In recent weeks, the most Americans in history registered for unemployment benefits. The COVID-19 crisis has left everyone worried not only for their physical health but also their fiscal health. As so many people are finding themselves out of work or furloughed, there has never been a better time to start an Amazon FBA business.
Amazon FBA is a turnkey program where Amazon does all the marketing, fulfillment, shipping, payments and returns for your products. All you as a seller need to do is send your merchandise to an Amazon warehouse.
Despite news headlines shouting about Amazon prioritizing FBA businesses selling “essential” items, this is still the time to launch an FBA business. To create a true business as an Amazon seller, you need to treat it like a business, which means you need a business plan, strategy and mentors to help you launch. As an Amazon coach I’ve found that it will take someone about seven weeks from idea to launch to do it right. So hopefully starting now will mean an actual Amazon debut when the COVID-19 crisis is behind us, and certainly when the essential restrictions have eased.
While the COVID-19 crisis has decimated many industries, it has actually created a set of scenarios that make an Amazon FBA business a smarter move than ever before.
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Future Hedge
No one expected the COVID-19 pandemic. Life is unexpected and no one knows what unforeseen worldwide events or personal problems might happen in the future that could cause a dip in your personal income again. A side business as an Amazon FBA seller is a hedge against being caught by surprise again. I don’t like the phrase “passive income,” because the business does take work to get up and running and fine-tuned, but once it is there is no better “passive” income stream than Amazon on the planet.
Fundamental Shift
E-Commerce has been on the rise for years, but the COVID-19 crisis will permanently cement it as a preferred way to shop. People who never shopped online before have been forced online and discovered the convenience of Amazon Prime, online grocery shopping and more. It is very unlikely that these people will give up online shopping post COVID-19.
You Have Time
People use the excuse of not having enough time for a host of things they put off, including starting a side hustle. That excuse is out the window. Now that we’re all confined to our homes, decide to use the extra time to start a business rather than zoning out on Tiger King or whipping yourself into an anxiety frenzy bingeing on nonstop news. Now is the time to take the bull by the horns and learn something new. Sign up for a class like we offer at Nine University that will teach you the ins and outs of Amazon FBA selling and help you create a new revenue stream for your family in just seven weeks.
Now is a great time to create a new Amazon FBA business, but it’s not as easy as finding a product and signing up for the service. If you want to succeed as an Amazon FBA seller, you need to learn and do the things that set top sellers apart from the rest.
Get Help
While anyone can set up an Amazon FBA business, I know from experience that novice sellers make a host of mistakes that eat into profits. What drove me to create a consulting company to help others was making mistakes to the tune of $50,000. With a coach you can benefit from someone else’s missteps and really learn how to maximize the Amazon FBA program.
Pick A Smart Product
Using software like Boost Nine or Helium 10, you can easily get data on what people are buying on Amazon. Not only that, but it can help you develop strong keywords, see related products and even calculate ROI.
Know Thy Competitors
If you wanted to know how well your competitor down the road was really doing, you’d be hard pressed to find out. They aren’t going to offer you a sneak peek at the books. But using software it’s easy to “spy” on all your competitors’ numbers before you ever even enter the marketplace. It’s an incredible advantage that helps would-be Amazon FBA sellers really home in on the right business to start.
Have A Damn Good Product
It doesn’t matter what category you sell in, if you don’t have a fantastic product you won’t be successful. Your product must be high quality and have some differentiating factor from the competition.
Don’t Market
Marketing is expensive. Never run an ad unless you’re confident you will get ROI from that ad buy. My rule of thumb is to have a 200% ROI on your product before you start advertising.
The world may have changed, but for those individuals willing to see opportunity in this difficult time, becoming an Amazon FBA seller will help them weather this and any future storms.
Kale Abrahamson is the co-founder of Nine University, a six-week online course that helps students successfully launch an Amazon FBA store. Abrahamson is very skilled in the business world and specifically the e-Commerce world, having started his own Amazon FBA store business on the side several years ago. Now Abrahamson, alongside his co-founder Taylor Hiott, helps thousands of students worldwide set up their Amazon FBA stores.
