Basic Steps on How to Build an FBA Strategy

With the surge of e-commerce in the last few years, models like drop shipping and fulfillment programs are seen as lucrative e-commerce strategies that net a lot of profit. Amazon reigns on top of the e-commerce industry, setting the standard for e-commerce businesses.

Amazon warehouse

The sellers on Amazon can choose from one of two ways to sell their product; Fulfillment by Amazon (FBA), where the products are shipped to warehouses owned by Amazon and then shipped by them; Merchant-Fulfillment programs do the opposite where the merchant handles the storage and shipment of Amazon products. We’ll be focusing on FBA because it’s viability for small businesses and new merchants.

There are certain things that you need to take care to build a proper FBA strategy that can help your business take-off.

Why Merchants Use FBA?

FBA is quite popular with merchants around the world for multiple reasons, but here are some of the most common advantages provided by FBA.

1. Doesn’t Take a Lot of Time

When you’re using the services of a behemoth like Amazon, you can expect your orders to be prepared and shipped in a very short time compared to how you’d do it yourself. You’ll be able to use this time to help your business grow further after making sure that you’ve prepared the proper procedures to ship your products to Amazon’s fulfillment centers.

2. Better Delivery Quality

Shipping is not an easy task, and it may take you years to master and rise to the standards of good shipping. A company like Amazon has the infrastructure and standards needed to fulfill and ship orders at the highest quality. There are of course some problems that may occur, but the frequency of such problems will be much less than that of new shipping strategies. You can expect quick deliveries and proper packaging of products.

Creating a Professional Account on Amazon

Before beginning your FBA business, you need to create an official Amazon account that allows you to use the services of Amazon. If you’re not serious about starting a full-on FBA business, an individual account should allow you to use a few benefits provided by FBA without a monthly subscription fee, but it’s not recommended for serious merchants who plan to make a good profit.

Subscribe to a professional account with a monthly fee, and the first month is free because it will take you some time to fully set it up.

Use Keyword Tools for Research

The keywords you choose to market your products are quite essential in building an audience. Fortunately, as mentioned on https://infinitefba.com/, there are a lot of tools that you can use to research keyword metrics to let you know whether the market is welcoming for certain products or not.

Since supply and demand are the dominant dynamics that control the marketing of items, and keywords are known to express the supply and demand rates pretty well.

Choose a Good Niche

Niches are products designed and manufactured for a specific target audience, and this target audience should not be big enough for universal competition yet not obscure enough that no one knows the product. Use your passion to your advantage and think about things that you enjoy yourself, which will give you an edge over other competitors. Your hobbies and interests are probably going to be a lot, so you should narrow it down to marketable interests.

If you’re interested in gardening, for example, you should narrow those interests down to more marketable definitions like weeding tools or special pots, depending on your knowledge and expertise. Try not to pick more than 5 niches you’re potentially going to market for. Once you have a list of niches, research the market to see which one would be more suitable for FBA.

Amazon boxes

photo credit: thisisbossi / Flickr

Use Best Seller Rankings

Amazon provides a service known as Best Seller Rankings (BSR) which can show the demand for certain items in the market. You shouldn’t base your whole research on this tool, but it’s informative enough to get you on solid ground. Once you’ve narrowed down your list of niches, check out their BSR rankings respectively. If you find that certain products are abundant with low BSR rankings, it means that the competition is too high in that category. Try looking for products that have high BSR to ensure that you reach your target audience easily.

FBA made it very easy for merchants to market and ship their products. You don’t have to worry about high storage and shipping rates because Amazon will provide you with a lot of competitive rates. You’ll still be responsible for obtaining the products and choosing a niche, which are the most important foundations of an online store.

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