How To Start An Ecommerce Business: Amazon Ads
Win at eCommerce sales business: Google SEO , Amazon, Google Shopping ads, Facebook & AdWords retargeting.
Ecommerce Business Blueprint: How to Build, Launch, and Grow a Profitable Online Store. by Mark Macdonald · Starting Up. Mar 15, 2021 12 minute read
Sep 16, 2020 Knowing the profits that you could be making, you may be keen to set up your own eCommerce business but it can seem difficult and
Compare 3dcart vs prestashop vs thrivecart ecommerce/website builders.
What Role Should Amazon Play In Your Business Strategy
Amazon should not be your primary channel, for the reasons mentioned above. Your owned ecommerce channel needs to be your top revenue stream if you want to build a healthy, stable business. Why? Because having the channel you have the most control over be the main driver of your business affords you the most health as a business. The success of your ecommerce channel also gives you strength and leverage when you go into other channels such as marketplace like Amazon or big box retail relationships. If you get this sequence wrong, you will hamper your growth and increase your volatility significantly.
If your owned ecommerce channel isnt your strongest channel or isnt even started, its time to make the transition and focus on growing your ecommerce store. If youre currently doing well on Amazon or other retail, thats great. Now is the time to invest into your owned channel while things are still good. Lets dig into why.
Order Inventory: $500 To $2500
Product inventory is your primary cost, which includes expenses required to get the product to the customer. Packaging from the manufacturer will likely cost around 50 cents for a $5 product. If its coming from somewhere like China, youll likely need a freight forwarder to handle shipping and customs for a fee. The best warehousing option is Fulfillment by Amazon , where you order a certain number of products from the manufacturer and send them to Amazon upfront. Amazon handles shipping, customer service, and returns in exchange for a percentage from every sale.
We surveyed hundreds of the Amazon business owners we coach and found that they spend an average of $1,200 on these initial inventory costs. Though you can get by with as little as $500, some products may be too expensive or require higher order minimums. If you start with around $2,500, you can comfortably access almost any option.
Im often asked how this compares to drop shipping, where you forward your orders straight to the manufacturer or other third-party seller for fulfillment. While you dont store the inventory yourself either way, its night and day otherwise. Theres no upfront inventory investment with drop shipping, but you pay higher prices because you arent buying the product in bulk. You also have little control over the product, customer experience, or delivery, which can take much longer.
Don’t Miss: How To Resale In Amazon
How Much Is Amazon Fba Per Month
Amazon doesnt provide a world-class marketplace for you to sell on for free access costs money. You need to choose from two membership options to begin trading on Amazon.
The Basic Plan is free but charges you a fixed-item-fee of $0.99 per item you sell. The other option is a Professional Plan, which at the time of writing, is $39.00 per month.
A quick calculation tells you that if think you will sell under 39 items per month, then the Basic Plan will suit you just fine.
You can switch between plans, so if you prefer when starting out, register on the Basic Plan. However, I would hope youre planning to sell a lot more than 39 items, so my recommendation is to leave setting up your seller account until your items are ready to ship and then sign up straight away for the Professional Plan.
Amazon also charges fees for each item sold. There can be several different fees to pay depending on the category of the product, and can total up quickly and destroy your profit margins.
So, you must understand precisely how much the fees will be for each item you sell. Fortunately, the provided does the job for you nicely.
Be sure to check out the information and video instructions regards the Amazon Fee Calculator and calculating your profit margins in the section above .
Can Amazon Fba Make You Rich
Amazon FBA can make you incredibly wealthy, but like anything in life, it isnt guaranteed. To make a success of Amazon FBA, you will need a combination of hard work, timing, and perhaps a little luck. However, I agree with the statement from Ray Kroc, that:
Luck is a dividend of sweat. The more you sweat, the luckier you get.
As long as you look to solve problems for people, choose products carefully, and market them effectively, you can make a success of FBA.
While FBA is more competitive than when I started in 2015, there are still plenty of opportunities. Amazon marketplace aims to sell everything from A to Z, so there are always new products to find and promote.
A survey from , reported some interesting findings. They found:
- 86% of Amazon sellers are profitable .
- 67% are profitable in their first year.
- 92% of Amazon sellers are planning to continue to sell in 2021.
Don’t Miss: How Can I Split Payment On Amazon
Ecommerce Is Rapidly Growing In Popularity With 80 Percent Of Americans Regularly Purchasing Something Online These Trends Look Set To Continue With Revenue From Ecommerce Websites Growing Over 20 Percent Year On Year
Its a lucrative space, and theres money to be made. If you want to get into the world of ecommerce and selling online, you have a few choices.
If youre a traditional, brick and mortar store, you can start up an ecommerce website
You could build your own ecommerce store from scratch
You can take advantage of marketplaces on existing ecommerce websites such as Amazon and Etsy
Of course, the dominant player in the ecommerce space is Amazon – its among the worlds largest ecommerce websites, and it provides some massive opportunities for sellers. As an Amazon business, you can offer your products for sale through Amazon to gain access to their enormous reach, technology and marketplace.
You might think selling on Amazon is easy they do a good job of setting up sellers for success. Despite this, there are potential pitfalls to selling on Amazon, so weve put together this complete guide to tell you exactly how to maximize your chances of creating a thriving Amazon business. Well cover:
Understanding the world of Amazon businesses and what it takes to be an Amazon seller
The various rules and regulations you will need to follow
Questions you should ask to see if youre ready to start an Amazon business
Hiring employees, marketing and administration
The best legal structure for your new organization
Information on taxes and finances for your Amazon business
Resources for your Amazon business
… and much morees
How Much Money Do I Need To Start An Amazon Fba Private Label Business
Its important to take the time to really think about all the costs of setting up your Amazon account, from running a successful social media presence, to dealing with referral fee costs, the price to ship products, and more.
Because this is the first time we introduce the private label concept, its only fair that we first explain what PL means. In short, private label products are those manufactured by one company for sale under another companys brand. From an Amazon FBA perspective, running a PL business means that youll be closely working with manufacturing factories in order to create a unique product with your brand logo stamped on it. There are other methods of making a profit on Amazon such as retail/online arbitrage or wholesale, but in this guide we mainly focus on the Amazon FBA private label model.
Without further ado, lets break down the start-up costs of starting an Amazon FBA PL business and give you some basic strategic insight:
Also Check: Amazon Cloud Drive Windows App
Sign Up For Jungle Scout
is a must-have for Amazon sellers. This sales analytics tool helps ensure that you dont choose your first product blindly. Instead, youll have all the critical data you need to make an informed decision about what to sell.
- Basic Costs $29 per month
- Suite Costs $49 per month
- Professional Costs $84 per month
The basic plan is enough to get you started, but I highly recommend the Suite plan. The reason is that the basic plan can slow your progress. For example, the Opportunity Finder feature is limited to three searches per day. But you get unlimited searches by jumping up to the Suite plan.
Similarly, the Keyword Scout, Product Database, and Supplier Database are limited to three daily searches with the Basic plan. Again, you can get unlimited search on all these features with the Suite plan. You can still go with the Basic plan if you are okay with the limitations. It is still an excellent option if you are patient.
Comparing The Dropshipping Vs The Fba E
Image credits:Tony Craig
Ultimately, creating a successful FBA or Dropshipping business depends solely on the extent of your skills and dedication. Both models have their own strengths and weaknesses and choosing one model over the other will entirely be based on your own unique circumstances and preferences. Taking this into account, we think that its only fair that we showcase the main advantages and disadvantages of the Amazon FBA model compared to the Dropshipping model so that you can make an informed decision.
The three main advantages of Amazon FBA over Dropshipping are:
Amazon FBA product research demands much less money, time, and effort than the research required in choosing the right Dropshipping product. On Amazon, youre dealing with one giant market with all of the information and stats you could possibly need all huddled up in one place. The money required for Amazon product research boils down to the costs of your monthly/annual product research tool subscription plan. Dropshipping, on the other hand, is very different. The product research process is more complicated and stochastic, and youll have to master several different product research methods and tools and ultimately spend time testing different products before you strike gold. With tools like or Helium10, you can pretty much know what to expect from your product even before you launch it on Amazon.
May also like:
You May Like: License Limit Reached Kindle App
Other Off Amazon Methods
Other methods for growing your brand off of Amazon include building a social media audience, content marketing, and paid advertising via Google or Facebook, however, due to how important your product page conversion rates are to your page rankings in Amazon, my advice would be to direct all your marketing to your lead generation funnel and then send a warmer audience to your products on Amazon who will more likely to convert to a sale.
Understand Your Amazon Business Market
If you want to be successful on Amazon, finding the right products and buyers is absolutely essential. Due to the success of the platform, there is a vast amount of competition across almost every niche and product. The biggest factors that will decide your success are choosing the right product, understanding the demand for that product and selling it at a profit.
Also Check: Kindle D00901 Hard Reset
Start Selling On Amazon
Joining 1.9 million other sellers on Amazon can seem intimidating, but the investment is well worth your time. Amazons platform can expose your product to a boundless audience, accelerating your way to success faster than any other ecommerce site, social media platform, or personal website.
Ready to get started selling on Amazon? Enroll in our free to learn how to utilize the platform to benefit your business.
About Jesse Sumrak
Jesse Sumrak is a writing zealot focused on creating killer content. Hes spent almost a decade writing about startup, marketing, and entrepreneurship topics, having built and sold his own post-apocalyptic fitness bootstrapped business. A writer by day and a peak bagger by night , you can usually find Jesse preparing for the apocalypse on a precipitous peak somewhere in the Rocky Mountains of Colorado.
Amazon Vs Selling On Shopify Or Other Ecommerce Platforms
When you sell on the Amazon marketplace, you have to play by the rules. If you sell on your website or another platform like Shopify, youre not as locked into specifics. You have more control over the customer experience and checkout process.
Since many platforms like Shopify and BigCommerce allow for omnichannel selling, you can leverage the marketplace on Amazon without exclusively selling there.
Its worth noting that youll have fees and restrictions regardless of the route you take. Even if you dont use something like Shopify, youll have hosting fees and transaction fees due to your payment processor. Certain products will be off-limits per your web host and payment processor. This is why doing niche research ahead of time makes such a difference.
For instance, if you want to sell products on your own site through PayPal, you cannot sell:
- Any products that present a risk to consumer safety
For a more in-depth look, read my post on .
You May Like: Amazon Textbook Sellback
How To Start An Ecommerce Business From Scratch
The ecommerce business industry is exploding. Brick and mortar stores that temporarily closed may never open again.
Shopping online used to be a convenience and a luxury, now its a necessity. The ecommerce businesses that I work with cant keep enough products stocked. Ecommerce has been growing for a while, and the numbers below dont account for the recent events leading to an increase in ecommerce sales.
Ive been in retail since 2005, Ive opened physical stores, Ive launched profitable websites and Ive marketed small and large brands online. The amount of interest in ecommerce right now is unprecedented.
A lot of folks want to know how to start an ecommerce business. If your goal is to make a quick buck thats all youll do, the goal should be a scalable, profitable business that lasts. You have to have a long-term vision for building an asset that brings true value to the market.
Rd Step: Buy A Domain On The Name Of Your Business
In this step you buy a domain name on the name of your business. You can buy a domain name for one year or you also can buy it for many years it depends on you. You can choose different platforms for buying a domain name like Namecheap, GoDaddy, you also can choose a different platform if you have a good price.
Don’t Miss: How To Add Your Food Stamp Card To Amazon
How To Start A Business On Amazon
Starting a business on Amazon is actually not that complicated. There are multiple kinds of Amazon sellers but they all have to go through these basic steps in order to get started:
Step 1 Determine what you want to sell This is the most crucial step. A seller can do everything perfectly with their business and fail if they have not selected the right product to promote. This step is not one to be rushed. You should do careful product and market research, calculate your margins, and find the right supplier.
Step 2 Sign up for your seller account The process for signing up is very easy and straightforward. The only thing you need is a valid bank account.
Step 3 Choose your business model There are actually several business models that are most popular on Amazon. The three most popular are:
This model is when you actually source your own product from a supplier, put your own brand on it and sell it on the platform. You have to create your own product listing and optimize it, as well as run your own pay per click campaign and promotions. This method could be the biggest commitment, but in most cases, its also the most rewarding as well.
This model involves purchasing existing products and selling them by piggybacking on existing listings. With this model, you dont have to worry about creating your own listing or managing your own brand. However, you can run some PPC campaigns if you are so inclined.
Research Ecommerce Business Models
Beginning your research is the first critical step. Dont operate off of a hunch. Growing any online business is an investment. Treat it as such.
There isnt a single business structure that works for everyone. Service-based business, software, digital product sales, and physical products are just the tip of the iceberg.
Before you can decide on what to sell online, you need to understand the different business models available.
Its not rocket science, but it does impact your business structure.
This is something Ill help you figure out in my Ecommerce Business Blueprint course.
If you want to turn a profit without touching your product or investing heavily at the start, drop shipping or is a smart choice.
If you like the idea of having your own warehouse full of goodies, youre investing more up front and working with a wholesaling or warehousing model. Have a business idea for the perfect product idea or a favorite product you wish you could sell under your brand? Look into white labeling and manufacturing.
And then there are subscriptions, where you carefully curate a set of products or a single product to be delivered at regular intervals to your customers.
The ecommerce business model that attracts me the most is a single product category that you supplement with affiliate marketing. You can control the content marketing and branding on a focused product and focus the rest of your energy on driving sales by monetizing traffic.
Recommended Reading: Audible Offers For Prime Members