August 15, 2023

What should you know as a New Amazon Seller?

Introduction

As an agency owner, I meet new sellers almost every day via email, call, and on text. As obvious, I receive a lot of questions as well – some basic and some complicated. I am going to cover some of them here.

1. Can I ship my product to a port in California and then to an amazon warehouse to reduce cost?

Absolutely, dropping off at a port in California can save a bit, but it might not be a huge difference. If you’re shipping from China to the port, there’ll be savings, but then sending it to the fulfillment center might even out the costs. It’s kind of a hassle, so we usually don’t suggest this approach. Sending directly to the fulfillment center with DDP rates is often smoother.

2. So how do I ship the product to the amazon fulfillment center? Can I select random?

No, you can not!

Basically, when you list your products on Amazon and you’re all ready to ship them there, you create a shipment plan. In this plan, Amazon provides you with the warehouse address where you need to send your products. That’s how it works.

3. Can I forecast my landing cost & Amazon Fees while my product is still in manufacturing?

Many sellers have an approach of making profitability metrics after their goods are shipped to the AMZ warehouse. Why? Because they think they can’t locate the landing cost until the products are manufactured

This is wrong. The profitability metrics should always be made even before committing to the manufacturer.

To forecast the item price, consider both the landing cost and FBA fees. You can ask your supplier for the manufacturing and shipping cost per unit to get a better idea of the landing cost. As for FBA fees, you can check those out even without a listing. Just pick your main competitor’s ASIN into the FBA revenue calculator – it’ll give you the FBA fee details.

https://sellercentral.amazon.com/hz/fba/profitabilitycalculator/index?lang=en_US

1. How much margin in % should I have if I am starting off on amazon?

Varies from product to product, but at least a 35% margin is better. Please take 2 things into account

  • The manufacturing and freight cost never decreases. So negotiate and make sure you have a better margin than you forecasted. This way, your next shipment will not hurt you much
  • Don’t make the performance metrics based on the highest selling price. Even if your product is unique or you are selling it as a bundle, take the lowest price into account. This way, you will have a clearer picture.

2. In which phase should I get started on the branding side of my business?

As soon as your sample is ready, you should get started on the branding. This is extremely important because if you start in the beginning, you will have a lot of time to research and get something done that will have a long lasting effect

  • Read your competitors like a book. Track their reviews, their content, their images, as well as their ads. Once you are done reviewing the best sellers and others who are doing well in your niche, make a strategy for the content
  • The next step is to choose a reliable amazon product photography agency who can execute your research in the best way.
  • The next step is advertising. We recommend going aggressive in the beginning to maximize your chances of visibility and sales. If you are proud of yourself, consider doing it yourself. Otherwise, get help from a reliable PPC agency who can set up and manage your campaigns.
I really hope this small piece of content has increased your knowledge. If there is any question that you want me to cover, just send it to us via email and I will include it in the next blog. See you there

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