20 Tips To Grow Your Business And Make a Million Dollars Through Amazon
How to Start a 7 Figure Amazon FBA Business in 2023
If you’re thinking about starting an Amazon FBA Private Label business this year, but are unsure if this business model is for you, or how to get started, you’re in the right place.
Selling on Amazon is without doubt one of the most lucrative business models online today.
Start and grow a business on Amazon. Amazon is one of the world’s largest ecommerce platforms. They attract tons of traffic, paying customers, and perks for their sellers.
How to Start an Amazon FBA Business in 2023
1. Choose your niche – In an ideal world choose a product or products that you’re passionate about and are happy to build a brand around, plus are super popular and best sellers on Amazon! (No one said this was easy!)
2. Find a popular product within your niche to sell – Start with just one, trust me, one is enough. Use the Amazon bestsellers list to start your product research. Key metrics include; product price between $15 – $50 (for decent profits), weighs under 2lbs (to keep shipping costs down), has a best seller rank of 1500 or below (a measure of good demand)
3. Source your products – Use manufacturing marketplaces like GlobalSources, Alibaba, DHGate etc., or to make your life a whole lot easier, use Junglescouts Supplier Database. With their fingers firmly in all sections of the Amazon pie, these guys are the best at what they do and their supplier database will save you hours of frustrating research. Check it out, you can thank me later.
4. Create your own brand name & design – Without a doubt, our brand was a major reason for our success. Don’t let this hold you up, but get your creative juices flowing here and come up with a name and logo to help you stand out from the crowd!
5. Create your seller account – Before you can ship products to Amazon, you’ll need an Amazon seller account, but don’t set it up too early as you have to pay a monthly fee for the privilege. When you place your order for your first batch of products, get your images, listing, keywords and launch strategy prepped and then open your Amazon seller account when they’re ready to ship.
6. Ship your product – For some reason, this is the stage that many new sellers find intimidating. Fear not, your supplier will help you and there are a million Amazon groups you can join to ask for advice through the process.
7. Launch your product on Amazon – Now You’re live on Amazon! Make sure your listing looks tip-top, with great images, a compelling keyword-rich headline, great bullet points and a detailed product description. Then follow our launch strategy as below. Cutting through the fluff, the most important factors for ranking on Amazon and growing your Amazon FBA business are high conversion rates and consistent sales velocity. From Day 1 you need to be generating daily sales. Even if it’s only 5 – 10 sales a day. Tell everyone you know your product is available for sale on Amazon. Run Amazon PPC ads. Send your products to influencers to review and send traffic. Whatever you can do to generate daily sales. That’s your goal! NB: Reviews are important as they contribute to higher conversion rates, which contribute to more sales!
8. Build your ‘off Amazon’ audience – The secret to our success was the marketing we did ‘off Amazon’. The fastest way to get this off the ground is to approach influencers in your niche, with large audiences. Send them a product to review and talk about, and give them a link for people to purchase. I can’t express strongly enough how well this strategy works! Even more so in 2023 with the number of influencers looking for brand collaborations. (A good friend of mine has recently increased his Shopify sales tenfold using this very strategy).
How Does Amazon FBA Work?
The magic of an Amazon FBA business is in the sheer amount of logistical elements that Amazon & your suppliers handle for you.
Here’s how it works;
- You, the seller, source private label products and add your brand and logo
- A factory manufactures your branded product in bulk
- A freight forwarder ships your products to Amazon warehouses in your countries of choice
- Amazon handles the storage, packing, distribution & customer service
- You list the product on the Amazon store and promote it across the web from your sunbed in Fiji!
While there are a few more moving parts, (and you may alternatively choose a sunbed in the Maldives, the Seychelles or even your back garden) this is essentially the long and short of it.
When we started our Amazon business;
- We sourced products already selling well on Amazon.
- Branded them with our own name and logo.
- Got them shipped to the Amazon warehouses (initially by air).
- Listed them on Amazon with our own brand, images, keywords, and descriptions
- Marketed the products both on and off Amazon
- Amazon handled all the distribution of the products to the customers!
And that’s pretty much the strategy I’m going through in detail in this post.
Selling on Amazon requires planning, investing, and risk-taking
When getting started on Amazon, you have to be a risk-taker. Don’t be afraid to get in early on a product that you feel has potential. If you take a wait-and-see approach, someone else could trademark your product or make an intellectual property claim — especially if you’re interested in creating a private-label brand like we did with the cloth diapers.
When it comes to sourcing products on Amazon, you have to know your budget, the product’s worth, and if you can successfully reinvest your profits. When you get the revenue, you must have the discipline to put it right back into the business, because that’s how you make money. Also, you never know what kind of expenses you’ll need to cover in order to grow the business.
Here’s the most exciting part about Amazon that many people are still unaware of. Anyone (that means you) can sell products on Amazon in America (the largest Amazon market in the world) and Amazon will allow you to ship your inventory to their warehouses and then they’ll do all the shipping and fulfillment for you. Wait – what? Yes, that means that you can live in Australia, Singapore, South Africa, England or anywhere else on earth and be selling products on Amazon to American consumers, getting paid US dollars and you don’t need to touch your own inventory at any point in the process. Then once you’ve got your products selling from Amazon’s US warehouses to it’s American customers, you can send your products to Amazon UK warehouses and start selling on Amazon in the UK, Spain, Italy, Germany and France.
How to Make a Million Dollars On Amazon
Building a business is tough, it’s true.
But Amazon is creating a platform for entrepreneurs to build their million-dollar businesses. So many people have done it. So can you.
If you were scared about setting off as an entrepreneur, conquer those fears. Because we’re now living in an era where growing a profitable business is accessible more than ever.
All you need is somebody to offer you direction. Our hope is that these tips motivated you and maybe even inspired an idea or two.
And if you need hands-on guidance, then consult the Amazon experts. Our friends at Turn Key Management can teach you everything you need to know about building a thriving Amazon business.
Let them help you learn how to make a million dollars on Amazon.
Can Amazon FBA Make You Rich?
Amazon FBA can make you incredibly wealthy, but like anything in life, it isn’t 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 Amazon FBA.
While starting an Amazon business in 2023 is more competitive than when I started, 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 JungleScout, reported some interesting findings. They found that in 2021:
- 85% of Amazon sellers are profitable (compared to 40% of other small businesses).
- 67% are profitable in their first year.
- Amazon sees nearly 3 billion visits a month.