7 Things You Need to Do BEFORE Launching on Amazon (and selling with Amazon FBA)



Learn the 7 things you need to do BEFORE launching on Amazon with FBA.
►► DOWNLOAD: Free $10,000/Month ebook: http://wholesaleted.com/4-step
►► WATCH: How to Launch Your First Product: https://youtu.be/JPwscpE-53g

***Other Links Mentioned in this Video***

►► Sales Tax Obligations: https://www.youtube.com/watch?v=P9aBe9sFWJs
►► Get Jungle Scout: http://wholesaleted.com/go/junglescout (affiliate link)
►► Get Jump Send: http://wholesaleted.com/go/jumpsend (affiliate link)

Before Launching on Amazon – Have a Launch Plan to Get Sales

On Amazon, the vast majority of sales come through people typing in items they want to purchase into the search bar and then picking an item to buy from the list. That is why if you want your product to sell well on Amazon, you need to have a plan for how your listing is going to get on the first page of results.

The most important factor for how Amazon chooses which items go there is something called “sales velocity.” They will greatly favour items that are making the most sales.

What you need to do then is use Jungle Scout to find out how many sales your top competitor is making, and then beat them for 2 weeks. To do this, you’ll need to have a plan in-place for how you’ll match their sales (discount coupons are the most common strategy for this).

Before Launching on Amazon – Take Incredible Photos of Your Product

Sales velocity is the most important factor when Amazon chooses which products to promote, but there is another – conversions. The higher your conversion rate, the more likely Amazon is to promote your products.

Amazon have tested it and found that product photos are the #1 conversion factor. So get a test product sent to you and have professional photos taken of your product.

Before Launching on Amazon – Get Friends & Family to Buy Your Product

Another important conversion factor is reviews. Luckily you don’t need to have hundreds of reviews to make organic sales, but having a base of 10+ reviews is a good start. The easiest way to get reviews is to get your friends and family to buy your product and to then leave you a review.

In addition, get your friends and family to search for your targeted keyword on Amazon, scroll through the item listings and THEN buy your product. This will send a strong signal to Amazon that they should rank your product for that keyword.

Before Launching on Amazon – Have a Plan to Get Reviews from Customers

A big reason why you should get your friends/family to leave a review is because anonymous customers rarely leave reviews. If you do not have a plan in-place to get reviews from customers, the conversion rate of purchase-to-review is less than 1%. However, if you have an email sequence in-place (Jump Send is a great way to do this) asking customers to leave a review, you can more than double your conversion rate.

Before Launching on Amazon – Form a Limited Liability Company (LLC)

To starting selling on Amazon, you DON’T need to legally form a company. You can start selling immediately as a sole proprietor. However, we strongly recommend that you consider forming an LLC because it protects you in-case anybody tries to sue you since it gives you “limited liability.” What this means is that creditors can’t go after you personally if your company gets sued. It isn’t necessary to form an LLC, but it’s the safe thing to do.

Before Launching on Amazon – Have a Back-up Cash Plan

When you sell on Amazon, you do not get paid straight away from your customers. Instead, Amazon holds your money for 2 weeks as a new seller. This means that you need to be able to pay for expenses in the meantime and not rely upon the money that you have earned as a seller on Amazon.

In particular, you want to have a plan in-place for how you will be able to pay for new inventory in-case your product starts selling well, as Amazon does not like it if you run out of stock, so you need to make sure you always have inventory in the FBA warehouses. Before you launch on Amazon then, make sure you have some way to pay for expenses (so have some cash set aside, or have a credit card).

Before Launching on Amazon – Know Your Sales Tax Obligations

Make sure you read about your sales tax obligations. Even if you don’t live in the United States, you may still be required to collect and pay sales tax within certain states. We have a video here on this channel which discusses what your sales tax obligations are, so that you don’t get an unexpected tax bill!

Thanks for watching – if you have questions please leave them as a comment below.

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39 thoughts on “7 Things You Need to Do BEFORE Launching on Amazon (and selling with Amazon FBA)

  • October 2, 2020 at 7:34 am
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    Thanks for watching guys! If you've got any questions ask away, I'll try to answer as many as I can 🙂

    Reply
  • October 2, 2020 at 7:34 am
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    How long does it take a typical fba business to make great money? What kind of real numbers have you seen?

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  • October 2, 2020 at 7:34 am
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    an outstanding internet website will will let you gather large income From your Mac or PC is just hOmepAy .me .

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  • October 2, 2020 at 7:34 am
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  • October 2, 2020 at 7:34 am
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    truely go to O n E Biz Opp . C o m and you can make a hundred and fifty$ continuously

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  • October 2, 2020 at 7:34 am
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    5:00 Im not too sure about this one, it seems that amazon strictly prohibits friends and family from buying your products
    But if youre saying its all in person then maybe

    Dont give them a direct link, instead give them the keyword youre targetting and have them type it in and find your product

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  • October 2, 2020 at 7:34 am
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    When I buy a generic (white label) product on Alibaba to sell on Amazon, will it have the same BARCODE as the already existing one on Amazon LISTING that I will be adding my unbranded product…does my generic stuff have to match exactly to existing listing….do I need to change existing description or does Amazon require exact same content…Thanking You

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  • October 2, 2020 at 7:34 am
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    Hi what website do I set up an LLC on? and do I need to set up an LLC for each of my individual businesseses, so for example, if I sell on Ebay, Amazon and shopify do I need a separate LLC for all of them? thanks

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  • October 2, 2020 at 7:34 am
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    Question in regard to asking friends and family to purchase your product: won’t amazon catch on to the fact all your shipment is going to the same city and state?

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  • October 2, 2020 at 7:34 am
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    How do u turn off amazon eco? So that amazon won’t know that u asked friends and family

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  • October 2, 2020 at 7:34 am
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    I can't watch videos where they cut hard after every sentence it is so irritating and makes me nervous. The video has good information. But you need to work on the execution learn to speak more sentences in 1 go rather than just 1 sentence which was probably recorded more than once, cut, sentence cut, sentence cut it is a bit painful to watch….but good information on the video

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  • October 2, 2020 at 7:34 am
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    Hey sarah, i thought getting reviews from friends and family s against amazon TOS???

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  • October 2, 2020 at 7:34 am
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    hi, I want to make a professional video. could you please tell me who made this video? thanks

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  • October 2, 2020 at 7:34 am
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    What if i have a product that is currently not sold on Amazon < does that give me a advantage ?

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  • October 2, 2020 at 7:34 am
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    I have a question that may seem stupid but is totally legit so how let’s say with your cutting board you sell them but
    1 where do you get them do you make them yourself or have a small production facility do you buy them and resell them or do you make it yourself how does that work and
    2 what kind of pruducts are easy to keep in stock and be profitable

    Reply
  • October 2, 2020 at 7:34 am
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    Hello.
    How good is selling food items in Amazon? We are launching a new line of natural organic fruit bars with our own brand

    Reply
  • October 2, 2020 at 7:34 am
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    You have a fun way to deliver the message. I just love it!! You got my big thumb Up!! Thanks for the info!!

    Reply
  • October 2, 2020 at 7:34 am
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    Hello! Thank you for the high quality video! One question is that when you say it’s safe to form an LLC, does the safe aspect of being sued apply only if you’re selling as an individual rather than a professional?

    Reply
  • October 2, 2020 at 7:34 am
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    Hey Sarah! I hope you can help me! I can't seem to find a carrier who can ship my products from Aus to the US with DDP (I got my products sent from China to Aus). I don't know what to do!! Hope you can help.

    Reply
  • October 2, 2020 at 7:34 am
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    First off, very well made video and highly informative so Thank You! I was wondering if you could help me with one thing. On amazon website many sales examples were made, none of which factored in the money you (seem to) have to pay for shipping as a seller. So, say I am selling a book for X dollars and amazon total fees are Y dollars and shipment paid by the buyer is Z dollars. According to amazon I will be getting X(item price) + Z(buyer shipment) – Y(fees). It seems though, I must have paid a shipment fee say P which would make my profit really just X(item price) + Z(buyer shipment) – Y(fees) – P(seller shipment to Amazon or the seller directly) instead. Could someone help me understand this please? Thanks

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  • October 2, 2020 at 7:34 am
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    When you mention that part about the Amazon FBA wharehouse in (e.g.) Texas, and maybe having to pay taxes in that state even though you don't physically live there … That has prompted a question: Even though I'm not American, I don't live in the US, and I will start my company in my own country … Do you think I might still have to pay the state taxes (e.g.) Texas?

    Reply
  • October 2, 2020 at 7:34 am
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    Hy . Good video . I like it . Interesing bussiness Amazon . I want to sell some products from China on Amazon . How i do that pls? Can u help me pls? Diana fechete. Thanks

    Reply
  • October 2, 2020 at 7:34 am
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    Hi Thanks for this good information, but I couldnt find Jungle Scout Pro icon on Amazon site

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  • October 2, 2020 at 7:34 am
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    Thank you for information. I confused in FBA. I watched another video about FBA and on that video presenter said, seller who use FBA do not pack, stamp and post goods at all. Referring to presenter, sells person deal with manufacturers and amazon does pick goods from manufacturer and keep goods in amazon stores. And amazon does pack and dtamp snd deliver it.!!

    Reply
  • October 2, 2020 at 7:34 am
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    I am non residents USA. I came to know that as indian I can also sell my product through amazon FBA.. can you provide details of commission we have to give for amazon and tax as well

    Reply
  • October 2, 2020 at 7:34 am
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    You do a great job. Thanks for taking the time and being a really good communicator.

    Reply
  • October 2, 2020 at 7:34 am
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    HMMMMM..Why share successful tips? If no one has the know how down packed; why build an army of competitors?

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  • October 2, 2020 at 7:34 am
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    This was an incredibly helpful video!! Thank you so much, I have learned a lot from it. And I greatly appreciated you putting the bullet points in and extra information below. You guys rock! I'm going to be subscribing for sure and checking out all your other videos.

    Thanks again!

    -Abigail

    Reply
  • October 2, 2020 at 7:34 am
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    Sarah, this is your calling. I've never seen a person that can run their mouth for so long without stopping. Plus it's been informative.

    Reply
  • October 2, 2020 at 7:34 am
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    Hi Sarah, How do Amazon pay their FBA Sellers especially if one seller is not from US?

    Reply

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