Where to Invest to Start an FBA business?
FBA (Fulfillment by Amazon) business has presented a great opportunity for people to earn a good amount of money conveniently. The mechanism of FBA is completely transparent and a lot more convenient than some of the other choices like Shopify. You just have to choose a potentially viable product to sell and the rest of the work will be done by Amazon.
Where to invest your money to start off an FBA business? That is the most important question for an aspiring investor. You might have heard that you can start an FBA business for 100$ or 1000$, but it is not true. For establishing a sustainable FBA business, you require a decent investment. If you know the right areas to invest, there is more probability of getting a good return on your investment. This blog will help you to invest smartly in your FBA business.
Product is the heart of an FBA business and can be a deciding factor for its success. It is essential to do extensive product research before starting your FBA business. You can use different ways to research the right product. For example, you can ask other FBA sellers or search the internet. But the most accurate method is by using product research tools. Some of these tools are free while others are paid. FBA product research tools like Jungle Scout and AMZ Base help find the most in-demand products quickly.
There are certain tools that give you a complete overview of the market trend regarding a product. For example, you can get information about the velocity of sales, revenue and profit potential. These tools may be a bit more expensive than others, but they can guarantee the selection of a profitable product.
Spending money on manufacturers is probably the most important. The fate of your business depends on the manufacturing quality of your products. Working with mediocre manufacturers to save money is not a smart move. You should search out the list of top manufacturers in your niche to get a good variety to choose from. Extensive research before choosing a manufacturer can save you from a lot of regrets afterward.
You can search your product on Alibaba, and you will get tons of recommendations about its manufacturers. List down the ones you are interested in and contact them one by one. Set manufacturing quality as the criteria for selection rather than price.
Never underestimate the importance of sampling while investing in an FBA business. You can save yourself form a big loss by checking out samples of the product before ordering. Ask your manufacturer to send you samples of the complete product. You should get them approved by a quality assurance team to be completely satisfied with it. Make sure to analyze every aspect of the product from finishing to packaging. All of this may cost you a bit more money, but it is worth it.
If you really want to develop a long-lasting FBA business, you should private label your products on Amazon. For that, you will need strong branding and spending some money on it is fruitful in the long run. You can get a professional logo designed from Fiverr in rates as low as 5$. You should also focus on your package design because it has a huge impact on the customer’s opinion about your product.
Going for custom package design is the best choice as it will help you place yourself in the premium category. It is also not a bad idea to include goodies in your package at the start of your FBA business. Remember that the better your branding is, the better your chances of growing the business.
Whenever you create a new product listing on Amazon, you need a universal product code for it. Barcodes are very cheap, and you can get them in less than five dollars. You can get a lot of barcodes at low prices on eBay.
You should always have enough number of units in your inventory that can help you in generating good profits. In most cases, people stock lesser units to save money, and after giving giveaways, they are left with few. Due to this, they do not get a good return on their investment. Ideally, for starting an FBA business, you should at least buy 500 units so that you can make a profit. Make sure that you get all the units from the same manufacturer as it is more cost-efficient.
Some people do not consider spending money on inspection important which is a naïve approach. Consider a case where you pay manufacturers without inspecting the product, and it turns out to be substandard. You can save yourself from situations like these by hiring a third party for quality assurance of your products. A useful hack is not to pay all the money to the manufacturers until the inspection is done.
The shipping cost can vary depending on the size and weight of the shipment. Mode of transport also determines the shipping expense. For sending your inventory via the sea, you will have to pay less compared to shipping via air. Despite more cost, it is recommended to choose air for shipping inventory especially if you run out of stock. For best shipping services you can visit fbabee.com.
Most people fail to recognize the importance of product photography in their FBA business. The photos of your product are the face of your business that the potential customer will see. It is vital to invest in a good photographer to have presentable pictures of your product. You can get the help of a photographer friend or get the services of a freelancer to save some money.
FBA has revolutionized e-commerce. It is totally legitimate and has great potential for being an excellent source of income. You should make every single penny of yours count by investing smartly in FBA. All the areas mentioned above are worth investing and can give you desirable outcomes.