Amazon’s growth and global e-commerce dominance is so unprecedented that it’s often singled out as the main reason for declining high-street retail sales and brick and mortar shops and malls going bust. This juggernaut is nearly single-handedly changing consumers’ and businesses’ behaviour towards shopping: Online only, next day delivery as standard, and no-questions-asked immediate refund policy.
As with all change comes opportunities for new business models to develop. And right now is a major opportunity for individuals and business alike to set up shop on Amazon and bring their products to millions of customers with no investment needed in building a website, marketing a brand, nor even logistics! No wonder Amazon is reportedly signing up more than 1000 new sellers every single day.
STARTING YOUR E-COMMERCE BUSINESS ON AMAZON
Amazon gives sellers direct access to millions of shoppers and thus presents a great opportunity to quickly become an e-commerce seller. However, even though Amazon is optimized to make it easy to work with, it is not as easy as it sounds. There are many challenges to solve and many pitfalls to avoid.
We dived deeper into the subject with experienced Amazon seller and Trendle Analytics Founder, Tanguy Rohou. Tanguy has been selling on Amazon for over 6 years with great success. During a crash-course webinar, he shared with us his experiences, expert insights and barriers to overcome. You can find the complete replay below.
It covers the journey from finding the right product, to sourcing & shipping and finally selling. These are the basic steps anyone should be aware of before starting to sell on Amazon. The video provides you with all the key building blocks that you need to consider, no matter your background.
FINDING THE RIGHT BUSINESS MODEL
The first thing you need to know before you can start, is to discover how and what you want to sell, and this depends on the type of person and seller you are or want to be. There are various business models you can work with. You can choose private labeling with a standardized product such as smartphone accessories with your brand added on to it. Or you can also choose to develop your own product and put your brand on it. Private labeling allows you to build a brand from scratch and to retain maximum control on Amazon. However, this also means you will have to contribute more time and effort.
Another option is to start selling as a wholesaler. You pick a brand of products that you like and think will be successful. You apply to become an approved wholesaler under their brand, meaning you source the products from the brand and resell them on Amazon. It is an easy model to use to start selling but it can also be hard to find a product that is not already being sold by many competitors.
The final model you can choose is retail or online arbitrage (RA/OA). Here you go out looking for bargains which you can then resell at a profit online. This model requires you to put in a lot of effort and time in terms of spotting the best bargains at the right time and place, either online or offline. You also need to be able to quickly determine whether that product will be sold again quickly and profitably on Amazon. This model can deliver you a lot of profit in a short amount of time when done correctly.
CHOOSING THE PERFECT PRODUCT
The next step you need to consider is the type of product you want to sell (specifically for wholesale and Private Label sellers). You can use your own ideas on what type of products you want to sell. For example, think of a product you recently searched for but couldn’t easily find. You have to ask yourself a lot of practical questions in order to get a gut feeling on whether a product is right or wrong for you. Don’t hesitate to ask people around you what they think of your choice. It allows you straightforward feedback and will save you money and time in case you have chosen a product that is not in demand.
If you are having hard time to find a suitable product, take also look at random Amazon products, you might come across ideas that suit you or help to get your creativity going.
There are more scientific and efficient ways to find the perfect products. There are tools out there that will enable you to search the Amazon catalogue in a way which is optimised for sellers. This makes it easier to find the right niche and opportunity that suits you.
We’ll cover this precise topic in our next webinar with a real live case study and how to find your potential product in under an hour.
LOGISTICS MODELS, FIRST SALES AND CUSTOMER REVIEWS
Once you have chosen your business model and the product you want to sell, you have to dive deeper into the logistics services you will be offering, how to get a top class listing, how to get your first sale and how to get awesome reviews. Discover these topics and more in the full replay of the webinar below.