A Peak Behind The Curtain Of An Amazon FBA Seller. 14 Ways FBA Sellers Have Become Successful.

An Amazon FBA seller sounds really cool (we have some profiles here if you want to check them out- it also goes into what Amazon FBA is all about). They discuss what makes a good FBA seller.

But what we want to know is what makes a good FBA business. What are some of the successful ones doing?

Good Amazon FBA Seller businesses won't tell you what they are doing.

And why should they. So what do we do?

Well we can reverse engineer them and see what makes them successful. So out of a few companies, here is one of the ways which they have become profitable. Oh, and their sales per month? Range from $5k-200k.

Importing.

This seems to be a big issue. Now importing means 2 things.

1. buying things from abroad and then shipping it to your country
   
2. manufacturing something in your home country and then shipping it out.

This is vitally important because shipping is something where most companies fail with 2 distinct reasons:

• delivery time
• product less/ product more

Delivery Time

You want your products to be delivered on time and within a decent time frame. Delivering direct to Amazons warehouse is a good idea, but now you are going to start to accrue fees for that pleasure.

If you deliver too much then you have too much product and fees are going to bite into your profits. However the flip side to this is if you have too little product. What happens when that runs out? It is not a good thing. It sounds awesome- product flying off the shelves, but, it slows down sales because people have to wait. If you have to bring in items from abroad and it takes 6 weeks to ship, then that is a very long time to wait. Negative reviews kick in and they will start to drop your placement. Sales will then start to drop. It then takes discounts to kick start the sales machine back up again, which takes time.

Solution?

Most companies have 2 ways to tackle this issue:

1. they have their own warehouse or fulfillment centre. Product gets shipped to there and then gets shipped out. You still have fees of some sort (but can be less than Amazon), but the process is more automated. Depending upon the professional nature of the fulfillment centre- they deal with product and maintaining stock as they get the email from Amazon when someone has bought. This was mentioned within the Four Hour Work Week. They usually deal with certain amounts of stock to actually have in stock, and amounts actually sold.
2. Instead of delivering to a customer, you house the product at your own home/ warehouse and then ship the product on a drip basis to Amazons warehouses so that there is always stock- but never over or under filling- saving on charges. This is what 3/4 of the businesses do.

These companies are not that hands on when they are shipping out the product. Anything that can be done by someone else for cheaper is done. Outsourcing seems to be the main factor that you will find in most of the companies. The people who are owning these companies are trying to build and grow them.

Initially?

It depends on your cost. Amazon doesn't care if you stock with them or not. They just want to know the customer is going to get the product as advertised and within a timely manner.

Initially the lone Amazon FBA seller will sell from their home especially if the amount of product being sold is in minor amounts. This will allow you to figure out:

• the logistics- returns, customer service, what can be put in the box with your product. How quick is your manufacturer- how dependable are they?
• what are you making per product- the total bottom line. This then will be able to direct you to how much elasticity you can manage within your markup. It will depend upon Amazon storage fees and how you are willing to promote your product. Pay Per Click is awesome so long as you can convert the expenses that come with it- how well do you convert a click to someone who buys something. Remember social posts, free blogging is great but a "like" or a "share" is not a sale.
  

Check out the further reading here (researched factors in top Amazon Sellers, also what the Ad agencies do)

Want to see how to get further up the Amazon search rankings? Check out the Sales Rank page here.

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