How to start selling on Amazon FBA in 2023 without creating your own product
Posted: April 16th, 2023
If you're looking for a way to make money on Amazon without having to create your own products, retail and online arbitrage could be the way to go. Retail arbitrage involves buying products from retail stores and selling them for a profit on Amazon, while online arbitrage involves buying products online and reselling them on Amazon. In this blog post, we'll go over the steps you need to take to get started selling on Amazon using retail and online arbitrage.
Step 1: Create an Amazon Seller Account
The first step to sell on Amazon is to create your Amazon Sellers Account. Creating an Amazon Sellers account is a simple process, and can be done in just a few steps. Here's how to get started:
- Go to Amazon's Seller Central website: Visit https://sellercentral.amazon.com/ and click on the "Register Now" button.
- Choose your account type: You'll be asked to choose between two account types: Individual or Professional. Individual accounts are best for those who plan to sell fewer than 40 items per month, while Professional accounts are recommended for those who plan to sell more than 40 items per month. Select the account type that best suits your needs.
- Enter your email address: Amazon will ask you to enter your email address and create a password for your account. Be sure to choose a strong password that includes a mix of upper and lowercase letters, numbers, and symbols.
- Enter your business information: Amazon will ask you to provide some basic information about your business, such as your business name, address, and phone number. You'll also need to provide your tax identification number.
- Set up your payment method: You'll need to set up a payment method for your account. Amazon offers two options: bank account or credit card. Choose the option that works best for you.
- Verify your identity: Amazon will ask you to verify your identity by providing some personal information, such as your name and address. You will also need to provide a copy of your government-issued ID. You may also need to complete a video call with Amazon to verify your identity.
- Start selling: Once your account is set up and verified, you're ready to start selling on Amazon.
Step 2: Find Profitable Products
The second step in retail and online arbitrage is finding profitable products to sell. It's important to find the products that are in high demand but have low supply to make a profit. To tell if an item is in demand you can like as the items sales rank also known as "BSR" aka Best Sellers Rank. This shows the items popularity in the category it is in. For example, an item with rank 1 in Toys and Games is the number 1 selling item in the Toys and Games category. Sales rank varies per each category but the lower the number the more popular the item is.
To find profitable in demand product you can go to local retailers such as Walmart, Target, etc and scan item using the Amazon Seller App on your phone which is free with your Amazon Seller Account. You can also scan items around your house to find items for your first Amazon FBA shipment.
There are a few tools you can use to help you find and analyze profitable products. One such tool is Keepa which helps you determine the price and sales rank of a product over time through historical data. There is software such as Tactical Arbitrage which you can use to run searches of online retailers to find products. You can also use services such as leads list which provide you with a daily report of profitable in demand items you can sell on Amazon:
Step 3: Purchase Products
Once you've found profitable products, it's time to purchase them. Retail arbitrage involves buying products from physical brick and mortar retail stores and reselling them on Amazon. You can look for products at retail stores, thrift stores, garage sales, or flea markets.
For online arbitrage, you can look for products on websites like Walmart, Target, or other online retailers. You can also look for products on eBay or Craigslist.
When purchasing products, it's important to consider the cost of the product, shipping costs, and Amazon fees. You want to make sure that the profit you make is worth the effort you put in after all fees.
Step 4: Create Amazon Shipment
Once you have a product listings for each item you are selling, you can create a shipping plan. To create a shipping plan, go to Amazon Seller central to the "Inventory" tab and click "Manage FBA Inventory." Then, select the products you want to ship and click "Send/Replenish Inventory."
You'll need to provide information such as the quantity of products you're sending, the box dimensions, and the shipping address.
Before sending your products to Amazon's warehouse, you need to prepare them for shipment. This includes labeling your products with Amazon's FNSKU barcode, which identifies your product and links it to your listing on Amazon.
To label your products, you can print Amazon's shipping labels and attach them to your products. You'll also need to prepare your products for shipping by packaging them in boxes or poly bags and securing them with packing tape.
Once your products are labeled and packaged, you can send your shipment to Amazon's warehouse. You can choose to ship your products using Amazon's partnered carrier program, which offers discounted shipping rates, or you can use your own carrier.
When sending your shipment, make sure to include the shipment ID and packing list in the box. This will help Amazon identify your shipment and ensure that your products are processed quickly.
Step 5: Sell Your inventory
The most important aspect of selling on Amazon and actually selling your inventory. To sell your inventory you need to win the Buy Box.
What is the Buy Box?
The Buy Box is the box on an Amazon product detail page that allows customers to add the item to their cart with just one click. It is the primary way that most customers buy products on Amazon, as it makes the checkout process quick and easy. Amazon's algorithm determines which seller will win the Buy Box based on a number of factors, including price, shipping time, seller performance, and more.
Why does the Buy Box matter?
Winning the Buy Box can have a significant impact on your sales and revenue on Amazon. Research has shown that products that win the Buy Box typically see a higher conversion rate and more sales compared to those that do not. This is because the Buy Box gives customers a sense of trust and confidence in the seller and product, and they are more likely to make a purchase when they see the Buy Box.
How can you win the Buy Box?
There are several things you can do to increase your chances of winning the Buy Box on Amazon FBA. Here are some tips:
- Price competitively: Price is a critical factor in winning the Buy Box. Ensure your prices are competitive, taking into consideration your costs, shipping fees, and other expenses.
- Maintain high seller performance metrics: Amazon values sellers with high performance metrics, such as a low cancellation and late shipment rate. Make sure you are meeting Amazon's performance requirements consistently.
- Use Fulfilled by Amazon (FBA): FBA gives you a significant advantage in winning the Buy Box, as it shows Amazon that you can fulfill orders quickly and efficiently.
- Keep your inventory levels up-to-date: Ensure that your inventory levels are accurate and up-to-date, so you don't miss out on potential sales.
In conclusion, retail and online arbitrage can be a profitable way to make money on Amazon without having to create your own products. By finding profitable products, creating Amazon listings, and shipping products to Amazon, you can start making money on Amazon using arbitrage.
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