Amazon FBA Checklist: A must-have for novice sellers!
This is a time for practice.
The idea of building an Amazon business that brings more possibilities to your life by leveraging the growth of online retail is about to begin. In the first phase of this Amazon FBA checklist, our goal is to establish the right mindset, a clear understanding of the business we are about to build, and a funding plan.
Establish your why: This is the absolute first thing you should do. When challenges come, how determined are you as an Amazon seller? Try the powerful exercises at 7levelsdeep.com.
Create a vision board: Search “vision board” on Pinterest for inspiration. A daily visual reminder of your why.
Ensure initial funding: Allocate some funds for initial investments in research software, product samples, and in-depth training.
Develop a Startup Capital Growth Plan: How will you increase your starting capital? Remember your “why” and consider whether you can cut out some redundant items or do a little extra work… What sacrifices are you willing to make to achieve your “why”?
2. Product selection stage
Once you’ve laid some good foundations, it’s time to dive into product research. The product selection stage is one of the most critical. As with most other investments, your earning potential is as important as the buying stage. Make the right choice and you'll be on the road to success.
To do this, we follow what we call the Product Potential Formula: Identify a product... Solve a problem... Target a specific group of people.
1. Identify the product
To find the right products to sell, the first step in this phase of the Amazon FBA checklist is to assess demand. Check, please:
The need is proven: we are not looking for inventions, but improvements. Make sure the need exists.
Demand remains stable: no big ups and downs over the course of the year, not a fad or trend that might be reversed.
Controllable demand: Assess your budget and aim to match the range of demand you can compete for.
After considering the competition, we need to ensure that:
No one product dominates the market
No one brand dominates the market
Products with a high number of product reviews (1,000+) do not dominate the market
2. Identify the problem
The problem exists: both with customers and with existing products.
Room for improvement: Average review rating on page one for major search terms is 4.5 stars or below.
Differentiation opportunities: 3-5 achievable aspects have been identified, such as quality, functionality, marketing, etc.
Potential net profit margin above 20%: The product is profitable based on available cost estimates.
Potential return on investment of more than 100%: return on investment. How much profit you get per $1 invested. The higher the percentage, the faster your business will grow.