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The Ultimate Guide on How to Create a Store & Start Selling on Amazon in 2021

Amazon is the top ecommerce platforms for buyers and sellers from all around the world. In order to increasing ratio of sellers on the platform, it has introduced the FBA (Fulfillment by Amazon) service.

This service basically helps the sellers to manage their business and inventory on the network (Amazon) in a better way. In other words, Fulfillment by Amazon means that Amazon will store your inventory in the Amazon warehouse, take care of the orders you take and also after customer services for a very low cost. Furthermore you can also sell on other ecommerce platforms such as eBay or your ecommerce store, other than the Amazon.

The first question that might hit your mind while thinking about selling online could be how much do you need to start a store on Amazon?

It is a tricky question because you initial investment totally depends on the product you want to sell and few other important factors. But it is also true that you can start your FBA business with as low as $500 to $750. Here are few things you need to consider:

  • Initial inventory ($250)
  • Opening an Amazon Seller account ($39.99)
  • Purchasing the UPC codes ($10)
  • Product Photography (Free if you are a good photographer or $400 for acquiring services of a professional)
  • Logo and Product Branding ($40)

Total initial business investment for Amazon Cost: $340 – $740

Now, if you have made up your mind to start selling online via Amazon then this article will help you to setup your business step by step.

Business Plan

In order to start an online business, you must have a thorough business plan so that you can manage all the things according to it. This plan should have your business mission, market and product analysis, sales and promotional plan etc

Find a suitable niche

For a profitable FBA business, finding a good niche is very important. Do some market research according to your interest and budget. Try to look for a product that is in trend throughout the year. Always avoid fragile and seasonal products in the initial stages of your business.

Do some market research

After finding the right niche, it is time for you to do some thorough market research. Look for your competitors. A good competitor’s analysis will give you a realistic image of the market, product, demand and profitability. Read the reviews from the buyers. If you are sure that the demand of the product you are willing to sell is consistent then you can move on the next step.

Find a trustworthy supplier

Alibaba and Aliexpress are the best platforms to find a suitable supplier. Search for the product you are willing to sell on these platforms and thoroughly check their profiles and details. There are numerous verified profiles of suppliers on Aliexpress and Alibaba. Make a list of suppliers and send them emails. Make sure you are contacting the suppliers with verified profiles because there are a lot of scammers on the above mentioned platforms.

Order samples first so that you can check the quality of the product before making an actual order.

Place Order

After finalizing a supplier, it is time for you to place an order. It is also suggested that the first order you place should not be huge. Place a small order so that you can test the product and wait for customer response.

Try to stay in contact with your supplier on regular basis to avoid any sort of mishap. Make a list of key specifications of the product you order for example the color of the product and its design. This list will help you to avoid future misunderstandings with your supplier.

Create Account on Amazon

There are two types of seller accounts on Amazon:

Individual Seller account is free but Amazon will charge 1$ for every sale you will make through Individual Seller Account

Pro seller account offer more features and Amazon charges 39.99$ for this account

Create listing of your Product

In order to add your product on Amazon you are have create product listing. Always make sure that you product is “Prime Eligible” to make free shipping for Amazon prime members. Your product listing will involve detailed specifications of your product in bullet points and few high resolution pictures from different angles. Make sure your product listing look attractive.

Take care of your inventory

Managing in your inventory is very important in Amazon FBA. Always try to ensure you restock your inventory on time so that you have enough to sell. Your inventory will start to decrease the moment you will start getting orders. It is important to regularly check your inventory level and re-order your supplier for more to update it.

Customer Reviews

Most people go through product reviews before placing an order. Go through the customer reviews on your product and respond to them if possible. The quality of your product will get you better reviews and positive reviews will further promote your product on the platform.

Wrapping Up:

For beginners it is hard to sell on Amazon but everything in this article is to motivate you to take a step. By following the above process, it will become easier for you to do business on Amazon. Perhaps it is time for you to have faith in your abilities and go ahead with your business dreams.

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