We also created the Amazon Lending program to help sellers grow. Since the program launched, we’ve provided aggregate funding of over $1.5 billion to micro, small and medium businesses across the U.S., U.K. and Japan through short-term loans, with a total outstanding loan balance of about $400 million. Stephen Aarstol, surfer and owner of Tower Paddle Boards, is one beneficiary. His business has become one of the fastest-growing companies in San Diego, in part with a little help from Amazon Lending. Click-to-cash access to capital helps these small enterprises grow, benefits customers with greater selection, and benefits Amazon since our marketplace revenue grows along with the sellers’ sales. We hope to expand Amazon Lending and are now working on ways to partner with banks so they can use their expertise to take and manage the bulk of the credit risk.
Be social. Whatever your business, whatever your venue, keeping your name in the air is key to internet success. Have a business account on Facebook, Twitter, and LinkedIn. If your business is graphically oriented, have accounts on Flickr and Tumblr as well. Whenever there is news of any kind—a new contract, a new page, a new entry, a new photo—cross-post it to all your social media sites. Also make sure those sites link back to your main website, and that your website has links to all of them.
You don’t have to do this though, and you can just send direct to Amazon. Freightos is a website you can use to collect lots of different freight forwarder quotes and Flexport is a freight forwarder that is very popular and will help you every step along the way, making sure everything is done correctly.
Finally, our first ever Prime Day surpassed all our expectations — more new members tried Prime that day than any other day in our history. Worldwide order growth increased 266% over the same day the year before, and sellers whose products are Prime-eligible through FBA saw record-breaking sales — with growth nearing 300%.
“OK, it’s a double,” he shot back. “But we’re going to be number one on this product–and it’s ranked 1,451 in all of personal care, number two in vitamins. This is crazy! This is bonkers!” Whatever you want to call it, within hours, Pharmapacks would be the number-one seller on Amazon for both of those products–a ranking it would hold for weeks.
Alexa can now be found across an array of Amazon hardware and software, including Amazon’s main mobile app, the Fire Stick streaming device, and its low-cost Fire tablets. It’s even started selling co-branded televisions with Chinese manufacturer Element that were a big seller at Amazon’s recent Prime Day sales event.
The first thing to do (after you decide what you want to sell, of course) is choose a fabulous, memorable business name that no one else is using. You can conduct a corporate name search to make sure it’s not already in use. Once you’ve chosen the name, register it. (If you form an LLC or corporation, this will happen automatically in the state where you file your paperwork.)
Become an affiliate marketer. There are many companies and webmasters who use affiliate programs to boost their online sales, and most of these affiliate programs are free to join. When you sign up for an affiliate program, an affiliate link with a unique affiliate ID will be assigned to you. The affiliate link is used for marketing the products of your merchant. When a visitor buys an item through your affiliate link, you earn affiliate commission.
While the registration process is fairly straight forward and can be completed in under an hour, there are a number of pieces of information you want to have in advance in order to streamline the process. While the rules for signing up on Amazon differ from country to country, let’s focus on what it will take to get registered on Amazon.com, the US marketplace. While you CAN stop the registration process partway through and come back to it later, it’s MUCH easier to pull together the following FIVE pieces of information BEFORE you start the registration process:
So I don’t look at Mike any differently than I would if Amazon were selling the item. And the truth is, most people don’t even notice that it doesn’t say “Sold by Amazon.com.” They just see Fulfilled by Amazon and that they can get Two-Day Shipping on the order.
Looking at the trends graph below, we can see that wood watches have been around for much longer than we realized. From Google Trends, it appears they came into existence at the end of 2004 and has recognized a slow but steady climb in interest up to 2012. However in the last two years we can see the growth has flattened a bit with the exception of a single large spike. Is there still opportunities for wood watches or has this product reached its plateau?
Once you have a targeted idea for your business, your next job is to do the research. You have to make sure that your great idea will thrive in your market. If it doesn’t, you may need to fine-tune your plan. And that’s something you want to do before you start spending money on the business.
When people discuss the rise of online marketplaces, they tend to focus on the tech companies that have made it possible for shoppers to find and purchase things in a matter of clicks. But that explains only the demand side of the equation. It doesn’t explain the supply side–why all this product is available so cheaply and freely in the first place.
If you want to earn more profit, try raising your prices. Nothing is off the table, but it comes down to how well you market, and how smart you are about the bullet points, pictures, and descriptions on your Amazon listings.
To ensure that your automated pricing is profitable, BQool’s Amazon Repricer also tracks your products’ Amazon seller fees, wholesale prices, and shipping and FBA fees, and figures these costs into your profit margin. This data lets you make informed decisions on your current product pricing, plus helps you research and spot new profitable products to sell on Amazon. To see how a repricer helps increase your Amazon sales and profits, you can try BQool’s Repricer for free for 14 days, no credit card required. After that, it costs just $25/month to manage pricing for up to 1000 listings.
As a Prime buyer myself, I ALWAYS choose FBA sellers over merchant fulfilled sellers. EVEN IF the price is higher. I trust that the item will arrive quickly and as described. Amazon has a trust factor built in that people have come to know and believe in.
The ability to analyze spend is critical to identifying opportunities, ensuring compliance, managing suppliers, measuring savings, and understanding trends. However, without the correct data, accurate spend analysis is difficult or impossible.
Hi Omid, I would not recommend selling the product outside of the original packaging. (That would be against Amazon’s rules). I would see if there is another listing for a package of 4 that you can use instead.
The Pharmapacks guys love the Master Brain. They protect it the way a star pit master guards the recipe for his barbecue’s rub. Or the way Pablo Escobar guarded the source of his ultrapure cocaine. Speaking of which: “You ever seen the movie Blow?” Tramunti asked me one day. He showed me the YouTube clip of the scene in which Johnny Depp, who plays the kingpin drug smuggler in the film, has his product tested by a black-market chemist–who goes gaga over its off-the-charts purity.
One tip on creating your brand name, what I’d suggest is creating a brand name that’s fairly universal. Lenny’s party supplies is a very specific niche, and only really relevant to party supplies, whereas just Lenny’s Products is a much broader name that you can sell a lot of different products underneath.
The Amazon FBA (fulfillment by Amazon) Program was the secret I needed to go from making $1,000 a month, to making over $5,000 a month, working part time. With my ebay business, I had to personally list, store and ship every item that I wanted to sell online. Most items I was selling were one off items, so I was starting from scratch with each thing I sold.
For instance, Amazon can host its virtual voice assistant, Alexa, handling the deluge of incoming requests. Amazon doesn’t release too many numbers about the number of requests the service gets per day, or even how many devices are Alexa-enabled, but analysts have estimated that the voice assistant dominates with a 70% market share of voice-controlled speakers. And if you ask Alexa to play a song—that music is hosted on Amazon’s servers as well.
A common theme in Amazon’s development is the drive to use a measured approach to all aspects of the business, beyond the finance. Marcus (2004) describes an occasion at a corporate ‘boot-camp’ in January 1997 when Amazon CEO Jeff Bezos ‘saw the light’. ‘At Amazon, we will have a Culture of Metrics’, he said while addressing his senior staff. He went on to explain how web-based business gave Amazon an ‘amazing window into human behaviour’. Marcus says: ‘Gone were the fuzzy approximations of focus groups, the anecdotal fudging and smoke blowing from the marketing department.
Unlike the basic marketplace business model of Alibaba.com, Items sold on Amazon by third-party sellers are either Fulfilled By Merchant (FBM) or Fulfilled By Amazon (FBA). FBM goods are kept in the third-party seller’s inventory, and shipping and customer service are handled by the third-party merchant. FBA goods are stored in Amazon’s fulfillment centers, and shipping and customer service are handled by Amazon.
Amazon also has an advertising platform called PPC or pay-per-click, where your listing can be displayed above all the others. It’s really easy to set up. All you do is select the key words that you’d like to be displayed under and how much you are willing to pay, in order to be shown under that keyword.