Amazon is the largest shopping website and brand in the world. Two of the main reasons why Amazon has the success they have today is through their affiliate program that they launched nearly 20 years ago, and their FBA program. The infographic below is focused on Amazon’s FBA program, which stands for “Fulfillment by Amazon”.
With the FBA program, anyone can become a seller on Amazon and share their product with the world. Amazon even offers to manage all product orders, placements, shipping and customer service for a nominal fee. To learn more about Amazon FBA and if it’s a good option for your product, check out the full infographic below.
Should You Sell Your Product on Amazon FBA?
With so much focus on creating and selling products through Amazon FBA, how are you supposed to know if you have a winning product? Simple, all you need to do is run through the following questions and answers below.
- Question #1: Could My Item Be Considered ‘Hazardous Material’?
The last thing you want to do is sell something that could hurt your customers and potentially come back to hurt you. Stay away from foods, chemicals or anything that could be harmful to your audience.
- Question #2: What are the Margins?
Since Amazon is going to get their cut either way, you want to make sure you have a fairly high margin on your products. Try to aim for at least 30% when pre-planning your costs and margins.
- Question #3: What is the Sell-Through Rate?
It’s better to have an item that sells more often then not, than to sell something rare or seasonal. You want products selling on Amazon, not building up costs by sitting around.
- Question #4: What is the Size and Weight of the Item?
The smaller and lighter an item is, the better. If you are selling larger items that are heavy, you will have higher costs when factoring shipping and inventory space.
- Questions #5: What is the Price of the Item?
In most cases, the best performing products on Amazon (when sold through FBA) will have to be priced above $10 per item. This is because of the various costs that FBA sellers have to incur with Amazon’s shipping and inventory regulations.
Infographic source: TeikaMetrics