Amazon FBA: Start a Successful Amazon Business in 2024

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The Ultimate Amazon FBA Course For Beginners.

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Amazon FBA Requirements

You need the following documents to sign up for Amazon FBA: 

• Government-issued national ID
• Proof of address (power, gas, or internet bill)
• Bank account number and a recent bank statement
• Debit or credit card

Checklist Of Amazon Product Research Requirements

Here is a quick checklist of what is required to come up with the right product. With these criteria, your job gets easier.

1. Product prices that fall between the range of $10 and $50
2. Products that make at least 10 sales a day
3. Similar products that feature a best-seller rank of at least 5,000 in the main category
4. The top 3 related keywords have 50,000+ monthly searches on Amazon
5. Not seasonal products. They can be sold year-round
6. 2-3 products with less than 50 reviews on the first page
7. Small and lightweight products (under 2 to 3 pounds)
8. No brand names or trademarks are associated with the product
9. A product can be set up for 25% or even less than the sale price
10. Proper room for product optimization and improvement of present listings
11. Multiple product-related keyword opportunities
12. Quick and easy product sourcing from China
13. The product should not be fragile
14. Ability to expand your brand with related products
15. Can make a superior product over similar products in the market
16. The product encourages recurring purchases
17. The product should not have any legal issues

Amazon FBA Australia Product Research Criteria

Choose a product:

• In a high sales volume niche. Home & Garden, Tools & Home Improvement, Toys & Games, Computers, and Cell Phones & Accessories are good examples.
• Having minimum average daily sales of 10-15 units. Check the Best Sellers section on Amazon for ideas.
• Priced 20 AUD or above. These tend to have a higher ROI and can be launched with a small to medium-sized budget
• That is lightweight and small.
• With a minimum profit margin of 30%.
• Has at least 40% of all sellers doing FBA.

Pro Tip: When hunting products for Amazon Australia, make sure that the Ship from Australia box is checked. This will filter out any international sellers.

                 Manually verify the reviews on each listing to validate further.

How to monetize profitable Amazon product niches?

Once you’ve discovered a niche that works for you, how do you take advantage and make money from it? Well, there are numerous opportunities, each with its own merits and challenges. 

At a high level, you can monetize and grow your niche in the following ways (to name but a few):

1. Sell a product related to the niche (on Amazon, your site, or other marketplaces)
2. Create a niche blog, and sell Pay Per Click ads (like AdSense) on your blog
3. Generate Amazon affiliate commissions from products featured on your niche blog
4. Sell other affiliate products relevant to your niche
5. Sell sponsored posts on your niche blog
6. Write an e-book related to your niche
7. Sell courses related to your niche
8. Be a consultant in your niche
9. Create paid membership forums related to your niche
10. Sell your niche site (remember Flippa!)

These are why you need to choose a good profitable niche.

A good Amazon niche product is:

• An item you don’t simply find in every local store;
• An item with flare, adding value;
• An item priced between $15 and $200;
• An item with a high perceived value;
• Light, easy to pack, and easy to use.

Consider the below points to find the best AMZ niche

1. Small and light
2. Low to moderate competition
3. The selling price is between $15 to $50
4. Allows you to earn 10 dollars per sale
5. Daily orders of 10 units

The most commonly used criteria to define a niche are:

• Level of quality (luxury, economical, handmade);
• Price (premium, moderate, discount);
• Demographics (income level, gender, age, education level);
• Psychographics (values, interests, hobbies, attitudes);
• Geography (residents of a certain country, city, or neighborhood).

Here are 5 tips to find the most profitable Amazon niches.

1. Do Keyword Research
2. Avoid Highly Seasonal Products
3. Try and Find Your Competitor Keywords Without Videos
4. Consider the Items that Have Continual Demand. There are certain types of products you would use constantly, like toothpaste, multivitamins, or pet food. As these products are used regularly, they will generate steady orders and sales
5. Ensure there is a Demand for the Item

Research the category and make sure that similar products generate regular orders. Also, see to it that the product has a good profit margin, which is more or less anything above 15%.

9 Tips to Find Your Best Amazon Niche Product

• Tip 1: An Amazon niche product does not suffer from seasonality.
• An ideal product would look like this:
• Tip 2: The product has a good profit margin!
• Tip 3: There are no videos of the competing products for your main keyword.
• Tip 4: Consider the Dimensions of the Product.
• Tip 5: Look into the Competition.
• Tip 6: The Sponsored Products slots are full for all your main keywords.
• Tip 7: The product has good demand.
• Tip 8: Explore Niche communities for Amazon Product Ideas
• Tip 9: Head to Amazon directly to find your niche.

Quick Checklist On How Your Product Should Be:

1. Choose a product that has a sale price between $25 and $50.
2. Make sure that the product is lightweight (under 2 to 3 pounds).
3. Do not choose a product that is fragile or easily breakable.
4. Ensure that the product you choose has high searches for its keywords.
5. Pick a product that is available year-round and not seasonal.
6. Find a product that encourages customers to recurring purchases.
7. Make sure that the product you choose has the opportunity to expand with other related products.

Niche products to avoid on Amazon:

• Items with High Competition;
• Oversized, Bulk, Fragile, or Too Heavy Items;
• Extremely Seasonal Items;
• Extremely fashionable items that would not last long;
• Difficult to assemble or easily broken items;
• Complex to manufacture, Licensed, or Restricted category products;
• Check if the product sells in the selected marketplace;
• Check financial parameters, and see how much your product price is justified.

Top 9 Unconventional Ways To Do Amazon Product Research

Step 1: 999 Method Of Finding Demand

 Here are the steps to find out how many items a seller currently has in his FBA inventory and how many units he sells daily.

• Go to the Amazon page of the product of your interest
• Add the product to your cart
• In the shopping cart, click on the quantity and edit it to 10+
• Type 999 (the highest number allowed) and click update
• If that seller has fewer than 999 items left in his inventory stocks, it will state, “This seller only has XX of these available.”
• Do this for the next 7 days and keep tracking the inventory remaining daily
• The difference in inventory shows you how many products are getting sold for this product & seller daily    

        Step 2: Optimization Of Current Listing

Some reasons that may make a listing poor include:

For all the 9 ideas mentioned above, you can get your product sold in any of the ways mentioned below

• Taking the same product with or without some improvement
• Creating a color or size or feature variation of the same
• Creating an accessory for a high-performing product that may also sell well
• Create variation with more gift-able packaging
• Bundling is very advantageous. You can bundle the products at a reduced price. This way you provide more value to the user as well as increase your profits for the same product.
• Packaging innovation of the same high-selling product may increase the appeal of buying the product.

For every product on Amazon, you can find the items that are typically brought along with it for you to get more product ideas! Going through this section for some of the high-selling products will give you new product ideas to choose from.

If you follow these steps, your Amazon Product Research will not only be comprehensive but super competitive. To get the ball rolling, identify exciting products to sell and competitively list your products to start playing with the big boys.

Generating a product idea can also be done in the following ways:

• Amazon’s best-seller list
• Amazon storefronts
• Exploring the retail stores
• Amazon’s Movers & Shakers
• Amazon Basics
• Browsing about a few products on Pinterest
• Exploring the Shopify stores
• Looking at eBay’s trending list
• Checking the section – “Customers Also Bought”
• Amazon’s product sub-tiers
• Seeing through AliExpress’s Weekly best-sellers list

When in doubt, be sure to follow the tips mentioned below:

• Look for any type of product from Amazon’s Best Seller page, as that’s adequate to help you come up with ideas.
• Focus more on the Sponsored Products, Frequently Bought Together, and Customers Also Bought sections, as they provide better data intelligence, which you further might want for increasing or upselling your inventory.

1. Price

Products of $15-$50 lie in the impulse buying decision range

        2. Sells around 10 products per day

Say I choose a product with a selling price of $30 that sells about 10 units per day and I get a profit of $10 after the Amazon FBA fees, shipping, promotions, etc

The net gross I make per month is $30* 10 units * 30 days = $9000.

And if it all goes according to the plan, I get a profit of $10 * 10 units/ day * 30 days/ month = $3000 per month in profits.

The better the average sales units per day, the better the profits. However, baseline criteria choose products that sell at least 10 units per day.

        3. Similar products have a BSR of 5,000 or lesser in the main category

Figuring out how often a product sells is a hard thing to do. The best seller rank is a close fit for understanding how well a product sells within its category.

For example, a product with a BSR of 20,000 is going to sell A LOT less than a product in the same category with a BSR of 2,000. The last thing you would want to do is choose a product that sells only a meager number when you hit the top spot.

Having 3-5 products that have a BSR ranking of 5000 in the main category can ensure that you will sell a huge number of products once you reach the top spot. The more the number of products with a low BSR rating, the better the chances of success.

        4. Top 3 product keywords together have 100,000+ monthly searches

One of the other important ways to find whether there is enough customer interest in your product is to find out how many users are searching for your product on Amazon or Google. What is more crucial is to find out the demand for your primary keywords on Amazon since data suggests that Amazon typically has a conversion rate of anywhere between 12 – 17%!  So if our top three product keywords together get over 100,000 monthly searches on Amazon, then it is a good sign that there is enough demand for us to sell.

        5. Lightweight – preferably under 2-3 pounds.

The heavier the product, the heavier the FBA fees. As the size and the weight of the product go higher, the profit margins go lower.

Shipping costs can get very high if the product weighs more than 2 pounds. Let’s take the example of the bag we considered before.

It is about 9.9 ounces – read affordable shipping!

    6. About 2-3 products with < 50 reviews on page 1

The number of reviews on the first page can help you understand how difficult it is for you to gather sales, Though it is not a very important rule, especially in categories where there are good sales. The number of reviews can still help you understand how easy it is for you to secure the top spots.

The more points in the checklist you can verify, the better. Though they are not hard rules to be followed they are the basic criteria that are recommended for a successful start.

    7. Is there Year-Round Demand?

This is important information to know while doing Amazon Product Research. Do you have a product that is only purchased during a particular season? Are people buying this product consistently throughout the year?

The best way to determine this is to head on over to Google Trends and type in the main keyword for your product. Once there you will be able to see if your product is seasonal or not.

If your product is seasonal then you will see big dips in the line graph, an example of a seasonal product is pictured below.

    8. No big brands in the product category

This is something that deals exactly with buyer mentality. A shopper will choose a famous branded product over a new product or brand. Rather than trying to compete for a product that already has famous brands, and competing with them for sales, it is better to start with a product that has relatively less competition.

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FAQ?

What Products Are in High Demand on Amazon Australia?

Based on the current data from the Search Terms Report [February 2021 edition], these are the 5 most in-demand products on Amazon Australia:

1. Disposable mask
2. Lego building kit
3. Food storage container
4. Fidget toy set
5. Laptops

How Much Does It Cost to Sell on Amazon Australia?

The selling cost on Amazon includes: 

i) Subscription fee, which is $49.95 per month for professional sellers, 

ii) Fulfilment fee, which starts from $1.78 for standard-sized items and $6.65 for oversized items, 

iii) Storage fee, which costs an average $21.175 per cubic metre/mo, 

iv) Referral fee, which is charged as a percentage of the selling price, and 

v) Disposal fee, which starts from $0.15 per item. These are exclusive of GST.

Do I Need a Business Name to Sell on Amazon AU?

No, you don’t need a business name to sell on Amazon. You can register as an individual seller too. However, there are several benefits of using a business name. These include convenient branding and higher tax savings.

How Much Does an ABN Cost?

Should you decide to sell as a business on Amazon, you’ll need an Australian Business Number (ABN). You can get an ABN for free if you apply directly on the Australian Business Register (ABR). Alternatively, you can hire a consultant for the job. Most service providers charge $50 for submitting an ABN application in Australia.  

Do I Need Insurance?

Amazon clearly states in its policies that all Amazon Professional sellers must have liability insurance of up to $1,000,000 to sell on the platform. This applies to all markets, including Amazon Australia. That being said, Amazon seldom asks for documents. So this is pretty much a case of whether you would like to have liability insurance for your FBA business (and if you can afford it).

Does the Bank Account Need to be Registered in My Name?

Yes, the bank account must be registered in your name for Amazon to accept it as a valid deposit method. However, if you are operating as a business, the bank account should be registered in the name of your business.

Do I Need a Trademark to Sell on Amazon?

No, you don’t need a trademark to sell on Amazon. However, it’s a recommended practice to do so. It helps protect your brand. Otherwise, any seller can attach themselves to your listing and start selling their products under your brand (or business) name.

Where Should I Register My Trademark?

You should register your trademark in Australia and the country where you plan to source your product from. However, you can do without the latter too.

What Kind of Trademark Should I Apply for?

You can apply for a text or image-based mark depending on your needs. Amazon accepts both types for brand registry.

What Should I Sell on Amazon?

Amazon Australia is home to millions of products listed across 25+ categories. These range from Home & Garden to Automotive & Powersports. You can find the complete list here. 

While you can sell a product in any category, some categories require official approval from Amazon. These are known as gated (or restricted) categories. As a beginner, you should steer clear of products that fall under gated categories.

With how much money did you start your Amazon FBA business?

People will tell you you can start with 25$ or 500$, but the reality is, you will need much more than that.

Here are the things you will need to spend on, assuming you’re going to do the Private Label FBA business (not retail arbitrage):

1. Product Samples, maybe a few (around 50-80$ each, so ~200$)
2. Manufactured product. If you want better prices to start making a profit right away, you will need to order following the manufacturer’s MOQ (minimum order quantity). So let’s say 300-500 units. In addition, cheap products are quickly getting saturated because of ease of entry, so you will want to order something that is a little more expensive. There goes ~2500$.
3. Inspection. On average inspection costs 0.20$ per unit in China. So you will pay ~100$ for a full inspection. I don’t recommend doing the partial inspection or skipping it, because you will lose more money if you don’t do a full inspection right away. Better is taking samples yourself and practical rough use gives you the quality of the product.
4. Shipping and Import Taxes. Now this depends on your product weight and dimensions, and also on the HS code, which determines the import tax rate. If shipping to the USA by air and below $2500 in value, you may be able to avoid import taxes completely. So I will just use very broad averages here. Let’s say you will ship it by air, and pay around 5$ per kg, and your units are 200g each, so you will pay ~$400 for shipping and 0$ import taxes.
5. Product Images. You will have to get professional studio photos for your product. iPhone photos can work, but it’s unlikely – buyers are shopping with their eyes on Amazon, and without any reviews, you need to make a strong impact. So 6 photos for $50 each = $300. You can add lifestyle photos later, those are much more expensive.
6. Sponsored Ads. Your product will not start selling on its own – you will have to either run external paid traffic to it or buy Amazon Sponsored Ads, to give it the initial boost. Again, it will vary greatly, but I will just use an arbitrary number like 7$ per sale. You will get about 1–2 reviews for 100 sales, and you only need about 4–5 reviews, for your product to start getting traction organically. Then you would slow down your spending, or stop it completely. That means you will need to get 200 sales, so you’ll spend $1400. Of course, this amount will be deducted from your revenue, so you don’t need to spend cash from your pocket. But it’s a cost that you have to keep in mind.

In total, to just put up one product for sale on Amazon, you will need MIN $3500, not including Sponsored Ads costs.

Is Amazon FBA a good business? Is it too late to start in 2023?

This is similar to the question “Is the Olympics 10,000 meter track event a good event? is it too late for me to train for this event in 2022”.

The answer is YES and NOOOO.

Amazon has recruited shops mostly from China. The Chinese shop owners own 50% or more Amazon shops, they are financially backed strong and they have direct access to low-price inventory.

Most people can not compete on (1) capital (2) experience of trickery (3) speed. But certainly, everyone has a chance, but most will end as a hobby (non-growing business).

How can I successfully start an Amazon FBA store in 2021?

Starting a successful Amazon FBA store is still possible in 2021, but I can tell you now, that it’s gonna be tricky.

I used to sell on Amazon and man it got tough.

In the last few years, it’s got super competitive, and over-saturated (lots of Chinese sellers now).

I jumped out of the Amazon game eventually and started my own local lead generation business.

I’m so much happier with this biz model because there is almost no competition, it’s way less cheap to get started (only a few hundred bucks), and you can scale much easier with 90% profit margins.

Here’s a comparison article I did abo