VETTED OPPS

How To Sell On Amazon

See How I Made $1.4 Million in 18 Months & Learn How To Sell On Amazon


free course

FREE LESSONS THAT WILL TEACH YOU HOW TO SELL ON AMAZON

In these free lessons, I will teach you the FIRST basic steps you need to take to learn how to sell on Amazon and then ​tell you what you ​need to do to turn it into a real business.

Everything you will learn here is totally FREE OF CHARGE.

AMAZON IS THE BIGGEST

Amazon has become the world's largest online retailer and as of this writing over 2 million merchants sell their products on Amazon. Needless to say, Amazon has become a fiercely competitive marketplace. The real issue is, most sellers don't really understand how to sell on Amazon.

Even though there are millions of sellers on Amazon, the vast majority do it as a sideline business and make very little income. As a result, over the last 5 to 6 years, there has been a rash of online courses claiming to teach people how to sell on Amazon. Each course promises to teach people how to sell on Amazon and how to become wealthy selling products on this unbelievably giant marketplace.

This extensive guide you will find below is designed to help you learn how to sell on Amazon. The sections you find below will take you through the first 4 sections of the course. Please follow along and take action after each section.


A BIT ABOUT ME

scott lindsay millionaire

Now I had been very successful in my online ventures. From the years of 2001 to 2012 I had made millions of dollars. So I was no novice when it came to the world of internet marketing. I had become somewhat of an expert at SEO (of the time) and many of my website properties where in the number one spot on Google. However, my main experience was in creating membership based websites and affiliate marketing. I had never sold physical products or been involved in e-commerce. Nothing I had done prepared me for selling physical products especially in the complex world of Amazon.

CHANGE IN DIRECTION

After I had sold several of my online businesses in 2012, I took a year off to decide which direction I should take. Several of my websites that I had left were crushed by the Google Panda and Google Penguin updates. This left me with no real income sources. This did not have an effect on me as far as my financial security because I had enough money in the bank to last for a long time. However, I am not the type to get comfortable in my accomplishments. I still had a strong desire to create another successful business.

In January of 2013 I left for the Philippines to spend a year with my fiancee. At this time I had no businesses or income. Everything I had done in the past was now sold. I needed to find a new direction. Since I was now in a foreign country, I needed something to do while my fiancee was at work. So, I took a course on affiliate marketing. Unfortunately this course was teaching the same old and tired concepts that had caused so many affiliate marketers to lose their incomes after the Google algorithm of 2011 and 2012.

Then in the Spring of 2013, I received an email from a well known internet marketer. The email was promoting their new course Amazing Selling Machine. This course promised to teach and guide people in creating a successful business selling on Amazon. The founders said that anyone could succeed. I was intrigued. However, this was the most expensive course I had seen. The cost was $2,497! I was reluctant to spend that much on a course. I spent several weeks contemplating, "should I take this course"? The idea of doing something different was exciting to me.

DECISION MADE: TIME TO LEARN HOW TO SELL ON AMAZON

Finally, after several weeks of going back and forth about the pros and cons of taking this course, I decided to move forward. I wanted to learn how to sell things on amazon. While sitting at a small desk on the 26th story of a high rise condo complex in the Philippines, I got out my credit card and paid the $2,497 membership fee. The decision was made to learn all I could about how to sell on Amazon.

THE JOURNEY SELLING ON AMAZON BEGINS

The course took 8 weeks to complete. It was released one module at a time. I have to admit, I was very inpatient waiting for the new content each week. This was one part of the course I didn't like. I'm not the type who likes to wait. When I'm ready to do something, I want to do it now. All in all though, the content was very good. Even though I still had questions, I was ready to move forward.

In the summer of 2013, I started putting all I had learned into practice. By the end of 2013, I had shown a $20,000 loss. I was not concerned though, I had learned so much in the 6 months since I started selling on Amazon.

In 2014, I expanded my product line with several other products. By the end of the year, my business had done over $1.2 million in sales and I had made a $338,000 net profit! That's after all expenses. So needless to say things were looking up.

AN OFFER I COULDN'T REFUSE

I was excited to see the growth that occurred in 2014. However, since I had sold businesses in the past, I was curious what this new business might be worth if I tried to sell it. I contacted my website broker (the company that sells my businesses), and to my surprise, he felt that I could sell it for over $1 million. I decided to let them list the business on their website to see if there would be anyone interested. To my surprise, several people were very interested in buying the business. One offered my what I was asking. This was an offer I couldn't refuse. So in January of 2015 I sold this business for $1,075,000! Remember, I had made $338,000 the previous year. This meant I had made $1.4 million for 18 months of work!

DUPLICATION OF EFFORT

I didn't stand still for long. After a 2 month trip overseas, I decided to start another business selling on Amazon. I had learned so much from the course about how to sell things on amazon. Plus, my 18 months of real world experience was a big plus. In June of 2015, I launched a new line of products on Amazon. You can see a screenshot below of the month of November 2015. You can see it shows over $72,000 in income sent to my bank account!

From June 2015 until the end of 2015 I did over $609,000 in sales. This is only 7 months. I have attached a screenshot from Amazon showing this 6 month period below:

selling on amazon

My goal is to take this business to over $2 million and then possibly to sell again.


IT'S YOUR TURN TO LEARN HOW TO SELL ON AMAZON

I assume you're reading this article because you too want to learn how to sell on Amazon. So from here on, I will show you exactly what I did to create a business selling on Amazon and then to sell it for over $1 million. Before you read this, make sure you understand that what I am teaching here is what I did. I make no guarantees that what I did will work for you. I'm just sharing what I did in hopes that it might help my readers learn more about what it really takes to sell on Amazon.

PREFACE

I wanted to add this introductory preface to let you know that I will take you through the steps I use when running my business selling on Amazon. There may be areas where you deviate from what I teach according to your own business needs. That's fine.

For example, I suggest that you set up your Amazon account AFTER you have your business name chosen, registered, and your products to just past the design stage. THIS IS FOR SELLERS WHO may need category approval. I choose to get everything set up and ready before I would set up an Amazon account but there are some who would like to set up their Amazon account first.

PRODUCTS REQUIRING CATEGORY APPROVAL

If you chose a category that does not require category approval, then you can set up your Amazon account first. To see a list of categories that require approval, click here.

If you're going to be selling a product in one of these categories that require approval, you will need to follow the steps in order in which I teach it because you will need your business and product set up before you can request category approval.


WHICH BUSINESS MODEL IS THE BEST?

There are really 3 business models you can use when selling on Amazon.

1) You can sell other brands.

2) You can manufacture your own products.

3) You can private label your own products under your own brand.

BUSINESS MODEL NUMBER 1: SELLING OTHER BRANDS

how to start selling on amazon

Most people's idea of selling on Amazon is finding a product at a low price, maybe a liquidation, closeout, and then selling it on Amazon. Basically, they sell someone else's product (another brand) and make a very small percentage when the item sells.

Example, let's say you found a case of Head and Shoulders shampoo on sale or being liquidated, you could then take these items and sell them on an existing listing on Amazon and compete for the lowest price.

Although this can make money, there are several problems with this model:

1) Small percentage of profit: Normally 10% to 20% if you're lucky.

2) Never ending sourcing: Since these are other people's brands, there is always a need to find new sources for products at a discount. You're left spending all of your time sourcing new products.

3) Never own the brand: Since this model revolves around selling other brands, you will never own the brand and will therefore, always have little control over your future business.

4) Must compete for the lowest price on Amazon.

BUSINESS MODEL NUMBER 2: MANUFACTURING YOUR OWN PRODUCTS

amazon selling

1) Percentage of profits is higher: If you can find a good product to sell under your brand it can make anywhere from 25% to 60% profit. This is far higher than selling other brands.

2) Sourcing is much easier: You manufacture the product so you do not have to source!

3) You Own the Brand: This is by far the best reason to manufacture your own product. When you sell products under your own brand, you control the brand, pricing, and can even sell the brand if it gets big enough.

4) You do not have to compete for the lowest price: Since you own the brand, you can set pricing and keep others from selling at a lower price point than you. This is crucial to success on Amazon.

DISADVANTAGES TO THIS BUSINESS MODEL:

The disadvantages to manufacturing your own products is that there can be a lot of up front investment into a building, warehouse, and machinery not to mention the hassles of employees.

This model may be the most lucrative if you have a lot of money to investment up front. But for the average person, it is not feasible.

BUSINESS MODEL NUMBER 3: PRIVATE LABELING

private labeling

To really make money selling on Amazon, private labeling is the way to go for most people.

What is private labeling?

Private labeling is the process of either buying a product from another company or having a product manufactured by another company and having them label the product under your brand.

Private-label products are typically those manufactured or provided by one company for offer under another company's brand. Private-label goods services are available in a wide range of industries from food to cosmetics.

THIS BUSINESS MODEL HAS SEVERAL ADVANTAGES OVER SELLING OTHER BRANDS

1) Percentage of profits is higher: If you can find a good product to sell under your brand it can make anywhere from 25% to 60% profit. This is far higher than selling other brands.

2) Sourcing is much easier: Sourcing products is much easier with private labeling. Once you find a supplier, you do not have to look for another supplier when you need more inventory. You simply go back to the same supplier and reorder!

3) You Own the Brand: As with manufacturing, when you sell products through private labeling under your own brand, you control the brand, pricing, and can even sell the brand if it gets big enough.

4) You do not have to compete for the lowest price: Since you own the brand, you can set pricing and keep others from selling at a lower price point than you. This is crucial to success on Amazon.

BEST BUSINESS MODEL

This model is by far the best business model for the average person who is on a limited budget. You can get this type of business going without a major investment. Because you are having another supplier manufacturing for you there are no worries about buildings, machinery, warehouses or employees!

In this FREE COURSE on how to sell on Amazon, we will focus on private labeling as the best business model. You can apply much of what you learn here though to any business model.

AMAZON FBA VS FULFILLED BY MERCHANT FBM

There are two ways you can sell on Amazon. FBA (fulfilled by Amazon) or FBM (fulfilled by merchant).

AMAZON FBM

FBM means that a seller ships and fulfills their own orders and just updates the order in the Amazon system with tracking info once the order has shipped. In this scenario you as the seller would do all the work of shipping the products and would be responsible should there be any issues with getting the product to the customer.

AMAZON FBA

FBA is a service provided by Amazon in which you can send your products to Amazon and they will ship them when a customer orders. Amazon takes a fee for doing this. You as the seller in this situation have nothing to do with shipping at all leave you free to do other things. You are also not responsible for any issue that happen during shipping.

WHY I WOULD CHOOSE AMAZON FBA

Reason Number 1:

By using FBA you never have to worry about shipping a product. This leaves you free to do other things. Amazon handles every aspect of shipping. You can be on vacation and never have to worry about needing to ship a product. This gives you freedom to live your life without worrying about fulfilling orders.

Reason Number 2:

Since Amazon handles shipping it means they are responsible for any problems that occur during shipping. This is critical because Amazon keeps seller metrics. If you use FBM and ship products yourself, when a customer has a problem with a shipment, it is your responsibility and if the customer files a claim, it can effect your Amazon seller metrics and your whole seller account. FBA gives you the peace of mind knowing Amazon takes responsibility for everything.

Reason Number 3:

Products that are shipped using FBA are eligible for Amazon Prime. This means the customer can get free 2 day shipping. This gives the customer a huge incentive to buy your product over a product that doesn't ship with Prime.

Reason Number 4:

If you're using FBA then your products may rank higher in the Amazon search results.

Some sellers say that using FBA is more expensive since you have to pay the extra FBA fees. However, I believe the advantages far outweigh this cost.

FINDING THE RIGHT PRODUCT TO SELL

best products to sell on amazon

RESTRICTED PRODUCTS

There are certain products that cannot be sold on Amazon. It is important that you view this list before you proceed to choosing a product. Please visit Amazon Here to view products restricted for sale on Amazon.

THE BEST PRODUCTS TO SELL ON AMAZON

There are millions of products on Amazon and many good markets for sellers to private label products in. However, some types of products can be better than others.

Consumables - Most people think of a consumable as something a consumer eats, but this is not the only meaning. Products that customers use up and will need to buy again are consumable. Examples, food, health products such as supplements, cosmetics, fragrances, hair care, paper products, certain personal care products and many others.

One time purchase products - These are products that the customer will buy once and may not need to buy again for a long time. Examples, appliances, furniture, computer, etc..

Now vacuums may not be a consumable but vacuum cleaner bags would be. So you can sell consumables that are accessories for non-consumable products.

REPEAT CUSTOMERS IS THE NAME OF THE GAME

As you build your business, you want to get as many repeat buyers as possible. You do this by having a great product and providing great customer service, if you do these things customers will buy from you again when they are in need of the product. The question is, how often will they be in need of your product?

It's best to sell products that customers use up in a certain amount of time. If you sell a supplement where the customer takes one a day and there are 30 servings, you can reasonably expect that the customer will be in need of your product again every 30 days or so. This gives you the opportunity to make another sale from that customer at regular intervals. That is why selling consumables is so lucrative.

I always look for products that are more consumable in nature so I can get more repeat customers.

This doesn’t mean I won’t sell a product that is a non-consumable. You can still make a lot of money on non-consumable products especially if you have great profit margins but I prefer consumable products.

CHOOSING A WINNING PRODUCT TO SELL

If you are going to sell successfully on Amazon or on any other marketplace, you must find a product that people need and are looking to buy. If you choose the wrong product or enter the wrong market, it can be a waste of your time and money.

Many people choose a product based on their own passions, hobbies, or interests. This can be a good thing because it means you will be selling something that you have a passion for which will make you a great spokesperson for that product. However, before you decide to enter a market simply because you have an interest in it, you must make sure that the product is in a market WHERE THERE ARE ACTUALLY PEOPLE BUYING! If you simply choose a market based on your interests and it turns out that the market has no buyers, you will fail.

PASSION NOT NEEDED, YOU NEED BUYERS!

You don't have to be passionate about a product or market to make money. You just need to be in a market that has a lot of buyers. I have made over 1 million dollars selling products on Amazon that I have no interest in. To find the right product to sell, you need to identify a market that is selling well, and then create a product that will be better than your competition in that market.

HOW TO FIND A GOOD PRODUCT TO SELL ON AMAZON

1) BROWSE DEPARTMENTS:

Go to Amazon, click the SHOP BY DEPARTMENT in the upper left corner of the page.

browse amazon

2) CHOOSE A CATEGORY:

Then, choose a category. If you are going to private label products, I suggest sticking with these categories as they are much easier to find private label suppliers:

  • Arts, Crafts, & Sewing
  • Automotive
  • Baby
  • Beauty
  • Camera & Accessories
  • Cell Phones and Accessories
  • Electronics
  • Health & Personal Care
  • Home Improvement
  • Industrial & Scientific
  • Kitchen & Dining
  • Musical Instruments
  • Patio, Lawn & Garden
  • Pet Supplies
  • Sports & Outdoors
  • Toys & Games
  • Grocery & Gourmet Foods
  • Office Products

3) LOOK AT BEST SELLERS IN THE CATEGORY:

Then, once you choose a department, click the BEST SELLERS link on the department page:

sell on amazon

This will bring up a list of the top 100 best selling products in this category. This means that these products are selling very well which lets you know, these markets are hot. It also means these products are likely selling hundreds of units per day depending on the product category.

best sellers on amazon

4) TRY TO FIND A PRODUCT YOU CAN PRIVATE LABEL:

Out of the best sellers you see on Amazon, look for one that you can private label. Once you find a product, you will then need to find a supplier for that product, and then sell it on Amazon. You can even expand your line with more products to make even more money! More about all of this later in this article.

This technique can help you find the very hottest products in each category on Amazon. This lets you know which products are selling extremely well. Any product listed in the top 100 on Amazon is selling well.

CHECKING COMPETITION

If a product is a best seller on Amazon, you still need to be careful. This does not mean it will be a good product to sell. Although these products are selling, the markets may be too competitive. You will need to do some analysis to see how competitive the market is on Amazon.

Here's what you do:

At the time of this writing, after looking in the Health & Beauty Best Seller List we see that this product:

best sellers on amazon

is the number 1 best selling product in the health & beauty category on Amazon. So we can see this product is a "Teeth Whitening Charcoal".

Now do a search on Amazon for"Teeth Whitening Charcoal".

amazon search

At the time of this writing we will see that this product is in the top 5 of the search results, in fact, it is number 1 in the search:

amazon search field

Now look at the number of reviews this product has. At the time of this writing it has 3,365 reviews. This is a very large number of reviews. But, that's ok.

Now look at the rest of the products on the first page of the search results. If you see that many other products also have 700, 800, 900 or more reviews, this means it may be a very competitive market. It is not a hard fast rule, but important to note.

I am looking for markets where all of the sellers have 500 or less reviews.

NOW LOOK AT THE BSR OF THE TOP 1O

Ideally, I am looking for markets that are selling well, but not too competitive. So I look for products that have a BSR (Best Seller Ranking) of 500 to 5,000 in their top level category, sell between $20 to $70, weigh 3 lbs or less (I prefer 1 lb or under) AND where all of the competitors have less then 500 reviews each. This means the market is doing well, enough to make good money, and is not so competitive that I cannot break into the market. BSR (Best Seller Ranking), is how well a product is selling compared to all other products in a category. It is a good indicator of how well a product is selling. Below is a screenshot showing where to find the BSR of a product:

amazon bsr

WHY DO I LOOK FOR A BSR OF 5,000 OR UNDER?

If a product is in the top 100 of its top level category, this means it is most likely selling hundreds of units a day. (depending on the category as some categories are larger than others). In most categories, if a product is at a BSR of 101 to 5,000, it can still be selling anywhere from 20, 30, 60, 80 units per day! This is great money. The problem is Amazon only shows you the top 100 products of each category. Trying to find products that meet these criteria can take days, weeks, or months searching through Amazon. It's really like trying to find a needle in a haystack. I use a service like Jungle Scout to help find the best products to sell on Amazon.

A note on selling price:

I suggest looking for products that you can sell at a price point of $20 to $70. Since you are going to be using Amazon FBA, you will have FBA fees each time a product sells. So you need to make sure you have enough profit after your product cost and Amazon fees.

If you can still make 40% or higher profit margin after Amazon fees you are doing great.

I also like to try and find smaller more light weight products. FBA fees are also determined by weight so try to pick products that are under 1 pound. If you are going to sell a product over 1 pound make sure you leave enough room in your pricing to account for FBA fees.

IMPORTANT NOTE: HOW TO SPEED UP THE PROCESS

I went into detail about how to find a product to sell on Amazon so you would understand the process and how Amazon works. However, doing this manually can take a very long time. I suggest using a service called "JUNGLE SCOUT". This tool can speed up the process and help you to find a product fast.

CONFIRMING A PRODUCT MARKET

Now that you have potentially chosen a market to enter, you will want to confirm the market to make sure it is a in a industry that people are actually searching for.

Let's use the example that you have decided to sell essential oil diffusers.

I used to use the Google Keyword planner for this part of the process. However, Google has recently made changes to their Google keyword planner tool which makes it much harder to understand the data. Now I suggest using a tool called KWFINDER. You can do 3 searches free each day but after 3, you need to wait 24 hours before you can use the tool again. I pay for the full subscription so that I can search as many times as I want. It may be worth your while to do this for one month until you get this part of the process complete. There are free keyword tools available. Just search on Google for "free keyword tools".

In this example I will use the KWFINDER keyword tool. From the KWFINDER search, type in your search term, choose the country you will be analyzing (I choose United States since I am selling on Amazon.com US), then choose the language (I choose English), and then click ANALYZE.

In this example we would type in essential oil diffusers:

keyword tool

This will show you that the term:

essential oil diffuser

has over 73,000 searchs a month on Google. Anything over 2,000 searches a month is not bad and means your product is in demand. Higher than 2,000 searches a month means that you should have a great market to sell in.

keyword tool

You can also look down the list to see complimentary terms people are searching for related to the product and if you see a number of other with good numbers that means you should have a large enough market to do well. Now if we scroll down we see other complimentary terms people use when looking for this product such as aromatherapy diffuser, oil diffuser, aroma diffuser, & diffuser.

and so on... so this is a very large market and most likely would have many customers looking to buy your products. It doesn't mean you want to enter this market unless you have also confirmed that it is not too competitive as shown in the example above.

Once you have analyzed the competition and confirmed that there is a demand for the product, you need to make sure that their is enough profit if you decide to sell the product on Amazon.

USING THE AMAZON FBA REVENUE CALCULATOR

Before you actually go out and source your products, you need to verify that the product is going to be profitable. To do this you will need to use the Amazon FBA Revenue Calculator. Click Here to use the calculator.

Once you're on the revenue calculator page, make sure that you choose the country you're selling in:

amazon fba calculator

What you are going to do is to look at similar products that you are considering sourcing (type and approx same weight) to make sure there is profit in selling them on Amazon. So, now, go to Amazon and search for the type of product you're thinking of selling, in this example we will use "essential oil diffuser":

amazon search

Then look at the top 10 products and find the ones that are selling the best:

amazon selling

Look at the products that are selling well and that have the highest price, then click on those products and get the ASIN number shown in the url. It's the number after the /dp/ in the url:

amazon asin

Now take this ASIN and enter it into the Amazon FBA Revenue Calculator and click search:

amazon search

Enter the price the product is selling for in the "ITEM PRICE field and click "CALCULATE":

amazon fba

This is going to show you the total cost to have this fulfilled by Amazon. You can see this where it says, "Selling On Amazon Fees" and "Total Fulfillment Cost":

how to sell on amazon

Then you take the selling price, subtract the "Selling On Amazon Fees" and "Total Fulfillment Cost", this leaves you with your proceeds after fees. In this example we used ASIN: B018CLNEOM and can see that this product is selling for $35.99 minus the "Selling On Amazon Fees" of $5.40 and "Total Fulfillment Cost" of $5.62 leaves us with $24.97. In order for you to be profitable, you need to be able to source a product very similar to this for $12 per unit or under. The goal is to be able to make at least 40% profit after all expenses and fees. A 50% or higher profit would be preferred but never go under 40%. This works for any product, just find those that are selling well on Amazon, find the ASIN, plugin the info into the Amazon Revenue Calculator, and then see the profit potential.

Once you determine you can be profitable for a particular product, you're ready to find a supplier. You need to look for a product either exactly the same or very close to the best selling product you researched on Amazon. We will get more into that in the next section.

FINDING A SUPPLIER FOR YOUR PRODUCTS

supplier

Once you have chosen your product or product line, it is now time to find a supplier.

The type of product you have chosen will determine how you look for a supplier.

When you begin your business, it is always good to see if you can find a supplier based in the US. This just makes things much easier when shipping the products to Amazon.

Remember, your goal is to have a business that will give you the freedom to live your life. So in my opinion, it makes life much easier to have a supplier based in the US. However, there are just some products that just cannot be sourced cost effectively in the US so you may have to import.

SOURCING IN THE US

First, lets look at sourcing a product here in the US. For example only, let's say you decided to sell dietary supplements. You would go to Google search for:

private label supplements" usa

private label supplement manufacturer usa

private label

If you had a specific product such as: omega 3 fish oil you could search for:

"private label" fish oil

Then look for us based suppliers that seems to have what you are looking for. Contact the suppliers and tell them you're looking to private label your product. You want to contact as many suppliers as possible because ultimately you are looking to find the best price and to see who gets back to you the fastest.

QUESTIONS TO ASK SUPPLIERS

1) WHAT IS THEIR MOQ?

MOQ-Minimum order quantity (quantity that you must order) Negotiate with this and let them know you will be ordering larger quantities as you grow.

2) ASK ABOUT PRICING

Ask about pricing for 100, 500, 1,000 and 2,000 unit quantities.

The more you can order the better pricing usually is.

I would always start with at least 500 units. Many people start with less and then they end up running out of stock. It is going to take you at least 500 units to get started in my opinion. Of course, if your budget does not allow this, then start with what you can.

3) DO THEY DO LABELING AND BOTTLING?

Some suppliers will design your labels for you but many do not. Just ask this to be sure.

Make sure they will ship directly to Amazon for you. You will be sending shipping labels to your supplier so they can send directly to FBA for you. This means you will never need to touch the products! But you must make sure that the supplier will do this.

4) GET SAMPLES

US suppliers will normally ship to Amazon for you which saves you the step of having to do this yourself which is a huge time saver. What I do is on the first shipment the are shipping out, I get samples of the product to make sure everything is good and there are no issues.

I have found that for products such as supplements, cosmetics, or anything that the customer will ingest or put on the body, it is easy to find US based suppliers. Besides that, you should always use a US based supplier for these types of products because it is crucial that you meet the quality standards for these types of products.

OVERSEAS SOURCING

If for some reason you cannot locate a US based supplier which can happen on certain types of products such as plastics, electronics, then you will need to search for an overseas supplier.

I normally go to Alibaba.com and search for suppliers.

Just search for the type of product you are looking to sell and then look through various suppliers.

For example, let's say you wanted to sell essential oil diffusers.

Go to alibaba, search for "essential oil diffuser":

Make sure to check the box to only look for Gold Suppliers, trade assurance, and even Assessed supplier. This will make sure you are displaying quality suppliers who have been verified by Alibaba.

alibaba sell on amazon

You can also go to Google and search for the type of product:

"essential oil diffuser" private label

"essential oil diffuser" wholesale

QUESTIONS TO ASK SUPPLIERS

1) WHAT IS THEIR MOQ?

MOQ-Minimum order quantity (quantity that you must order) Negotiate with this and let them know you will be ordering larger quantities as you grow.

2) ASK ABOUT PRICING

Ask about pricing for 100, 500, 1,000 and 2,000 unit quantities.

I would always start with at least 500 units. Many people start with less and then they end up running out of stock. It is going to take you at least 500 units to get started in my opinion. Of course, if your budget does not allow this, then start with what you can.

3) DO THEY DO LABELING AND BOTTLING?

Some suppliers will design your labels for you but many do not. Just ask this to be sure.

It is much harder to have products shipped from overseas directly to Amazon. I have always had them ship to our storage unit so we can inspect the shipment before we ship it off to Amazon. This creates an extra step of course but is worth the hassle of having shipments arrive at FBA that have issues.

You can use services such as: http://www.zebrapals.com/ or search for "fba inspection" on google. These FBA inspection services will receive your shipment, inspect it, and then ship to Amazon FBA. This does create an additional cost so you will have to see if it can fit in with your plans. We have always done the inspection ourselves.

Also, remember when importing from overseas, your shipment must go through customs. This is really what makes this process more difficult. You could learn how to handle all of the ins and outs of customs or you can hire a freight forwarder. A freight forwarder will handle everything for you, pick up at supplier, keeping you up to date on shipment, getting shipment through customs, and then delivery to your destination. Again, this is an extra cost but well worth it. We will get into more details about freight forwarders later in this course.

4) GET SAMPLES

Once you have found a few potential suppliers for your product, you will need to make sure you get several samples from each.

NEVER PLACE AN ORDER WITH A SUPPLIER UNLESS YOU GET SAMPLES FIRST.

Get more than one sample from each supplier to make sure that the quality and consistency is the same. There are times a supplier will send you one sample and then you find out later that their quality does not remain the same. So be sure to get several samples from each supplier.

If your supplier is overseas, they will normally ask you to pay for the shipping costs and sometimes even the samples themselves. Don't worry, this is common. A supplier in the US will normally just have you cover the cost of shipping.

IMPORTING PRODUCTS

importing

I love to sell products where I have a US supplier. It makes for easier logistics and planning. However, sometimes that is just not possible.

If you have chosen a supplier that is overseas, you will need to get those products from that other country, through customs, then to the delivery point. This is no easy task and requires a lot of paperwork. Plus, there are times when issues arise causing your shipment to be delayed.

I prefer to use what is called a Freight Forwarder.

According to Wikipedia:

"A freight forwarder or forwarding agent, also known as a non-vessel operating common carrier (NVOCC), is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution. Forwarders contract with a carrier or often multiple carriers to move the goods. A forwarder does not move the goods but acts as an expert in the logistics network. These carriers can use a variety of shipping modes, including ships, airplanes, trucks, and railroads, and often multiple modes for a single shipment. For example, the freight forwarder may arrange to have cargo moved from a plant to an airport by truck, flown to the destination city, then moved from the airport to a customer's building by another truck."

So basically, a Freight Forwarder is a company that will handle every part of the importing shipping process for you. They handle all the paperwork and will let you know if issues arise with customs and will tell you what additional paperwork might be needed.

First, you need to find a freight forwarder you can work with.

Go to Google and search for "freight forwarding companies".

There are many. I have only used one and they have been great. I use a company called V.Alexander. You may want to look them up and see if they are for you.

freight forwarder

Once you choose a freight forwarder, you will need to set up an account with them. They will need business info, company name, address, phone, contact info, EIN number, and if you want to set up a credit account, they will need to look up credit info.

I suggest setting up a credit account because it speeds up the delivery process at the end of the shipping process as you do not have to take the extra step of sending funds to them before they will deliver the shipment.

You most likely will need to buy a continuous bond or single entry bond. It all depends on how often you will import. If you import often then get a continuous bond as it will be cheaper in the long run. Discuss this with your freight forwarder.

The freight forwarder will charge fees based on the size and weight of your shipment, and you will have various customs fees. Just ask them the total estimated cost each shipment.

When importing, you have two choice for shipping, ocean or by air.

Remember it is always FAR less expensive to have your shipment sent via ocean shipment. In fact it can be 60 to 70% less than an air shipment. The problem is an ocean shipment can take from 1 1/2 months to 2 1/2 months to arrive at its final destination. This can even take longer if for some reason you shipment gets held up in customs. This is a long time and requires great inventory planning to this. If you have a fast selling product you will need how and when to place orders so you do not run out of stock.

An air shipment can take 7 to 14 days to receive.

I only use air shipments when I have a product that sells so quickly, I just can't keep up with the demand and have a hard time scheduling for 2 months out. If I have to use air shipments for a product, I try to build this cost into the price of the product so it really doesn't matter that I have to pay the much higher shipping costs.

DIFFERENTIATE AND BE THE BEST IN THE MARKET

how to sell on amazon

Many people learn how to sell on Amazon, but that doesn't mean they ever truly succeed. You need to be different to set yourself apart from other sellers. No matter what you decide to sell on Amazon, make sure that you decide to BE THE BEST. You need to make sure that whatever you sell it is the highest quality. Selling low quality products will always come back to hurt you. If you sell low quality products, your customers will leave negative feedback, you will have a large amount of refunds, and in general, this will hurt your seller rating.

DO EXTENSIVE TESTING

Make sure to do extensive testing from your supplier before you actually place your first product order to be sure what you are selling is truly high quality.

Once you know you have a high quality product you then need to make sure you differentiate your product from your competitors.

For example, let’s say you decided to sell chalkboard labels. A chalkboard label is an adhesive label that can be written on with chalkboard markers. It can be wiped clean and reused over and over.

HERE ARE WAYS TO DIFFERENTIATE

LARGER SIZE:

Let's say, that after research, you find that most of your competitors are selling packs of 24 labels. To differentiate your product, you could sell a bigger size pack.

Customers love to get a better deal so selling a bigger pack for the same price would be a great way to set your product a part from your competitors.

COMPLEMENTARY ADD ON ITEMS:

Rather than sell a larger size, you may want to use a COMPLEMENTARY add on item. In our example of chalkboard labels, chalk markers are used to write on these types of labels. So you could add a chalk marker to your product to make it a better value for your customer. Now the customer will receive chalkboard labels and a chalk marker for the same price as other products only selling the labels. So this would differentiate your product from others.

When we do a search for chalkboard labels on Amazon, the best sellers have added a chalk marker to their chalk label packs. Others have made a larger size pack. They are using this concept of differentiating and being better.

BOTH STRATEGIES:

To really set yourself a part, you could use both strategies. You could sell a larger size AND a complimentary add on item.

I have used all of these strategies and they have worked well. Use your imagination and think outside of the box!

Whatever you do, just make sure you differentiate your product from your competitors and be the BEST!


​WHAT TO DO NEXT:

SIGN UP FOR MORE FREE LESSONS

I hope you have enjoyed these lessons. These lessons were designed to help you gain a better understanding of how to sell on Amazon but they only take you through the first steps. However, this is just the beginning of what you need to know to learn how to sell on Amazon.  There are still many more things you need to know.

Therefore, it is always better to get into a program that teaches every aspect of selling on Amazon. You will also want a program that updates often ​so you can stay on the cutting edge of what is happening on the Amazon marketplace. If you don't do this you will get left behind and possibly do things that could hurt your business.

If you're serious about selling on Amazon, I would encourage you to take a more thorough course. You need to take a course that stays up to date on what Amazon is doing and get involved in a community where you can get help from others. There are two courses I highly recommend:

AMAZING SELLING MACHINE

The first is the AMAZING SELLING MACHINE. This is the course I took that helped me learn how to make over $1.4 million in 18 months.

They are on the cutting edge of what is happening on Amazon. It's by far the best course out there on the subject.  There is no other Amazon course that is as easy to follow and the advanced techniques are not taught anywhere else. You can access the course here.

​The only caveat, this course only opens for enrollment once or twice a year so you never know if it is closed again to the public.

PROVEN AMAZON COURSE

​The second course I recommend is the Proven Amazon Course. ​This course will teach you what you need to know to sell on Amazon. While not as easy to follow and not quite on the cutting edge like the Amazing Selling Machine, it does cost less. If you simply do not have the money to invest in the Amazing Selling Machine, then this course can work for you. You can access the course here