How To Do Amazon FBA Product Research On Your Budget
Amazon FBA is a great way to make passive income from home. Not only does Amazon have a huge built-in marketplace, they also have built-in marketing and distribution services. If you have ever dreamed of quitting your nine-to-five job and pursuing something that will allow you more time to do the things that you love. Becoming an Amazon seller might be your dream come true.
One of the hardest first steps in the process of starting your Amazon business is your Amazon FBA product research. If you are overwhelmed with product research and have a budget to adhere to, Nine University
has a video
that you should watch. Below is a great method of Amazon Product research that will help you to do your product research on a budget.
Split Your Budget
The first thing that you should do is determine your budget for your inventory and launch. This is necessary so that you can keep your ROI high and you can divide your budget into three categories. The three categories and how much money you should allocate are listed below:
20% for sales velocities (getting your sales off of the ground)
40% for your first product order (from your supplier)
40% for the second product order
This may seem like a lot of money to allocate for product orders. However, it will take your supplier around two months to manufacture, pack, and ship your order. This means that you will have to order enough product to last you for at least two months. If you do not have enough money to purchase your second order. You may have to wait four to six weeks just to get enough money to restock. Also, this lost time will mean that you will be gapping time that your supplier could be working on your next order.
Keep ROI High
The best way to go about keeping your ROI high is to try to be able to sell your product at three times the price that you paid for it. You can do this by checking your suppliers website first. A lot of people use sites like Alibaba. Go ahead and look for the product that you want to sell and check the price. With that in mind, use Amazon seller central to research the statistics and sales price of that product. If everything looks the way you need for it to look. And the sales price on Amazon is three times what you will be paying for it, it will be a great product to sell at a 200% ROI.
Learn as Much as You Can
For more tips about product research and how to keep your ROI high, click here. Project Nine University
has a lot of information about Amazon FBA and even a stellar course that can teach you everything that you need to know about selling on Amazon.
It is ridiculous to trade five work days for two days of free time. After you factor in sleep etc., you are left with little time to be the person that you want to be. Selling on Amazon
can free up your life and help you to accomplish your goals with a steady stream of passive income. If you are willing to do the work, it will definitely pay off. If you are thinking about starting your own Amazon FBA business, do not wait around. The sooner you start, the sooner you can kiss the nine-to-five goodbye.