Are you on the fence about starting an Amazon FBA business in 2023?
You’re not the only one.
Many are earning side income by selling everyday products on Amazon. Successful sellers use their extra income to combat the increased costs of living or even quit their 9-5 entirely.
But taking the Amazon plunge can be intimidating, costly, and confusing.
So here are 23 tips and tricks for launching a thriving Amazon FBA business in 2023.
#1 – Stop Thinking It’s Impossible
There’s a common misconception that only a lucky few succeed on Amazon.
It’s an easy trap to fall in. But believe me, this is couldn’t be further from the truth.
Amazon FBA success stories flood YouTube and Reddit; they show you in your TikTok feed. And they make selling look like a piece of cake.
…And all are too good to be true, right?
Probably not.
I can’t speak for every Amazon guru, but as far as e-commerce is concerned, there’s indeed plenty of room to cash in on new and emerging markets.
In fact, U.S. e-commerce sales grew every quarter in 2022, and continue to rise despite record inflation and increased cost of living.
My honest opinion? Americans love shopping from the couch and it doesn’t look like that’s changing anytime soon.
#2 – Creativity Will Take You Far
Don’t panic! I’m not saying you have to be an artist to sell on Amazon…
But finding creative approaches to selling goes a long way in this business.
Think of unique product bundles, seasonal products, colorful marketing campaigns, and unique pitches, the list is endless.
I often subscribe to email lists of all my favorite products and companies to draw inspiration from.
If you get stuck, product research apps like Helium 10 are a great way to bust through creative barriers.
#3 – Dive Deep Into Product Research
Product research is typically the most time-consuming step of selling on Amazon.
And believe me, it should be.
The success of your Amazon store hinges on your product, so it makes sense to carefully consider what you’ll be selling.
But while creativity certainly plays a role in successful product research, so does analyzing the stats and data.
That being said, take everything into consideration. Use research apps, learn from others’ mistakes, binge-read online forums, and avoid impulsive purchases from overseas suppliers.
The more time you spend researching, the better you’ll be able to spot potential holes in the market, and how best to capitalize on them.
Check out my YouTube channel for in-depth product research tutorials that can help get you in a creative mindset for discovering new product ideas.
#4 – Don’t Get Hung Up on Marketing and Branding
It’s easy to overthink how your product will appear on social media.
After all, it must look perfect for anyone to buy it, right?
Wrong. Kind of.
Yes, marketing is important. Just don’t waste bandwidth by spending time on it in the beginning. Focus on product research, and learn the Amazon platform, but don’t worry about the fine marketing details just yet, or risk becoming burned out before your first sale.
#5 – Focus on Amazon’s U.S. Marketplace
The sales revenue of Amazon’s U.S. marketplace hit nearly 514 billion in 2022 alone, far exceeding the companies’ next largest marketplaces.
That being said, sell in Amazon’s U.S. market!
You’ll benefit from a colossal customer base, and infinite markets to discover and compete in.
Unfortunately, this is easier said than done for some nationalities due to certain restrictions.
I go more into detail on these matters here.
#6 – Learn Cost-Cutting Hacks
Here are two quick hacks to save money when starting an Amazon FBA store.
- Americans can save nearly $20 (depending on the exchange rate) while getting the same features by signing up on Amazon Canada at Amazon.CA
- Delaware and Wyoming are the most business-friendly U.S. states to start an LLC in for your Amazon store.
#7 – Use Wise (formerly TransferWise) for the Best Exchange Rate
Wise is an amazing service that provides extraordinary exchange rates for sellers dealing in multiple currencies.
Currency exchange rates can devour margins, ruin profits, and fluctuate rapidly.
There’s no affiliate link to speak of, but using this service is all but guaranteed to save you money in both the short and long term.
#8 – Get into the Mindset
Think of the last time you visited a gift or specialty shop. Maybe it was on your yearly vacation to the coast, or on a weekend mountain getaway.
The scene is both nostalgic and unforgettable.
You enter the shop and are immediately met with mountains of seemingly pointless merchandise.
It beckons you closer.
Aisle after aisle of destination-themed magnets, walls of tacky-t-shirts (some naughty, some nice), and shelves of overpriced memorabilia guaranteed to end up in your next garage sale.
“Who in the world would buy this sh*t?,” you think to yourselff as you exit, feeling momentarily guilty you’ve left empty handed.
Yet year after year, the shops stay in business, and you keep returning.
The point of this story is simple, just because YOU wouldn’t buy it, doesn’t mean others wouldn’t.
And once you get into this mindset, the sky becomes the limit.
It’s just simply a matter of finding a product and carving your way into the market.
#9 – Set Aside Time
I recommend 1-2 hours a day to devote to your Amazon business.
And luckily, because you only need a computer and internet connection, you can conveniently work from anywhere.
#10 – Listen to Your Customers
Is the customer always right?
As far as Amazon’s concerned, yes.
Customer feedback, while not aways the most pleasant to deal with, is your best weapon for growing your Amazon business.
Furthermore, Amazon pays attention to your customer service and rewards or docks your account accordingly.
#11 – Learn from Others
Things that are guaranteed in life:
- Death
- Taxes
- Mistakes when selling on Amazon.
In all seriousness, mistakes happen in this business, and sometimes circumstances are 100% out of your control.
And mistakes cost money, which eats into your margins.
Therefore, do everything you can to minimize mistakes in this business.
My recommendation? Soak in the failure stories as much as possible. The more you know what to avoid, the more successful you’ll be in this business.
#12 – Sample Products Are a Must
Some of the most successful sellers contribute their success to knowing every nook and cranny of their product. By that, I mean physically holding it, studying it, and understanding its strengths and weaknesses; how it can be improved, and why.
You effectively want to be the expert on your merchandise.
So grabbing samples from your supplier should go way past just a simple inspection.
Rather, get to know your product, and familiarize yourself with it. This way, you can anticipate possible customer questions, and be able to fast-track solutions.
# 13 – Passion vs. Data
It’s tempting to only sell products you’re passionate about.
This definitely has its advantages:
- Understanding and predicting the market is easier.
- You’ll be able to communicate better.
- It’s frankly more fun to sell something you love.
However, this isn’t the only part of the equation.
And while I always champion focusing on something you’re enthusiastic about, don’t ignore the data when product researching.
Otherwise, you’ll risk sourcing an item with either no market demand or is ridiculously competitive.
# 14 – Taxes and Accounting Are Scary, It’s Okay.
Many potential sellers are scared away from the business due to potentially complicated taxes.
LLCs, IRS, ETINs; these acronyms that are truly fear-inducing.
But all businesses have to face these eventually.
The fact is…it’s probably going to be in your best interest to consider hiring an accountant.
And if you’re nervous about spending extra, don’t be.
You’ll be thankful you did in the long run, and they’ll most likely save you money.
#15 – Think of this as a Long-Term Investment
Just like most businesses, there’s a lot of front-end work with Amazon FBA.
So don’t be surprised if you’re working more initially while you’re getting your store off the ground. Expect the first 6 months to be the most intense.
But if done correctly, the time and money invested can have truly life-changing impacts on your finances and quality of life.
#16 – Sleep On It!
Imagine this scenario:
You or someone you know is starting to feel the Amazon FBA itch…
It’s bad. You begin to scratch.
Free time is spent watching YouTube videos, studying seasonal trends, and trying out every free product research app Google can provide.
One evening there’s a *voila* moment.
You’ve found your winning Amazon FBA product.
You impulse-buy 50,000 units, secure a website domain, and boldly post about your lightbulb moment on social media.
…Three months later you’ve lost your entire investment, and have shamefully deleted the lively social media photos you once happily uploaded.
That being said, this business isn’t for rash decision-makers.
Impulse investors may find themselves down on their luck in the e-commerce world.
Go slow, and strategize.
# 17 – Great Words Sale
There’s literally a science to writing successful headlines, bullet points, and product descriptions.
Don’t skimp on this. If writing’s not your strong suit, hire a freelancer from sites like Fiverr and UpWork that can help you tackle this specifically.
#18 – Photos Should Have Purpose
The photos on your listing should be professional and showcase the practical uses of your item.
For example, if you’re selling a bed comforter, don’t include a picture of one drying over a clothesline.
Rather, think of how customers would use the product on a day-to-day basis, and illustrate appropriately.
#19 – Understand Margins!
This might be the most common mistake when selling on Amazon.
First, I’ll be upfront. It’s not difficult to re-sell products online.
But simply re-selling doesn’t always equal profit.
For example, let’s say you sell $20,000 worth of products your first month of sales. Great job, right? But your total costs with shipping, Amazon fees, supply, etc. equal $19,700.
That leaves you with a net profit of $300.
Why does this happen so often? In most all cases, this is due to a lack of understanding of your margins.
Avoid this fatal flaw at all costs.
#20 – Price Competitively (And Carefully)
Know and understand your niche, and price your product competitively.
That is, competitive enough to turn a profit, but not too low to cut into your bottom line (see margins above).
But finding this balance is more difficult than most think. And there’s no simple recipe to optimally pricing a product.
This will vary greatly depending on several factors; volume, niche, sellers’ financial goals, etc.
But remember, small profits are fine. Selling on Amazon’s a slow burn, and success doesn’t come overnight.
#21 – Use Helium 10
Odds are you’re going to purchase a product research app somewhere along your journey.
It’s nearly unavoidable. And if you’re not using one, your competition definitely is.
They’re all going to function similarly. Choices include Jungle Scout and Viral Launch; the array of choices is ever-expanding.
My vote goes to Helium 10.
Yes, it’s a paid subscription, but given the startup costs of Amazon in general, it’s a small price to pay to get crucial data that’ll keep you up to date on your competition, product trends, market changes, etc.
In my opinion, it’s simply the most expansive, and easiest to use.
But regardless of which one you go with, you’ll be thankful you did.
#22 – Find a Trustworthy Supplier
Many readers are likely purchasing (or thinking of purchasing) in bulk from Alibaba.
Indeed, there are things to avoid when purchasing from this website. Here are the most important things to watch out for to avoid being a victim of scams or fraud.
- Make sure the supplier has been in business for 10+ years
- Don’t move off Alibaba to conduct business
- Buy from Verified Suppliers
- If possible, buy from niche suppliers
#23 – Amazon FBA Takes Time and Patience
There’s a common misconception about selling on Amazon; it’s easy money. Video after video, swipe after swipe, I see sellers promising profits by following these, “three easy steps.”
But rarely do they go into detail about the amount of work involved on the front and back end. From product research to purchasing and marketing, selling successfully on Amazon is endless work.
One must wear many hats to navigate the day-to-day of running a successful e-commerce business.
And what many new sellers don’t realize is the amount of time and problem-solving involved before it all clicks into place.
Patience will be the best ally on your Amazon journey.
Good luck!
Are you interested in building a $10,000-a-month e-commerce business, and saying goodbye to your 9-5 forever?
Click here to learn more about how my Amazon Wealth Accelerator can help!
