Amazon is the world's largest ecommerce marketplace, which is why it is abundant with opportunity for budding entrepreneurs and third-party sellers aiming to carve out their niche in the online retail world.
With a staggering $80 million in products flying off Amazon's shelves every hour, it's no wonder that individuals and businesses are eager to get a piece of the action.
Surprisingly, third-party sellers — like you and I — are the powerhouse behind approximately 68% of these sales.
The journey from sourcing products at local retail stores or online to profiting as an Amazon seller might seem complex, but it's a path well worth exploring.
I originally posted this as a thread on Twitter (X), but I have expanded on it in this article which will guide you through the entire process of starting with $1,000 and turning it into $10,000 per month selling on Amazon.
Let's begin.
Step 1. Setting Up Your Store on Amazon
The initial step in your Amazon selling journey is to establish your seller account. Amazon offers two types of accounts: a free account for casual sellers and a professional seller account for those looking to sell more than 40 items a month.
The professional account is a gateway to advanced selling tools and capabilities, making it a worthy investment for serious sellers.
Read more about Individual vs Professional Selling Plans on Amazon.
Step 2. Getting Ungated on Amazon
Once your account is set up, you may wish to expand your selling privileges to include specific brands or categories, a process known as getting ungated on Amazon.
Certain types of products, and many brands, are not available right away for third-party sellers. They are what we call "gated".
Getting ungated has become more straightforward than in the past, opening up more opportunities for new sellers.
Read more about getting ungated on Amazon.
Step 3. Getting the Right Amazon Software Tools
To streamline your sourcing process and make informed decisions when buying products to re-sell on Amazon, investing in a few key software tools is highly recommended.
Keepa Product Finder, for example, is probably the most powerful tool you can have in your arsenal. Keep will help you analyze historical price trends and sales velocity, helping you gauge whether a product is worth sourcing and selling (for a profit) on Amazon.
Read my full Keepa review.
Step 4. Maximize Profits Through Sourcing
Online arbitrage is a popular method among Amazon sellers for sourcing products. This strategy involves purchasing products from online retailers like Walgreens and Target — often at discounted prices through coupons, cashback offers, and sales — and selling them on Amazon for a profit.
Investing in a software tool like SellerAmp can significantly ease this process by helping you calculate profitability of products before you go ahead and invest in some inventory.
Read my SellerAmp review.
Step 5. Fulfillment Options
When it comes to fulfilling your orders, Amazon offers two primary fulfillment options.
The first one is called Fulfillment by Merchant (FBM), which involves you as the seller (merchant) packing and shipping your orders directly to your customers. This means you are responsible for storing your products too, which might be ok in the early days but you will soon grow out of this method.
The second option, and my most preferred, is called Fulfillment by Amazon (FBA). FBA allows you to send your inventory to Amazon, who then take care of storage, packing, and shipping.
Each option has its benefits, depending on your business model, preferences, and capabilities. I'm sure you can see, however, the great benefits of FBA over FBM.
Read more about Amazon FBA and Amazon FBM.
Step 6. Gain a Competitive Edge with Repricing Tools
To maintain a competitive edge, incorporating a repricing tool like Aura, which offers AI-powered repricing solutions, can be a game-changer.
What is a repricer tool?
A repricer is a software tool that automatically adjusts your product prices to stay competitive, improving your chances of winning the Buy Box and increasing your sales.
Read my Aura Repricer review.
Step 7. Scaling Your Business
As your Amazon selling business grows, you might consider partnering with a prep center to streamline the process of shipping products to Amazon, especially if you're using the FBA model.
Partnering with an Amazon a prep center in a sales tax-free state can also offer additional financial advantages.
Read my guide to Amazon FBA Prep Centers.
Step 8. Leverage Free Resources and Communities
You don't need to struggle alone. Starting and scaling your Amazon selling journey is made easier with the wealth of free resources available, including the Amazon Seller University, free content on YouTube, Amazon experts on X, and last but not least our very own free FBA today community on Skool.
Engaging with these communities, asking questions, and networking with fellow sellers can accelerate your learning and lead to greater success.
Step 9. Taking Action
The most crucial step in any business venture, however, is to take action!
The blend of theoretical knowledge and hands-on experience is a potent formula for mastering the art of selling on Amazon. As you navigate through successes and setbacks, you'll discover that learning through doing is an invaluable strategy on the road to achieving your business goals.
To summarize this thread-cum-article, turning Amazon's marketplace into your personal goldmine requires a strategic approach, from setting up the right type of seller account and getting ungated in desired categories to mastering the art of online arbitrage and leveraging technology for competitive advantage.
With a bit of determination, perseverance, the right tools, and a willingness to learn and adapt, you can transform the opportunity Amazon presents into a thriving, profitable business.
