It’s no secret that Amazon is growing at the speed of light, racking in over $386 billion in just 2020 alone.
Together with 200 million monthly visitors on their website, Amazon is a force to be reckoned with.
However, many people have the misconception that Amazon makes their money by selling big brand products. In fact, it’s quite the contrary, because over 50% of Amazon sellers are made up of third-party sellers, with many of them generating 5-6 figures a month.
Thanks to the Fulfillment by Amazon (FBA) program, it makes it possible for anyone around the world to start selling on Amazon to start generating a great source of income.
We spoke to Benjamin Tan, a leading Amazon seller in Singapore who has generated over a million dollars within his first year alone, and over multiple million in his Amazon journey so far. Apart from being an active seller, Benjamin is also currently coaching hundreds of students in his community AMZ Family, with many of them generating upwards of 5 figures a month just by selling on Amazon.
Benjamin has graciously shared with us 4 evergreen tips to start and grow your Amazon FBA business to 7 figures.
Product Is King
When we asked Benjamin Tan what’s the key to having a successful Amazon business, he told us “There are a lot of factors that contribute to a successful Amazon business, but as a beginner, it’s good to first focus on your product.”
Having a great product is one of the best ways to start your Amazon journey on a strong note. Unfortunately, this is where the majority of people get stuck wondering “what do I sell?”
Benjamin shared with us that when searching for a product, he looks at certain factors. Does the product have a wow factor? Does the product solve a problem? Is this product appealing to a huge group of people? How well are the competitors selling?
If you’re a beginner, diving into product research can take hours of your time. Benjamin shared with us that he uses a tool called Helium10 to significantly cut short the time spent on product research. Combined with his unique research process and Helium10, he’s able to spot multiple great products within the day.
Reduce Your Cost Especially If You’re Just Starting Out
A huge misconception in the market is that you need tens of thousands of dollars to start an Amazon FBA business. You actually don’t. It’s possible to start an Amazon business with as little as a thousand bucks or two.
Many people make the mistake of spending thousands of dollars to order their first inventory, and if they’re unable to sell the product well, that’s money down the drain.
Instead, Benjamin often recommends the students in his community, AMZ Family, to source the product from Chinese wholesale websites like Alibaba, where you can find the exact same product for a fraction of the price. You can find a US$20 – US$30 product on Amazon for US$2 – US$5 on Alibaba.
From there, just order the minimum quantity just to test. This allows you to spend as little as a few hundred dollars to see if the product is a winning product before pouring in more money.
“Manage your risk!” as what Benjamin loves to call it.
Have A Product Launch Strategy
“Lots of people think that they can just list a product on Amazon and everyone would buy from them… If it were that easy, everyone would be a millionaire!”
That’s absolutely true. Top Amazon sellers know that in order to sell well, they need to meticulously craft a product launch strategy. Basically, the series of steps to get them to the first page of Amazon (for their product criteria) so that more customers would buy from them.
Without a product launch strategy, it’s easy to fall into the “black hole” of Amazon where your product will just sit on the last page, where no customer goes.
Focus On Your Customer Lifetime Value (CLTV)
“A wise man once told me that to grow your business, it’s only a matter of 3 things. You either find more customers, increase the average transaction amount, or increase the frequency the average customer buys from you”, says Benjamin.
A genius statement if you ask me.
Especially in today’s hyper-competitive world, finding a customer is not as easy as before. You’ll have to run paid advertising and have a great marketing plan to find a new customer.
It’s much easier to either increase the average transaction amount by adding upsells, bundles, and cross-sells, or increase the frequency the average customer buys from you. A great way to do that is to have a high-quality product and great customer experience. With both of those in place, there’s a high chance that the customer will visit your store again.
“I don’t know about you, but once I find a brand that I like, I’ll just stick to it. Kinda explains why I have so many of the same black T-shirts!” Benjamin jokes.
Whether you need full-service Amazon FBA guidance for your business or individual coaching to improve your resourcefulness, AMZ family has got you fully covered.
Benjamin often shares great bite-sized value content for beginners in his free Facebook group.
If you’re looking to start an Amazon business, Benjamin recently launched his new program that helps individuals to go from zero to 6 figures in just 6 months.