Introduction

Selling physical products on marketplaces like Amazon is the quickest method to establish a brand and generate revenue. Building a private label business on Amazon is, in my opinion, the easiest way to generate several streams of income on the internet.

You will learn the fundamentals of the Amazon FBA model in these five core modules.

  • Retail is dying, and Amazon has taken over.
  • During the holiday season, Amazon delivered more than 1.5 billion items worldwide.
  • Quarterly sales increase by about 40% as a result of the pandemic.
  • Third-party seller sales increased by 50%.
  • Amazon is valued at around $1.75 trillion.
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Learn the Fundamentals of the Amazon FBA model using these five (5) core modules.

It is without a doubt the most significant advantage that anyone can hope for. Selling on Amazon, like any other form of e-commerce, is a low-margin endeavor. Profit is made by selling at a high price while keeping the cost low. The more you sell, the more money you make.

The Amazon platform, which has millions of customers, now makes it extremely simple to find your customers. To sweeten the deal, Amazon handles your product shipping, handling, and even customer support. Amazon has everything a brand could possibly need.

Is that really that simple, if you ask me? Yes and No. Yes, because it is indeed very simple to list your product on Amazon and begin selling quickly without touching any inventory. And no, because many small sellers fail to focus on developing a sustainable brand on Amazon that targets their ideal customers. Fundamentals eventually succeed in e-commerce.

Focus on products, you will compete with others. Focus on your customers, then you will have a real brand.

You will learn the Fundamentals of the Amazon FBA model in these five (5) core modules.

Chapter 1

E-commerce Private Label Business Overview

Open Milestone

Private Label Business Model

Finding a product on Amazon with high sales but few reviews, purchasing it, and labeling it as if it were yours is what Amazon Private Label is all about. Essentially, you'll strive to improve the presentation of that original existing goods by establishing your own brand.

What is FBA?

Fulfillment by Amazon (FBA) allows you to store your orders in Amazon's fulfillment centers, and Amazon will select, pack, ship, and provide customer support for these items. FBA will assist you in scaling your company and reaching more customers.

How does FBA works?

FBA is the simplest way to refer to the business model in which the seller sells products on Amazon's Marketplace and Amazon FBA handles the entire delivery process. Amazon can handle everything, including delivering goods to consumers and printing shipping labels.

This is particularly useful if you work full-time because you won't have to think about waking up early to prep orders or going to the post office during your lunch break because Amazon can handle all aspects of order management and delivery for you.

What are the FBA storage and fulfilment fees?

FBA fees are categorized into two (2):

  • (a)   Normal Fees – This includes Inventory Storage and Fulfilment Fees.

  • (b)   Occasional Fees – This includes Long-term storage, Removal order, Returns processing and Unplanned services.

The services offered are also not free. Particularly when you start a company, but once it starts expanding, it can seem expensive at first and it becomes rational to save money in storage and avoid all the troubles with logistics. You can also develop and expand the business rapidly without being worried about the warehouse or even employing extra staff in the holiday season.

What is Amazon Prime?

Amazon Prime is a subscription program that provides members with a variety of exclusive discounts and additional services on Amazon.

Customers can join Amazon Prime and gain access to the following benefits:

  • Unlimited One-Day, Same-Day, and 1 & 2-Hour Delivery are all available for free.

  • Receive exclusive deals and offers

  • Get free access to a growing list of award-winning Amazon Originals, as well as tens of thousands of popular movies and television shows.

  • Enjoy ad-free access to over 2 million tracks.

What role does Amazon Prime play in FBA listing?

Prime members enjoy FREE Two-Day Delivery, and all Amazon.com customers get free shipping on qualifying orders. When you list products for FBA, you will also be eligible for free shipping. Customers who see the Prime logo on eligible FBA listings will know that Amazon handles packing, delivery, customer service, and returns.

What are Private Label Products (PLP)?

PLP stands for private label products, and it's a business model under which you serve as a brand owner while outsourcing the manufacturing process to a third party, typically a Chinese manufacturer. This means you'll create your own company name, logo, and, in most cases, personalized packaging, and then simply ask your retailer to make products displaying your brand name.

What are the benefits of Private Label Products?

  • On Amazon, you can have your own listing and not compete with other sellers directly, even if they basically sell the exact same product as they will not have the branding aspect.

  • Help boost the perceived value of the item you sell, allowing you to charge higher prices and to achieve better margins for your products.

  • Expand your business in the long run by going wholesale or licensing your brand to other companies.

  • You'll be able to develop an online following by using Facebook, Instagram, and other social media platforms.

  • Have a much better shot of starting and running your own e-commerce store. Rather than focusing solely on products, you should focus on your brand and customer base.

  • Create a real business with real assets and value, which is essential if you ever want to sell your company.

3-Step Business Registration Process

How to register as a Seller on Amazon?

  • Register to work as a sole trader on Amazon with HMRC - this refers to individuals who do not currently have any businesses registered or those who are currently employed.

  • Use the same company information for your Amazon Account or establish a new limited (Ltd) company for your Amazon Business if it would be separate - this is for those who already have a registered limited (ltd) liability company.

What do you need to consider before registering for an Amazon Seller Account?

You may not need to register a new email address with Amazon if you already have an Amazon Buyer Account because your one account works across all Amazon websites, international market places, and services, such as selling on Amazon Web Services and other Amazon websites. This means you won't have to create a new Amazon account if you already have one and use it to purchase items.

If you've never purchased anything from Amazon before, you'll have to start from scratch by registering your Amazon Seller Account.

What are the considerations you should make whilst registering your Amazon Seller Account?

  1. Be extremely cautious about the information you provide to Amazon. This requires your full name, address, and bank account details, as Amazon will manually verify your account and everything must be genuine and fit your records.

  2. To check your address, Amazon will request a utility bill that is no more than three months old. If you register as a business, such as a limited company, the bill should be in the name of the company. You will also be asked for evidence of company registration, your passport, and perhaps other documents. When you sign up for an Amazon Seller Account, you will not be required to have immediate verification. They will allow you to, but you must have verification after you have reached a certain sales threshold. As a result, it is recommended that you begin the verification process as soon as possible to avoid the possibility of having your account suspended when you are already making strong sales and ranking well.

  3. If you live in the UK, all you have to do is include your UK bank account details. If you live in the European Union, Amazon will approve your EU bank account, but they will exchange your currency at less-than-optimal rates. For those living outside of the United Kingdom, it is recommended that you open a borderless account with Wise and use that bank account to make Amazon Payments. This way, you can open a UK bank account, get paid in pounds, and then exchange your money at market rates whenever you want.

If your Amazon account has been verified, you can change your bank details whenever you want without having to go through another verification process.

You can only have Multiple Amazon accounts if:

a.     They're truly independent businesses, preferably limited liability companies.

b.     They sell products in different categories

Amazon Fulfillment 101

What are the different types and plans of Seller Accounts?

  1. Individual Amazon Seller Plans (£0.75 per item sold) are designed for sellers who expect to sell 35 units (or less) of their product each month.

  2. Professional Amazon Seller Plans (£25 per month) are designed for sellers who expect to sell more than 35 units a month. It is recommended that you purchase a professional setting plan from the start in order to gain access to all of the categories and features available to professional sellers on Amazon.

Amazon also collects a referral fee for each sale for both plans, which is a percentage of the overall purchase and varies by product category. You can compare rates on the Amazon website.

What are the two (2) extra charges you'll have to pay?

Referral Fees - Amazon charges you a referral fee as a percentage of each sale. This fee varies depending on the category in which you sell, but it is usually 12 or 15%. That is, if you sell an item for £10 in a category with a 15% referral fee, Amazon can charge you £1.50 plus VAT. Amazon will not charge you VAT on these fees if you are VAT registered.

FBA Fees – This type is divided into two (2) parts:

  • Fulfillment Fee - It is the fee you pay each time the item sells, and it essentially covers the cost of the service. You pay Amazon to have your item picked, packed, and shipped. This fee will be determined based on the size and weight of your item.

  • Storage Fee - It is the fee you pay Amazon for merely keeping the inventory in their warehouse, regardless of whether or not it sells. It is measured on the basis of the cubic feet of space your inventory occupies each month.The daily average volume (measured in cubic feet) for the space your inventory occupies in Amazon fulfillment centers is used to calculate inventory storage fees. When properly packaged and ready to ship, the volume measurement is based on unit size.

Accounting 101

What are some pointers for dealing with accounting in an e-commerce business?

Here are the best software solutions for bookkeeping, annual returns, VAT receipts, and more if you've never worked with software before and have no idea how accounting and basic tax calculations work, or if you own a Limited (Ltd) Company:

  • Xero - Xero is an all-in-one accounting program that allows you to keep track of everything and run your business smoothly. Even if you're on the other side of the world, this app helps you to collaborate with your accountant, bookkeeper, or staff. You only pay a monthly subscription fee, and it allows you to complete tax returns, VAT returns, payroll, and a variety of other tasks based on sales data. Xero is the most user-friendly, offers the highest value, and is specifically designed to work with Amazon. They have a huge database of accountants and are typically more E-commerce savvy than the typical High Street bookkeeping shop that mostly serves brick and mortar clients. (Most Recommended Software Solution).
  • A2X Accounting - For your clients selling on Amazon, Walmart, Shopify, eBay, and Etsy, this app automates best practice ecommerce accounting. It gives you complete control over how transactions are posted into accounting software by allowing you to map transactions to your desired general ledger account.
  • UK Business Forums Directory - Another choice is to use this website, which helps you to search for the service you need and is a perfect place to find thousands of accountants. Prices for services vary enormously, but for a typical Amazon FBA business, you will find good service providers for about £100 per month.

If you're a Non-VAT Registered Sole Trader, you can do all of this accounting on your own and save money. You simply need to keep very clear books that specify your sales and expenses in a straightforward manner. You can even use Excel or a spreadsheet to assist you with your annual tax return. This is one of the key reasons why starting out as a sole trader is advised to keep the accounting process easy. You only need to learn the fundamentals of accounting, which you can do on your own using the HMRC website.

Chapter 2

Finding your Ideal Product

Open Milestone

Product Research Overview

You won't be able to spot potentially profitable products if you don't spend enough time honing your research abilities. Choosing random things just because you like the way they appear and think they'll sell on Amazon isn't going to cut it, because what you're thinking and what your research will reveal are likely to be directly opposed!

The most crucial part of the course is product research, because if you don't do a brilliant job at this point, it will be difficult to fix later.

  • Find a product that is appropriate for your purchasing power, is in great demand, and has little competition, and improve it to make it stand out from the crowd and allow you to charge a greater price for it.

  • You must choose a product that is within your budget. Otherwise, you won't be able to get it for a cheap price. We weren't aiming to create a completely fresh and one-of-a-kind product that no one else is selling. This is an extremely risky that should not be used. If you're new to Amazon, sell a product with a proven demand, which means you'll know exactly how much it costs and how many units it sells each month. This does not imply that you must seek out a product with no competitors. You actually want some competition so that you may learn from other sellers' mistakes and improve your offer based on what they're doing incorrectly.

  • You can and should charge more if you have a higher quality version of a product than what everyone else sells. Amazon is the ideal platform for this. You'll notice that pricing for similar products on Amazon vary a lot. Because of Amazon's ranking system, people that charge more nonetheless obtain a lot of sales and good ranks. It considers product reviews in rankings, which implies that even with higher costs, if the product quality and ratings are up to par, you can rank high in search. 

Budgeting

You must first determine how much money you have available to invest in stocks. This is the money you have available to pay for items, shipping, import duties, and taxes at the moment.

If you have a limited budget, you'll need to set aside money for things like software, Amazon account subscription fees, the cost of receiving samples from suppliers, inspection services in China, brand creation, logo and packaging design, trademark registration fees, and product photography fees.

What are the best guidelines for aligning your budget and your maximum selling price?

  • Consider products that sell for a maximum of five pounds on Amazon if your budget is less than 500 pounds.

  • The maximum price on Amazon should be 10 pounds if your budget is between 500 and 1000 pounds.

  • The maximum price on Amazon should be 15 pounds if your budget is between 1000 and 2000 pounds.

  • The maximum price on Amazon should be 20 pounds if your budget is between 2000 and 3000 pounds.

  • The maximum price on Amazon should be 50 pounds if your budget is between 5000 and 10000 pounds.

  • If your budget exceeds 10,000 pounds, you can set no price limitations and be open to any product idea at any price range.

The lower the minimum order quantity, the lower the price of the item, but you still want it to be high, at least 100 units, to save money on shipping.

Perfect Product Formula Part 1

What are the items or products to avoid?

  • Electronics

  • Clothes

  • Shoes

  • Foods

  • Short Shelf Life

  • Toys

  • Chemicals

  • Oversized Products

  • Design Driven

  • Cheap Daily-Use Products

The ideal product would be simple, affordable, small, In high demand but not overly so, profitable, non-seasonal, and work as advertised.

Here are some of the recommendations about what kind of Amazon margin you should aim for:

  • If your product sells for five to ten pounds, your profit margin should be at least 30 to 40%.

  • If the product's selling price is between 10 and 20 pounds, your profit margin should be between 25 and 30%.

  • If the product's selling price is between 20 and 30 pounds, your profit margin should be between 20 and 25%.

  • If the product's selling price is more than 30 pounds, your profit margin should be at least 20%.

What is Profit Margin?

Profit margin is the profit you make after all costs are deducted, calculated as a percentage of the selling price. For example, if you sell an item for ten pounds, your net profit is three pounds after all product costs and Amazon fees. That indicates you have a net margin of 30%, which is rather average. Because profit margin is computed as a percentage, the lower the item selling price, the bigger the profit margin should be. On a 100-pound item, a 20% margin equals 20 pounds, which is a decent deal. While on a five-pound item, it's only one pound, which is too little to spend any money on advertising; in reality, you'd need to generate a two-pound profit, which is a 40% margin.

What are the products in categories that require approval?

  • Personal Safety and Household products

  • Holiday Selling Requirements in Toys & Games

  • Jewelry

  • Made in Italy

  • Music, DVD

  • Organic Food, Organic Feed, and Organic Pet Food

  • Beer, Wine & Spirits

  • Clothing

  • Streaming Media Players

  • Selling Books, Music, Video and DVD Products

  • Watches

What are the prohibited goods?

It is your obligation to determine if the things you provide are classified as hazardous materials. Hazardous products sent to Amazon fulfillment centers may be disposed of without compensation, even if they have not been identified as hazardous items by Amazon. There is a significant distinction between products that you can't sell on Amazon at all and things that you can sell and fulfill orders directly but can't sell through FBA.

If you want to keep things easy, just follow the FBA guidelines, because if you can sell it on FBA, you can sell it and fulfill orders yourself as well.

Various liquids, sharp products, and dangerous materials are among the most restricted items.

Liquid commodities, for example, must be sold in containers that are no larger than one liter in volume and have solid secure enclosures.

The maximum dimensions for a product that can be accepted in the FBA program are no more than 300 centimeters in length and no more than 140 kilograms, according to the same list.

The list of restrictions is quite long; simply search for FBA prohibited products on Amazon's help pages.

Perfect Product Formula Part 2

There are two major processes in product research:

  • Finding Product Ideas

  • Validating Product Ideas

What are the recommended tools to find product ideas?

  • Keyword Research Tools (Amazon, Google,  Amzscout, Junglescout, Keyword Surfer, Keyworddit and Terapeak)

  • Research Trend Tools (Google Trends)

  • Low Competition Keywords Tool (Ahrefs Keyword Explorer)

Using any of these recommended tools, find and list at least 10 to 15 Best Selling Products based on Most Items Sold and/or High Revenue. You may also need to double-check the sales statistics for these most popular listings and keep track of them for a week to see how well they sell.

What are the main goals of Product Research?

  • You want to understand everything you can about the product, especially if it's something completely new to you and you've never worked with it before. It goes without saying that if you don't have a basic understanding of the product, you won't be able to completely comprehend the market, target customer, how the product works, and so forth.

  • You want to learn what people enjoy and dislike about the current Amazon products for sale. Create your own unique version of the product based on this information. This is perhaps the most important aspect of the entire Amazon course. You don't want to sell the exact same version of those products since you'll have little to no genuine edge in the marketplace if you do, and we'll be forced to compete mostly on price. This is something you must avoid at all costs.

What are the most prevalent problems along with solutions?

Poor Quality. People will complain about a lack of quality, which will be the most typical issue you encounter with most products. Working closely with your manufacturer and ensuring that the product is created to the highest standard can generally solve this problem. Yes, it will almost certainly be more expensive. However, the benefits of delivering a high-quality product through Amazon are well worth the effort. The product reviews you receive will essentially sell your goods for you.

Difficulties with sizing. Frequently, the product's size isn't specified, or it doesn't provide different sizing options. Clothing, shoes, and other wearables will be particularly susceptible to this. It's also not uncommon in a variety of other product areas. This issue is not totally resolved because each individual is unique, and creating an item that suits everyone is difficult. Even so, you might lessen the impact by producing the size that will appeal to the majority of clients. Then, in your listing, clearly state the size so that customers can judge whether or not it will be suitable for them before purchasing it.

Some sizing difficulties are actually rather straightforward to resolve. It's simple if a large number of consumers say fantastic product, but it's too little, and then give it three or four stars. Make a larger version of that item and offer folks what they want.

Of course, the same may be said for overly large things. If a large number of consumers complain, consider making a smaller version of the product or offering two or three sizes so that buyers may choose whatever size they want.

Bad Materials. Low quality issues are related to bad materials, however these will be material specific. Perhaps consumers are satisfied with the entire product. However, the material used in one place is of poor quality, feels cheap, and so on. This is a simple fix. Of course, most Chinese manufacturers will gladly exchange materials with you. As long as you're willing to pay the higher price tag that comes with employing premium materials. When it comes to buying things from China, many individuals merely go for the lowest price. Without giving too much thought to the quality. This is a gigantic mistake.

Poor Design. Design flaws are widespread among Chinese-made goods. Maybe the product is wonderful, but it has a design or graphic on it that people don't like since the Chinese have a different eye for design than the rest of the world. By creating your own designs, you may easily solve this issue. You do not, however, have to be a designer. You can hire someone to design something for you, or you may buy ready-made design files from stock image websites like http://shutterstock.com .

Just ensure you get the enhanced license for photos because that's the only way you'll be able to put them on manufactured goods.

It was difficult to put together. People frequently complain about missing instructions or goods that are difficult to assemble since they are made up of several parts. You can either create a version of the product with fewer pieces that require assembly, sell the product pre-assembled if possible, or, and this is the easiest approach, improve your product's instructions.

Simply provide clear directions or, better yet, make a YouTube video showing how to build the product. Consider this procedure from the perspective of the consumer, and make it as simple as feasible for them to complete. Your consumers will be grateful if you make the assembling process as painless as possible.

A key piece of equipment is missing. If several buyers have mentioned that something vital is missing from the item, it's a simple repair for you. More often than not, people will mention that the item goes well with something else. If a high number of individuals suggested it, you might want to consider putting together a bundle or kit that includes those things. This is a powerful method that can be applied to a variety of items. You can generate incredible margins by producing kits because the product cost is maintained low but shipping and FBA expenses are nearly the same.

An important functionality is missing. If customers complain that the product is lacking a key feature, your task is to improve it. As a result, it provides that feature. It's that easy.

Packaging is a disaster. One of the simplest issues to resolve is if customers complained that the item arrived in damaged packing, or in no packing at all, or that the packing was inappropriate for the product.

Nothing should be left in its current state. You might not realize it, but there are a variety of high-quality cardboard boxes available. Starting with very thin, low-cost cardboard and progressing to five-layer export cardboard. There are also plastic crates and a plethora of different possibilities. There are numerous materials to choose from, and any reputable manufacturer will gladly assist you in resolving this issue.

There aren't enough color options. People are becoming increasingly interested in the product's design and color. This is especially significant for younger customers when making a purchase. So, if you notice that everyone else's color palette is limited to black, white, and gray, don't be discouraged. Why don't you try something new? This is really effective with a variety of items. If no one else is giving color options for your goods, that's even better. It's a quick and easy approach to come up with a unique offer.

There is no storage case included. In many circumstances, adding a storage case, sleeve bag, or whatever else is appropriate for that object will boost its perceived worth. Even if consumers aren't grumbling, adding such an item at such a low cost in China can help you boost the entire worth and price of your goods.

It's not strong enough. Similarly, to the low-quality materials we've just discussed. People frequently claim that a product is good, yet it isn't durable enough for professional or long-term use. Using too cheap or thin of a material is a common cause of this.

Chapter 3

Profit Negotiation and Sourcing

Open Milestone

Start with Profit Margin

It's important to dive into the figures at this point and assess your product's overall landed cost.

What is Landed Cost?

The total cost per unit delivered to your door, or straight to Amazon's warehouse if you choose that option, is known as the landed cost.

What are the various cost situations for which we must account?

  • Product Cost. This is the price given to you by the supplier, which is usually in US dollars. Packaging fees, as well as any branding or customisation costs, will be included. In a nutshell, this is the total price you will pay your provider for your order.
  • Shipping Cost. Depending on the shipping option you choose, you'll get these expenses from the supplier or a freight forwarder. If the items are small and light, and you utilize a courier to ship them, the supplier will provide you with shipping rates. If, on the other hand, you plan to ship by air or sea, a freight forwarder will provide you with a shipping cost estimate.
  • Import Duty. Your items will be cleared via customs when they arrive in the UK, and you will be charged import duty. The rate of import duty varies by product and can range from 0% to 12%. In extreme cases, much more so. However, it is usually less than 5%, with two to three percent being the most common. However, you should double-check the actual figure on the HMRC website to ensure that you know how much you'll have to pay.
  • VAT. The standard interest rate is 20%. However, some commodities may have a lower VAT rate; the actual VAT rate can be found via the trade tariff tool or by contacting the HMRC hotline. The calculation of import duty and VAT is a little strange, but it's not too difficult to grasp.
  • Inspection Cost. You should be aware that before products are given to you, you should have a third-party company inspect your order. It does, however, cost $100. And you'll normally do this for the first three to four orders you place with a new supplier.

What is the easy formula for calculating Import Duty and Value Added Tax (VAT)?

  • Import duty is calculated solely on the value of the products, excluding shipping and all other costs. For example, if the items cost 500 pounds, you would multiply that number by the import duty rate, say 5%, to get the import duty, which would be 25 pounds in this case.

  • Then add up all of the costs, including product shipping and import duty, and multiply by the VAT rate, which in most situations is 20%. So, if the product cost 500 pounds, shipping was 100 pounds, and import duty was 25 pounds, you add them all up to get 625 pounds, then increase that by 20% to obtain the final VAT amount. It's 125 pounds in this scenario.

If the goods cost 500 pounds and shipping was 100 pounds, you will be charged 25 pounds in import duty and 125 pounds in VAT.

Your landing cost of goods is calculated by adding all of these costs together. To calculate your landed cost per item, divide this value by the number of items. This is the number you'll work with and base your decisions on while trying to make a change. Changing your shipping method, for example, to see how it affects your landed unit cost, or increasing or decreasing your order size to see how it impacts your landed unit cost.

There are numerous instances where people are unaware of their landed cost per item. This is a number that you just must know in order to run a business. You can't figure out your profit, margins, or anything else for that matter.

Tip: Compute all expenses and obtain your landed item cost number once you receive prices from suppliers. The costs of brand creation, logo packaging, design, and product photography are one-time expenses that will only apply to your first sale. Do not include these in the product cost because they are more of an investment to start a business.

How can you use the Fulfillment by Amazon Revenue Calculator to quickly calculate a potential profit?

  • Use competitor listings that sell a similar product to the one you'll be selling. You can either enter the ASIN number from a specific listing or search for the product by name. Once you've chosen an item, double-check that the size and weight are the same as, or very close to, your item. It should not be less than your product's size and weight. As a result, the figures will be inaccurate. In this scenario, look through other listings to find one that is close to the weight and dimensions of your item.

  • Enter the price of the product. This is the price at which you intend to sell the item on Amazon.

  • Ship to Amazon must be 0 because shipping charges are already included in your total item costs. You'll have to include local shipping expenses if you're shipping goods to yourself first and then to Amazon. For example, if you know you'll send 200 units through courier and it'll cost you £10, put £10 there because that's how much Amazon shipping will cost you each item.

  • Enter the item’s landed cost. Lastly, click the calculate button.

This will show you how much you'll spend in FBA fees, seller fees, and what your net profit will be after all expenses. So you won't have to make any manual calculations here.

For these calculations, Amazon provides net margin, which is a very essential metric on which you should base your product selection. It's not enough to make a profit overall; you also need a big margin to fund paid advertising.

What margin and profit should you strive for?

In general, the smaller the price of the product, the larger the net margin you'll need to accomplish, as a five-pound item won't be a sensible investment if the net margin is only 20%.

When it comes to products that sell for less than 30 pounds on Amazon, which is the price range that most of you will stick to, a 30 to 50% margin is recommended.

  • Your net profit margin should be around 30% or greater if you sell an item on Amazon for 20 to 30 pounds.

  • If the item is priced between 10 and 20 pounds, aim for a 40% profit margin.

  • If the product is priced between £5 and £10, you should strive for a 40 to 50% profit margin.

Pre-Suation Negotiation

Branding and product sourcing are mutually exclusive. You'll essentially begin the product sourcing process. When you notice that the products you've picked can be sourced with improvements and profit, you may move on to the branding duties, because you'll need your brand name and logo when placing your order.

Moving to sourcing, you will most likely seek for a supplier in China, as most items are manufactured there, particularly the types of items we're looking for a private label business.

It's possible that the suppliers or manufacturers you're looking for are in Europe, the United States, or perhaps the United Kingdom. However, in many circumstances, the sourcing process is actually lot simpler, since all you have to do is verify that your suppliers are legitimate (which is extremely easy for Western companies to do) and negotiate with them to establish the best shipping and payment options, among other things.

Another possibility is that the suppliers you seek are based in India or Pakistan, both of which are well-known for their leather and fabric products. The fundamental principles will not change. Dealing with suppliers in Pakistan or India, on the other hand, is riskier because there are no affordable inspection services available. Furthermore, the accessible payment methods are not as secure, as they do not accept PayPal or credit cards.

As a result, if at all feasible, stick with Chinese companies. If not, you can always import things from another country. However, pay special attention to the supplier verification process and payment methods. You want to discover as many suppliers as possible for your products, then filter it down to three to five that appear the best. Then it's time to order samples and concentrate on improving the product. Finally, choose the best source with whom to place your order.

What are the most effective techniques to negotiate with suppliers?

Price. Obviously, this is the most essential aspect of the puzzle, as everyone wants to save money. You should, to some extent, strive to get the price down. Yes, telling a supplier that competitor X is offering the same goods at a cheaper price and asking them to match it is the most typical thing to do. It will work some of the time and some of the time it will not. But there's no reason not to at least give it a shot. Be reasonable while requesting a cheaper price. Expect the vendors to not halve their pricing.

Here's the deal: It all boils down to volume, or the size of your order, in the importing business. Because the majority of you will be working with suppliers on a minimum order amount, if not even that, you won't be able to expect any significant discounts. You must focus on product quality to obtain a ten-cent discount off the product's cost price or to improve your relationship with your supplier. It's not like 10 cents of an item you'll sell on Amazon for 15 or 20 pounds is a deal breaker. Consider this: if your order is little, don't expect to receive significant discounts. Also, remember that product quality is always your top priority.

Minimum Order Quantity or MOQ. You can and should negotiate the minimum order quantity, especially if your budget is limited. Simply contact the supplier and inform them that you are satisfied with the sample product you received and would want to proceed with a wholesale order. However, because you're just getting started and want to get a sense for the market, a smaller first order would be preferable.

MOQ for Branding. This entails imprinting your company's logo on the products. Manufacturers may require a minimum order to execute custom branding for you, depending on the technology utilized to add your logo to the product. That number, however, is usually the same as the overall minimum order quantity. If you can stick to 300 or 500 units, a supplier should be able to help you with branding. For orders of a specific amount, certain suppliers will include complimentary branding. This is something you'll need to figure out. It can be worth increasing your order size to avoid paying extra for branding. And this is something that you can work out. If a supplier says branding is free with purchases of 1000 units or more, but you only want 500, see if you can still persuade them to incorporate your logo for free.

Custom Packaging. The majority of suppliers will gladly create custom packaging for you. However, it will almost always be at an additional expense, especially for smaller orders. The most important thing to remember here is to do everything you can to negotiate custom packaging conditions and pricing, so you can acquire it no matter how little your purchase is, because custom packaging elevates your product and your Amazon listing to new heights.

Tip: Just remember to keep product quality in mind. People are sometimes overjoyed that they have found an exceptional low price on a product, only to discover later that the quality is poor. Don't be one of those people. When price is only a minor part of your overall costs, don't prioritize it.

Winning Sourcing Secrets

Here are some tips for finding suppliers:

  • Prices and other information found on product sites should not be accepted as fact. They'll be incorrect in 99 percent of the time. Suppliers offer a variety of ways in order to increase the visibility of their listings in search engines. Only by contacting each supplier individually and asking each of these questions directly can you get correct pricing, minimum order quantities, and other information.

  • For the time being, only look at the product photos and, if there is one, the description. And if everything appears to be in order, and it appears to be the product you're looking for, or something quite close, it's time to check out the supplier's profile by clicking on the name in the search results.

  • Check suppliers that have a video. This is wonderful because it allows you to obtain a fast overview of the supplier's operations. If a video is available, you must watch it right away. You must be seeking for footage of an actual production factory, as this would demonstrate that they are a true manufacturer rather than a trading firm. You might want to look for the company's logo on the factory's front gates or in the office. This is a clear indication that the company is authentic and operates a physical manufacturing facility.

  • Look for suppliers who are well-established in that particular product niche. Avoid companies that sell a variety of unconnected products since they are almost certainly trading companies. A company should focus on one or two product areas. Even then, they must be connected. This is a positive sign that they'll have the necessary machinery in place, as well as a research and development department, which will be essential if we want to improve the product through sourcing.

  • If the business has a website, go check it out. It's already a plus that they have a website; not all suppliers do. However, if it appears to be modern and includes an English version, it indicates that they work with a large number of export customers.

If a supplier checks all of the boxes, you've found the right person to work with. It signifies they've been in business for a long time and have a legitimate manufacturing plant. They essentially have nothing to hide from you. And there's no motivation to defraud you. As a supplier, you may or may not be able to pass all of these filters. Of course, it's possible they don't have a video or an inspection report on them, or that they haven't visited any trade events. That isn't to say they aren't genuine. You just want to see as many of these positive indicators as possible, as well as a professional Alibaba profile with real product photographs and images of the supplier's facility.

What are the primary goals of contacting suppliers?

  • Obtain product information from all of the suppliers on your list.

  • Choose the three to five best-looking suppliers to order samples from based on this information.

What are some more pointers to keep in mind when contacting suppliers?

  • The most convenient option for most individuals will be to use Alibaba's built-in messaging system. So just pick the first supplier on your list. And now it's time to send the first message. Start your initial message with a simple introduction and, most importantly, keep it short to enhance your chances of receiving a response.

  • After you've gotten a response, you can start asking more questions. But, once again, take things slowly. Make an effort to get to know them and demonstrate that you're serious about working with them.

  • You can also try using Alibaba's live chat system if you have a lot of free time. You can get answers to all of your inquiries far faster this way than you could by email. The same communication concepts apply. Begin with a brief introduction before inquiring about the minimum order quantity and price. Then you can move on to the rest of the questions.

  • If one supplier says they can't perform any customisation but another says they can, it's a red flag. Obviously, you'll want to keep in touch with suppliers who are more accommodating.

  • A good supplier will clarify what can and cannot be modified, as well as how alternative materials affect the pricing of the item. They will alert you to potential issues that specific adjustments may trigger, and so forth. In a summary, you'll get a feel of how professional the provider is and whether they can genuinely deliver on their promises, or if they're just saying it to gain your business.

  • Don't be hesitant to inquire about the most popular colors, materials, and sizes among their clients. For example, if there are any new models coming out soon, you can show competitors product images or videos to help them understand the adjustments you're looking for. Before you place your order, make sure to ask whether they can manufacture a sample of your custom product. You don't want to take the chance of losing your entire order. You haven't seen how the personalized product turns out yet.

  • You may enhance your margins and perceived value by creating multipacks of a product. It could be a two-item pack, a five-item pack, or even a ten-item pack. It all depends on how the product is used and how much it costs. If the product is really inexpensive and individuals frequently require numerous pieces, creating a multipack of ten or more units is a great idea. 

Genius Import Formula

What is Pre-Shipment Inspection?

It works in the same way as a supplier inspection does, in that you engage a business to go to a supplier and inspect the product quality, quantity, packing, labeling, and so on. The factory inspection, in layman's terms, is the last scam filter, but the pre-shipment inspection assures that your order is perfect.

How do you set up a Pre-Shipment Inspection?

  • Notify your supplier that you will be inspecting your order prior to shipment and to plan the best day to do so.

  • On Alibaba's Inspection Service page, look for an inspector and place your order. It is advised that you keep your life simple and only use the same rich fourth firm.

  • Meet with your chosen inspector and discuss what needs to be checked and how the products should be tested.

  • Finally, you'll receive the inspection report within a few days, which will include all of the information you need, such as specifics on any flaws, minor and significant critical packing, product numbers, and numerous product photographs.

How can you avoid delays in receiving your order?

There is one more thing you must do to minimize delays in getting your order: if you do not already have one, apply for an EORI number.

What is EORI number?

EORI stands for economic, operator, registration, and identification number. Without going into too much detail, this figure is simply used for statistical purposes to track all items imported and exported into and out of the EU.

An EORI number, which will be used to clear your products through customs, can take up to a week to obtain. As a result, you want to apply for it as soon as your order ships. As a result, there will be no delays, which will cost you money. The majority of shipping companies will store your items for free for three days or less. After that, however, you will be responsible for daily storage costs.

You do not want to request an EORI number until your order has been shipped from China. Just as you did on the EORI application, you'll need to provide your shipping information as well as the shipping company's information.

So, once the products have been shipped, simply request an EORI. That is, if you don't already have it.

If you're VAT-registered, you almost certainly already have an EORI number that's the same as your VAT number. However, if you are not VAT registered and this is your first time importing something, you must apply for an EORI number online. You must fill out a special form, which is available on the HMRC website.

After registering, your EORI number will be emailed to you within three to four business days. You can provide your EORI number to the courier company or freight forwarder when they ask for it for customs clearance.

What is EAN?

The European article number is abbreviated as EAN. It's also the method used to identify every product manufactured and sold in Europe's retail and online stores. Nearly every packaged item in your local supermarket has an EAN number. It will take the form of a unique barcode that store and warehouse systems can scan to instantly identify the product.

The EAN code is made up of 13 single digits. The barcode, on the other hand, is a simple graphical representation of that number. There is no magical information contained in these barcodes. By scanning any search EAN barcode, you will only get a 13-digit number.

You've probably noticed that cashiers occasionally need to manually enter a code into their system. If the barcode is unable to be scanned. To add the item to your order, they simply read the 13-digit code and manually type it into the tail.

Why are these EAN Codes required?

The goal is to establish Amazon product listings. We'll need to develop new Amazon product listings because we'll be selling private label products under our own brand. Each product must have an identity, such as an EAN code, according to Amazon. So, if you don't have a valid EAN code, you won't be able to establish an Amazon product listing. Aside from using EAN codes to establish Amazon listings, we can also utilize them on product packaging.

What is FNSKU?

FNSKU stands for fulfillment network stock keeping unit and is a one-of-a-kind number used exclusively by Amazon. When sellers make a shipment plan to transport products to Amazon's warehouse, Amazon will provide them a unique number and barcode. It's similar to EAN, however it's issued by Amazon rather than GS one. Another distinction is that, even for identical items, each seller's FNSKU number will be unique, allowing Amazon to keep track of inventory from diverse sellers individually.

What is the significance of FNSKU codes, and how do you use them?

The reason for this is that in order for Amazon to properly receive your inventory, you'll need to barcode each individual item or its packaging. It makes no difference whether the barcode is printed directly on the product or container, or if it is attached as a label, as long as it is present. If you don't want to put FNSKU labels on your own products, Amazon offers a service that will do it for you. It is not, however, recommended because it will increase your costs and cause a delay in receiving your product.

Given that you'll be ordering products from Chinese manufacturers, it's only natural to expect these labels to be applied correctly. If you're using custom printed packaging, make sure the barcode graphic is also printed on it. As a result, you won't need to worry about labels.

Fulfilment by Amazon Simplified

What are the most important aspects of courier delivery to remember?

  • Before sending items to Amazon, double-check that they are properly labeled with FNSKU codes. This allows you to avoid delays and additional fees.

  • To keep items safe in transit, send them in sturdy boxes, preferably five layer corrugated boxes, also known as export cardboard boxes.

  • Print each box labeled by Amazon on the PDF page. Remember that they are all unique and cannot be copied or duplicated. Labels should be placed so that they do not cover the box seams.

  • Amazon-approved packaging materials should be used. Educate yourself on the packaging restrictions.

  • It is strongly advised that you read the Shipping and Routing Requirements page carefully and thoroughly to learn exactly what Amazon allows and does not allow. In the long run, it will save you time, money, and sanity. So just get it right from the start.

When is the right time to make the transition from courier to pallet deliveries?

  1. Pallet delivery is less expensive than courier delivery if you send more than 100 to 150 kilograms per shipment, and the heavier and larger the pallet, the more you save compared to couriers.

  2. Pallet prices range from about 40 pounds for a smaller 250-pound pallet to 60 pounds for a full-sized pallet weighing a ton.

The price can vary depending on your location and which Amazon warehouse you need to ship to. It is strongly advised that you read the Pallet Requirements outlined on Amazon's help pages in detail.

What are the Pallet Requirements?

  • Palletization is needed for all non-small parcel shipments.

  • Use 800x1200 mm Euro/CHEP when shipping stock to EU countries.

  • When shipping stock to the UK, Amazon only accepts GMA grade B or higher, 1000x1200 mm 4-way access wood pallets, or 1000x1200 mm CHEP pallets.

  • Currently, Amazon fulfillment centers are unable to accept ocean container deliveries. Furthermore, floor-loaded deliveries necessitate special permission ahead of time, with Amazon's Business staff contacting you directly for approval and enrollment.

  • Unauthorized floor-loaded shipments and ocean containers may be rejected at the dock, returned to you at your expense, or subject to non-compliance fines.

What is a Long-Term Storage Fee?

The long-term storage fee is essentially a fine imposed on sellers whose inventory has been sitting in Amazon's warehouse for more than six months. It's important to realize that it's in your best interests to keep a close eye on and control your stock levels. You can only submit Amazon inventory that you can effectively sell out in the next six months, hopefully sooner. Another explanation why it is not recommended for new sellers to send all of their stock directly from China to Amazon is because of this.

How can you effectively stop having to pay the Long-Term Storage Fee?

  • There's also the option to place a removal order, which means Amazon can return your items to you. Of course, this service is not free; in fact, it can be very costly; however, it would be less expensive than paying long-term storage fees.

  • If Amazon alerts you that a particular item will soon be subject to long-term storage fees, you may request that Amazon destroy the item for you. Create a removal order to accomplish this. However, instead of having the goods returned to you, you can make them dispose of them for you. There will always be a small fee per unit, but it will be less expensive than returning the stock to you.

What are the major drawbacks to fulfilling orders outside of Amazon?

  • Amazon's packaging will be used to deliver your products. As you could ever think, a customer who places an order on eBay or through your online store does not anticipate receiving an order from Amazon. It not only causes uncertainty, but it also has the potential to generate some negative thoughts about the purchase. This is particularly true, if your pricing on Amazon and other platforms is different. If your customer discovers that they paid more through this platform than they did directly through Amazon, it will almost certainly result in a negative customer experience. Even if the consumer is satisfied with anything, simply seeing the Amazon box confirms the notion that they can purchase directly from Amazon the next time.

  • FBA orders placed outside of Amazon are subject to higher fees. Amazon Multi-Channel Fulfillment, as the name implies, fulfills orders for your distribution platforms at the same pace as Amazon Fulfillment (FBA). Amazon MCF is, of course, more expensive than standard FBA. If you're selling non-media, media, or oversized products, as well as whether you're shipping within the UK or to another EU country, determines which fee you'll pay. All else is the same, including restrictions, stocking, picking, packing, shipping, managing returns, and customer service.




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Chapter 4

Setting Up your Store

Open Milestone

Branding Mindset

Once you've decided on a final supplier to work with, you'll need to get your branding in order, and it's possibly that you'll need your logo even sooner than that, as some suppliers will be able to brand samples as well.

What is Branding?

It will actually encompass all of your marketing efforts, as well as your visual concepts, such as your logo, product photos, texts, how you engage with your clients, and how you promote your products and company to the world on a higher level. But, to put it another way, branding on Amazon entails creating your own distinct brand, company name, logo, and possibly packaging in order to essentially make a one-of-a-kind product with your logo on it.

When you sell your own branded goods on Amazon, no one can directly compete with you or sell the same product under the same listing. Because you'll be the only one who knows about the goods you're selling under your own name. There are other benefits to branding, such as increasing the perceived worth of a product in the eyes of customers.

However, there are several advantages to selling on Amazon in particular. When you have your own brand name and trademark, for example, you may apply for Amazon's Brand Registry, which gives you access to plenty of advanced selling tools like enhanced listing descriptions, your own Amazon store, and headline search ads.

Winning Brand Name

What are the essential guidelines to remember for Brand Names?

  • The name should be one to two words long, with a maximum of three words. The shorter the brand name, the better. One-word brand names are ideal, but two-word phrases are also common and effective. Long names are difficult to remember and usually look bad in logo design.

  • Make no use of numbers in your brand name. It's usually not a good idea, whether it's shown as a number or spelled out as a word, because people have a difficult time remembering numbers. In general, it's difficult to come up with catchy names using numbers. It's best to avoid it entirely to keep things simple.

  • In your brand name, avoid using hyphens or other special characters. It just doesn't look good. Furthermore, because special characters are not permitted in domain registration, you will be unable to register a domain name with them.

  • Phonetically, the name should be appealing. Try saying each name aloud to hear how it sounds. It should be simple to pronounce and sound good. And if you only use two or three words, it should have a natural rhythm.

  • Avoid strange or difficult-to-pronounce names. This problem is usually avoided by substituting shorter words for longer ones, which usually sound better and roll off the tongue.

  • The name should be relevant to the goods or services you provide. This does not imply that you should use the product's and brand's names interchangeably. If it makes sense, you may do so. But the most important thing is to connect your brand name to the items you sell.

What domain names would you like to register?

  • In an ideal situation, you should register two domain names. One, in the United Kingdom, your local domain name will be .co.uk, in Australia, it will be .com.au, and so on until you reach the .com domain name.

  • For your future online shop or website, you'll use the local domain name. The .com should ideally be secured because it has a high value if you decide to sell your company in the future. Another benefit is that if your company grows and you want to open a second online store in the United States, you'll be delighted you already have the .com domain name.

  • You should either stick with a local domain name, use a different name entirely, or look for one with a .com domain name that is available. You will have no choice but to adopt an alternative name if the .com domain name is already in use by another company, or even worse, a competitor in a similar niche. Even if they're in the US and you're in the UK, you don't want to have a brand name that someone else is already using. You could even be able to secure a trademark for the name and logo.

  • You must choose a platform for your Amazon Brand Registry website or landing page. However, you are not required to make those choices right now. So, when signing up for your domain name, feel free to ignore all of the upsells that the domain registrar company offers you. Your domain name is all you need right now.

  • If the local domain name is not available, there is no point in including it in your spreadsheet because it is not a viable option. If the local domain name is available, enter it into your spreadsheet, and then check the .com domain name during the validation stage.

What is a Trademark and why do you need it?

A trademark is a word, phrase, symbol, or logo that is officially registered with the trademarks office and grants you rights and protection against other parties who use it. So, once you've registered your brand name or logo as a trademark, no one else will be able to copy or use it. Every company should at the very least trademark their logo. And if you're selling on Amazon, you'll have to do it if you want to apply for Amazon's Brand Registry, which unlocks extra features on Amazon like having your own customer Amazon store, headline ads, and enhanced listing descriptions.

What are the two types of Trademarks?

  • Word Mark. You register a name or phrase as a piece of text in this way. It will not be coupled with any design or logo, implying that simply the name would be trademarked. You are free to use any logo and alter it at any time. Your name, on the other hand, will always be a trademark.

  • Design Mark. This means that by using your logo as a trademark, you are essentially protecting the graphical image that your logo represents. It also means that you will only be protected on this image, not on the actual name. So, if your logo changes in the future, you'll need to register a new trademark to protect that new graphic mark.

What does this mean in terms of deciding the trademark design or word to register?

In general, design trademarks such as logos are less difficult to create. Because the design mark is essentially weaker and only covers your logo, not your name, the chances of gaining objections from other companies are substantially smaller. As a result, it is strongly advised that you register your logo as a trademark first. You can next contemplate registering a word trademark or simply live with the logo trademark alone once it has been successfully registered. Having that word trademark registered, of course, boosts the entire value of your company if you decide to sell it later. So, if you can afford it, once you've registered your logo mark, you should also register your name trademark. For its Brand Registry, Amazon is accepting both word and logo trademarks. However, in the case of logo trademarks, the brand name must be written in readable type.

So you can't file a trademark for a graphical symbol or an abstract logo since Amazon won't accept it. Your brand name must be in text format in your logo, which most of you will do anyhow, so that isn't an issue. A search of the Registered Trademark directory to see if anyone else is using the same or similar brand name is another important strategy for minimizing opposition.

Brand Registration

You can now apply for Amazon's Brand Registry, which is Amazon's own record of intellectual property assets that allows sellers to safeguard their trademarks and listings against copycats, once you get your trademark approved and your landing pages developed. The Brand Registry also means that if you register successfully, you'll be able to use selling tools that aren't available to regular sellers, such as Amazon stores, enhanced listing content, and headline search ads, among other things.

The most significant benefits are having your own Amazon store and better listings, both of which distinguish your brand and products from the competition.

What are the Eligibility Requirements?

To be eligible for Amazon Brand Registry, your company must either have an active registered trademark in each country where you want to enroll or a pending trademark registration filed through Amazon IP Accelerator. Your brand's trademark must be a text-based mark (word mark) or an image-based mark that includes words, characters, or numerals (design mark). Eligible trademarks can be classified in a variety of ways depending on the granting trademark office where they were registered.

If your trademark is registered with the World Intellectual Property Organization (WIPO), you must also supply the country trademark office's matching trademark number, which may differ from the WIPO trademark number.

If the European Union Intellectual Property Office (EUIPO) has registered your trademark, please choose EUIPO as your trademark registrar in your application. Please keep in mind that Amazon Brand Registry is unrelated to any of these organizations.

What are the requirements to enroll Brand Registry?

  • Your active registered trademark for your brand name; your active registered trademark for your brand must appear on your items or packaging.

  • The number assigned by the Intellectual Property Office to a trademark registration. Please notice that application numbers are not accepted.

  • A list of product categories in which your brand should be featured (for example, clothes, sporting goods, and electronics).

  • A list of the nations where your company's products are made and distributed.

After you provide this information, Amazon will check to see whether you are the trademark's rights owner and seek for a contact who matches our criteria. A verification code will be sent to this individual. To complete the enrollment procedure, you must submit this code back to Amazon.

Once Amazon has validated the information you supplied, you will have full access to the Amazon Brand Registry's advantages and services, which will help you safeguard your brand.

Chapter 5

The Art of High Converting Amazon Listings

Open Milestone

Listing Secrets Revealed

How to create a Decent Product Listing Title?

Note: Bare in mind that Amazon may take anywhere from five to twenty minutes to update your listings after you make changes, so don't be startled if you don't see a difference after you've saved your changes.

  • To begin, depending on the product and the specific terms, you should include your top three to four keywords in your title. It might be a little more or a little less. However, the core three to four key words that define your product and drive the majority of search traffic are generally the most important. There is one loophole: you do not want or need to utilize whole keyword phrases in this case. It's pointless to waste space on redundant terms, and it won't benefit you in any way. Using the primary keyword three times on Amazon does not provide you three times the power. Repeated words are a loss of keyword chances since each keyword counts only once.

  • Your listing title should be distinct from those of our rivals in the search results, catching the customer's eye as they browse through the results. It's a good idea to look up the product on Amazon and see what your competition is up to. Analyze the title and keywords they've chosen, but don't replicate them. You just want to acquire a sense of what they're up to so you can come up with something distinctive and memorable. The most significant keyword should be first in the title. To get the most out of your title, include your primary keywords in the first few words.

  • Use a trademark sign after the brand name so that customers can notice it right away while searching. It also aids in the development of brand recognition, as people begin to know and recall my company's name. You can start using the TM sign at the end of your brand name as soon as you file for a trademark. It's attractive and establishes trust and credibility with your customers, making them more inclined to buy from you rather than your competition. Following that, you may add secondary keywords, which are listed in such a way that they form a logical word combination, allowing you to include as many keywords as feasible. Don't simply put together a bunch of random keywords as a lot of others do. Create listing names for people, not Amazon search robots.

  • Another thing to remember while creating listing titles is that they should be brief to medium in length. Don't fall into the trap of sellers that stuff their listing names with as many keywords as they can. Amazon presumably just looks at the first 100 characters or fewer of these lengthy titles before listing or ranking the keywords. It just makes your listing seem bad in Amazon's search results and elsewhere, and no one will bother to read it. When looking at Amazon search results, the length of the title frequently has little bearing on how high the product ranks. Even if it's only three words long, it can still come in first. So, keep it brief. You're looking for a character count of 50 to 100. Use the word character count tool again if you need help counting those characters. Your major keywords should be in the listing title. That's all there is to it. If you have a highly particular product with few long tail keyword variants, it might even be simply one phrase. And there you have it: the method for writing a fantastic Amazon listing title.

  • Also, if your product has a feature or benefit that is really important in your buyer's decision-making process, include it in the title. Go after it even if it's not on your core keyword list. Mention something like extra big to emphasize the fact that your product is the largest on the market. Even if the term case isn't in your keyword list, use it in your listing title if your product has a complimentary accessory.

Your listing title is the ideal spot to promote whatever distinctive aspect your product has, especially if it has a significant influence on your buyer's decision-making process. But, once again, don't overdo it; choose just one aspect to include in the title. In the bullet points, provide all of the important information your buyer need, as well as the word fit and listing title. The goal is to get visitors to click on your listing in the search results. Then, on the product page, you may go into further depth about the benefits and features of the product in the bullet point section and description block. Finally, make sure you meet Amazon's standards for listing title practices.

However, the most important thing to remember is to avoid using pricing, special deals, or discount information. Do not use any special characters. After the brand name, the TM symbol is acceptable.

Use of subjective adjectives and words such as best, highest, smallest, and similar is prohibited. Essentially, don't make your listing title become an obvious advertisement. It should simply serve to explain the item and tell them what your product is about in brief and straightforward terms, with no claims or subjective assertions.

How do you create Bullet Points?

To begin with, bullet points are essentially a summary or a brief explanation of the product.

Bullet points have two major objectives for us: Convert viewers into customers, and Improve in search rankings.

  1. The first and most crucial step is to use bullet points in the listing headline to promote the goods you've already begun selling. However, you won't be able to include much information. As sellers, we utilize bullet points to highlight the most essential features and benefits of the product we're selling.

  2. Make sure you use all five lines or bullet points that are provided. Make a list of the five most essential features and advantages that your consumers value.

  3. Make sure to incorporate both benefits and features. If there are any sizes, materials, or colors that potential customers should be aware of, include them in your bullet points, but don't limit yourself to only characteristics. Write about the advantages and differences between them.

  4. You may also need to include the item's size, weight, or other relevant details, depending on how technical the product is.

  5. In terms of style, Amazon regrettably does not allow us to use any styling such as bold or italics here, so the final text may appear a little dull, especially if it's on the lengthy side. Still, here are a few pointers to keep it eye-catching. Begin with the feature or advantage in all capitals. Use selective capitalization on a few words in the expansion to underline the most essential points you wish to show.

  6. Like the names of the listings, there are a few things you don't want to include in the bullet points, such as price, discounts, shipping, or special deals, as well as subjective phrases or adjectives such as best, great, top, promote your company, or other listings.

Put yourself in the position of the customer and consider what information you would want if you were purchasing this goods online. When it comes to rankings, your bullet points, like the listing title, must be keyword optimized for better ranks. This enables Amazon to index your listing for more keywords. To do this, use your keyword list and incorporate secondary keywords within the bullet points. You no longer need to utilize the main keyword because Amazon will index the keywords from your title.

How do you write a proper product description?

  • The main goal is to rank for even more secondary keywords, so go over your keyword list again to see which ones you haven't used yet. Use them in the product description so that the Amazon search algorithm may find them and, perhaps, rank you for some more long tail keyword phrases.

  • The majority of consumers will not even read the description, especially if the product is inexpensive. Those that do, though, are definitely interested in your offer and only need that more confirmation that what you're offering is indeed a good bargain. Allow them to have it. Give them one more piece of information and the assurance that your product is of high quality, and they will be extremely satisfied with their purchase. Because it is a major purchase, more individuals will read the description if the product is more expensive. However, the same concept applies: you must reassure your prospective consumer that they are making the proper decision.

  • Keep each feature or advantage you're discussing to a single paragraph. Use bullet points and some basic formatting, such as bolding and capitalization, if necessary.

  • Amazon accepts basic HTML tags, so you may structure your product descriptions to make them seem better. To accomplish this, you'll need to utilize a free online tool that converts formatted text into HTML code.

  • Use objective language and don't advertise your other goods. Also, don't provide any information about special offers. Simply discuss the product, its uses, advantages, and characteristics.

Hero Shot for Winning Product Images

The most essential factor of your selling process is product images. When it comes to online buying, your customers won't be able to touch, taste, smell, or feel the thing they're purchasing. As a result, photos will make or break your product listings; images will either sell or not sell the product. Essentially, every prospective Amazon purchase begins with an image. Whether it's a picture in the search results, a sponsored product, or a similar product on the product pages, the customer has clicked on it.

The two most significant conversion enhancers on Amazon are product pictures and reviews. You'll almost certainly have a great business if you do these two things correctly. With unprofessional product images, there's no way to get a high conversion rate on Amazon.

It is not a good idea to take your own product photos. No matter how much costly equipment you acquire, unless you're a professional product photographer, you'll never be able to attain that pro images.

To get a professional finish, it requires years of skill, expensive studio lighting setups, and years of post-production practice. You don't have time for all of that as a business owner.

The only alternative is to hire a professional to photograph your products. If you don't, you're jeopardizing all of your hard work, and you'll wind up with unsold inventory. It's up to you who you choose for this job as long as the end result is a collection of high-quality professional product photos that sell. Only hire product photographers that have a lot of experience in the area.

Special Offers and Product Promotions Area

What are the benefits of product promotions?

  1. Increases the product's sales

  2. It makes it simple to obtain product feedback and reviews.

  3. Improves the keyword's organic ranking

Product promotion on Amazon is still a very effective way to rank products. Discount coupons are a wonderful method to increase sales, and if used in conjunction with the appropriate technique, they may also help you improve your organic rankings.

Listing Formula

Each of the things you sell on Amazon has its own product page, which is called an Amazon product listing. It is composed of the information you enter while listing your product, such as the title, photos, description, and price.

What are the various ways for creating a new listing?

  • Step 1: After logging into your Seller Central account, go to the Inventory drop down menu and select "Add a Product."

  • Step 2: You have three options on the Add a Product page. First, you can add an existing Amazon product. This can be accomplished by searching for the product by name or product ID. Second, just below the search box, click "Create a new product listing." This should be used if you're uploading a brand new product that isn't already selling on Amazon. Third, you can use the "bulk upload" feature to the right of the screen to upload multiple products at once. In this case, let's use the second method to create a new product listing.

  • Step 3: After clicking "Create a new product listing," you'll be prompted to assign your new product to an Amazon category. You can find the category in one of two ways: by searching for it or by browsing the categories. It's important to note that you won't be able to change the category later. As a result, make sure you choose the correct one at this point. Only Amazon has the ability to change the category of a listing after it has been created.

  • Step 4: Then, on the 'Vital Info' tab, enter all of the information about your product. The options will vary depending on your product. You must enter an EAN code in the Product ID field because that is the European standard. Amazon warns us once more that the Product ID is compared to the GS1 database. If they discover a problem, they can suspend the product listing. It may even result in the loss of product creation rights. Essentially, if a fake code is used, Amazon may ban the listing and refuse to allow you to create any new listings. This is yet another reason why getting your EAN codes directly from GS1 is strongly advised.

  • Step 5: After completing the 'Vital Info' tab, proceed to the remaining tabs and input the information. The 'Variations' tab is where you would enter size or color selection information. Colors, sizes, materials, packed quantity, and other factors are all considered. These settings are very straightforward; you choose the type of variation you want to add and then add the actual variations.

  • Step 6: Next, the ‘Offer’ tab is where you set the pricing. This will be covered in the following lesson, but for the time being, simply put any price.

  • Step 7: It is an optional tab under ‘More Details’ that will cover all kinds of special product parameters such as weight, size, toys, warning message, items, measurements, package, quantity, and so on. Most of the time, you won't need to use any of these. However, it is recommended that you look through the list and determine if any of the available parameters are applicable to the product you offer.

  • Step 8: Finally, simply click the Save and Finish button to complete your listing. It could take up to 30 minutes for it to show up in your account. So don't be alarmed if you don't notice it right away. After you've made the listing, you can find it under inventory, manage inventory settings, and simply click the Edit button if you need to make any changes to it.

Pricing Optimization

There are two (2) types of Pricing:

  1. Price

  2. Sale Price

It is recommended that you offer the goods at your regular price from the start, and then use the discount price option only if you truly want to conduct a sale. When you need to liquidate overstock, you might conduct a sale. You should have a rough idea of how much you want to charge for your product by now.

Free Amazon traffic with Keywords

What are the basic rules of keywords optimization?

  • Evaluate that we have the appropriate keywords in place so that Amazon can readily comprehend what we're selling, increasing the likelihood of our listing appearing high in search results for as many targeted keywords as necessary.

  • Make a list of the most popular and relevant keywords for the items you sell. You can use Google Sheets to create a list of your product's most important or main keywords. These will include the product's name, as well as possible variations. Then, type the product name into the Amazon search box to see what kind of results it returns. Those will be your most important keyword variations. Amazon holds data on millions of customers, including their searches and purchasing habits. They know exactly what keywords consumers use to buy your goods and are willing to share that knowledge with you for free. Once you've gathered all of your keywords, enter them into your Google Sheet.

  • You may also gain more keywords by using Google AdWords. For the product you've specified, Google suggests relevant keywords. These are actual search terms that people use on Google. In most cases, when it comes to physical products, both Google and Amazon will use the same or extremely similar terms. Then, on your Google Sheet, add keywords that are relevant to your products. It should take you no more than 10 to 20 minutes to finish the overall process.

  • To insert all the keywords we've uncovered thus far, use the maximum space given by Amazon, which is 250 characters. This setting is technically for keywords that aren't listed in your title, description, or bullet points. Amazon is solely interested in one-of-a-kind terms. That means no commas or other punctuation. All of the terms that can be used to describe your product are unique.

  • Manually go through the list and remove any words that aren't specifically tailored for the product you're selling, especially duplicates.

A+ Content Conversion

What is Amazon Enhanced Brand Content?

Amazon Enhanced Brand Content is a premium content tool that allows sellers to add enhanced photos and text to the product description field of their branded ASINs.

Enhanced Brand Content can also be utilized to respond to the most common customer questions by offering relevant product information, which can assist customers make faster purchasing decisions and lower the likelihood of returns.

Sellers who have been certified as brand owners through Amazon's Brand Registry procedure are eligible to join EBC. Sellers will be able to add EBC to ASINs that are part of their approved brand catalog once they have been approved as a brand owner, but they will not be able to add content to ASINs that are not part of their brand.

What are the Amazon Enhanced Brand Content Requirements?

Enhanced Brand Content Fees - Sellers will not be charged a price while the tool is currently free for a limited time. When a fee is imposed, the seller's previous content will be preserved on the detail page.

Enhanced Brand Content Submission - Within 7 days of submission, EBC submissions will either be published or rejected, with necessary adjustments specified in the rejection reason; however, most content is processed within 2 days.

Your Brand’s Real Estate in Amazon

What is Amazon Store?

One of the most important features for brands to generate sales and develop customer loyalty is Amazon's in-store. Amazon Storefronts is a new DIY (Do-It-Yourself) option that enables merchants and providers to create their own Amazon.com stores. The feature was created specifically to provide customers with a rich and immersive virtual shopping experience.

In a summary, it's a free self-service tool that allows a brand owner to construct and design multi-page stores on Amazon to emphasize their items, value propositions, and brands.

The opportunity to develop your own Amazon store is another benefit of being accepted in Amazon's Brand Registry. This means you'll have your own Amazon store where you can display all of your goods. Create an About Us page, unique landing pages for the categories and items you sell, a video about how your products are manufactured or how to utilize them, and much more.

Who is eligible to create an Amazon Store?

  • Sellers

  • Agencies

  • Vendors

Why would you want to start an Amazon Store?

The primary goal of an Amazon Store is to increase buyer involvement. It is perfect as well as easy for buyers to purchase because it is a developed destination for them to learn about different companies and shop for different things in one spot.

On both mobile and desktop platforms, a "Store" provides an exceptional brand-centric shopping experience.

Creating an Amazon Storefront is not only easy, but it's also free if you've signed up for the Amazon Brand Registry program. Amazon will verify that you are a real or legitimate business by calling you at the business contact number you supplied. As a result, constantly check to see if you've typed everything correctly.

When it comes to the approval process and allowing you to sell on Amazon's marketplace, Amazon is strict. It has stringent criteria for paperwork and verification. By identifying counterfeiters and sellers who try to influence organic rankings with many accounts, this protects both sellers and customers.

Keep in mind that only a registered brand has complete control over all of its product pages. Amazon's Brand Services will assist you in identifying and removing counterfeit sellers/sellers that violate your brand's trademark.

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Conclusion

As a brand owner, simply having a presence on Amazon (FBA) can significantly increase your revenue. Within a year, you can easily earn six figures. I’ve never seen a business where you can work just a few hours a day and build such a scalable brand. Your brand, on the other hand, must stand out for your target audience. I’ve seen many people fall into the trap of simply being on Amazon and at the mercy of Amazon. Build a customer-focused brand that strives to exceed your buyers’ expectations every time, and you will see a scalable brand that will be successful not only on Amazon, but on other marketplaces as well.

The tools we have are intended to help you develop a sales and marketing strategy that takes advantage of the power of data.

Connecting the relationship by connecting the data,” we say. We believe in relationships, and because each buyer is unique, your message and marketing campaigns should be as well. We strive to make the most of your products in order to increase the Life Time Value of each buyer.

This guide is your first step, and we can help you scale and grow your Amazon FBA business, as well as your business beyond Amazon.

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First ever tool for Amazon Brand Owners that can find who your best buyers are, what they are buying and when to build highly personalized communication and grow your revenue without worrying about your competitors.

Don’t forget to schedule a demo and we will show you how our unique Amazon Operating System™ can help you scale this business on autopilot.

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