June 12, 2015
It’s something we all dream about. An online business that generates passive income that gives us say over how we allocate our own time, rather than being accountable to someone else, in turn providing us with more time to spend with family and friends, rather than sitting behind a desk all day looking at spreadsheets.
That is certainly why I get out of bed in the mornings, and it's the ultimate objective that I keep reminding myself every day. It is what drove me (and many other people) into the world of internet marketing. What better way to regain control over your own time than to have affiliate commissions rolling in while you sit in your underwear at home on the couch?
Unfortunately, as I soon figured out, it doesn’t quite work that way. Internet marketing, like with any other business, takes a lot of hard work and persistence before you start seeing any type of return. The key is to stick it out and never give up.
On the Way to Success
I’m proud to say, however, that after multiple months of slaving away on dozens of business ideas, and spending thousands of dollars, it looks like I have finally found what I think is a sustainable business model that I can build upon.
I have launched my own branded product, which I’m getting manufactured in China, and selling it using Amazon’s FBA (Fulfillment by Amazon) platform. The product is a wine aerator which I launched in April 2015, and although it is still in its infancy, the sales are slowly starting to grow to the point where I’m now generating more than $6,000 in revenue on a monthly basis. It’s not quite enough to support myself yet, but with a number of other products I plan to launch shortly, I believe that point isn’t far away.
The great news is that this model is largely hands-off as Amazon takes care of order management, shipping, and customer service. All I have to do is ensure that I have enough inventory in Amazon’s warehouses, and take care of the marketing side of the business to drive sales.
I believe that the potential is huge for this type of business and opens up huge opportunities to drive product sales through other channels as well – such as retail, your own e-Commerce store, and a number of other avenues.
I have since started my own blog on wine, targeting those interested in learning about wine, through which I hope to generate future leads for my business. However, if you already have an audience in a particular type of niche, why not use that and launch a physical product relating to that niche? You will have a significant advantage over the rest.
The 5 Steps to Get Started
So, the question is, what does it take to get started? Although it may be a little more complicated than this, these are the 5 core principles that you should be following to be successful on Amazon.
Step 1: Find a Product That Is Selling Well in a Niche That Isn’t Too Saturated
The key is to use Amazon as a springboard to success that you can build off of. In order to be successful on Amazon, it is important that you look for a niche that isn’t too saturated – certainly if you don’t have your own audience yet. Look for products that have less than 200 reviews but that are selling well. You can determine how well they’re selling by looking at their BSR (Best Seller’s Rank) on their product page – anything below 1,000 is considered good.
Step 2: Ensure You Can Make Enough Profit
Make sure that you can make at least $10 profit per unit that you sell. Evaluate what price potential sellers are selling their products for and use the Amazon FBA Revenue calculator to gauge what your costs would be to get an idea for margin. Anything less than $10 per unit generally doesn’t make it worth your while.
Step 3: Note Improvements You Can Make to the Product
Look at the critical reviews of competitor’s products and note down issues that customers are consistently having. Are these things that you could improve when you have your own product manufactured?
Step 4: Find a Supplier of Your Product and Get a Sample to Evaluate
Use places like Alibaba to look for the product that you have in mind, and see if you can find a supplier of the product you’re looking for. Contact multiple suppliers, request samples, and ask them if they are able to make the improvements that you noted down above and make a decision with which supplier you would like to proceed based on the quality of the samples.
Step 5: Brand Your Product and List on Amazon
Lastly, it’s extremely important that you brand your own product so that you build off of that as you release more products in that niche. If you have a great product, you'll soon start to develop customer loyalty and you will have a customer base to tap into as you launch subsequent products.
I hope you found these tips useful. This certainly isn't a “get rich quick” scheme, but if you put in the time and effort, there is no reason you can build a sustainable business out of this.
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