are going well and also be mindful of the gaps in your business like cash flow, cost of goods, and payment terms.
Focus on which products are performing well and how you can improve their ranking and visibility.
Do a deep dive and see which of the products are going well and stop what’s not working.
- Launch more winning products
When you see which products are performing well, you’ll get a better sense of what your target audience wants.
It’s also easier to recommend products that go well with your winning products.
Looking at your metrics will help you identify which products you can relaunch. It also lets you know which products you need to let go of.
Think of it as pruning a plant. And pruning yields better results compared to reviving a dead plant.
That’s why you need to make it a habit to check on your product’s performance.
It helps you refine your marketing and sales strategy and achieve the goals you set for yourself.
Check out our tips on how you could launch your products successfully in 2021: https://goteamreal.com/podcasts/ep-33-how-to-launch-a-new-product-in-2020-with-amazon-inventory-restrictions/
- Sell more products in different channels
What’s great about Amazon is the endless potential you can go for.
Once you know the process of selling successfully on Amazon, it’s easier to duplicate the results. This makes growth much easier.
The goal is for you to sell more products into different channels. Think about the best next logical step into the business.
Make sure you’re tapping the right opportunities before branching out into a different location or market.
The goal is to expand and make your products available to other people and locations.
But before you do, you need to make sure that you’re following compliance rules before trying.
The more you understand the process, the easier it will be to replicate and be more successful at a new category or location.
Step 4: Build a forecast and inventory plan
You could pretty much say that starting an Amazon business is similar to growing a garden.
It starts with planting and nurturing seeds and waiting for it to grow. You also need to plan which seeds to grow according to the season.
But unlike plants, you have a better chance at forecasting the results for your Amazon business.
There are existing tools available to help you forecast and plan your business more effectively.
Jungle Scout for one have free and paid tools you can use at any level of your Amazon journey.
Here you can find the best supplier and the right keywords to help with your rankings. You can also use the tool to craft better listings and even get better product reviews.
Looking for new and profitable product ideas? Helium 10 can help.
With Helium 10, you can find valuable insights and trends to help you decide which products to launch.
They also have profitability calculators and other analytics software to see which products can do well in sales.
You can also look into competitors and learn about their pricing, the keywords they use, and even how they manage their stocks through tools like AMZScout.
Forecasts are never always 100% right. But when you use tools and estimations, you will get a better understanding of your inventory, cash flow, and profitability.
Step 5: Find your enablers to make your goals happen
Now that you know how to start an Amazon business successfully, what’s next?
What do you need to do to get to your investment and profit goals?
It’s easy to get overwhelmed especially if you’re starting out and have no idea about what to do next.
It can also be complicated, with all the things you need to learn.
To resolve this, you’ll need to identify what’s holding you back.
Be honest with yourself and check your weak spots. This way you can analyze the type of help you should be getting.
Think of these folks as enablers that make your dreams possible. These enablers can be Amazon VAs, coaches, trainers, and even suppliers.
When you choose the right people to join your team, it will be easier for you to meet your goals and hit your target numbers.
Another important thing to note is to tackle each goal in little chunks.
SMART goals are great, but it can still be overwhelming.
That’s why it’s essential to divide these goals into 90-day plans instead of an annual one.
Setting smaller goals in a quicker time frame lets you manage them better.
Ninety days is just enough time for you to plot workable tasks that you can either assign to your VA or take care of yourself.
It also gives you enough time to review your results and see which parts need adjusting.
Before you know it, you’re hitting your targets easier, faster.
Check out why you need to invest in Amazon coaches here: https://goteamreal.com/amazon-coaches/
Learning how to start an Amazon business is more than choosing products to sell.
It’s all about proper planning, preparation, and setting the right goals that matter to you.
It’s also all about making business decisions based on your numbers and finding the right people and support system to help you.
Ready to take the next step?
Check out our FREE TRAINING on how to start an Amazon business today >>> https://goteamreal.com/free-training/