Thinking about starting a business as an Amazon Seller? It’s not a bad idea – plenty of people have made successful businesses by selling on Amazon. However, if you want to be successful, you need to do your research first. Here are a few things to consider before starting an Amazon business.
Do you know how Amazon works?
You might have a great product and plenty of warehouse space, but do you know how Amazon works? Do you know how to set up a product page? Do you know how to ship to Amazon FBA? You should find out the answers to these questions and more online. As a new Amazon Seller, you will make mistakes and learn lessons along the way, but it’s still worth going in with as much knowledge as possible warehouse optimization.
How good is your product?
Ask yourself – how good is your product? Do you think it’s better than the competition on Amazon? This is an important consideration because a low-quality product will garner bad reviews and isn’t a good foundation for a business. You could think about improving your product before launching it on Amazon.
Do you have enough warehouse space?
Warehouse space is an important consideration when you’re starting an Amazon business. If demand grows quickly for your product, do you have enough space? Also, have you prepared your products correctly for shipping to FBA?
Can you afford it?
Selling on Amazon isn’t a fast-track ticket to becoming a millionaire. No matter how good your product is, it’s going to be a while until you start making real money. When you get busy, it can also be a full-time occupation. The question is – can you afford to not work whilst your business gets off the ground?
Have you considered the risks?
Creating a business as an Amazon Seller is considerably less risky than setting up a bricks-and-mortar store. Your setup costs are minimal in comparison, and you only have to pay Amazon when you sell a product (except for the monthly membership). However, it’s not risk-free. You will need enough stock to get started on Amazon, and you need all of the shipping materials – cardboard boxes, tape, labels, etc. All of these costs can add up to a significant amount, and if your business doesn’t succeed, you will be left to foot the bill.
Are you clued up on marketing?
Because Amazon has a dedicated and loyal customer base, a lot of the marketing is done for you. However, there are still things to consider. For example, you will need to take high-quality images of your products, write product descriptions, and design product packaging. Plus, if you want to be successful on Amazon, you will have to use their paid advertising service to get your product off the ground.
Do you have the time?
Selling on Amazon is pretty time-consuming. From preparing products for shipping to answering customer questions, you will have to cover everything. It’s difficult to maintain a full-time job and a successful Amazon store at the same time. So, before you embark on this new venture, make sure you have plenty of time. Otherwise, you’ll spread yourself too thin.