Amazon is the biggest marketplace which gives you the biggest opportunity to make money on Amazon FBA.You can start with an individual account or you can sign up for a professional seller account.
The problem with the individual account is that you’re paying per item sold, this can really end up costing you a lot of money. Maybe you want to start up with the individual at first when you just get started but once you start to sell like a dozen products or more, you should switch over to the professional plan as an amazon seller.
Amazon like to take their fees. One of the fees they take is an overall seller fee just to even allow you on the platform.
Selling plan
For this, we have a selling plan. The professional plan for 3999 a month is recommended. This means that you get to send your inventory to the Amazon warehouse and workers ship your products to your customers and take care of all the customer service.
You just sit back, relax and focus on other areas in your business that drives revenue.
You may also want to see the plan comparison as well.
Referral fees
Referral fees mean that Amazon will take a small percentage of your sales. This is why it’s so important that you understand your profit margins when you buy your inventory. When you buy your inventory, you have to make sure that you are selling it at a good price on Amazon .
So, there are different referral fees depending on which category you are selling on Amazon.
Fulfillment fees
Fulfillment fees depend on which plan you have on amazon.
Fulfillment fees depends on the size and weight of your product. So, if you are doing FBA fulfilment by amazon, the smaller and lighter product will cost less.
HOW TO FIND YOUR PROFIT MARGIN FOR YOUR PRODUCTS
If you do want to make profits on amazon, you should get some proper trainings and guidance.In order to make money on amazon, you need to get into nitty gritty of finding your profit margin and then doing some calculations.
When you advertise on amazon, there are some fees associated as well.
How to look for money making products
You need a winning product if you want to become a successful selling on Amazon FBA. So, there are good products and there are also really bad products.
If you choose a bad product, you are going to risk losing a lot of money.
It is very important to learn that how to look for money making products, products that have a good amount of demand, products that have a big profit margin, products that don’t have too much of a heavy fulfillment when you are doing amazon fba.
Conclusion
With every single business that you decide to start, there will always be expenses involved. You can make money on amazon fba to sell your own products on private labeling, sell wholesale products on amazon , publish your books on KDP.