In this article, we’ll continue with our discussion on building your own business. We explored the ideas of entrepreneurship previously. Now, let’s take a look at something more specific: how to start your business on Amazon.
Is it too late? Has the well run dry already? I do not believe so. Every day, new players join the Amazon bandwagon. Although as with any race, only a few really make it to the finish line. In this article, we will break down how to start your business on Amazon without feeling like a small fish in a very big pond.
While it’s going to be challenging, the Male Matter Man is always up to the task!
Is It Worth Starting Your Business on Amazon Now?
This is one of the stumbling blocks I have heard from entrepreneurs looking to use Amazon as a platform. There is a perception that one might be too late in the game if they start now. Although the initial rush of would-be entrepreneurs is long past, this just means the process is more refined for you. Moreover, there are more details on what to do and what not to do.
Back in the day, there were a lot of people trying their hand at getting an Amazon storefront up and running. As a result, there was also much trial and error involved. And that led to a lot of unnecessary blood, sweat, and tears. Thankfully, you do not have to experience the same ordeal. Or at least, not as much as it would have been 10 years ago.
But what does this mean for you, budding entrepreneur? It means you have a wealth of information and wisdom to draw on. You’ll be prepared for the ups and downs, and be able to learn from those who have been successful.
Does this mean it will be smooth sailing? No, that is not what we are saying. Every businessman’s journey is unique. And you will certainly experience your own difficulties. But you can now alleviate some risk by learning from others’ experiences.
What Product Should You Use to Start Your Business on Amazon?
Here is something that has not changed from the early days of the Amazon rush. That is choosing your own niche. There is no point in getting in on a product line that everyone else is already selling. Aside from the fact that you will not be able to keep up with the “big box” companies selling on Amazon, it also means you will have a very small return of investment window.
Invest in a Niche You’re Interested in
But which niche should you follow? The best course of action would be choosing a niche that you are interested in. Don’t just follow what is supposed to be the “hot thing” right now. The problem with doing this is that you never know when the trend will die out. And if it does happen just as you are starting, you are then left with selling a product that no longer sells and that you are not invested in.
The advantage of you choosing a niche that you are personally knowledgeable—and even enthusiastic—about is that you won’t have to push yourself to like it. Your interest would be genuine. You would be able to market your product with an energy that would be absent otherwise.
You will also be aware of how popular and marketable the product would be. After all, you would be catering to a similar demographic as yourself.
Know the Amazon Market
Note that Amazon has 18 product categories, ranging from automotive parts and video games to home and garden essentials. Again, make a selection that truly resonates with your personal interests. But one caveat is that certain products require approval from Amazon to sell. Examples of these are jewelry and watches. The reason for this limitation is to avoid counterfeits from being offered in the Amazon market.
One other thing you should consider is choosing a product that allows white labeling. This refers to a manufacturer or provider that lets you use your own brand to market the product.
Check manufacturers that use generic branding, and consider how you would design your own personal brand. It does not have to be too complicated. Just make sure that your brand is unique and identifiable.
There are two types of selling plans to start your business on Amazon. The individual plan would be ideal for those just starting out. The professional plan, on the other hand, has its benefits but is really better suited for someone who already has a little bit of experience on Amazon selling.
If you choose the individual plan, you can sell in most areas, particularly the U.S., Canada, and Mexico. Amazon will handle all the customer service and fulfillment of transactions. But that is as far as it goes.
Moreover, as an individual seller, you will have a charge applied for each item you sell. This fee is $0.99 U.S. ($1.49 CDN). You also would not have advertising or marketing tools available. However, if you foresee selling fewer than 40 items each month, this is probably the ideal choice for you.
Meanwhile, the professional plan costs U.S. $39.99/month ($29.99 CDN). It has all the benefits of the individual plan but a few additional perks as well. For one thing, it will be cheaper in the long run if you sell more than 40 items every month (as it skips the per-item fee). Furthermore, you will have access to advertising tools from the Amazon interface. You will also have useful tools to track your performance and special promotions that you can add to your sales promotions.
Weigh in the costs versus the projected profits in choosing your Amazon seller’s plan.
Just the Start?
Once you have set up your selling account, product, and plan, you are well on your way to starting your business on Amazon. But this is just the start! Keep your eye out for more information, suggestions, and tips in growing your business on MaleMatter.com!