How to Start an Amazon Business in Nigeria
Suppose you’ve ever thought of starting your own online business. Out of all the options you have, starting an Amazon FBA business is one of the most dominant options. The profit potential is enormous, and you can quickly scale and grow it once you become established. But what if you don’t know how to start up an Amazon business?
Many beginners go it alone and find the process can seem daunting. However, when you break it down, it’s not as complicated as it looks. If you follow the proper steps and put some time in, you can start a successful business on Amazon. You may even be able to quit your job and work from home full-time, giving you plenty of flex time.
If you’re wondering about starting an Amazon business, you’ve come to the right place. We’ve created this complete guide to give you the best instructions and help you on your own business journey.
How much does it cost to start an Amazon business?
How do I start my own Amazon business?
- Step One: Create an Amazon Seller Account.
- Step Two: Pick Your Niche.
- Step Three: Research Products.
- Step Four: Establish Your Product Sourcing.
- Step Five: Establish Your Brand.
- Step Six: Create Your Product Listings.
- Step Seven: Marketing Your Product.
How do I start an Amazon business with no money?
- Find a free product to sell. If you’re like me, chances are you have a bunch of stuff lying around your house collecting dust.
- Create a free Amazon account.
- List your product on Amazon for free.
- Ship the product when it sells.
Is it profitable to sell on Amazon?
And in 2022, selling on Amazon is still undeniably a viable way to make money. In fact, 62% of new sellers said their profits increased in 2020, and 80% are planning to continue selling on Amazon in 2022.How much do Amazon sellers profit?
|Profit margin||Percent of sellers|
|Not currently profitable||8%|
What is the most sold thing on Amazon?
- Toys & Games. Products that go well under this category are:
- Electronic Accessories & Gadgets. Products that go well under this category are:
- Video Games. Products that go well under this category are:
- Camera & Photo Accessories.
- Clothes, Shoes, and Jewelry.
- Beauty And Personal Care.
What is the most sold item in the world?
How do you get paid from Amazon?
Is selling on Amazon worth it 2022?
How do I get products to sell on Amazon?
- Check the Amazon Best Sellers Page.
- Look at the Amazon Trend Report.
- Use Product Research Tools.
- Click the Best Seller Links.
- Perform a Keyword Search.
- Look at Other Marketplaces.
Do you need a license to sell on Amazon?
Does Amazon buy products to sell?
Amazon Business Models You Can Choose From
Before you get into Amazon sales, you need to select how you plan on approaching it. Also, if you want the answer to “how much does it cost,” choosing a suitable business model will vary your initial spending.
There are four popular business models to choose from:
Dropshipping ( Cost Little)
Instead of purchasing inventory in bulk, you can choose to dropship. The company holds your inventory and ships items to your customers when sold in this business model. So you don’t need much of a budget to start. You can also begin for free with many dropshipping suppliers.
Dropshipping is an excellent method to start with if you have no dollars in the bank.
Note : Amazon’s dropshipping policy dictates that you are 100% responsible, which can be an issue when you have no way of checking the products personally.
When dropshipping, be sure to be picky about your chosen dropshipping supplier. Check online reviews and experiences from fellow sellers to ensure the products your customers get will be quality.
To ensure quality, you might consider selling T-shirts using Merch By Amazon. Print-on-demand businesses are one form of dropshipping that’s easy to get into. Regardless, dropshipping is one of the few places where you can start with no money.
Retail or Online Arbitrage (Costs starts at $100)
Arbitrage involves buying products from online (online arbitrage) or retail stores (retail arbitrage) for reselling them on Amazon. You can find discounted products through local ads or follow online stores to see your options.
Arbitrage is a good strategy for those with little money to spare for their resale desires. However, it does require a high time commitment, given the amount of regular research necessary.
Note : Getting your supply source is 100% up to you.
You don’t have to sort through suppliers and speak with manufacturers, so it is a relatively low risk. However, you run the potential of buying products nobody wants, so be sure to research market popularity before buying.
Wholesale (Costs start at $500)
Wholesale companies and vendors buy products in bulk from manufacturers. You’ll be able to purchase them much cheaper than retail stores. However, wholesalers have high minimum order quantities, so you’ll be paying more money upfront.
Note : Wholesale also involves sharing product listings with many other sellers. So when picking an initial wholesale target, try to avoid marks with low monthly sales or a high number of sellers.
Given you are essentially the courier for their goods, you don’t always get support. However, you might get some advertising material, so don’t be afraid to ask the wholesaler for resources.
Private Label Products (Costs start at $1000)
These are products created by third-party manufacturers with your brand name. You can create a unique version of existing products or come up with new products. You can even trademark these products if you want so that no one can copy you.
Note : Building a brand and products means less competition, and if you come up with something new that everyone wants, you’ll be able to generate a lot of sales.
However, trademark costs and negotiating with manufacturers typically mean you’ll need to start with more money.
Regardless of your choice, starting an Amazon FBA business is usually more profitable and easily scalable. This article is built for you if you want a guide specifically for building your private label business. Below is includes what you need to get started.
Building a Business Step-By-Step
1. Finding a Product to Sell
There are a lot of products on Amazon. They sell books, shaving kits, beauty products, jewelry, and other personal goods. Also, most of them are already sold by someone else. So, how do you know what items to pick for your business?
What Should Your Product Be?
Start by setting initial product requirements based on proven success and low barriers to entry. This ideally will result in lower-risk scenarios, so here are some general guidelines:
- Pick products priced between $15-100. Any time you sell on Amazon, they’ll take a commission. So, avoid cheap items that have low earnings potential. You’ll also want to avoid expensive items since they don’t sell as much as lower-priced items.
- High demand. More sales equal more profits. If you can, try and stick with listings and niches that have more than ten thousand sales. If you struggle at this level, reduce your count by increments of one thousand until you find a viable product.
- Choose small and light products. Remember, when you purchase your inventory, you’ll need to ship the package for storing in FBA warehouses. This can be incredibly pricey if you plan to import from China or India. Stick with small items that are below two pounds.
- Stick with low competition areas. Try to avoid niches with too many reviews (over 100 per product). As a private label seller, you’ll want to focus on that low review count, as it’s incredibly challenging to compete as a new producer in a heavily competitive market.
- Be careful with gated categories. A “gated product” requires additional certifications, licenses, or trademark ownership to sell within the product listing. Using AMZScout’s tools, you can quickly identify these products and factor in the extra effort to determine whether it is worth selling.
- Be careful about seasonal products. Historical sales data (which you can find using AMZScout’s tools) is essential when determining your potential sales. Keep these fluctuations in mind when choosing products and inventory levels.
Use the AMZScout Product Database to Get Niche Ideas
You could search for product ideas on Amazon, eBay, Etsy, Shopify eCommerce sites, blogs, and farmer’s markets, but it will take longer to find items that meet your parameters. Using the full AMZScout Product Database streamlines the process.