How many times have you bought something from Amazon in the past couple of months? Chances are, you’ve at least bought something from Amazon once in the past month or two. You’re not alone, because Amazon has a staggering 200 million shoppers visiting their website every single month. Probably explains why Jeff Bezos is one of the richest people in the world! So how can you leverage Amazon’s growth, and create a side hustle that can bring you five or even six figures a month?
We spoke to Benjamin Tan, a 7-figure Amazon seller, and founder of one of the leading Amazon training communities, AMZ Family, on his thoughts on why Amazon FBA is the best side hustle to start this 2021.
Low Start-Up Cost
“How much do you think you need to invest to start an Amazon FBA business? $10,000? $20,000? Not even close!” said Benjamin.
Unlike any other business model where you need to order a huge inventory, pay for expensive rentals and hire staff, you can start an Amazon business without any of that. In fact, you can start an Amazon FBA business with a thousand or two.
Most people make the mistake of spending thousands of dollars to order their first inventory, and if they’re unable to sell the product well, that’s money down the drain.
Instead, Benjamin often recommends the students in his community, AMZ Family, to source the product from Chinese wholesale websites like Alibaba, where you can find the exact same product for a fraction of the price. You can find a US$20 – US$30 product on Amazon for US$2 – US$5 on Alibaba.
From there, just order the minimum quantity just to test. This allows you to spend as little as a few hundred dollars to see if the product is a winning product before pouring in more money.
“Manage your risk!” as what Benjamin loves to call it.
Huge Customer Base
Getting over 200 million active shoppers is no easy feat, even big brands have to spend millions of dollars on advertising campaigns to drive that amount of traffic to their storefront.
Lucky for you, spending millions of dollars on marketing campaigns is not needed, because Amazon already has a ton of customers for you!
However, this also means that there are quite a number of competitors on Amazon. So we asked Benjamin: How does one stand out from a pool of competitors?
“It all comes down to your product, launch strategy, and how optimized your listing is. Focus on finding a great selling product with minimal competitors. We teach our students to use a tool called Helium10, and combining it with our unique process, many of my students were able to find success within launching their first 2 products.
Next, your launch strategy. Many people think that you just need to list your product on Amazon and you’ll get sales. Absolutely not! You need a good launch strategy. This is something that I had to learn the hard way when I first started out. It’s only after I perfected my launch strategy, then I started to get my product on the first page of its category and started getting consistent sales.
Lastly, your listing. Many people think that you can just put any picture of your product and write a simple description. This may work if your product has no competitors, but if there’s even one competitor, you need to beat them by having an optimized listing. Test your headlines, have great images, and a good product description.”
These are the words of wisdom from Benjamin Tan.
Optimized Conversion Rate
Conversion rate refers to how many people bought from you out of 100 people that visited your business, and it’s crucial to have a high conversion rate for eCommerce businesses.
Thankfully, Amazon has already spent years and millions of dollars to perfect its conversion rate.
“The average eCommerce website has a conversion rate of 3%, whereas Amazon has an average conversion rate of 10% to 15%, that’s why I love Amazon because they’ve already done all the work for us”, said Benjamin.
Using Amazon’s case, for every 100 people that visit your listing, an average of 10 to 15 people will buy. Imagine having over 1,000 people visit your listing every single day.
With these 3 reasons, combined with how quickly Amazon is growing in 2020 and 2021, it’s easy to understand why many are flocking to start an Amazon FBA business. If you’re looking to start an Amazon business and generate upwards of 5 figures a month, we would definitely recommend for you to take a look at Benjamin’s AMZ Family community.