You've probably heard how some people earn six figures and more by selling on Amazon, and you would like to give it a try. The marketplace is quite extensive, and you can attract customers from all over the world who are searching for millions of different products to purchase. Amazon is a trusted e-commerce website that offers many opportunities for sellers. You always wanted to give it a try, but you might think you don't have the budget to set up your business and finally start. Use only the best tools to make your business profitable like IO Scout. Get your limited IO Scout discount today and become a profitable Amazon seller.
It's possible to start a selling business with less than $2,000 and make it quite successful. How? Read on, and you will find out!
Do product research and order samples (cost $100-$200)
We will assume you already created your Amazon Seller Account. For this step, you will need around $39.99 per month, depending on your chosen selling plan. If you're planning on growing your selling business, choose the Professional Seller account over the Individual because it will be cheaper in the long run.
Then, you'll need to think about products you're going to sell on Amazon. It's always the best idea to go after something you're passionate about and sell products within your familiar niche. Still, it's not enough just to have knowledge within your chosen niche. You need to determine which products will draw you profit, and which will lead you to failure. It's not smart to invest money in something you're not sure whether it will be successful or not.
Also, it's not enough to get supplied with products in bulk for a lower price and then just sell them for a higher cost. You need to take into account the competition, demand, and fees related to your fulfillment method. With this, leveraging software solutions for Amazon sellers like IO Scout will be highly beneficial, if not crucial.
IO Scout Product Finder will help you discover profitable products with high margins, low competition, and high demand. With the number of sellers and revenue filters, you will be able to determine which products are the best pick for your store. You can also discover new profitable niches with filters associated with the item's rating, number of reviews, amount of sellers, revenue, sellers, and much more.
In case you're planning to sell your items with Amazon FBA selling method, IO Scout Amazon FBA Calculator will help you determine exactly how much you will have to pay for Amazon's services so that you can estimate your possible profit. This feature is completely free for use to anyone on IO Scout's website.
After you determine which product you want to sell on Amazon, you will need to find the right supplier. Check marketplaces like Aliexpress to locate producers who create similar products and order samples of the ones you're considering. Samples cost around $50 to $60, and you're going to need only a few of them.
Order inventory (cost $500-$2,500)
Product inventory is the initial cost you'll have to pay along with the expenses related to your product delivery. In case you're ordering your products from Aliexpress or other manufacturers from China, you will have to pay around 50 cents to $5 for product packaging, shipping, and customs fees. Another cost you'll have to pay is the storage fee, especially if you're selling with the FBA Amazon model, and your items are being stored in Amazon's warehouses.
It would probably be best if you can start with a $2,500 budget, but even if your wallet is much thinner, $500 will do the work, but you'll have to invest all your profits into another round of product orders.
Design your branding (cost $5-$800)
Aldo, many producers, will let you sell their goods under the "white label" or use their brand name, it's always the best to create your own. That way, you will be able to distinguish yourself from the competition and establish a business asset you can trade later.
Branding requires you to have a company logo. In case your budget is pretty tight, hire freelancers for a low price between $5 to $10. Of course, real professionals will demand a higher price.
Manufacturers have universal packaging with their logo, and some of them are willing to do a few customizations for free. For entirely custom, high-end packaging design, you will need to prepare your budget between $300 and $500.
Marketing (cost $200-$500)
For upfront marketing, you will have to prepare your budget of a few hundred dollars, but if you want to be more progressive, you will need at least $500. Amazon promotions are most profitable and will draw you around a 20-30% higher conversion rate.
You can use Facebook ads or offer coupons and discounts to drive more traffic to your Amazon product listing. If you choose to sell light-weighted, small products that are fast to ship, your business can be up and running within a month and a half to three months top. With progressive marketing, you will obtain a significant profit within the first six months.
Conclusion
These are your only upfront costs, and later, you can use your future profits to reinvest in more inventory, build a business website, hire staff to manage your social media channels, and scale in other ways as your business develops.
We showed you that you don't need to have a thick budget to pull up your business start but keep on your mind that besides the budget, you will need a lot of time and effort to learn, investigate and operate your business.
