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Amazon FBA business plan pdf

We found a great article for you to read. It gives many ideas Finding profitable products on Amazon, Why do you want to start the Amazon business and drop shipping.

Amazon FBA business plan pdf
Amazon FBA business plan pdf

Article by "FBA Spartans"

7 Keys To Finding Profitable Products On Amazon

Welcome and congratulations for taking the first step in changing your life forever! In this eBook, I will be breaking down the 7 Keys to Finding Profitable Products on Amazon. These 7 keys should be used as some quick guidelines, and will determine if the product is worth the investment!

Lets face it. The whole world is slowly making a huge transition toward e-commerce. Just this past year, the “juggernaut” retailers could not even compete against e-commerce stores. Here are some scary statistics backing this claim up:

  • Abercrombie & Fitch: Last March, they announced that it would close 60 of its U.S. stores with expiring leases during its 2017 fiscal year. The chain has closed hundreds of store locations over the last few years while placing an increased emphasis on online sales.
  • J.C. Penney: The department store chain is closing 138 stores this year while restructuring its business to meet shifting consumer tastes.
  • Macy’s: Facing declining foot traffic at its store locations, Macy’s said earlier this year that it would close 68 outlets and reduce its workforce by several thousand employees.
  • RadioShack: The once-prominent electronics outlet shut down more than 1,000 store locations earlier this year. The brand now operates just 70 stores nationwide, down from a peak of several thousand.
  • Sears/Kmart: Sears Holdings is one of the most prominent traditional retailers to suffer in a challenged sales environment. The brand closed 35 Kmart locations and eight Sears stores in July and has closed more than 300 locations this year due to pressure from e-commerce outlets.
  • Toys R Us: The toy shop just recently filed for bankruptcy in September due to there mounting debt and pressure from wary suppliers. For now, the company says its 1,600 store locations will remain open and operate "as usual," with no changes to organization structure or payroll. Following the 2017 holiday season, the future of the stores remains unclear.
  • Nike: One of the most known brands, Nike has been telling investors that it expects more of its sales to move online, saying that “undifferentiated, mediocre retail won’t survive.”

Now is arguably the BEST time to start your Amazon business. However, there are many complicated steps that one may/will face while starting their Amazon business. That's where I come in. My mission is very simple. I am going to help you, and will provide you the necessary tools to help you build an extremely successful Amazon business. My mission is to help you replace your 9-5 income, so you can spend YOUR life the way it was supposed to be spent, HOWEVER YOU WANT! It’s time to take back your life!


Well, first let's start with what Amazon FBA is. Amazon FBA stands for Fulfilled by Amazon. So what this means is that Amazon will look after all of your stock (we ship your items to the specific warehouse they assign for you, and they store it in an Amazon warehouse). When a customer places an order on Amazon, Amazon picks out the order, and ships it to the customer on your behalf. Amazon FBA also handles pretty much all of the customer service, meaning they handle all of the returns and shipping questions. Your packages will also be eligible for Amazon prime, a huge buying advantage, over other sellers. This is arguably the best advantage, and we get access to their insane traffic.

So how does this all work? Well guys, it's actually a pretty straightforward process. We find a product that is already making others money, has a lot of demand, and has low competition. Once we find this product, we start contacting suppliers to private label the same product (but making it better, or adding something beneficial). We then ship it to an Amazon Fulfillment Warehouse, create your listing, sell it, and BOOM, we profit. Now this is a brief explanation of the process, and there are many other steps, yet this is the gist of it.

So why Amazon?

Well let's look at some stats. In 2016, Amazon had over 135 billion U.S. dollars in net sales. This year, (2017), they were able to raise this number by over 32%. An astounding 197 billion U.S dollars in net sales.

What about Drop Shipping?

Drop shipping is another amazing business model, however, the biggest flaw in drop shipping is not having the ability of organic sales. With drop shipping, you will always be responsible for driving traffic. What this means is, in order to get sales, you always need to be advertising. With Amazon, once we get your product on the first page, our work becomes minimal and we can get organic sales rather easily. We can sit back and watch the organic sales role in. Obviously there are many more steps to this, but this is just a quick example. Now there are many other advantages and disadvantages to both, and each are amazing opportunities. However, with Amazon’s numbers continually going up, there is no other place were I would want to be selling

How To Find A Profitable Product, And What They Look Like

I need you to stop what you are doing and focus 100% on this. Your Amazon business relies on finding a profitable product. Do this step wrong, and you will be banging your head wondering why your product won't sell. Now I am not going to sugar coat it, this is definitely the toughest part, and most people usually get obsessed with this step. The problem with that is, most people will not move past this step. But do not worry, that is what I am here for! There are literally tons of different ways to find profitable products, and that’s what I will be teaching you in some of my upcoming videos. But now let’s get to the 5 Keys to finding your first profitable product.

1. Demand

Is this product going to be profitable? Listen, if your product has no demand, guess what, you will make NO money. So that is why I always look at the Sales and Revenue for my potential product.

  • The minimum revenue I look for is at least $6,000-$7,000 USD for at least 7 products on the first page.
  • This number can be lower or higher depending on your specific goals. My goal is to be making at least $3,000 a month from each product (profit).
  • This is a perfect number considering our margins are usually at least 45% after all Amazon fees, and some PPC. Now obviously the higher these numbers the better it will be, but remember this is the absolute MINIMUM to look for.

2. Reviews

Reviews allow us to see how competitive a product is. The lower the number, the better. It’s pretty straight forward. Now I put demand as the most important step because depending on your budget, the number of reviews can be higher. If you are looking for the BEST possible product however, you want to look for:

  • 7 of the FIRST 12 products having lower than 150-200 reviews. (THE LOWER THE BETTER)
  • No more than 2 listings should have over 1000 reviews. However, if there is enough demand, and you feel you can hit your goal numbers or surpass them, then you are good to go.

3. Cost of Product to Source and Sell

Price is based on you specifically. If you have the budget to sell a $50+ item, and feel you can hit your goal numbers, then go ahead. However, you have to remember sourcing this product will be more expensive, and will require a much bigger capital investment.

  • Your product cannot be less than $15. This is because of the fees we have to pay (FBA fees, Supplier Fees, PPC, etc). Again, this depends on your numbers, but we always shoot for AT LEAST $6 profit a sale, and by having a listing price of under $15, this will be nearly impossible.

4. Patents

Patents are another important step that gets overlooked too many times. There is nothing worse then grinding to find a product, finding one, finding a supplier, PAYING for the product, listing it, then getting a cease and desist letter.

  • Checking if a product is patented is actually simpler than you may think. I personally like to use Google Patents, as I feel it is easier to operate (https://patents.google.com) All we have to do is search the broadest keywords for our product and check if the product is patented or not. If you don't find anything great, if you're still a little scared, you may want to consider talking to a patent attorney.

5. Seasonality

Checking to see if a product is seasonal is a MUST. There are many tools to check this including (https://camelcamelcamel.com) which is a website, and Keepa (https://keepa.com) which is a chrome extension that actually will show the sales chart on the Amazon product page. By doing this, we will be able to see if the product only sells in certain seasons. If so, we will want to avoid this product.

6. Listing Quality of Competitors

By looking at our competitors listings, we can determine if they have a good listing or not. What is listing quality and why does it matter? Well, when a customer searches for a product, they will be looking at a few things to help them determine their purchase decision.

  • Pictures
  • Reviews (What are others saying)
  • Product Features (Bullets, Emojis,)
  • Description

If your competitors have poor images, whether they only have one, if they are blurry, and/or if it doesn't show the true potential of the product, this is good for us! If the reviews of the product are poor, great! If the features are not what the customer is looking for, or doesn't solve the customer's problem, great for us again! If they don't have a description, or if it is a poor description (you will be able to tell), even better! If they have a poor listing, we can capitalize on this, and win sales from our competitors.

7. Can We Differentiate

A very big deciding factor before launching a product is whether or not we can differentiate ourselves from the competition. There are many ways that we can differentiate ourselves, a few include:

  1. Better First Listing Picture
  2. Bundling
  3. Adding Value
  4. Changing Color of Product (Don’t Recommend as only differentiating factor)
  5. Making a Better Product (Fixing Flaws)

Now You May Be Asking Yourself, How Can I Find Out The Revenue and Demand of These Products.

You can download it as a PDF file CLICK HERE

To use the software will shorten your efforts.

The software we are using is the Jungle Scout and Asin Inspector Chrome Extensions. You do not have to have these Chrome Extensions, but these will help you to find the average numbers monthly revenue and reviews.

Furthermore, MerchantWords software can give you more options to find the keywords and popular keywords people are searching every month.

The software is not amendatory but will need it if you would like to have a better result.

Amazon FBA business plan pdf

Amazon FBA business plan pdf

Amazon FBA business plan pdf

Amazon FBA business plan pdf

Amazon FBA business plan pdf

Amazon FBA business plan pdf

Amazon FBA business plan pdf

Amazon FBA business plan pdf