Amazon FBA Overview Mini-Course: Day 1
Hello, my fellow prospective Amazon-FBA sellers! And welcome to the FBA Overview course.
In this mini-course, I want to give you an overview of all of the stages and key information points you need to know in order to jump straight into action and start a successful Amazon FBA business.
From my personal experience, not knowing where to start is a big block for new entrepreneurs, but so is “information overload”. So I made it my task to condense in a few posts & corresponding videos everything you need to know to just start.
After going through this content you can expect to have a clear idea of the whole process and how to navigate it, from Product Research until your First FBA Sale.
The outline of this mini-course and the topics that we will cover are:
1) Product Research: how to find your first income-producing product
In my FBA journey, I found all of the big pieces of information I needed to know online. However, I had always the feeling that I was learning as I went, as I could never find a free resource that would explain to me the whole process from start to finish, and would answer some small yet annoying questions I had. I made sure to focus on those here, to hopefully make you feel secure enough to finally take massive action.
So let’s jump right into Chapter #1: Product Research
After this post I want you to have a clear idea of how to go about finding your first profitable product to sell on Amazon.
- What is Product Research and why do you need it?
Product Research is, in my opinion, the most important thing you will have to do in order to get started with your new business. With a good product research tool and method, you can define which products to sell, with certainty that the demand is there and that you can actually be profitable selling them.
- How do you do Amazon Product Research?
For this stage, you will need to use a Product Research Tool. The one I recommend – and I have tried more than 1 -, is Helium 10.
Helium 10 has dozens of functionalities that give you full access to information and make sure you don’t have to guess anything or hope that something sells.
Use my code to get:
- 50% Off the first month of Helium 10: ELENI50
- 10% Off every month of Helium 10 or an Additional 10% Off the Yearly Plan: ELENI10
Helium 10’s Main Features
- As you log in you can find an in-depth presentation of all of the tools. As you go inside every tool you can also find extensive tutorials, that I highly recommend you binge-watch several times, in order to really take maximum advantage of this tool’s powerful functionalities.
- For Product Research, you will use mainly Black Box + the browser extension. So that is what I will be focusing on, in this post.
- In the later stages of this mini-course, we will need to use Magnet, Cerebro, Frankenstein, and Scribbles in order to set-up our listing and ads effectively. As you start selling you can also benefits from other awesome tools such as the Index Checker, Keyword Tracker, and Alerts.
- What is Helium 10 Black Box, and how to use it?
Black Box is a very powerful Amazon Product Research Tool, powered by Helium 10. There are several ways you can go about using it to conduct Product Research and you should for sure watch the official tutorials before getting started. Nevertheless, I will guide you through my favorite two methods.
- Product Search
The first tab you will find inside Black Box is the “Product” tab, and this is where we will start. Please watch this clip, for the guide-through and quick tutorial.
In this screen, you should select the market in which you are looking to sell, which categories you are considering targeting, and some arbitrary numbers in the revenue box. The price is important: it should not be too low that you don’t have margin but also should not be too high that it goes above the “impulse purchase” range. So usually a product that markets between 15 and 60€ is a good choice. But if you want to fill in this field, be random, so you get results that others won’t.
Review rating is also a field you can use if you need to narrow down your results: if you want to see where others are doing bad, set a max review rating of 3 or 4 for example.
You also have plenty of more filters that you can use to make your search ultra-specific and relevant.
2. Keyword Search
Keyword Search is similar, but instead of searching for specific products, you will be searching for overlooked keywords. As you know, Amazon is a search engine and your product listing will definitely have the goal of earning the traffic of one main keyword, as well as a few other smaller ones.
I personally find this search more interesting to conduct – perhaps due to my SEM background?
This is an example of a random search I could do. The result as you can see is 13 phrases, or search terms that people use on the Amazon Search bar, that fit the criteria I specified.
Sometimes you will see hundreds of results, and it may then benefit you from filtering further and/or use the “Sort By” feature to see results that you would not see otherwise.
Often times I have to google or “amazon” these terms in order to clarify the user intent – it’s not really clear what someone that searches for a “stick-on mirrors for walls” is actually looking for.
3. The Chrome Add-On Extension
Regardless of the Research Method you choose, you will definitely need to combine it with the use of the powerful Chrome Add-On. It has some pretty awesome features such as a Profitability Calculator, Review Downloaded and Inventory Levels – all to help you study your competition in depth.
You have also “Xray”, the Product Research tool that you incorporate it into your research every time you find a product that you want to look at deeply.
When you run a search and you want to know more about a product, you can directly visit its Product Page. If you have the Browser Extension installed you can run a number of analyses on the product directly.
You can see this product’s inventory levels and try to catch seasonality trends, you can directly download all of the reviews for an easier scan (and weaknesses/strengths identification!), and you can even do a quick profitability calculation – all you need to do is input your estimated costs of sourcing the good, and Helium 10 gives you the remaining FBA and fulfillment costs for this product.
And most importantly for your Product Research, you can use XRay to see how this product is selling – which is what you want to know.
An even cooler use of the Chrome Extension (in my opinion) is when you use it in the Search Page. It gives you the numbers of all of your top contenders, would you choose to compete for those search intents/keywords.
There are 300 more ways and functionalities of Helium 10 that you can use in your Product Research process, and again, I deeply advise you to check their official tutorials to learn how to use the tool and benefit from its full capacity.
You can also try it out for 1 month – that’s how I got started into it, even before I had fully committed to setting up my Amazon FBA business – I got a 1-month subscription for half the price, using a discount code I found online. You can use mine, and try it out for 1 month with 50% Off: ELENI50
Now, I do have an Amazon FBA business but I do not consider myself an expert on the topic and my intention is to purely give you the action steps and overview of what you need to know in order to get started. That is why I will not produce an in-depth “how-to” (others have done it far better than I ever could).
However, here are some quick recommendations, for when you are going through your lists of results:
- Electronics, products for topical use, food or fragile goods can all be subject to give you headaches, both in the form of faulty production, special legislation, trademarks, among others;
- It should be inside the “impulse purchase” range (15€-60€), have weak competition or competition you think you can beat by improving or modifying the original/basic product;
- Use the field “Exclude Title Keyword” to exclude branded items that show up often with the filters you chose or seasonal items;
- Ideally, you want a product that sells year-around;
- Use Helium 10’s Chrome Extension functionalities to have an idea of FBA costs, if you start seriously considering a product;
- Consider this: ten €3k/month products may be better than one €30k/month product. This thought helps relieve a bit of the pressure off the search and the definition of what a “good product” is. Having several €3k/month products will also spread your risk and allow you to be more comfortable in case one of your product dies down at some point;
- Be patient and in time you will find your winning product and become better at spotting opportunities.
If after reading this post you want to try Helium 10, feel free to use my links and/or codes to get a discount! You can get:
On day 2 of the mini-course I will tell you all about how you can find a supplier on Alibaba for your winning product, and everything you need to know in order to guarantee a smooth supplier experience and China trade.