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How to sell on Amazon FBA – The Basics. Step 1

Here’s a few of the reasons you should consider selling on Amazon:

Access to Amazon’s 2.5 Billion monthly shoppers means high sales for your business.

24 years of market trust that Amazon built ensure shoppers trust you, too.

Amazon’s Fulfillment-by-Amazon program does all the hard work for you.

Sales estimation software such as Jungle Scout lets you predict sales in advance.

Easy scalability – your business can be as small or as big as you like!

If this is the first time you’ve discovered Amazon FBA, don’t worry. We want to make sure you understand how it all works. This part of the article will cover the basics of How to Sell on Amazon FBA.

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Amazon FBA literally means Amazon Fulfilled-by-Amazon. In the Amazon FBA program, Amazon does all the hard work for you.

Here’s how it works:

First, you send Amazon your products and they store it in one or more of their million acre fulfillment centers. The fulfillment centers are like massive warehouses run by robots and hardworking Amazon employees.

Then, your products are inventoried and sorted. They are taken good care of. And if on the off-chance something is damaged in one of Amazon’s warehouses, Amazon will actually reimburse you the full retail price for the damaged good!

When a customer places an order on Amazon for your product, Amazon handles the transaction for you. The entire process is automated.

Next, your product is picked from its place on the shelves, packed into a box, and shipped to the customer on your behalf.

After your product arrives to the customer, Amazon follows up with the customer to make sure everything is okay with the order. And, if any need to be made, Amazon automatically takes care of that, too.

If Amazon does all the work, what do I do?

Now you’re probably thinking, “Okay, Greg. That all sounds great! But what do I actually do?”

As an Amazon FBA seller you will have to:

Pick the products. Amazon handles all the back end work, but you need to decide what to actually sell. I’ll tell you about a few different methods of selling products on Amazon in a moment.

Keep inventory in stock. Amazon will let you know when inventory is running low. But it’s your job to make sure that the things you sell stay stocked up.

Promote and advertise. Amazon is a massive catalog of millions of products. Therefore, you’ll need to do a little work to make sure people find your products. But don’t worry–it’s pretty easy!

What does it cost to sell on Amazon FBA?

Selling on Amazon FBA is very reasonable to get started with. In fact, if you’re selling products that you already own (like unwanted items around the house), you can virtually do it for free!

Individual and professional seller accounts

There are two types of Amazon FBA seller accounts: individual and professional. Individual seller accounts are free, but have higher sales fees. And professional accounts have a monthly subscription fee of $39.95, but lower fees. We recommend you get a professional account if you plan on selling more than 40 items per month. But if you want to start slow with only a few items, then individual may be better for you.

Amazon fees

Like many online marketplaces, Amazon takes out fees for their services, usually after a sale has been made. Here’s the quick version of those fees:

Amazon takes a 15% referral fee on all sales for most categories.

If you use Amazon’s FBA service, they take out fees to cover the 
shipping and handling costs for your products. However, these tend 
 to be less than what it would cost to ship it yourself.

Some categories, like books and DVDs, have an additional flat fee.

If you sell on an individual seller plan (no subscription fee), Amazon
 charges an additional $1.00 flat fee. Hence why we recommend going
 professional if you’re going to sell 40 or more products per month.

Keeping your inventory at Amazon fulfillment centers too long can result in long term storage fees.

If this sounds like a lot, don’t worry! The fees overall are pretty low and actually end up costing you a lot less were you to do all the work yourself.

Inventory costs

Depending on the type products you choose to sell on Amazon, your inventory costs will vary. We recommend the private label method which does come with a moderate investment upfront, but you might choose to start with just a few things around the house to get a feel for how to sell on Amazon FBA. It’s totally up to you!

Which is better to sell on: Amazon or Ebay?

This is a question that’s as old as ecommerce itself. And ultimately, it depends on you and what you want out of your business. Some people swear by Ebay. While others, like myself, think Amazon is the best place to start an online business. I think the best way to sum up the difference between the two marketplaces is like this:

Ebay is like the world’s biggest flea market. You set up your “stand”, offer your products, handle transactions, shipping, and everything else. It’s 100% your responsibility. Therefore, you may end up putting more work into it for less profits.

Amazon FBA is like owning a shelf at a very large department store. Your biggest job is to make sure that your shelf stays stocked and that it’s visible. Unlike ebay, however, the department store handles the transactions, shipping, and all the tough work. In my experience that equals less work and more profits.

step 2

What to sell on Amazon FBA

Another thing that’s amazing about this business model is that there’s no one way how to sell on Amazon FBA. Here’s a few of the most popular methods:

Arbitrage
 Find low-priced items in retail stores or other online marketplaces to resell on Amazon at a higher value.

Wholesale
 Buy bulk discount branded goods to resell on Amazon at a higher value.

Used Book Sales
 Purchase used books at book sales, yard sales, or other places to resell on Amazon at a higher value.

Private Label*
 Research and manufacture your own branded products to sell on Amazon FBA where you control every aspect of the product. *This is my preferred method how to sell on Amazon FBA.

What is private label?

A private label product is manufactured by a contract or third-party manufacturer and sold under a retailer’s brand name. In other words, you take a product that already exists and manufacture it with your own brand and logo.

I am a private label seller. As are most of the team here at Jungle Scout. In fact, most successful Amazon FBA sellers are private label sellers.

Why sell private label versus the other methods?

Private label offers a ton of advantages over the other methods. Here’s a few:

Less work sourcing. You only have to source a single product in large quantities versus many small products like you would with arbitrage or used book sales.

Price control. The Amazon listing for your product is under your control. Therefore, you don’t have to worry about underpricing your competition like you would with wholesale or arbitrage.

Higher profits. In my experience, private label is the most profitable and predictable method of how to sell on Amazon FBA.

How much money can I make selling private label?

Of course, everyone’s success varies with private label. However, if you follow the basic steps myself and Lenny outline to creating a private label product, this is roughly what you can expect to earn:

How much work does the private label method take?

Ever hear of the 4-hour Work Week by Tim Ferriss? It’s the idea that you can design the lifestyle that you want so long as you can put your income on autopilot.

And that’s pretty much what you’re learning when you learn how to sell on Amazon FBA. Once your product is created and live on Amazon, you don’t have to do anything else but check on your advertising and make sure your inventory is stocked.

Just 4-hours a week and you can earn an extra $3,000 per month!

How do I create my first private label product?

It can be done in just five easy steps:

Research high-demand/low-competition products using our easy-to-use app called Scout.

Source those products through Alibaba, a website that puts you in touch with 1000’s of manufacturers who are eager to do business with you.

Create a brand new listing on Amazon. It’s so simple, you can do it in less than 40 minutes.

Ship the products to an Amazon warehouse so it can be part of the Amazon FBA program and you won’t have to do all the back-breaking work.

Launch and advertise your product using Amazon’s own advertising system which is as simple as clicking a few buttons.

Then, all you have to do after that is sit back and watch the profits roll in!

Ready to start your Amazon product research? Start looking for your perfect Amazon product today by signing up for Jungle Scout.

Sign up today

step 3

How to Find a Profitable Private Label Product in 15-Minutes or Less

Another thing that’s amazing about this business model is that there’s no one way how to sell on Amazon FBA. Here’s a few of the most popular methods:

I know this is a lot of information to digest, but now it’s time to demonstrate how easy it is to find a private label product for you to sell.

This is an important part of selling on Amazon called “product research.” If that sounds like a lot of work, don’t worry. Believe it or not, Amazon actually offers up data on how well each of their products sell.

In fact, one of the key metrics that we use to determine a product’s demand is found right on the Amazon product pages: the  Best-Seller Ranking (BSR).

What is the Amazon Best-Seller Ranking?

Each and every product on Amazon gets a BSR. The lower the BSR, the more sales the product makes. We can take the BSR and translate it into average monthly sales.

For example, if we want to see how well the same product above does in sales, we can take the BSR and put it into our FREE sales estimator tool. Check out what we get:

Of course, it only helps you learn how well one product is doing at a time. We want to see how multiple products in a single search (also called a ‘niche’) are doing and what their average is.

You could do all of that by hand on a spreadsheet, but it could take you hours. That’s what I used to do when I started, and I don’t recommend it!

Fortunately, I created a better way with Extension.

Extension

With the Chrome extension, you can pull up an Amazon search page and simply click the “JS” Chrome button to discover how profitable that product niche is. Immediately, the extension creates a spreadsheet that estimates the sales for each and every product on that page in 10-seconds or less.

Take a look at the results for yoga mats:

We can see that yoga mats on the first page of sales results are selling an average of XXX units per month. Plus, there’s other important information Extension provides:

Average Best-Seller Ranking. The lower this is overall, the better it is for your 
future sales.

Average Price. This shouldn’t be too high or too low. In fact, I like to look for products priced between $18-$60.

Average number of reviews. This lets you know how competitive a product is. I 
aim for products with less than 100 average reviews.

Opportunity score (Pro version only). This awards each product niche a rating 
from 0-10. 0 being the worst, and 10 being the absolute best.

Armed with this powerful tool, you can quickly search through multiple product categories in just a few minutes.

Here’s what else Extension does:

Seller data. See who is selling the product: whether it’s another FBA seller, a 
merchant seller, or even Amazon itself.

Historical rank and sales. Want to know how well the product has done over 
time? Clicking on the BSR and average sales for each product will tell you.

Google trends. Is your product a seasonal product or is it popular year 
around? You can find that out, too!

International compatibility. Extension works in all 
Amazon marketplaces worldwide (Australia coming soon).

Remember when I mentioned that the average private label product can earn as much as $3,000 per month in profits? That’s $36,000 per year. And all it takes is a few minutes of research to find your dream product.

Get Started Today!

2020 is here! Start your new Amazon business by signing up for Jungle Scout today!

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How to Find Dropshipping Suppliers in the USA

The US economy is one of the largest in the world - which for eager dropshippers can be a double-edged sword.

Suppliers in the USA

Yes, the potential to make your millions is seemingly limitless. BUT, you can't sell dropshipping products blindly. To conquer one of the largest economies in the world, and the American consumer, you need to offer an array of appealing, high-quality options with fast shipping to boot.

Today, it’s almost impossible to imagine a life that doesn’t include online shopping. We don’t say this because we're passionate dropshippers, but because we’ve got the statistics to back it up. In the US alone, retail eCommerce sales are forecasted to skyrocket to over $6.5 trillion by 2023.

So, whether you’re considering dropshipping or are a soon-to-be online store owner, you’re going to want a slice of that pie. But, as we've mentioned, you need to offer customers high-quality products with fast shipping.

And the best way of doing that is to use US suppliers. By the end of this article, you’ll be equipped with the knowledge and resources to add dropshipping suppliers from the USA to your cohort, and profit because of it.

Why use US dropshipping suppliers?

Over the last couple of years, we've seen a surge in demand for US products with fast shipping. In fact, in a 2019 survey of online shoppers, the findings on consumer shipping expectations were clear:

40% expected delivery within 2 days

21% expected delivery within 3-4 days

10% expected delivery within 5-7 days

Only 2% thought a 1-2 week time frame was acceptable.

We know that 263 million of the US population bought goods online in 2019, with a predicted increase to almost 288 million online shoppers in the US by 2024.

That means you need to meet the expectations of your target audience and find some fast shipping options to attract and retain your growing customer base.

Overall, you and your customers are looking for the following criteria:

Fast shipping

High-quality

Handmade products

Better shipment tracking

Great customer service

Satisfaction guaranteed (i.e., a return policy)

This is where diversifying your product selection to include US suppliers is worth its weight in gold.  By the end of this post, you’ll have a deep understanding of why you need to have dropshipping suppliers from the USA as well as what to look for. Let’s dive in!

‍

US Suppliers Boast Fast Shipping

Although dropshipping Aliexpress products may seem like the cheapest option, you often have to compromise on shipping times.

It's not uncommon for products from Aliexpress suppliers to take several weeks to get to your customers. And in the era of Amazon Prime, where consumers expect next day delivery, you need to stay competitive.

So, by using US suppliers to ship to your American customers, it stands to reason these products don't have to travel as far or rely on foreign logistics. Therefore, they can get to your customers quicker than an international supplier could.

American Products are (Usually) Better Quality

There are tons of Aliexpress dropshipping suppliers that manufacture and ship top-notch products. However, due to the vast landscape of Chinese dropshipping suppliers, it's easier for high-inventory, low-quality suppliers to pop up with inferior products.

On top of that, due to massive differences in time zone and, often, language barriers, rectifying these problems can be a burden that usually falls on the dropshipper. All seasoned dropshippers can tell you their stories about miscommunications, returns, and lost customers due to low-quality Aliexpress Suppliers.

All the more reason why US suppliers are gaining more traction. US Suppliers are easier to hold accountable for their shipping times and quality of dropshipping products, should issues arise.

You Can Charge More

Although US suppliers might cost more for their merchandise, typically speaking, you can charge more and for high quality, handmade products. Just be sure to market these products to their full potential.  

If you're worried customers won't pay more, we’ve got good news. Studies show that 60% of shoppers pay extra for products made in the US. This is namely because consumers often perceive American wares to boast higher quality, something they're willing to pay more for. Having a fast shipping time helps too, your customers would rather pay a bit more and have the product in their hands faster.

A Reliable Return Policy

Having a return policy is both a major selling point and a sure way to build trust with your customers in both the present and future. You can rest easy knowing that if your customer wants to return their item, your supplier will be cooperative and easy to work with.

You won’t lose any money from refunds, and your customer will feel satisfied knowing that their happiness is your main priority. Doing this with Aliexpress suppliers is difficult and usually impossible, resulting in the dropshipper having to refund their customers out of their own pocket.

Customer Service

Most dropshippers forget the powerful hidden tool of customer service. To illustrate, Let’s say your customer accidentally ordered a red dress when they wanted a black one.

Once they’ve let you know, you can simply communicate with the supplier VIA Spocket to let them know that the product color needs to change. It’s as simple as that.

Doing this with Aliexpress suppliers can result in a headache of initiating a return, ordering the dress again, and having your customers return one of their orders once they’ve received it. That very sentence leaves dropshippers winded and anxious.

Using US suppliers gives you access to smaller supplier operations that don’t mind picking up the phone and check their emails and messages often. Leaving plenty of room for fixing mistakes and changing orders.

‍

What to Look for When Choosing USA Suppliers

So now we've highlighted the main perks of using US suppliers, here are five things to hone in on, as you go about finding the best suppliers for your business:

Reliability - If you're using Spocket, check their star rating on their supplier page. This provides an accurate picture of their supplier order fulfillment success rate.

Testing - Always see whether you can order a sample product to evaluate its overall quality, packaging, and shipping time.  

Shipping cost and time

Inventory capacity

Return policy and guarantee

We’re going to take a look at 9 such suppliers and focus on their product quality and shipping times.

9 High-Quality US Dropshipping Suppliers (with fast shipping)

‍Turquoise Lucy

Turquoise Lucy is a fabulous example of a supplier offering something a little different. The majority of their products feature a remarkable wooden aesthetic. From pens and business cardholders, to travel journals, iPhone cases, and flasks - Turquoise Lucy enables customers to create one-of-a-kind engraved gifts. These are sure to put a smile on a loved ones face. Alternatively, they're a fabulous option for any customer wanting to treat themselves.

It's hardly surprising this is one of Spocket's best selling products. Made from real hardwood, encasing its stainless steel core, it's safe to say this is a beautiful product, that also stands the test of time. But, despite its robustness, it still has a lightweight feel.

Average shipping time: 2 days

Return Policy:If you are not happy with your purchase for any reason, you may return the item(s) within 30 days of receiving the order. Please note that monogrammed, personalized, special-order items and items damaged through normal wear and tear are not eligible for return'.‍

Cyan Castor

Cyan Castor is another fab example of a supplier offering something unique. Their map-themed products are ideal for anyone passionate about travel or their hometown.

From custom engraved hip flasks with maps of Burlington, Wisconsin plastered on them, to customized stainless steel coffee tumblers decorated with maps of Mansfield, Texas - these designs are gorgeous!

Average shipping time: Same-day

Return Policy: 'Non-returnable and non-exchangeable” due to one-of-a-kind personalized feat.

Purple Lily Zen

US supplier, Purple Lily Zen, is a high-quality women's fashion apparel, jewelry, and fashion accessory, supplier.

Their products are ideal for customers looking for beautifully handmade pieces. Purple Lily Zen sells a variety of bracelets using high-quality, genuine semi-precious stones, threaded onto a durable elastic band. Not only does this ensure one size actually fits all, but the robust elastic is also bound to stand the test of time.

Take this Moonstone & Rose Quartz Bracelet as an example, it's no wonder it's one of Spocket's best selling products. It's high-quality and gorgeous - what's not to love?!

We also love that when it comes to Purple Lily Zen's mists, they're all made using 100% all-natural, pure ingredients. So, if you're looking to organic produce, these mists are ideal!

Return Policy: If you are not happy with your purchase, you may return the item(s) within 15 days of receiving the order. Please note that monogrammed, personalized, special-order items and items damaged through normal wear and tear are not eligible for return. Please note that their body mists are non-refundable.

Average shipping time: 3 days

Fuchsia Odysseus

Fuschia Odysseus is the supplier for you if you're on the hunt for up-to-the-minute women's clothing. This is especially true if you want to sell 'going out' outfits.

From mini dresses to sequin tops to bodysuits - Fuschia Odysseus has everything you need to stock your online store with all the latest women's fashion.

Some of their products even boast free US shipping!

Average shipping time: 2 days

Return Policy:All sales are not subject to a refund. In some cases, only merchandise exchanges or store credit may be issued.

Turquoise Chaos

Turquoise Chaos is another fabulous jewelry supplier. If you're targetting ethical consumers, then they're certainly worth considering. Turquoise Chaos produces handcrafted pieces from Austin, Texas. With this supplier, you know that everyone involved in the production process is paid an ethical wage.

Many of their products come beautifully presented in organza bags, making them perfect for gift giving. Plus, they offer free shipping to all US customers!

Take this Lilly Heart Choker as an example:

Again, this is one of Spocket's bestsellers, and when we delve into the product info, it's clear to see why.

It's a made-to-order piece using carefully chosen pieces of hematite, rigorously inspected by a geologist. These are then cut and drilled into heart beads and wire wrapped by hand and strung onto a silver chain.

Also, with this product, $5 is donated to the Moment of Magic Foundation (again, another selling point). Plus, it's nickel and lead-free - so it shouldn't react to your customer's skin!

‍Lime Aeneas

We all know pet lovers are always on the lookout for ways to spoil their four-legged friends. This is where Lime Aeneas shines. This supplier sells high-quality dog outfits, bow ties, and collar charms. They have everything your customers need to kit out their pooches in all the best gear. To get a feel for the quality of Lime Aeneas's dropshipping products, each enamel charm is decorated with rhinestones, with a sturdy metal clasp, and is lead-free. 

Average shipping time: Same-day

‍Magenta Chloe

Magenta Chloe supplies tons of pretty homeware items, designed in Cranbury, NJ, USA. They're the perfect supplier if you're after unique, handcrafted designs boasting beautiful calligraphy or artistry, by talented artisan, Alyssa Thiel. The majority of their products are made using high-quality, 100% organic cotton and eco-friendly, water-based inks. This supplier is another fantastic option for ethically-sourced products. Plus, you can be confident that when you purchase Magenta Chloe products, you're supporting fair trade artisans.Magenta Chloe supplies pillows, placemats, aprons, tea towels, tote bags, etc. Take a look at this Eucalyptus Bunch Watercolor Tote Bag (another of Spocket's bestsellers):

Average shipping time: 4 days

Vesuvianite

If you're looking for a top-notch bag supplier, check out Vesuvianite. They have totes, laundry bags, wine bags, and even handbags to carry your dog in - so, it's safe to say Vesuvianite covers everything!

Vesuvianite products boast superior quality with their double bottoms and reinforced handles. So, it doesn't matter whether customers want a robust bag to hit the beach or grocery store; Vesuvianite products are the perfect companion.

Not to mention, some of their interiors stand out from the crowd with their fully lined 360-degree pockets. Often, these match the color of the outside trim, making for an elegant finish.

Check out this Box Tote (again, another of Spocket's bestsellers):

Average shipping time: 1 day

‍

Mint Green Leto

Mint Green Leto specializes in beauty and spa products like soaps, candles, face wash, etc.

Take their 'Coconut Oasis Milk Soap' as an example:

This is just one of the many decadent products Mint Green Leto has to offer. Infused with natural essential oils- lemon, cedarwood, eucalyptus, lavandin, patchouli, and spearmint, it's a fabulous option for anyone wanting all-natural products.

It's also worth noting this product is 100% handcrafted, vegan, and free from artificial colorants, detergents, and phthalates. All of which are fantastic USP's you can use to market to your customers. Plus, this supplier offers free shipping to US customers!

Mint Green Leto claims its soaps boast deep cleaning properties that naturally purify the skin. Also, its organic recipe keeps skin moisturized - even those with problem skin. It's an incredibly gentle product, making it ideal for customers looking for something to soothe and balance their complexion.  

Average shipping time: 1 day

Wrapping Up

When you consider all the competitive advantages of dropshipping fromUS suppliers, surprisingly, few entrepreneurs take this route. In a market flooded with low-quality products, you can stand out from the crowd by selling USA-made products, with fast shipping, a satisfaction guarantee, and excellent customer service.

These traits will truly distinguish you from the sea of Chinese products dominating the dropshipping world.

If you want access to high-quality dropshipping suppliers in the USA, why not give Spocket a try? It's free to join, so you have nothing to lose and everything to gain!

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How I made $178,492 in three months by dropshipping US and European products.

In the December of 2017, Marc Chapon was just like any other entrepreneur starting out on the journey to a successful online business. He had studied Hospitality/Restaurant management in Paris and Switzerland and the most he knew about marketing were the basics the course had covered- and now, he had quit his full time job and ventured into eCommerce, with no shortage of determination and enthusiasm.

In less than a year, he was making sales worth 60 thousand dollars per month- with purely marketing and testing on his side. He now has a course on Spocket Academy detailing how to grow your business from zero to selling thousands per month.

In one single day, he made over $10,000 in sales:

We wanted to map out his journey, right from square 1 to the successful businessman he is now. Here’s his story, tips and tactics of how exactly he built the store- in his own words.

How to build a successful dropshipping store that is sustainable and scalable:

When I entered ecommerce, there was a huge amount of information on the internet: loads of scammers and get-rich-quick courses out there. But everything you need to learn about this market is out there on the internet as well- there are legitimate courses and blogs that can push a new entrepreneur towards success.

There is everything you need to know on the Internet. If you look for it, you are going to find it.

There are Facebook groups, YouTube videos, courses- all to help you build your e-commerce business:

I am going to spell out how I created a business that I made a living out of, step by step.

Step 1: What was the budget for your store? How much does one need to build a successful store?

When I quit my full-time job to try my own business, I did not venture into it blindly. Now, a lot of supposed ‘ecommerce gurus’ will tell you that you can start a successful business with a zero dollar investment- but any rational entrepreneur will be able to tell that you need funds to start any business: with ecommerce, you do not needs tens of thousands to get started, but you will still need about $1000 to make it through.

I had set aside about $5000 just for my store, but about $1000 was enough before I started making sales to cut even. You will need money to get yourself a Shopify store, and run ads on Facebook: zero investment is a stretch.

Trust me, building a business from ground up is going to require basic funds: anyone who says otherwise is oversimplifying the business.

However, I did not spend funds on acquiring products and holding inventory. If I had to sell online, I would be using the dropshipping model. I had heard about Spocket- through which I could find products and kick off my store at no upfront cost: but first I had to select a niche.

Step 2: How did you select a niche for your store?

I have often heard people say ‘This is a good niche’, which always confuses me because there is no good niche or bad niche.

There are no saturated marketspaces, and not even the most in-demand niche would work for a retailer who is not putting in effort into marketing and building a reliable store.

My rule of thumb while selecting a niche is that I had to be interested in the niche to start a store in it: a lot of people do not think this is an important criterion when choosing a category for their store, but I have found that passion precedes any successful business, so if you choose a niche that you do not know anything about, you’ll probably not be as invested as you should be.

Plus, when you start with something you already like, you’ve covered the A-B-Cs and have an advantage over entrepreneurs that are starting from scratch.

With all this in mind, I still had a few niches that I could take on- art was a major interest of mine, so that niche was on the table. I also loved animals and had a dog and cat of my own, which was another category that I could dive into. I was (and am) "living in the niche" and knew everything about it- especially the needs and problems that dog owners experience on a daily basis.

Products for dog lovers were trending and so, after some research, I chose dog-focussed products as the theme of my store.

Google Trends strengthened my conviction:

Another thing to note is, you might be tempted to kick off your store with a current passing trend, but with that, you must be content to make a lot of money and then drop off the face of the Earth.

A sustainable business is possible if you choose a niche that is consistently doing well.

I did considerable research into the field: right from checking out Amazon and other popular sites to see how popular the niche was, to going over revenues generated by the niche over the past years.

To research a niche, I usually do the following:

Google the main keywords, check out major companies that sell the products

Check the amount of traffic they generate

View the global searches for the keyboards

Review the amount of revenue the niche creates per year online

Check the profitability of the niche

The traffic was great, and it seemed like a reasonable profit could be made with the category. Once I had thoroughly researched the niche, I settled on all things dog related.

Step 3: How did you hone in on your target audience?

This step actually went hand in hand with the first step. Simple Google searches led me to competitor stores, where I could check the reviews left by audiences, and find out who was majorly attracted to the dog niche. Further competitor research showed exactly who my competitors were targeting, and what they were doing successfully.

Being a pet-owner myself, I had a fair inkling of who required and was interested in the products I planned on selling. With a heady combination of Google Trends and common sense, I figured the lifestyles, personality traits and attitudes of the people that were likely to buy my product.

The thing is, you do not need tonnes of data to hit the right audience. But without the right audience, dropshipping success is impossible. My audience was based in the US or Europe, aged 21-65, often followed dog accounts on instagram and shopped at PetSmart. This was great for a start- I kept testing and diving deeper as time went on.

Step 4: How did you choose the right, winning products?

‍‍ If you have a bad product, not even the most gorgeous looking store can sell it.

This problem, again, was resolved by Google. Though I started looking at products on AliExpress, I did not want the generic low quality AliExpress products that were available in 500 different stores. Owing to the choppy product descriptions and bad images- not to mention the uncertain shipping times, I decided to not to have any of those products on my store.

I needed manufacturers based in the US and Europe, with great products and low shipping times. A simple Shopify app store search led me to Spocket. One of the things I was going to be selling was dog tags, and Spocket had an interesting collection of dog bracelets, tags and necklaces- all shipping from the US. They also allowed me a fair profit range, which was important.

Plus, I found customizable products.

I immediately set out importing products to my store.

‍I also had a look at other apps on Shopify such as Oberlo, but they did not meet the criteria I had set for my products. Between Spocket and Oberlo, I found Spocket to be a better fit for my needs.

‍I hunted for local suppliers and Etsy artisans on Spocket to fill my store. I checked the trending products on Amazon, and found suppliers selling them within the US at different rates. Again, you do not actually need 20,000 products to be a successful store. A good number, such as 25-50 amazing products worked perfect for me.

‍

The best part about Spocket products was that I did not have to worry about product images or supplier reliability.

‍‍I sought reviews and researched competitors and chose products that always led to happy customers. Dropshipping is all about the product, so I made sure to choose suppliers I trusted entirely. Winning products are a mixture of the right product, the right audience and the right marketing, and I did not want to get even one of these wrong.

I spoke to the suppliers to ensure that they were someone I was comfortable working with, and collected products that were special and unique. Of course, I also occasionally chose products that did not sell well, but that is all part of the learning curve.

Step 5: What went into building the store?

Shopify was the obvious choice as a website builder. Easy to use, and quick. I picked up the theme- Brooklyn and set about designing the store. People often spend a lot of time designing and perfecting how their store looks. But the truth is that as an ecommerce business, your store needs to look professional and trustworthy, but you don’t need to go overboard.

Your site needs to load within 3 seconds, that’s really important!

So I spent some time constructing a site that had all the essentials, minus the fluff. These are the steps I followed:

1. Create a homepage:

A homepage is the first impression people have about your store, so this part is quite important! I was always interested in design so this was the exciting part.

A lot of people just list products on their ecommerce store: that is not a store, that is just an accumulation of products.

This is how I created a homepage:

I first inserted a high definition picture from a free stock photo website such as Unsplash at the top of the main page- this was the first thing people would see when they landed on the site, so it had to be related to my niche, and attractive.

I then added a small tagline and a CTA button on that image that would take the visitors straight to the products.

This is what your store’s homepage should look like, right above the fold:

I put up collections with equally attractive pictures on the homepage, under the main image that took the visitors directly to the respective collections.

I made the navigation bar sticky with the primary sections accessible easily to all visitors.

As added value, I created a dog owner’s guide that any visitor could download for free.

Learn how to start and grow your own e-commerce store!2. Branding:

‍Colour: My audience consisted of dog-owners from all genders and ages. I selected yellow as it represented happiness and optimism and a muted shade of brown for earthiness. Most importantly, I used white spaces in plenty. This seemed to be a great fit for the store I had in mind: healthy and clean.

‍Name: The name is something that is intuitive- that sounds good, and conveys what you want. For privacy purposes, I will be unable to reveal the exact name of my store- but a good name for a canine-themed store would be ‘Puppy Love’.

‍Font: I selected the font ‘Now’- Bold and Light for headings and subheadings. This font was easy to read, and did aligned with the clean white rustic feel that I was going for.

‍Logo: The logo was something I quickly whipped up in Canva: While the logo is an important part of the whole brand package and should be unique, spending large amounts on it as a new business is pointless.

‍I took an icon, added my company’s name- and voila, a logo was ready!

Lastly, any online store should have amazing HD photos on their site to achieve ecommerce success. I used Unsplash, Canva and Pexels for the same!

‍3. Product Descriptions:

‍While researching, I had come across a number of ecommerce stores that simply copy pasted the product descriptions from the supplier’s store- usually AliExpress. This meant that the product pages were generally littered with irrelevant information, and no USP. Online shopping demands that product descriptions be crisp.

‍My formula for creating product descriptions was simple. Product descriptions have to do more than just talk about the product: they have to sell the product or service, prove that the product is worth buying and will bring a significant change in the customer’s life and show them why your product is better than your competitor’s.

‍So the first two lines of all my product descriptions simply expanded on the benefits of the product in the customer’s life- followed by the actual utility of the product.

‍Spocket descriptions were grammatically clean, and covered all the points I mentioned above so I did not have to work around them much.

‍Only after these two points are covered do I go for the specifications and details. I recommend using bullet points to make the information navigable. 

‍

Huge chunks of text are a big turn-off.

‍4. Product Photos:

‍With US based suppliers, or suppliers from Europe, you do not have to worry much about product pictures. Ordering a sample of each product would have required too much effort and money- instead, I simply requested the suppliers for newer pictures.

If I had chosen AliExpress products, I would have the need to order a sample for every product on my store to ensure that the shipping time and the quality matched my standards- but with the US Spocket based suppliers, it was so much more smooth-sailing.

‍

Once I had the product page skeleton ready, I simply inserted all the products I had to fit the template.

‍

Step 6: What payment gateways did you use- and are they any other essential pages that a store should have?‍‍

Yes- the last step to complete my store was setting up the payment gateways, an about page, customer service and the return policies.

‍

I started out with PayPal and 2Checkout, since I was unable to use Stripe as I was in Morocco at that period in my life. I really do recommend having a credit card payment available- and the easiest way to do it is register a business in a country that Stripe can operate through. You do not need to be physically present to have a business in a country, and you can have a bank account there without much effort. Allowing multiple payment methods is definitely a plus, but if you’re just starting out, PayPal works. I also added assurances on the checkout page so that trust would not be an issue in completing a purchase:

‍

Risky, untrustworthy payment gateways are a big hassle, and I incurred quite some problems with the same.

‍

I created an About Page because nothing can substitute a personal touch to a store, and had return policies and other FAQ put in order to ensure that credibility was not a hindrance.

‍

Step 7: What did your marketing plan look like?

‍

My marketing plan had three major elements- Facebook, Instagram and email marketing. Once I had my site ready, I did not want to dilly-dally with pre-launch giveaways and other schemes as no one knew my store at the start. I had to work on brand awareness first.

‍

Facebook and Instagram ads:

Social media ads are easily the best mediums for your store to generate sales: with a huge reach and comparatively quick and inexpensive.

‍

Product images and videos with enticing copy work great as Facebook ads- here is where amazing product photos come in.

Three things I learned with Facebook and Instagram ads are:

Test out the audiences that you are displaying your ads to- usually people change the creatives, the copy of the ads if the ads seem to fail, but the problem is quite often embedded in defining the target audience. I tested out gender and interests alone out of all audience variables and hit jackpot.

It depends on the product: some products do really well on instagram. Some bring crazy traffic from Facebook. Optimize your ads for the platform they do great at: and if a product is bringing you only scattered sales even after a month: if the amount you spend and the amount you earn over that product is not breaking even despite some run-time, perhaps that is not the right product. You might like a product, but your audience may not. Don’t waste funds on pushing the product- try a new one!

Don’t overcomplicate it! I always have plans for every letter of the alphabet: don’t spend ages strategizing how your Facebook ads will look. Take action- if one thing doesn’t work, move to the next. I created 4-5 ad sets with different audiences for every product and ran them, getting quick data and realigning my plans everyday based on the outcome.

Here is an actual ad campaign I ran, step by step:

‍

Campaign Objective: If you are running Facebook ads for an ecommerce store, your motive is to get results. Consequently, I chose conversions as the campaign objective.

‍

‍Demographics: With the niche I had chosen, I did not need to sort audiences by gender. I was primarily shipping to the US and Canada, but was also open to sales from the US, Australia and New Zealand.

Targeting Strategy: My audience was most likely to know about PetSmart or Petco, considering these two brands are top ranked for pet products. I added these as interests along with other common interests.

Placement: I targeted mobile devices as people as mostly browsing Facebook on their cell phones. I did not need right column ads or instant articles- feed based ads were enough. For Instagram, however, where a number of pet accounts are born everyday, I chose both feed and story ads.

Ads Copy: This is a step a number of online retailers botch up. Your ads copy should be limited to a few sentences- whole paragraphs are never read. I used emojis as other articles in the audience’s feed also use emojis- they are more likely to read your ad if it is perceived as another post on their feed. I first hooked the audience in with an emotional statement- every owner wishes to keep their dog safe. Then, I added an element of urgency with the discount and the stock.

‍

Budgeting: My daily budget for the ad was $3, so that I would be only spending $84 per month, which I could afford, owing to my savings. I decided to spend 100 dollars on each product. I started with 4 ad sets (3$ each). I used to test 3 products a week after a lot of research on products. I chose the Lowest Cost Bid Strategy for efficiency. While it might be unstable, I preferred this to the target cost bid strategy for the simple reason that it would have cost me more per event.      

The Instagram audience is younger, so I kept track of trends in youth within my niche, and similar products performed well on Instagram- while Facebook caters to the middle-aged crowd.

If an ad performed well and brought in profits, then I let it be- no silly business with it. With really precise audience demographics, you can have as much as a 11% conversion rate- although 2-5% is what you are aiming for!

‍

With Email Marketing, I sent out 2-3 emails per week to my email list: fun newsletters and cute with curations of cute dog videos and tweets.

‍

I tried to give value to people by teaching them something that was unknown to them (this is why one needs to know about the niche they have a store about) and then added a cheeky bit about how my store also had products that would be perfect for the potential customer.

‍

One can also provide value through community forums such as Quora or post on Pinterest- that helps immensely with brand awareness.

‍

Step 8: How did you deal with Abandoned Carts?

‍With abandoned carts, it is tricky.

The first thing is, of course, retargeting. I started retargeting through a varied number of media: first of all, there were emails. I had collected email IDs and phone numbers at checkout, and also on the homepage: so different segments of emails went to users who had reached the shopping cart but had then abandoned the sale and to users who lingered on the website but then left.

I also deployed SMSes, WhatsApp and Messenger which are under-appreciated media and tested the copy out.

‍Plus, Facebook ads. They really couldn’t miss my message. I made it easy for the customer to buy directly from the message or email, so they had the ability to purchase right at the place where my store met them.

‍This is how an average abandoned cart message looks for my customers:

I also paid attention to the product that suffered the maximum abandoned carts, and formulated multiple reasons why the product was being abandoned at the last stage.

One product that was selling alright had a number of abandoned carts- this showed that the product did have potential to make way more sales. After multiple tests, I found that it was the cost of the product that was too high. Unfortunately, the supplier was refusing to give a further discount. So I reduced the price on my own store and took a deliberate loss.

‍Once I had enough sales for the product, I proved to the supplier that a further discount would benefit his business: and then, I covered all my previous losses and more!

‍

Take risks, and don’t be afraid to try new strategies!

‍

Step 9: Any other tactics and tools that you employed on your store?

‍

While I had seen a lot of retailers put up multiple pop-ups on their store, right from scarcity timers to social proof pop-ups, I chose to keep the ‘urging’ to a minimum. This is because I did not want to appear pushy or desperate on the store.

‍I only employed the scarcity principle in two places on the store: One, on the product page, with a ‘Only X products remain’, which is a true reflection of my inventory at any moment, and two, on the checkout page: 

As for tools, I used a couple of upsell apps- they do slow down your store, so I minimized their usage.

Two Upsell Strategies that I used were:

‍ - Upselling on Shipping: I quickly realized that shipping costs are the worst part of the total sales cost, and people are often eager to reduce those. People justify adding another enticing product to their cart with money saved on shipping if they receive a reduced shipping rates- so that is one strategy I use. Faster shipping is another motivator.

‍Cut-off Point: I also occasionally have banners stating a certain percentage off if a customer purchases products worth a certain amount.

I used Spocket to find and import products- I did try the AliExpress app, but I had different products in mind for my store. With Spocket, I found some of my best-selling products, and when the orders started pouring in, I could easily fulfill the orders in one-click. I did not have to waste time unnecessarily on manual work, and never worried about inventory: for the stock was updated in real time.

‍

The second app that I used was Loox: to add photo reviews and making them look clean. In the world of ecommerce, reviews are extremely important as they provide the social proof necessary to establish trust. Loox was easy to use, and automatically sent my customers an email requesting a review.

‍

I also used Mobile Converter by Beeketing, which helped optimize my site for mobile devices. More than 50% people shop through their mobile phones nowadays, so a sticky Add to Cart button and full sized image galleries were absolutely essential.

‍

Third: Recart Messenger Marketing helped with abandoned carts. As I mentioned above, I wanted to reach abandoned carts through all media: I sent emails, FB messages, SMSes- and Recart tackled FB messenger. I customized the messages to suit the theme and colours of my store, and brought people back to the store in the middle of, what I presume would have been, a Facebook scroll session.

‍

And lastly, SMSBump was my go-to app for sending SMSes to abandoned carts! SMSBump works great with ReCart and retailers can create a sequence of SMS + Messenger where a message can go first and if a customer does not convert we hit them up with ReCart. Texts have a 94% open rate- and so few people employ this amazing resource- this app was one of the most important ones for me.

‍

Step 10: What was the final result and what should new retailers keep in mind as they start their stores?

‍Within, 6 months final result was plain- all the effort had paid off:

‍

Any business is a sum of all the tiny efforts you put into it: from design and development to marketing and sales. If people’s ‘dropshipping success stories’ claim that one single revolutionary trick is going to win you success in a second, they’re probably lying. These success stories are usually fabricated to scam people.

‍

Throughout the months, I applied and reapplied all the different strategies stated above, and more- and the results were clear as day.

‍

Not only was I creating enough profit to sustain a comfortable lifestyle, without a 9-5 job, but also surplus profit. In the three months from October to December, I gained $178,000 in sales.

But just like any business, it required patience. Dropshipping isn’t just a quick way to make money. You have to be organised and keep your finances in order.

‍

I did not know how long it would take, and I am not going to deny it was hard. But it is possible.

‍

I started out just like you: I made countless mistakes along the way, admitted them, and corrected myself. My biggest problem was the missing knowledge- ecommerce was like flying blind. I tried new things everyday, tested new ideas and was determined to make it.

‍

My mission now, is to prove that anyone can build a successful ecommerce store through dropshipping. With tools like Spocket available, ecommerce success is right at one’s fingertips. Through my Facebook group- Dropshipping Elite and Spocket’s Facebook group, I hope to spread all that I have learned in my journey to successful business to all fellow entrepreneurs. You can be the next dropshipping success story on here. If you want to learn exactly what I did with step-by-step instruction, my course is available on Spocket Academy.

If I can make it, so can you.

‍Get Spocket for Shopify! 

Get Spocket for WooCommerce!

[onbigstor-blog]

[onbigstor-blog]

How to Build an Email List from Scratch (A Step-By-Step Guide)

5 Steps to Build Your Email List from Scratch

Get an Email Marketing Tool

Create an Offer You Can Exchange for Email Addresses

Build a Landing Page, Popup, or Sticky Bar to Collect Emails

Advertise Your Email-Gated Offer

Start Sending Regular Emails to Your List   

Step 1. Get an Email Marketing Tool

Before you start building your list, you’re going to want to sign up for an email marketing tool like ActiveCampaign, Campaign Monitor, or Getresponse. These are some of the most popular pieces of software for not only building and 

sending emails to your customers, but also collecting and organizing your email list. (Because trust me… you’re not gonna want to keep track of all this on an

 Excel spreadsheet.) The initial costs for these tools are very low—and all of them offer free plans or trials that make it easy to get started.

Once you’ve chosen a tool, you’ll want to familiarize yourself with how it works. Each platform is slightly different, but some of the first steps you’ll want to take include…

Create Your First List(s) – You can organize the emails you collect into groups called “lists.” To start out, you may want to create a “Master” list where you can put all email addresses, a “Customers” list for people who have already bought from you, and a “Prospects” list for people who have shown interest but haven’t yet made a purchase.

Import Any Existing Contacts – If you already have some emails that you want to add to your new database, now would be the time to do so. You can set up your existing email contacts in a spreadsheet to import them all in one go. Remember, these are folks who need to have expressly agreed to receive emails from you per privacy laws.

Set Up Tags/Segments –  As email addresses come in, you’ll be able to tag leads based on how they entered your database, and send segmented emails to more specific groups of customers or prospects. To start out, you may want to create tags for segments like “Landing Page Leads,” “Newsletter Sign-up Leads,” and other entry points so you know who signed up where.

Create an Email Template – These email marketing tools aren’t just for organizing your list—they’re also for sending emails. Get familiar with the different templates, and try designing and sending out a test email from your business.

Bonus! Unbounce integrates seamlessly with ActiveCampaign, Campaign Monitor, and Mailchimp. That means you’ll be able to set up lead-generation landing pages, popups, and sticky bars that automatically route visitor contact info into your email marketing software.

Step 2. Create an Offer You Can Exchange for Email Addresses

Now that you have a tool to collect email addresses, the next step—and possibly the most important part of this entire process—is to figure out how the heck to convince prospective customers to actually give you their emails.

The traditional approach here is to put some sort of “Subscribe” button on your website’s homepage or blog and ask visitors to enter their email address. But 

have you ever actually filled one of those things out just… because? (No, thank you.) Most visitors skip over a form like that entirely because there’s no real compelling reason to give up your email address in the first place.

An email address is someone’s personal (and private) contact information. Most people aren’t just going to type it out onto any old website, all willy nilly like that. You’ve got to offer up something genuinely valuable in exchange.

That’s why it’s a good idea to take some time and brainstorm what your business can offer that’ll convince visitors to give up their email address first. Because getting the right strategy here will help you build an email list much faster later on.

If you’re wondering what most other marketers do, here are a few of the most common ways to get a visitor’s email address…

Offer a Coupon or Discount Code

For ecommerce, one of the easiest ways to get a shopper to give you their email address is to offer them a coupon or discount in exchange. This is the most 

straightforward approach—but it’s also usually the most expensive. “Get $10 Off Your First Order” or “Get Free Shipping” can be powerfully persuasive for 

visitors… you just need to make sure you factor those expenses into your cost-per-email-acquisition.

Offer a Free Tool or Resource

The other common way to build an email list fast (especially if you’re in SaaS) is to create a free resource and gate it with a form. The key here is that it has to be 

something your audience would find useful that also aligns with your business expertise. So, for example, if you run an online pet store, you might create a free

guide all about “How to Choose the Perfect Leash for Your Pet.” Or if you run a hair salon, you might create a “How to Cut Your Hair at Home” guide for customers staying at home during the pandemic.

Run a Sweepstakes, Giveaway, or Contest

People love free stuff. There’s something about sweepstakes, giveaways, and contests that just appeal to our lizard brains. (“Why yes, I do want a chance to 

win a lifetime supply of mayonnaise. Where do I sign up?”) You could even consider setting up ongoing sweepstakes like this one from Fat Stone Farm to collect customer emails on a weekly basis.

Set Up an Email Newsletter

I know I said earlier that people never sign up for newsletters “just because,” but they will sign up if you give them a compelling reason to. You can offer a 

newsletter as a way for folks to hear about your latest products or curate content based on what might be important to them during COVID-19. (This strategy 

works particularly well in B2B, where you can use a newsletter to share stories of how your other customers are navigating the crisis.)

Ultimately, it’s up to you to choose the approach that makes the most sense for your business. You may even want to test a combination of these two 

approaches to build your list faster. For example, check out how this baby food brand brought in 14,000+ email subscribers in less than a year using both 

coupons and a free guidebook. (You may also want to look into other creative ways to generate leads, such as free webinars, templates, quizzes, and online tools.)

( A word of caution—be careful with any emails you collect for purposes other than marketing (like when someone places an order on your website). With regulations like GDPR in place, you’ll want to obtain explicit consent from your visitors in order to send them promotional emails.)

Step 3. Build a Landing Page, Popup, or Sticky Bar to Collect Emails

Next, you’ll need to create a landing page or popup (or both!) to start collecting emails for your list. These will be the spots where you display your offer and ask customers to enter their contact information.

Landing pages are great if you have a juicy offer that needs some explanation (like a free resource).

Popups are perfect for short and to-the-point offers (like discounts or coupons).

Sticky bars are good for adding onto the top or bottom parts of your existing storefront or website for quick offers (again, think discounts, coupons, newsletters).

Creating a landing page or popup is pretty simple using Unbounce. (You don’t even have to get your hands dirty with HTML or CSS—which is super helpful if you’re not a developer like me.) Get started with one of our lead-generation templates and customize it using the drag-and-drop builder to match your brand and offer.

You’ll want to connect the form on your landing page or popup to your email marketing tool, and then test it out to make sure everything is hunky dory. Hit publish when it’s ready to go, and you’ll be ready to start building your list.

Step 4. Advertise Your Email-Gated Offer

Now, it’s just a matter of directing visitors towards your offer. There are a few different ways you can do this, depending on what type of offer you set up in the previous step…

Use

Popups and Sticky Bars

to Promote the Offer on Your Website

If you already have a lot of visitors coming to your website, you can set up a popup or sticky bar to get people’s attention and promote your offer. With 

Unbounce, you can set these to show up (or slide down) on any high-traffic page of your website, including your homepage. Advanced targeting options let you

 time ‘em so they only appear when you want them to—like when a visitor is exiting the page without purchasing anything, for example.

Post to Your Blog or Social Media Channels

Hey #ecomm #marketers! 👀 DYK that #landingpages can convert browsers into buyers at TWICE the rate of a product page? Start convertin’ like the best of ’em w/ the Ultimate Ecommerce Landing Page Lookbook ft. @klientboost, @boxycharm, @twillory, & more 👉 https://t.co/bcbX6kOgqQ pic.twitter.com/yl8OPhJZx4

If you already have an online audience on social media (or via a blog), you can use these channels to organically get the word out about your offer. This is a

 great way to connect with your existing audience and turn social media followers into email subscribers so you can reach them more directly.

“But wait, why do I need the emails of people who already follow me on social media?” I hear you asking. The sad truth is you only reach a small portion of 

your audience with organic posts on most social media platforms. (For example, according to research done by Hootsuite, the average reach of a Facebook post

 is only 5.5%.) Getting directly into your prospect’s email (where open rates are typically above 20%) is far more valuable than relying on organic social impressions.

Set Up Paid Ads to Drive Traffic

If you don’t already have an online audience and you’re truly starting from scratch, you may want to try investing in some online ads. Lots of brands use 

social ads on Facebook and Instagram to promote their free resources or discounts that get customers in the door. Think of this as an investment—once

 you have a list of emails, you’ll be able to reach out to these customers directly (for free).

Step 5. Start Sending Regular Emails to Your List

Once the ball starts rolling, you should start seeing the email addresses come in from your offer. Don’t worry about waiting until you cross a certain threshold of 

subscribers before you start sending emails to your list. Instead, build a personal relationship with those initial subscribers and get feedback from them on what 

types of emails they would like to see from your brand. This will help you create an email strategy that resonates with your audience as it continues to grow.

It’s also a good idea to set up automatic email nurtures that go out to new subscribers and to begin scheduling promotional emails on a regular basis. If you’re consistent, your list is much more likely to be active and engaged.

Build Your Email List Faster with Unbounce

Once you have the email addresses for your customers (and prospective customers), you’ll be able to easily let ‘em know about your latest products for 

sale, landing page promos, and store updates. Use the drag-and-drop builder in Unbounce to quickly create high-converting pages and popups that collect emails much faster.

Get started today by checking out some of our lead-generation templates.

[onbigstor-blog]

Your all-in-one platform for selling on Amazon

9 Things Amazon Sellers Need to Know to Stay in Business During Coronavirus.

4 Ways coronavirus is affecting Amazon sellers

1. Amazon is prioritizing essential goods over non-essentials for deliveries

Since the outbreak of coronavirus, or COVID-19, the demand for essential products has skyrocketed, leaving store shelves empty of basic necessities such as food, medical supplies, and household goods like toilet paper and paper towels.

Meanwhile, a disruption in the global supply chain has led to shortages in supply. Amazon responded by shifting gears from its role as an “Everything Store” to becoming an invaluable supply chain to help get America through this time of crisis.

March 17, 2020

Amazon announced it would freeze non-essential FBA shipments from its third-party sellers. In addition, it has started to prioritize essential goods over non-essentials.

Amazon considers the following product categories essential:

Baby

Health & Household

Beauty & Personal Care (including personal care appliances)

Grocery

Industrial & Scientific

Pet Supplies

If a seller’s products are outside of those categories, they will not be able to send shipments to Amazon’s fulfillment centers nor create an inventory replenishment order.

However, these changes are temporary.

Amazon stated that the freeze on receiving non-essential goods would only last until April 5. And sellers whose products are already in Amazon’s fulfillment centers — or are on the way to the fulfillment centers — will still have their products enter the supply chain.

However, while Amazon has not yet made an official announcement, the freeze is still in effect. I tried to create a shipping order for one of my products on April 6 and received a message saying Amazon’s fulfillment centers aren’t accepting inbound shipments of non-essential items.

Currently, there are no restrictions for merchants who fulfill their own products (FBM). Therefore, it is still possible for sellers who currently sell via FBA to make sales and ship their goods to customers themselves.

March 21, 2020

Amazon announced that the Italian and French marketplaces would only ship essential goods to consumers. However, as of this writing, there is no word when this restriction will lift. (Not only could this move affect the seller’s business, but may leave them without a stream of income during these trying times; 22% of active sellers in the French marketplace and 23% of active sellers in the Italian have no other income than their Amazon business.)

March 24, 2020

Amazon further announced that Amazon India (amazon.in) would only ship essential goods to consumers following Prime Minister Narendra Modi’s announcement that India would enter a 21-day lockdown.

In addition, TameBay reports that non-essential goods in the Amazon UK (amazon.co.uk) marketplace are taking as long as 3-4 weeks to ship. And in the US marketplace, the sellers’ ability to create coupons is temporarily suspended until April 5.

March 31, 2020

we received word that Amazon would offer the following benefits to help sellers during the COVID-19 outbreak:

It states that “In light of the evolving COVID-19 crisis, we will waive two weeks of your inventory storage fees for products stored in the United States, Canada, United Kingdom, Germany, France, Italy, Spain, Poland, and the Czech Republic.”

This is in addition to the previously announced updates including:

Waiving the April 15 long-term storage fees for inventory stored in the U.S. and Europe.

Pausing repayments and interest until April 30 for sellers with direct loans from Amazon Lending.

Waiving April fees for those using Seller Account Management or the Launchpad program.”

Furthermore, Amazon said it would be taking measures to mitigate the impact of the crisis on sellers’ account health.

We’ve also heard through some of our contacts in China that Amazon is already prepping sellers for the 2020 Prime Day season which should happen may happen in August.

Finally, some sellers have noticed that Amazon has changed their Buy Box algorithm to award the Buy Box to FBM sellers. However, Amazon has not offered an official statement regarding this change.

April 1, 2020

Amazon informed sellers that it would be prioritizing the supply of key medical supplies to hospitals and government organizations.

In a message to sellers on their forums, Amazon had this to say:

“You may have offers on one or more products (ASINs) that will now be available exclusively to hospitals and government organizations, which are in urgent need of high-demand medical products like N95 masks, surgical masks, facial shields, surgical gowns, surgical gloves, and large-volume sanitizers. Select ASINs of these product types will no longer be available to the broader public on Amazon.com and AmazonBusiness.com.

“For ASINs subject to this change, we have eliminated our standard referral fees through June 30, 2020, to encourage our selling partners to make additional inventory of these products available at competitive prices to these customers with the greatest need.

“For more information about these changes, including a list of impacted ASINs, visit COVID-19 Supplies 28. To request approval to sell these products, visit: http://www.amazon.com/COVID-19-Supplies”

April 13, 2020

Amazon announced plans to hire an additional 75,000 employees, on top of the 100,000 previously announced, to continue supporting demand during the coronavirus pandemic.

2. The global supply chain has been disrupted

China, the primary supplier for many Amazon sellers’ goods, was ground zero for the coronavirus outbreak. And China’s normally thriving import industry has felt the strain of COVID-19 already.

Even before the crisis hit the U.S., a recent Jungle Scout survey of 681 of Amazon sellers who sourced their products from China revealed:

36% sellers seeing declining sales

11% sellers raising prices on products

50% sellers looking to source products outside of China

Some sellers are looking to the U.S., India, Vietnam, and Mexico, among other countries, to source their products, though it’s unclear how suppliers will be able to respond as coronavirus continues to spread throughout those countries, too.

Analyst Edward J. Kelly of Wells Fargo Securities explained that many popular items will sell out as early as mid-April. Big-box retailers like Walmart and Target who turn inventory faster will be the “first to experience out-of-stock issues.” (LA Times)

Likely, private label and wholesale Amazon sellers will face similar issues.

In fact, Amazon has extended its window for returns. Normally, Amazon’s shoppers have only 30 days to return purchases. However, due to delays in shipping both on their end and US carriers’, Amazon is giving shoppers until May 31 to return any purchases made between March 1 and April 30

3. Consumer spending is declining

According to a survey by Moody’s Analytics, nearly 80 million U.S. jobs could be lost during the coronavirus outbreak, primarily in the travel, tourism, leisure and hospitality sectors.

With reduced consumer spending, dollars will be put towards more essential goods such as food, medical supplies, and childcare, and away from luxury items.

Already, we’ve noticed an uptick in searches for essential items, including:

Rice: 1181%

Bottled water: 238%

Toilet paper: 75%

Meanwhile, non-essential goods are down.

Office supplies: -28%

Party: -10%

Furniture: -8%

April 3, 2020

In addition, though Amazon did not confirm, Reuters reported that Prime Day 2020 is being postponed.

Despite the fact that Prime Day is often the biggest sales day for most sellers, this year’s deal day will likely happen sometime in August (though it could be pushed again), rather than the usual July.

4. Working from home is becoming the norm

Fortunately, many employees have the option of working from home. That means, in addition to essential items, certain work-from-home products and keywords have increased searches on Amazon.

Work from home: 85%

Webcam: 32%

Computer monitor: 14%

Other items such as comfortable chairs, home gym equipment, home entertainment, and learning resources for children who are out of school, have also shown an increase in searches and sales on Amazon.

5 ways to pivot your Amazon business for the quarantine economy

There is no telling how long the U.S. will face this crisis, but some estimates peg self-isolation and lockdowns lasting several months — or perhaps as long as 18 months or more.

In the meantime, to ensure the survival of their businesses, Amazon sellers will need to make some drastic changes.

1. Temporarily reduce or pause advertising spending on Amazon

Following the FBA freeze on March 17, one of our customers informed us that Amazon’s sales agents are currently contacting Amazon sellers and encouraging them to reduce advertising spending during the crisis.

If you have experienced a reduction in sales during the crisis, especially if you are selling non-essential goods, we recommend reducing or suspending your ads until further notice.

2. Consider Fulfillment by Merchant

If you have inventory available that isn’t currently in an Amazon fulfillment center and you’re unable to create a shipment, you can fulfill the products yourself.

Fulfillment by Merchant (FBM) works a little differently than Amazon FBA.

When a sale is made, you are notified in Seller Central as well as on your Amazon Seller mobile app.

You have 24 hours to mark the order as ‘Shipped.’ Failure to ship orders within 24 hours may affect your seller account health.

Amazon offers shipping carrier services from which you can purchase directly through Amazon and print.

You will need to pick, pack, and ship the goods and ensure that the product arrives in a timely manner without any damage or issue.

There are, however, a few more risks involved with FBM shipping:

Unless you already have a large fulfillment operation in place, the costs for FBM orders can be higher than those for FBA orders.

Shoppers can leave negative seller feedback based on the speed and quality of your shipment.

You must handle your own customer service issues.

Read more about FBA vs. FBM fulfillment methods here.

3. Switch business models

Because of the difficulties you may have securing products from China or other overseas providers, business models such as private label, wholesale, and dropshipping will become difficult during the outbreak.

Furthermore, retail arbitrage may also suffer due to self-isolation and lockdown practices. Many retail stores will close.

However, there are other business models you can introduce to your Amazon selling business during the outbreak:

Handmade: With handmade, you can create your own products such as seasonal gifts (Easter, Mother’s Day), clothing & accessories, and toys & games and ship them to the consumer. You can apply for Handmade on Amazon’s website.

Online arbitrage: While retail arbitrage may not be possible during the outbreak, online arbitrage might be a viable alternative. Similar to retail arbitrage, online arbitrage involves purchasing a product from one retail site such as Ebay.com or Walmart.com and listing it on Amazon at a higher price.

Kindle Direct Publishing: If you have a knack for writing and creating content, you might consider writing books and publishing them on Amazon. Kindle Direct Publishing (KDP) allows authors to create both digital and print formats on Amazon. Like dropshipping or Amazon Merch, there is no cost to get started; you simply need to create the material.

Manufacture your own products: 3D printers are becoming less and less expensive. And there are some sellers on Amazon who design, print, and sell their own 3D-printed goods.

Read more about the pros and cons of different Amazon sales models here.

4. Focus on your brand

We all hope and believe commerce will return to normal eventually. So, while your sales may drop for a few months, this is a good time to focus on your brand and your overall message.

Take advantage of the free resources and product trials (Jungle Scout’s free trial offers the best of both worlds, with Jungle Scout Academy) available on the internet to anyone interested in selling on Amazon.

Learn how to optimize your listing. Master the ins and outs of pay-per-click. Become an expert in all-things Amazon so that you and your product are ready when things return to normal.

And make sure to communicate frequently with your customers, both on and off Amazon. Take to social media to assuage fears or even offer levity. Create promotions to get your brand’s name out there.

5. Stay informed

Over the next few months, there will be lots of changes, both on and off Amazon. The best thing to do is to stay on top of those changes and act accordingly.

Make sure to read news from reputable sources and stay involved with those close to Amazon, like Jungle Scout. You can also join our Facebook group, Amazon Competitive Edge.

Frequently Asked Questions

Many of the questions below are related to Amazon’s freeze on non-essential inventory entering their fulfillment centers.

What products are being accepted?

Currently, Amazon is only accepting products from the following categories:

Baby

Health & Household

Beauty & Personal Care (including personal care appliances)

Grocery

Industrial & Scientific

Pet Supplies

What if I already had a shipment on the way?

If you created a shipment before March 17, Amazon will still accept your inventory and put it into its supply chain as normal.

What happens to inventory still at port?

As long as any inventory that is currently in transit to Amazon has an inventory replenishment order placed before March 17, Amazon will accept the inventory into its fulfillment network.

Will Amazon freeze/suspend fees and loan payments, too?

As of April 9, Amazon announced it would temporarily pause account suspensions related to supply chain and fulfillment difficulties. Since March 20, Amazon has not been suspending sellers who have had high late shipment rates, and Amazon says these changes will remain in effect until May 15.

As of this writing, there is no word on whether or not Amazon seller fees will be frozen.

However, Amazon had made mention that it may temporarily disable its Inventory Performance Index (IPI).

The IPI is part of the seller’s account health metrics. It is the score that Amazon uses to determine the amount of inventory sellers are allowed to send Amazon.

In addition, Amazon sent out a notification that they are going to waive April’s long-term storage fee for sellers in the US, the UK, France, Italy, Germany, Spain, Poland, and the Czech Republic. The email did not mention whether or not that waiver will be extended past April.

Most recently, on March 25, multiple sellers received a notification from Amazon Lending. It said that — effective March 26 through April 30th — Amazon Lending would be pausing repayments on outstanding loans, and that loans would not accrue interest during that period.

The notification also stated that payments will resume on May 1st, 2020, with sellers retaining their previous monthly payment date and the same number of payments as before.

Can I get my inventory out of Amazon’s fulfillment centers?

The short answer is yes — but it may take a while.

FBA sellers who hoped to have inventory stored at Amazon’s fulfillment centers returned to them right away (in order to sell it FBM) are — for the time being — out of luck. Amazon recently sent out an email stating that removal operations are being paused temporarily in some of their fulfillment centers.

But, that doesn’t mean sellers can’t still submit removal orders. It just means that fulfilling those requests will take longer than usual.

Auto-removals are also going to be held up due to this interim stoppage.

What types of products should I sell on Amazon during the crisis?

If you have the ability, sell essentials. Focus, too, on products for people who are self-isolating during the crisis.

Consider that not only will people have to work from home, but children will have to stay home from school as well.

Can the virus be transmitted through packages?

The New England Journal of Medicine published a report stating that the SAR-CoV-2 coronavirus can survive on cardboard for up to 24 hours and plastic and stainless steel for up to 72 hours.

Having said that, U.S. carriers are taking extra precautions:

The U.S. Postal Service citing the World Health Organization stated that there is very low risk for transmission of the coronavirus through packages. In addition, they are constantly monitoring the situation.

UPS has increased monitoring of its employees for sickness and complying with all government mandates.

FedEx is also taking extra precautions to ensure that their deliveries are safe during the crisis.

DHL also released a 2-page press release explaining the measures they were taking to ensure safe deliveries.

*Disclaimer: This article was updated on April 13, 2020 to reflect Amazon’s latest announcements.

[onbigstor-blog]

How to Get Your Business Online Fast and Survive COVID-19

Respecting social distancing and shelter-in-place guidelines is crucial to slowing the spread of COVID-19. But while there’s no denying that these guidelines are 

good and even necessary, it does little to support the small businesses who’ve been left to shoulder the burden. Fortunately, there are still several great ways 

for small business owners to respect these evolving guidelines while still continuing to serve and transact with their customers.

In this article, we’ll discuss how you can take your offline business online to adapt to these changes and continue operating your business while you strive to protect your customers and yourself.

Advantages of Having an Online Business

Every day your doors are closed without a website to pick up the slack is another day without needed profits to carry your business through the pandemic.

 So getting business online is the first step to adapting to this new environment. An online store will help you stay on your customers’ radar and grow your sales, 

even in the context of social distancing. And even when the pandemic makes it to our rearview mirror and we begin the long transition back to normal life, 

having an online presence will continue to be a valuable tool to grow your business.

Here’s why you should get your business online:

Your business is available for customers anytime. While physical locations operate on fixed hours, online businesses can take orders all day and night.

An online business is less expensive to set up and operate.

Online business offers needed support in the event that you need to close a brick and mortar location for any reason in the future. For example, you may decide to move your business to a new location. Having an online channel means you won’t depend on your physical location to keep operations running during the transition.

We know transitioning from a fully offline business to fully online at the current rate of change can be more than a bit overwhelming — especially if you’re not a

 digital native. Fortunately, we understand the struggle. With Ecwid, you can take your business from offline to online and be ready for your first order in just a 

couple hours — no prior experience needed.

Ioesco Restaurant is one of many Ecwid merchants who’ve taken their business online during the pandemic:

How to Take Your Business Online

To start accepting orders online, you need an e-commerce-enabled website. If you’ve never dealt with websites before, no worries: you can easily set one up on Ecwid all by yourself.

If you don’t have a website, use Ecwid’s free one-page Instant Site, a free one-page website, to build and design your first website from scratch and be ready to receive your first sale in just a couple of hours.

Instant Site is super easy to set up and edit — no coding required. All you have to do is:

Add products or services.

Add business information, contacts, and location.

Enable payment options — make sure to include online payment to avoid contact with cash.

Set up curbside pickup and/or local delivery.

Still have questions? We put together this detailed guide to store set up to walk you through the steps and answer some of the most common questions we see during the set-up process (remember to bookmark this page, so that you have it on hand when you need it).

If you already have a website for your business, but it doesn’t have an online ordering option, you can add an Ecwid store to your existing website in minutes. It doesn’t matter which site builder you used to create your website — just connect your Ecwid store and you’re ready to go. You can add an entire store, categories, or single products to your website.

After you set up your store:

Place a test order to make sure everything’s working.

Add information about your COVID-19 operations. Share your business hours, and let your customers know if you have local delivery or curbside pickup.

Accepting orders

When a customer buys from your online store, the order will appear in your Ecwid Control Panel → My Sales → Orders. The Orders page is where you can view and manage all your orders. You’ll have access to all of the details, like payment and shipping information, items ordered, a customer name, contact information, and billing address.

Here’s how the Orders page looks:

And when someone buys from your store, you’ll receive a notification email, so you don’t miss it:

If you use the Ecwid Mobile App (for iOS or Android), you’ll get a mobile push notification when someone places an order in your store.

When an order for physical products is placed, you’ll need to fulfill that order and change order statuses accordingly. For example, if you’ve shipped an order to a customer, you need to change the order status to Shipped.

If an order status is Paid, it means that your customer successfully paid for the order via an online payment provider. Now you need to prepare the order and deliver it to the customer.

If an order status is Awaiting Payment, it means that:

A customer selected an offline payment method. Now you need to contact them to arrange payment.

Or, a customer’s online payment was not processed. To learn why the payment failed, open the order details page and go to the Payment section.

After you have received the payment and you have all the necessary details, you can change the Order status to Processing and start preparing the order. Don’t

 forget to change the status when you deliver the order or prepare it for pickup.

If you sell digital products or gift cards, you don’t need to process these orders — they’re fulfilled automatically. When a customer purchases a digital product or a gift card, they receive a link to download the file or a gift card code by email.

Read more about managing your orders in our Help Center.

How to Do Business Online During the Pandemic

Getting an e-commerce website up and running with Ecwid is pretty simple, but shifting from offline to online doesn’t stop there. Here’s a couple more ideas to protect your existing customers and attract new ones during COVID-19.

Add high-demand products to your store

Shopping lists all over the world now include more shelf-stable goods, sanitizers, medical masks, gloves, and cleaning supplies. So it might be a good idea to add some of those products to your store.

You can also adjust your current products to better suit your customers’ needs. For example, if you sell food, you can offer meal prep or family meals. This way you’ll reduce your customers’ need to shop and help minimize their risk of exposure to the coronavirus.

Sell gift cards

Gift cards encourage customers to continue shopping and supporting your business during uncertain times. You can set up gift cards with Ecwid in less than 10 minutes. When a customer purchases a gift card in your store, they’ll get an email with a unique code, with the email acting as their “gift card.”

Offer curbside pickup and/or contactless delivery

Now that avoiding contact whenever possible is our new lifestyle, pickup and delivery have to change too. Here’s how curbside pickup works:

A customer arrives to pick up their order and lets you know by a phone call that they’re at your location

You carry out the order

The customer opens their trunk from inside the car, and you place the order in their trunk.

Contactless delivery means customers can get their orders without coming face-to-face with couriers. For example, orders can be left at the customer’s door.

 Couriers can send a photo of it or call the customer to let them know it’s been delivered.

Sell digital products

No matter what you sell, digital products and remote conferencing services can provide additional support for your business. Plus, you won’t have to deal with

 shipping and inventory, which makes selling digital products and services contactless and safe for you and your customers. A few examples include:

Selling ebooks, checklists, guides, how-tos, and video courses

Giving online lessons or consulting

Creating online conferences for your customers, like hosting online master classes.

More: 11 Digital Products That Fit Almost Every Storefront

Register on Google My Business

People turn to Google to verify open businesses and their hours, so make sure your customers can find the information they need. A Google My Business

account allows you to display your business hours, address, posts, photos, and reviews across Google search and Google Maps.

If you already have a Google My Business account, make sure to update any information that’s changed as a result of COVID-19.

Partner with other local businesses

Partnering with businesses in your community is a solid way to attract new local customers. For example, you could create special offers or even host online events.

Brookside Poultry Co. and Brookside Sushi teamed up to offer take-out from the same location so their customers could pick up orders from both restaurants at once.

Stay in touch with your customers

Use social media or newsletters to connect with your customers and let them know about changes in business operations. Announce new products, share 

how they can support you, and explain changes to your pickup and delivery options with respect to COVID-19.

Read more about communicating with customers during the coronavirus pandemic.

Collect donations

People understand that COVID-19 hasn’t been easy on small businesses, and many loyal customers would be excited to support their favorite stores and services. So make that easier by adding a PayPal Donation Button to your store:

Go to PayPal’s website to set up your Donate button by choosing country, language, and your button style.

Add your organization details: PayPal account email and purpose of donation.

Set a donation amount, and press the “Finish and Get Code” button.

After that, just copy and paste the button’s HTML code:

To add the code to your Ecwid storefront go to your Control panel → Catalog → Categories → Store front page. In the Description field, click on the HTML mode icon and paste your code, and then save your changes.

After that, you’ll see the Donate button in your storefront:

You can also offer to let your customers support non-profit initiatives together. For example, Ecwid store Dan the Man accepts donations from customers on their website, and every donation goes towards free meals for healthcare workers.

Take Your Business Online Today

While selling at a physical location is on pause, setting up an online store allows you to resume operations and keep sales rolling while your doors are closed. So

 the faster you can take your business online, the sooner you can start accepting new orders. And with Ecwid, you can do it all in just a couple focused hours.

Get started for free

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