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Amazon FBA: Top 13 Products That Will Help You Make an Income of Over $70,000 i

 

 

Amazon FBA

Top 13 Products That Will Help You Make an Income of Over $70,000 in One Year

 

Table of Contents

Introduction

Chapter 1 – Why sell through FBA?

Chapter 2 – Can you really make that much?

Chapter 3 – Getting started with FBA

Chapter 4 – How to make a good listing

Chapter 5 – What should you sell?

Conclusion

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© Copyright 2015 by Craig Brock – All rights reserved.

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Introduction

Amazon has become one of the modern day retail giants, though their complex system makes it hard to estimate exact profits the business is booming and few people these days haven’t heard of it if they’re not already regularly shopping there. What many don’t know however is that it can also be an effective selling tool. When we think of selling online many people assume sites like eBay or Overstock but Amazon has it’s own unique tool called FBA.

Several bloggers have shown great success using the FBA system and with so many these days looking at ways to make extra income the ease of harnessing the retail giant's own power for profit makes many justifiably curious. 40% of Amazon's sales now come from third party sellers such as those using FBA with the fees from that making a whopping 20% of Amazon's income. These statistics show that not only is this system working but it's profitable all round.

 

Walking away from being a cubicle slave is something many would love to do, if not intend on. For many what may start as a side business actually ends up full time simply for being so successful. Even if you’re not planning on quitting your day job just yet having a cushion of extra income can be great to help manage those unexpected expenses or just pay for a well deserved vacation that your regular income just won’t cover. Using the FBA system is an almost guaranteed way to achieve that.

 

You might think that opening your own business is too difficult or stressful, but many people are choosing to do this even part time just to make sure they have money to live on. If something happened to you and you were unable to do your day job what would you and your family do? By having a second source of income you give your family better financial security.

 

So why choose FBA? Potentially you could make a second income any number of ways but FBA is a proven choice where people really have made money, in fact you’d have to be an idiot not to understand how simple the system is for making money.

 

It might also seem a little far fetched that you could make 5 figures within a few days and even six figures a year, but really it’s all about supply and demand, you just have to find the right products that people want and simply use Amazon to do all the legwork of customer sales and shipping.

Chapter 1 – Why sell through FBA?

When starting a business overhead is what often eats meager start-up profits. Buying inventory obviously costs money but if you're not lucky enough to have a handy warehouse you could end up paying to store all your goods. This is probably the biggest selling point of FBA. The Amazon tag line of “You sell it, we ship it” means exactly that. You buy your inventory, send it to Amazon and they store it for you until it ships to the consumer direct from one of their 'fulfillment centers' -also known as massive storage warehouses for merchandise.

So other than storage fees you're also not worrying about insurance for your items should anything happen before they are sold, AND Amazon will do a lovely job of packaging them for you -all paid for by your seller fees.

The program itself is free, anyone can start selling on Amazon and there are no minimum limits to commit to. This is something many side or work from home businesses can’t support. For example home based product sales often require consultants to sell a minimum amount of product to continue their endorsement.

These programs also mean you have to have direct interaction with customers and it is you yourself who mist promote and sell items. FBA has the benefit of being a ship it and wait for money system. Your advertising simply IS the Amazon name and Amazon deals with all your customer service.

Speaking of advertising Amazon is also a name that has built a lot of trust with consumers. Many who see the amazon name trust that when they use it to buy items they will be delivered on time, packaged well and since it’s using the Amazon system your items will even qualify for Prime 2-day and super saver shipping at no extra costs to you for their members. Their trust also extends to sellers as if they cannot find your item or it gets lost in shipping they are responsible for reimbursement and will reimburse the customer and will then credit the seller for the item and the selling cost.

So not only is this company storing your items, their employees are picking them, packing them, and shipping them, as well as dealing with any customer service. If you’ve ever dealt with small businesses you know that often these jobs are all going to be done by you. Do you have the time for that? If not do you have the time and money to pay someone else to and still make a profit? By using FBA you don’t have to, that’s all taken care of by Amazon.

This is the biggest difference between FBA and the Amazon marketplace. Though the marketplace still lists and uses the Amazon site sellers themselves are responsible for handling your items. Though you can build up trust through a good feedback reputation this can take time and it has been shown that regardless customers will still have more trust in products coming directly from the company.

Another alternative to FBA would be a practice called drop shipping. Though Amazon is handling your merchandise you still have to buy it and ship it to them using FBA. Drop shipping means you do not need any on hand inventory and never have to handle the inventory during the selling process.

The way this works is that you create an online listing for your item – say on Craigslist or even Amazon itself and when someone orders it you simply make the order from your original source site and put the customer’s address in instead for shipping. This is rather playing the system but it does work, no shipping,no handling and essentially no investment since your customer has already paid.

However your profits will be much smaller since if you mark it up too much no one will want to buy from you and unless someone is ordering a wholesale quantity you won’t be able to use a wholesaler for your source of inventory. There are services however that offer drop shipping hosting so you can wholesale and then sell through their site but this also costs a small fee.

With this in mind the fees certainly seem to make using the FBA service well worth it, but can you really make money on it? Lets examine the risks. There are people who make money, that’s undisputed, but as a reseller you have to be careful. Probably the most well known case would be that of a well known reseller who atone point was in the 10 best media re-sellers on Amazon selling about 5000 items a day.

You may think this won’t apply since you’re not going that big but it does. Out of the blue the shop was closed by Amazon because the original DVD manufacturer was suing them for shipping counterfeit items. Overnight the seller lost everything and had to pay Amazon a fine. This isn’t necessarily a typical case but it can and does happen.

Third party resellers are constantly at a disadvantage to find genuine products online or risk the counterfeits costing them the entire operation. It’s becoming much harder for sellers to find inventory if it isn’t a product they own the rights to, and that in turn cuts into profits as genuine items are not often found cheap enough to be worth reselling. Your profits certainly might not be as high as you think they will be if you can’t source your items well. There are good wholesale site though the rule seems to be avoid Chinese products at all costs since there is such a high rate of counterfeits.

Amazon does try to minimize counterfeit merchandise and many seller categories require pre-authorization to be able to sell. These categories include automotive parts, clothing, jewelry, sports collectibles, toys, and watches. In addition only approved sellers may post in some areas like camera and electronics. This can be doubly important to have done as during holiday times Amazon may only offer merchandise through approved sellers. Amazon also limits what merchandise can be sold through FBA, currently no kit or assembly required items may be shipped using FBA for example, and they also won’t carry perishable or products that require freezers.

Another difficulty people encounter using FBA is that each area of Amazon requires a different seller account, for example the US and EU are separate and sellers might find it daunting if they really want to reach a global market with their products. If you’re looking to go large with this you’ll also need to figure out your shipping options since there will be customs involved and taxes for import/export.

However, despite the obvious pitfall s that you might encounter as a small retailer it is undeniable that if you already have a working business model but simply lack the space for larger inventory or the manpower to move it the FBA model will potentially cause a huge growth in your business. That being said even if you are a capable business owner you may still have trouble with the Amazon model, the difference being that you are probably already familiar with your business flux and going through Amazon you could potentially expect more business than you have had or have too small of an influx leaving you with excess product. Fortunately you won’t have to store that product online but you may take a loss if it’s left sitting about.

The same can be said if you are a small business and suddenly see a huge influx you might not be able to handle the volume you will need to box and ship to Amazon which in turn could damage your reputation as a seller for taking too long for items to reach customers.

To decide whether or not selling via FBA is going to be a good step for you you will need to evaluate whether you have the right business model for it to work, and whether or not you are equipped to handle the potential volume of shipping to Amazon if your products are popular. Top 15 sellers for example will ship upwards of 5000 items a day!, and if you want to make that five or six figure amount you’re going to have to be able to cope with that sort of inventory in and out – simply sourcing clearance merchandise locally isn’t going to cover it. If you think you’re up to the task then FBA might just be for you.

Chapter 2 – Can you really make that much?

Bloggers and sellers have both claimed astronomical amounts in profit just by selling on Amazon. It is true that they make good money, but it is essential to know your products, business and market very well to see if using the service will be good for you. If you’re not able to keep up with trips to the post office, packaging etc then the FBA system seems like the ideal solution.

Financially it can also make a lot of sense. If you buy your inventory wholesale at $10, intend to sell it for $20 and then charge $5 shipping you’re probably going to lose money on the shipping after cost of materials and time to get it mailed which will eat into your profit. By shipping it through FBA you can charge $25 and customers will be able to get free shipping, meaning you will end up with larger profit and less time spent packaging and shipping while they still pay the same price for the item.

The basics of the system are profitable, but many sellers have figured out ways of getting rewards at every stage for their items. For example Kyle Taylor, a blogger for Daily Finance talks about how he purchases items using a rewards based credit card to buy discount gift cards and then purchasing inventory on sites listed through the eBates programs .

Finally adding in coupons for popular sites like RetailMeNot adds greater discount. This process sounds complicated but basically what he is doing is insuring he makes a profit every step of the way so he may even in some cases even make a profit just buying inventory alone. Getting familiar with discount and liquidation sites is a good way of hunting down cheap inventory when you start out, especially if you haven’t got wholesale business contacts.

Often those who decide to start their own business stumble because they believe many of the start-up myths or don’t appreciate how different FBA is. Many small business owners for example fail t realize that they need help to grow, keeping overhead low is so key that the thought of delegating often means owners are wasting too much time shipping and inventorying when that could be delegated to Amazon.

Many owners see their business as their ‘baby’ and admitting that another can do the job better is rather hard but the thought of hiring anyone is a huge wall. Those who consider help will often feel a pinch in profit or will simply say they cannot afford it. The thing they don’t realize is that their time is worth more than Amazon’s; for example paying someone else to ship might be $10 per hour but your time spent running the business might be worth $20 per hour so in that same space of time you can multitask and still end up better off. If you’re still not convinced that Amazon’s ready made staff are useful consider the time and money needed to train additional employees, yet again it’s cutting your worth down unnecessarily.

Additionally the products you choose to sell are going to make your profits so choosing the right ones are what will ultimately determine how much you make. For example if you decide you want to sell cheap or high end items. If you sell one high end item you will have a bigger profit payout but if you sell more of the smaller items you might end up with a larger profit anyway .

Product research is extremely important to determining if you are going to make money with FBA. Here we can give you a few options as to what might sell but ultimately being able to sell them is up to you, it’s often been said that a good seller can sell water to a drowning man and that’s how your products will move. If you can’t find a demand then create one, a good listing will make people want to buy your items even if they don’t need them. So at the same time it’s irrelevant what you sell as long as there is demand you will see profits.

Chapter 3 – Getting started with FBA

There are several blogs out there that will give you advice on what you need to get started and some of it will certainly sound obvious. Money or capital for investing n this venture is obviously going to be the first part, but if you don’t have the suggested $500 or more to get your started inventory then there are alternatives.

Most sellers are also buyers, this means that chances are you have a significant amount of new merchandise that you perhaps don’t need or can sell, kitchen gadgets, books, pet items etc. These can be seen as your investment capital, if you find 10 things that can be listed for $25 each then you’ve already got a good amount of starter capital.

Though it might go without saying obviously you’ll need some basic things too such as a computer with internet, a printer , shipping boxes, labels and a tape dispenser. Many of the larger sellers suggest commercial products like Dymo label writers or a Better Pack 333 tape dispenser. There are also small things you won’t realize how useful they are until you need them. A great example of this is self sealing bags and Scotty Peelers. Scotty Peelers are quick little tools that will help you get labels off to your products without damaging them.

In this day of technology though its not just the physical items that can become indispensable. Discount and reward programs are a huge way of boosting your profits without trying so it’s a good idea to get things like an eBates, membership . There are also other tools you will want to look into like the FBA revenue calculator. Browser add-ons like Price Blink can also keep you stocked by letting you know if an item is available cheaper somewhere else online.

This is where many people start to feel daunted as there’s a lot that you could potentially sign up for and not need. If there’s one thing you do need it is a program to track your profits and inventory, this will be invaluable, especially at tax time. Inventory Lab is a great tool for this and is even recommended by several FBA bloggers.

Once you have your basic physical items you will also need to research what you need to start the business legally. Many states require that you form an LLC or at the very least have a business license so it is important to research this first, you will also need to understand your tax system so that at the end of each year or quarter your taxes are filed correctly or risk fines and imprisonment for tax evasion. Even small businesses are liable for their own taxes so consider contacting a local tax professional or looking online at companies like LegalZoom who can set you up with everything a small business needs.

Chapter 4 – How to make a good listing

The key with making any kind of profit is going to be selling the item however. If customers can’t find your item they won’t be buying it. Optimizing how you list items can make a difference in how fast they sell. For example knowing that Amazon’s listing system uses individual keywords rather than phrases might make you rethink how repetitive your description is. Your keywords might also be great at bringing sellers to your product but a lackluster description may make them buy elsewhere or decide to purchase at a later time. Writing a successful listing is therefore as important as having a salable item.

The most common mistake while writing your listing is in the keywords. It will be tempting to write one keyword per line but this can cause a lot of repetition so you’re actually better using keyword phrases. For example rather than simply writing ’9 × 13 ‘ when listing a baking pan you could put ‘non-stick 9 × 13 baking pan’. Thinking about what you would type if you were looking to buy the item will make this easier. Your seller name and the brand are automatically included so you won’t need to add those in and it will waste your 250 words to do so.

A good listing starts with a good picture, for some this means finding a stock photo while others will want to take their own. It should be interesting but showcase the item – plain backgrounds are best and the item needs to be well lit. if you are going to be listing a lot of things consider investing in a lightbox and a good camera. You want your clients to be arrested by the image you use so that they don’t look anywhere else for the item.

When you start writing your listing you will want an informative title that is short and to the point, don’t stuff it with keywords just to try and get more hits. Many successful sellers will also use bullet points to detail the item, it’s important not to simply create a list or wall of text as this will disinterest buyers.

Consider hiring a copywrite freelancer to write your listing, this is often inexpensive and their experience will mean your listing sounds professional and is more likely to sell. You need to use this space to convince the customer to buy your item not only now but above anyone else. Boring or uninteresting text will lead to consumers checking elsewhere as it is undoubted that they will have other options. If you are writing this yourself keep reminding yourself why they need the item.

Chapter 5 – What should you sell?

If you still think that FBA is going to make your fortune then you will need to look into products. Most sellers will tell you that the number one thing they make money on is TOYS, and especially at holiday time. The holidays are when many people make their money, black Friday is so known for that exact reason. The problem is that your local stores clearance might not be the gold mine you think it is. All those “vintage, collectible” Barbies at yard sales – there’s thousands of them, and they’re probably only worth what your paying.

It's easy to lose money at this point by either bulk buying the wrong items or investing in something that isn't going to make you enough profit. As we talked about if you want to simply get the hang of it consider sourcing your first batch of items free from around your own house. However, many toys can be sourced online at wholesale prices and you can get a 200-400% markup on them just by using wholesale. Toys are probably the most popular reselling item on Amazon.

If you're not ready for wholesaling yet then liquidation and clearance sales are the way to go, but remember every other groundworks reseller is doing the same thing. The key here is to beat them to the punch. Often massive retail chains will frequently do clearance on seasonal items – 90% off even, but remember these chains are national which means that there are thousands of the same item 90% off. The best strategy here is to grab items quickly and get them on Amazon as fast as possible before other sellers can do the same thing.

If you’re not quick enough the market might get flooded and the price will fall. That being said many seasonal items are a good buy too. Christmas stuff sells year round, people have Christmas in July parties and need things only sold in major chains during winter which is where you can easily fit in as a reseller. These items were probably able to be bought for almost nothing right after Christmas which makes them ideal for reselling.

The most useful tool you’re going to find on Amazon when it comes to choosing your products is going to be the sales rank. This tool from Amazon shows how much an item is in demand, but this can change throughout the year. The holiday season for example sees sales figures explode and an item that has been ranked at 20,000 which may have only sold 10 a month during holiday season at the same ran might sell 10 a day. It’s not a get rich list though, chances are you aren’t the only seller who looks at the number one selling item and buys to sell.

This is a good way to flood the market and bring profits down,so alternatively you need to be ahead of the curve and find that next item before it becomes number one. Pay attention to seasons and trends, they will determine what sells.

So far toys and Christmas stuff are the easiest to get into, toys themselves can make you a huge profit if you get the right ones, and Christmas stuff can be a bit of a gamble unless you are buying in advance for next holiday season. So what else can you sell? Amazon knows their trends well which means you’re behind the curve since they already know what to get in before the season for each item hits. You’re also going to need to take a good look and decide which direction you want to go with your items.

Usually stock can be divided into two things – money maker and liquidation. Liquidation is those clearance items no one wants but may sell someday. These are good if you’re just looking to reach a bigger audience and get rid of things you don’t want laying around, but they won’t make you a huge profit. The money makers will, and these are things like the aforementioned toys.

Another thing that can net you huge profits on Amazon is small electronics, these are things like SD cards or flash drives which can be bought extremely cheap elsewhere. The y also carry the biggest risk however since these small things are easy to replicate and have a huge number of counterfeit problems. SD cards are especially known for it so it’s riskier than buying something you know is genuine. Other small electronics can include batteries, device cables, chargers, headphones and adapters. Items like these are often on massive discount from online companies like eBates.

These everyday items are stuff people need which makes them guaranteed to sell, but you will need to sell a lot to make a huge profit on them which is where stellar listing skills will come in. With good listing your items will be more likely to sell and since your inventory is bulk you will have no trouble making money quickly and efficiently by selling lots of smaller electronic items.

Anyone who has dealt with education knows that textbooks are expensive, and that they are also quickly outdated. Textbooks are another great reselling item if you can get them fast enough. Many students will try and sell them themselves cheap or you can often find them in thrift stores for as little as $0.75! Many of these books are in ideal shape and barely used which means they can easily pass as new and therefore incur a huge mark up. If you live in a college area this might be a good way to start for you, especially as books are the biggest reason many buy from Amazon in the first place.

Though you may thing that they come under toys board games deserve a category of their own. We all had them as kids, most kids still have them today, and as soon as they’re too old or become bored they go to the thrift store. You can find hundreds of board games in mint condition at your local thrift stores for almost nothing. These are great for reselling as long as you have all the parts, and aren’t selling alongside hundreds of other identical items. Look for games you might not have seen as often and always check the item online while you’re out and you can find some real gems and profits.

Small everyday wholesale is also a good way to get started and make profits quickly. You know the items you are constantly buying – tape, batteries, replacement ice trays. These are items that you can rake a steady profit on easily since they will constantly be in demand and by buying them wholesale you can make a better profit. Many wholesale companies also offer low minimum purchases so for as little as $100 in speculation you might come back with $300 in profit.

Media is also a great way to get a profit, and you can even thrift for it. Often items you can get for less than $1 can sell on amazon for $20-30. Examples include books on tape, CD’s, and even VHS! These are another goldmine but you may not sell things instantly which is why you will need a good selection.

Christian books on tape and bible items are steady sellers but they are also heavily saturated. Popular fiction on tape is a steady seller as is anything considered to be an up and coming thing – those people who had early copies of Twilight sold them easily once the series became popular. Research what is going to be the next “big thing” and the related media is guaranteed to go up in price .

Conclusion

So the items you need to be looking into are both quick sellers and long term, these will keep your profits steadily climbing while you source for more. Choosing the right item will make a difference in your profits but it will also ultimately come down to how well you can sell that product in your listing. Toys, Christmas items, small electronics like headphones and chargers, textbooks, board games, everyday and media items are all great sellers to invest in as these have both the potential for quick sellers and long term .

FBA does have some pitfalls, an you risk potentially losing everything overnight with the wrong items or a counterfeit claim. If you’re not sure about your items then you need to make sure your initial investment is small, such as the $100 minimum some wholesalers offer. Consider if you yourself would buy the item and you will know if it’s worth buying.

Not everyone makes money through FBA, there are many things that can make or break sellers that aren’t just limited to the wrong inventory, many successful existing businesses can benefit from FBA to see their sales rise while smaller sellers might be better off considering drop shipping or FBM instead. There is a potential to lose everything so being familiar with your inventory and Amazon’s policies is essential to keeping your business flowing.


Amazon FBA: Top 13 Products That Will Help You Make an Income of Over $70,000 i

Telling someone you make $10,000 a month part time certainly sounds like a massive scam. It's crazy but many people have been doing it by using the Fulfillment by Amazon system to their own advantage. Since you're here you're obviously familiar with amazon but did you know that many items sold through Amazon actually come from third party sellers? FBA allows you to harness the well known name of Amazon to sell your products without having the overhead or advertising needs that a company so big would involve. Many people are looking into second income these days, even if it's about making ends meet everyone could use more money and free time. The goal of FBA is to give you just that, your time is better spent not shipping and dealing with customers which is why you're looking at FBA. Wouldn't you like a vacation , new car, second home even? The biggest thing for many people is finding the right niche or product to make sure people keep coming back and buying more from you. The right product and the right description is what will do your selling for you even if you're not selling a necessity.

  • ISBN: 9781310400599
  • Author: VAGABOND PUBLISHING
  • Published: 2015-10-25 16:50:09
  • Words: 5446
Amazon FBA:  Top 13 Products That Will Help You Make an Income of Over $70,000 i Amazon FBA:  Top 13 Products That Will Help You Make an Income of Over $70,000 i