Amazon FBA For Beginners (Step by Step Tutorial)

Summary

In this comprehensive tutorial, Nate walks viewers through the process of selling with Amazon FBA in 2021. He emphasizes that no expensive courses are required and offers practical, step-by-step advice for beginners. The video covers essential topics such as product research, sourcing, and listing optimization. Nate highlights the importance of gradual growth, avoiding get-rich-quick schemes, and understanding the pros and cons of Fulfillment by Amazon (FBA) versus Fulfillment by Merchant (FBM). He also shares strategies for finding high-demand, low-competition products, and offers tips for effective listing and competitive pricing.

Takeaways

• 📚 This tutorial is an introductory guide to selling products using Amazon FBA (Fulfillment by Amazon), aiming to provide comprehensive information without selling any courses or pitches.
• 🚀 Amazon FBA is emphasized as a viable business opportunity in 2021, but it's not a get-rich-quick scheme; it requires time and gradual building of experience.
• 🔍 The importance of finding products with high demand and low supply is highlighted, suggesting the use of tools like Jungle Scout for product research and demand analysis.
• 🛍️ The difference between FBA and FBM (Fulfillment by Merchant) is explained, with the former being more popular but more expensive due to Amazon's fees.
• 📈 The 'Rule of Thirds' is introduced as a strategy to estimate costs, Amazon fees, and profit margins when pricing a product for sale.
• 🔑 The process of sourcing products involves using platforms like Alibaba to connect with manufacturers or trading companies, with an emphasis on the benefits of dealing directly with manufacturers.
• 🔍 A detailed walkthrough of using Jungle Scout's 'Opportunity Finder' is provided to illustrate how to find potential products to sell on Amazon.
• 📦 The tutorial touches on the logistics of shipping products to Amazon, including the options of sea freight for lower costs or air freight for faster delivery.
• 🏷️ The necessity of having an FNSKU barcode for Amazon to fulfill orders is mentioned, which is important for product tracking and fulfillment.
• 📝 The video script underscores the significance of creating a compelling product listing with keyword-rich titles, detailed descriptions, and high-quality images to improve conversion rates.
• 💬 Engaging with customers through prompt response to questions and encouraging reviews is presented as crucial for building trust and improving the product's visibility on Amazon.

Q & A

What is the main purpose of the tutorial presented by Nate?

The main purpose of the tutorial is to provide a step-by-step guide on how to sell with Amazon FBA without selling any courses or making any pitches.

Why does Nate emphasize that Amazon FBA is not a get-rich-quick scheme?

Nate emphasizes this because he wants to set realistic expectations, highlighting that success on Amazon FBA requires time, effort, and learning from experiences rather than expecting immediate wealth.

What does Nate suggest as an alternative to jumping into Amazon FBA full time right away?

Nate suggests starting with a side project, gradually building up over time, and learning from experiences as the best approach to begin with Amazon FBA.

What is the difference between Amazon FBA and FBM?

Amazon FBA (Fulfillment by Amazon) means that Amazon handles the shipping and storage of products, while FBM (Fulfillment by Merchant) means the seller handles the shipping and storage themselves.

Why might a seller choose FBM over FBA?

A seller might choose FBM to save on fees associated with FBA, as they can handle the shipping and storage themselves, although this might require more effort and potentially result in fewer sales due to the lack of Prime shipping benefits.

What is the recommended minimum average monthly sales volume for a product to be considered for selling on Amazon?

Nate suggests considering products with at least 100 units sold per month to ensure there is enough demand to make selling the product worthwhile.

What is Jungle Scout and how does it help in the Amazon FBA process?

Jungle Scout is a software tool that helps Amazon sellers identify potential products to sell by providing data on average monthly sales, price, reviews, and an opportunity score, which can assist in finding products with good profit margins and less competition.

What is the 'rule of thirds' mentioned by Nate, and how is it used in the context of Amazon FBA?

The 'rule of thirds' is a guideline where one third of the product's price goes towards the cost of the product, another third towards Amazon fees, and the final third is the profit. It helps in estimating the potential profitability of a product on Amazon.

Why is it important to order samples from multiple manufacturers or trading companies on Alibaba?

Ordering samples from multiple sources allows a seller to compare product quality, prices, and service levels before deciding on a supplier for their Amazon FBA business, ensuring they choose the best option for their needs.

What are some strategies to get a new product to the top of Amazon search results and start selling?

Two strategies mentioned are using Pay Per Click (PPC) advertising to get the product noticed and potentially losing money initially to gain reviews and credibility, or undercutting the competition's prices temporarily to gain market share and reviews before raising the price.

What is the significance of having a good listing on Amazon, and what are some elements of a strong listing?

A good listing can increase visibility and sales. Key elements include a title with relevant keywords, a detailed description with bullet points, high-quality images (including a white background main photo), fast response to questions, and a focus on gathering positive reviews.

How can a seller leverage the 'Frequently Bought Together' feature on Amazon?

A seller can create a bundled product offering items that are often bought together, potentially at a discounted price, to attract customers looking for a complete set or package deal, which can also improve sales and reviews.