In this video, I’m gonna be discussing theeight things that you need to do before you start selling on Amazon.
If you do these eight things, then you willeasily overcome some of the common stumbling blocks that people encounter when they firststart their Amazon business.
To find out what these eight things are andhow to overcome them for yourself, keep watching this video.
One, get an Amazon Pro Merchant account.
Now, in the past, I used to recommend thatpeople just get started ASAP by opening a free Amazon seller account.
Now, I recommended this because of the factthat I knew that people would resist getting a Pro Merchant account because, well, it’snot free.
However, my opinion on this has admittedlychanged over time and I will now recommend to everyone that they get an Amazon Pro Merchantaccount.
And I will recommend this to you even if youresist my advice.
Why? Well, for one very simple reason.
One of the eligibility requirements to winthe buy box is that you need to have an Amazon Pro Merchant account.
The Amazon buy box is that little add to cartbutton that appears on an Amazon item listing.
About 80% of the sales for an Amazon listingare made by people clicking the buy box.
Now, let’s say that there are five sellersthat are eligible for the buy box.
What Amazon will do is it will rotate thosesellers around and give each of them some buy box time.
About 80% of sales are made by people usingthe buy box so winning the buy box time is crucial.
In fact, it’s even more crucial as a new sellercompared to being an established seller.
Think about it.
If people aren’t using the buy box, then itmeans that they’re opening up the list of sellers and selecting one from the list.
And realistically, who are they going to pick, a new seller with no reviews or a seller with lots of reviews? Another fantastic thing about the buy boxis that it doesn’t show how many reviews the seller being featured has.
In fact, it actually gives you very littleinformation about the merchant at all.
It means then that as a new seller, you canuse the buy box to get your initial sales because of the fact that customers will notdiscriminate against you because of a low-to-no number of reviews.
So don’t cut off your nose to spite your face.
Get an Amazon Pro Merchant account.
Now, you can get a free 30-day trial to one.
Use those 30 days to make plenty of moneyso that when Amazon comes and rebills you for the monthly charge, you won’t even mind.
Two, have the right documents ready when applyingfor an Amazon account.
So I thought that I was doing people a nicedeed by creating a step-by-step video tutorial on how to open an Amazon account, which, bythe way, if you wanna watch that, I will have a link to it in the video description below.
Unfortunately, within months of creating thatvideo, Amazon added a new step to the account creation process, which means that my videois kind of outdated.
Amazon now require the following when creatingan account.
One, photos of a national ID like a passportor a driver’s license.
And two, a bank statement that has your addresson it.
Luckily, preparing for this is super simple.
Just do these two things.
One, use a digital camera like the one onyour cellphone to take photos of your national identification.
Again, a passport or a driver’s license isperfect for this.
And two, log into your bank and download yourlatest bank statement.
Then just upload these documents when Amazonasks for them during the account creation process, simple.
Three, act fast.
Here’s the thing with Amazon, they are constantlychanging their requirements and the honest truth is that usually, these changes are designedto make the barrier to entry harder and not easier.
For example, in 2014, Amazon turned the personalcare category from an unrestricted category to a restricted category.
And in 2016, Amazon changed it so that ifyou are a new Amazon FBA seller, that you could not send in your first ever shipmentinto their warehouses during the fourth quarter.
And in 2017, of course, they made it so thatyou had to upload proof of your national identity when you were creating an account.
But here is the thing, if you had been sellingpersonal care items prior to the restriction changes in 2014, then you would’ve been grandfatheredinto the program.
And in 2016, if you were an established AmazonFBA seller, then you would’ve had no problems sending in shipments during the fourth quarter.
And, of course, if you had already createdan account prior to their account creation change process, well, then you wouldn’t haveto upload any of these extra documents.
They do sometimes still ask for them but that’sonly if they think that your account is suspicious.
My point here is that the sooner you do thingslike creating an account, the easier it is.
So do not wait, act now.
And don’t be put off restrictions.
What these restrictions do is they make itharder for illegitimate sellers to be selling on Amazon, which means that there is lesscompetition out there for legitimate sellers like you.
Four, pick your Amazon business model.
Of course, before you get started, you needto pick a business model to pursue when creating your new Amazon business.
The most popular of these include dropshipping, private labeling, retail arbitrage, and wholesale selling.
And, of course, each of these business modelshas its own pros and cons and it’s important for you to go out there and research eachbusiness model carefully so that you can pick the one that meets your skill set and youraccess to resources.
For example, private labeling has many advantages.
One of them is that once it’s set up, it requiresvery little time to manage because of the fact that Amazon is fulfilling orders foryou.
Now let’s contrast that with dropshipping.
No, you don’t have to pick and pack the itemand ship it out to the customer, which saves a huge amount of time but you still need toorder the item for each customer when they buy it from you.
On the other hand, private labeling has thedisadvantage of the fact that it costs hundreds to even thousands of dollars to get startedbecause of the fact that you need to manufacture your inventory in advance.
Now let’s contrast that with dropshippingwhich has the huge advantage whereby you only have to order each item for the customer afterthey have purchased it.
So weigh out the pros and cons.
Pick the right business model that meets yourskill set, your life balance, and your access to resources.
Five, get a credit card or at least a debitcard.
When you sell on Amazon, there are fees thatyou need to pay and Amazon requires that you have either a credit card or a debit cardto pay them.
And when I say debit card, I mean a legitimateone that you got from a bank.
You cannot use a prepaid Visa or Payoneercard.
Now, if you don’t have access to either acredit card or a debit card, do not completely panic.
You can still create an e-commerce business.
With just a prepaid Visa and a PayPal account, you can open an AliExpress dropshipping store.
Now, it’s a very different business modelbut it’s one that you can open with just access to those two things.
If you are interested in learning more aboutthat business model, then you should watch my free video on that subject, “How to Createan AliExpress Dropshipping Store With No Start Up Money.
” I’ll have a link to that video in the videodescription below.
But the truth is is that any serious, long-termbusiness is going to need access to either a credit card or a debit card, ideally a creditcard, which leads me on to my next point.
Six, figure out a plan to manage your cashflow.
The word cash flow probably sounds a bit intimidatingbut trust me, it really isn’t.
When I say cash flow, I simply mean have aplan for how you are going to pay for the items that you are selling.
This is a crucial thing to plan for becauseas a new Amazon seller, Amazon is going to hold your money for two weeks.
So if you are private labeling and your itemsstart selling super-fast, then you need to have money on-hand to go and purchase newinventory to replace your stock.
And if you’re dropshipping, then you needto have money to use in the meantime to pay for the items that the customer has orderedwhile you are waiting for Amazon to reimburse you.
Now, there are two ways to handle this.
One, you can have a bunch of money saved upin advance that you can use during this time period.
Now, if you’re dropshipping, about $500 isprobably fine.
If you are private labeling, then you mayneed a lot more than that.
Or two, you can use a credit card and honestly, a credit card is the easiest solution.
Now, I understand that not everyone has acredit score that makes them eligible to get a credit card, in which case, what I wouldsay to you is use a debit card in the meantime and make it your top priority to build upyour credit score.
And remember, this is a good problem to have.
It means that you’re a super successful sellerso don’t be put off by this, just prepare for it.
Seven, check if the category that you wantto sell in is restricted.
Now, there are lots of categories that anyonecan just come in and sell in, such as home and gardening because these categories areunrestricted.
If you wanna start selling items in thesecategories, then congratulations.
You can just go in and start selling themwithout submitting an application.
But unfortunately, there are some categoriesthat are restricted and before you start selling in them, you’re going to need to submit anapplication to do so.
Now, some restricted categories like clothingand accessories have really easy requirements but others like food and grocery have muchstricter requirements.
To find out which categories are restrictedand how to become unrestricted in them, then you should be sure to watch my free videothat I’ve created on that subject and I’ll have a link to that video in the descriptionbelow.
Eight, set aside time every day and everyweek to both grow and manage your new business.
And finally, do not forget to plan to setaside time every week and every day to both grow and manage your new Amazon business.
You need to set aside time every day to manageorders and to do things like answer emails.
An hour a day should be more than enough, especially in the beginning but make sure you make time for it and make it a priority.
So for example, if you come home from workevery day and you’re really tired and you don’t wanna do it, then make sure that youget up an hour earlier every day so that you can use that time to manage your business.
You’ll also need to set aside time every weekto grow your business if you don’t want it to stagnate.
And, well, this is kind of what weekends arefor.
Growing and running a business while you’reholding down a full-time job is not easy but it’s a rite of passage that basically everybusiness owner has to go through at some point.
And trust me when I say that the rewards arewell worth it.
Thanks for watching this video.
If you liked it, I’d appreciate it if yougave it a thumbs up and subscribed to us here at Wholesale Ted for more great videos likethis.
And if you have any questions, be sure toask them in the comments section below.
Here at Wholesale Ted, we admittedly get alot of questions but we try to answer as many as we can.
And if you would like to start your own e-commercestore but you don’t know how, then you should be sure to download our free eBook, “How toMake $10, 000 a Month Online With Dropshipping.
” You’ll find a link on how to download thisincredible, life-changing eBook in the video description below.