I’m going to show you why Amazon FBAis an untapped goldmine for us handmade sellers and how you can get startedwith FBA in just five simple steps.
Let’s do this.
My name is Mei and I help makers, artists and designers create a consistentincome selling their handmade products online.
This is video number five in my miniseries on how to be profitable with your handmade business on Amazon.
So if youhaven’t watched the other videos yet, there’s a link here to a playlist thatwill bring you back to the first video so you can get all caught up if you’vebeen around the channel for awhile.
You know that I started sellingmy own handmade jewelry on my own [email protected]
com but I wasalso selling my products over on regular Amazon, not handmade, and it was actually doing pretty wellconsidering I didn’t do anything more than publish my product listings on Amazon.
But a friend of mine who was running avery successful makeup business told me that I had to get on Amazon FBAbecause that was where the money’s at.
So I took her advice and almost instantlyI saw an immediate increase in sales to the point where my team and I weregetting maxed out and almost couldn’t keep up between Amazon and my own siteorders.
For those of you who don’t know, FBA is Amazon’s fulfillment serviceand stands for fulfillment by Amazon.
The way it works is you pay Amazon abit of an extra fee and in exchange they take care of your storage, packaging, shipping returns and customer service.
All you need to do is ship them yourproducts in bulk and they’ll take care of the rest.
Now you might be thinking all the extra money to Amazon and take care ofmy own packing and shipping.
Sure, you could.
At first I was selling on regular Amazonand I was already getting some pretty consistent sales without doing anythingmore than just getting my listings up on there and making sure they were keywordoptimized and had decent product photos.
But Amazon FBA is so much morethan just a fulfillment service.
When you start selling with FBA, all your listings will get thetrusty little Amazon prime label, which will let your customers know thatthey can get free two day shipping when buying one of your products.
Personally, I rarely buy anything that isn’t prime.
The label alone will give you such anincrease in sales that will far outweigh the costs of Amazon FBA.
Also, you’ll rank a lot better in search resultsthan your competitors because Amazon prefers to promote FBA products overnon FBA products and the better you rank the more sales you’ll get.
Just head over to Amazon and search forany product and you’ll notice that most of the products on the first pageare going to have the prime label.
But my favorite thing about FBA by faris the flexibility and freedom it gives me.
I love that I only have to ship Amazonone large package with all my inventory and have to worry about shippingindividual orders or dealing with customer service.
I can literally go on vacation andkeep making sales with Amazon FBA.
I also like that I can hand off thelogistics part off my business to someone who’s way better at it than me andinstead focus on my craft and growing my business, which is what I dobest and what I enjoy doing.
I saw an almost immediate increase insales once I got set up with FBA without making any other changes.
It does have an extra cost, but I just really love that I only haveto ship Amazon one large package with all my inventory and not have to worryabout the rest.
It’s so worth it.
So how much of an investment is AmazonFBA going to be for your business? Well, if you’re already aregular seller on Amazon, then you know about their monthlysubscription fee and their referral fee on every sale you make.
Now if youdecide to upgrade it to Amazon FBA, you’ll be paying two additional fees, one for storage and one for fulfillment.
The inventory storage fee is a monthlypayment to keep your product safely stored inside Amazon’s warehouse, you’ll pay by the cubic foot andit’s actually pretty affordable, especially if you make smaller productslike jewelry or wallets or notebooks.
The fulfillment fee is what youpay Amazon on every single order.
It covers everything that goes intofulfilling an order such as picking, packing, shipping, and even customerservice and returns processing.
In most cases, these are calculated perunit, so if you ship three products, you’ll be paying a separatefulfillment fee for each one.
Your fees will depend on how much yourproducts weigh and how big they are, but to keep things simple, Amazon has split its productsizes into two main categories.
Standard size and oversize.
Standard size would be any product thatweighs less than 20 pounds when packed and is no larger than 18by 14 by eight inches.
While anything larger orheavier is considered oversize, so unless you’re selling heavyfurniture or something like that, it’s pretty safe to say that most ofour products will fall into the standard science group when it comes to storage.
The latest FBA price for standard sizeproducts is 75 cents per cubic foot from January to September and $2 and 40 centsper cubic foot from October to December because those are the busiest monthsin online shopping when they do provide discounts.
If you decide topay annually or biannually, to give you an idea for my costs, I roughly spend about lessthan $5 per month on storage, which allows me to keep around 60 unitsof jewelry in Amazon’s warehouses ready for shipment.
It’s really not a lot.
Fulfill and fees are alsopretty simple to understand.
For our standard sized products, Amazon charges anywhere from two 50to about $12 depending on how much it weighs.
Then the only other cost you’ll need tothink about is the bulk shipping of your products over to Amazon.
So if you’re shipping a hundredproducts over to Amazon, you can justify the cost of yourshipment by a hundred and that’s how much you’re spending per product.
Sofor every product you’re selling, you need to factor inyour initial stocking fee.
Amazon’s usual referral fee and an extrafulfillment fee.
For Amazon FBA.
Now, I can’t say exactly how much that’sgoing to be for you, but in my case, I’m usually paying Amazon around30% of my product price in fees.
This may seem like abit of money at first, but if you’re pricingyour products correctly, you should have no problem making a goodamount of profit from Amazon despite the extra FBA fees.
If you don’tknow how to price your products, you should definitely check out my pricinghandmade products playlist for a few videos teaching you howto do that.
All right, so if you’re just as excited as I amabout Amazon FBA and what it can do for your handmade business, then stick around because I’m going toshow you how to get set up with FBA in five simple steps.
Stepone, pick your products.
Before you get started with Amazon FBA, you’ll want to actually pick out whichof your products you’re going to send them.
Assuming you’re alreadyon Amazon as a regular seller, you can just pick your bestselling products to getstarted or you can even pick a few sellers from yourShopify or Etsy shop.
The idea is to just start offwith a proven set of products.
If you can step to set up Amazon FBA.
Once you’ve picked your products, gettingstarted with MBA is the easiest thing.
Assuming you’re already an Amazon seller, all you need to do isconvert your products to FBA.
You do this by heading overto the manage inventory page, which is where you’ll findall your products.
From there, you want to click on the edit, drop down menu next to each product andselect change to fulfilled by Amazon.
This means you’re asking Amazon to takecare of fulfillment for this specific product.
From now on, insteadof you shipping it yourself, it’s then going to ask you whether youwant to convert and send inventory or convert only.
If you have moreproducts you want to sell with FBA, you’ll want to select convert only andrepeat this process with all the products you want to sell using FBA.
These items are now going to be foundin your FBA inventory and no longer in your regular inventory, but don’tworry, you can always change them back.
If you decide you no longerwant to sell an item using FBA.
Now that you’ve converted all items youwant to sell on FBA, you can select, convert and send inventory which willprompt you to first Mark whether your products should be categorizedhas dangerous goods, like if it includes batteriesor hazardous material.
Click no for both if theydon’t apply to you.
Step three, create a shipping plan.
Next you’ll want to select createa new shipping plan.
For this, you’ll need to insert the addressyou’ll be shipping your products from, which is most likely going to beyour home or business address.
Next, do you want to select your packingtype? There are two packing types, individual products incase packed products.
If you’re sending differenttypes of products, you’ll want to select individual productsonly.
Select case packed products.
If you’re sending one box with allof the exact same type of item in it, for example, a box of50 cupcake necklaces.
Once you’ve set up a shipping plan, you will be prompted to add your itemsfrom your Amazon FBA inventory to it.
Assuming you’ve already convertedall the items you want to sell, you should see them all listed here.
All you need to do here is enterthe units for every product.
Do you want to ship to Amazon?Step four, ship your products.
Now that you’ve added all yourproducts to your shipping plan, you can finally ship them to anAmazon warehouse.
To do this, head over to manage FBA shipments andthen click continue with shipping plan.
You’ll be asked a few questions for howyou want to ship as well as give you the address to ship to.
If you’reshipping a lot of products, they may ask you to ship toseparate warehouses.
Lastly, you’ll need to select whether youor Amazon will label the product.
I usually label my own products usinginkjet.
Amazon labels I get from, you guessed it, Amazon, they’re just regular one by twoand five eighths inch labels.
Amazon will give you a PDF of theactual labels to print and apply to your products before shipping it out to them.
This is how Amazon knows what eachproduct is and they’re sending the correct items to their customers.
Number five, ship your products.
Once you approve your shipping plan, you’ll have the option to purchaseshipping directly from Amazon.
You just need to know howmuch your package ways.
You can either put it on a bathroom scaleif you don’t have a shipping scale or just estimate it based on if you alreadyknow the individual weight of each of your separate products in your package.
Make sure your products are well-packagedand Amazon will then give you a printable label for you to stick on yourshipment box and they’re ready to mail.
Just drop them off at yourlocal ups and that’s it.
Once your products arrive and getchecked in at the fulfillment warehouse, they’ll immediately become availablefor your customers to purchase with the prime label on it.
This meansno more packing, shipping, and customer service do these for youand a lot more profits for your business.
How awesome is that, right? All you need to do now is keep track ofyour inventory and keep on restocking whenever you start to run out.
I hope you found this video helpful andlearn just how powerful Amazon FBA can be for your handmade business.
Setting up your Amazon seller accountsa little tricky the first time around, but if you’ve already gonethrough the cumbersome process, then setting up in Amazon FBA is nothingin comparison and definitely worth your time.