Category: Selling on Amazon

Amazon Renewed: Make Money With Refurbished Items

There are many ways to make money on Amazon. Whether your goal is to simply make some extra cash or build an entire business from the ground up, Amazon provides incredible potential. You can choose to sporadically sell random household goods around your house or start a full-time private label company. And get this – you can even make money selling open box items on Amazon. Refurbished items are a great money maker as many shoppers are looking for deals and are willing to buy open box items to save money.

The Amazon Renewed program was launched in 2017 as one of Amazon’s newest selling categories designed to bring refurbished items to its millions of customers. This exclusive seller group requires an application process and only those sellers that meet the outlined criteria are allowed to participate. Sellers who are approved are then qualified to sell their used items as “Certified Refurbished.”

The criteria to sell on Amazon Renewed includes a combination of both quality and sales requirements. Becoming part of this group means less competition since members must be approved.

Source: amazon.com

What Types of Products Can You Sell with Amazon Renewed?

Amazon Renewed allows you the opportunity to sell refurbished products in many different categories across the E-commerce site. This means you can probably find a product that falls under your area of expertise. Refurbished items often refer to electronics, but they don’t have to be. You can sell Amazon refurbished products in all of the following categories:

  • Laptops and computers
  • Smartphones
  • Tablets
  • Cameras
  • Video game consoles
  • Headphones and audio
  • Televisions
  • Office equipment
  • Home and industrial tools
  • Watches
  • Home appliances
  • Kitchen appliances
  • Automotive parts
  • Outdoor and sports
  • Musical instruments

Requirements to Sign Up and Get Approved

Becoming certified to sell on Amazon Renewed is no walk in the park. You’re required to provide details of your experience selling “like-new” products, including sales data and more. Amazon will only approve you if you meet the following criteria outlined on their website:

  • You can supply invoices showing a minimum a total value of $50,000 in qualifying refurbished purchases in the previous 90 days from the date of the application. You may black-out the unit purchase amount on the invoices. Note that sellers intending to offer products related to Home, Home Improvement, Tools, Lawn & Garden, Outdoors, Kitchen, Sports, Toys, or Automotive, you may supply invoices showing a minimum total of $20,000 in qualifying refurbished purchases in the previous 90 days.
  • If you are an existing seller on Amazon, we require an ODR of 0.8% or less, with a minimum 700 orders in the trailing 90 days.
  • If you want permission to list factory refurbished items (with no manufacturer warranty) you need to submit a minimum of 8 images of a sample unit for product and packaging review (box in which the product will ship, inside packaging and padding, product from top and bottom, product from all four sides).
  • Your company provides a minimum 90-day warranty on all of your Certified Refurbished products
  • For approval to list on Apple and Samsung brands in Consumer Electronics categories (Excluding Wireless), we require invoices dated from trailing 90 days that total $100K in Apple/Samsung products (non-Wireless). For approval to list on Apple and Samsung brands in Wireless category, we require invoices dated from trailing 90 days that total $2.5 million in Apple/Samsung wireless products. Invoices have to be directly from a national Wireless carrier or retailer with over $5 billion in annual sales (Example: Verizon, AT&T or Target) or the manufacturer (Apple or Samsung). We also accept Wireless invoices from Assurant, Brightstar, PCS Wireless, and Vertex.

These requirements can be hard to meet, especially if you’re just starting out. Sellers who don’t meet this criteria are still able to sell their products on standard product ASINs in “used” condition. Selling products this way will give you the time to build up your business and eventually meet the demands of Amazon’s Renewed program.

Finding Refurbished Items to Sell

If you’re completely new to selling used items on Amazon and are wondering where to start, the first step is to do some research. Find products that are in demand by using a market research tool. Our favorite is Market Intelligence from Viral Launch.

This tool pulls data from all the top sellers on Amazon for a specific market. You can then use this data to help you identify markets with high demand, but low competition, as these are the best markets to be in. Look for products that are getting a lot of search volume. A low average review count also indicates that you could easily compete in this market as products with a high number of reviews often get the most sales.

Once you identify a good product market, you have to source refurbished items to sell. Maybe you already have a connection to a manufacturer, but if not, one place to look is Alibaba. Just like finding new products on this online marketplace, you can also search for refurbished items to source. Alibaba can help you connect with manufacturers who offer open box items that you can then source and sell on Amazon.

Source: Alibaba.com

You can also purchase refurbished items in bulk from various online liquidation companies. These companies work directly with retail stores to liquidate surplus inventory, which you can then purchase in bulk, often below wholesale prices, and sell for a profit. Many of these liquidation sites use an auction system with the products going to the highest bidder.

Source: DirectLiquidation.com

 

Advantages of Selling on Amazon Renewed

Selling any product on Amazon comes with a long list of advantages. First of all, this huge marketplace gives you access to millions of already loyal customers. Amazon has built a global platform that has the potential to bring high visibility of your product across the world.

You can also utilize their other capabilities, such as their fulfillment process, so you don’t have to package and ship items yourself. By selling in the Amazon Renewed program, you get access to customers and also face less competition since only select members are allowed to sell in this category.

How to Drive Sales for Your Amazon Refurbished Products

Even though you face less competition as an Amazon Renewed seller, you still need to take steps to ensure your product will sell well. First of all, you’ll need to set the right price for your item. Shoppers don’t want to pay a high price for open box items, so it’s best to shoot for a price that gives the customer a significant discount, but still allows you to make a profit.

Next, if you have control of your listing’s content, you’ll want to be sure your listing is optimized to get your product seen and to convert sales. You can use a keyword research tool to help you identify the highest volume keywords for your product market and ensure they’re placed in your listing. Or you can even hire a professional copywriter to identify keywords and write the listing for you.

Start Your Amazon Renewed Journey

Amazon has tons of opportunities to make some extra cash or even start a full-fledged business. The Renewed program is just one of many. Take advantage of these tips and start your Amazon selling journey today! We’ll be here to help you succeed whenever you need us.

Is Private Label Dead?

Is Private Label Dead?

Is Private Label dying? Is it dead? Or…Is it just changing? Questions have been circulating through the Amazon Seller space over the past couple months. A lot of people are saying ‘yes’ to this question. We wanted to give our insight on the subject. This episode is raw audio, breaking down our answer to the question of whether Amazon Private Label is dead or not. I really want you all to give your input on the subject – it doesn’t even have to be a direct response to this video, it could just be your thoughts on whether Private Label is dead or not. Stay through to the end to get the number to call, and head to Facebook to share. I’d love to feature some of your thoughts on the subject.

Want an inside look into what’s going on at Viral Launch? Check out our Instagram!

 

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UPC Codes for Amazon: Everything You Should Know

There are billions of products for sale in the U.S. retail market, both in stores and online. The Amazon U.S. marketplace alone sells 564 million different products. These items sit on the shelves of stores or in the warehouses of online retailers until they’re ready to be purchased. With this many products available, it makes sense that there would be a need for a system to track and organize them as they arrive and when they’re purchased. UPC codes for Amazon products is the answer.

In order for stores to do this, a barcode system was put in place years ago that assigns each product a unique product code (UPC). E-commerce sites are no different than any other brick and mortar store — every product sold on Amazon is required to have a legitimate UPC barcode before it can be input into Amazon’s system.

If you’re just getting started in your Amazon selling journey, you probably have a lot of questions about this step of the process. For those unfamiliar with it, the process of obtaining a UPC can be a little confusing, but we’re here to help! Let’s start at the very beginning and outline everything you need to know about UPC codes for Amazon.

What is a UPC?

A UPC is a unique code that consists of 12 digits. Usually, the first 6 digits are your company prefix, the next 5 are the product number, and the final digit is generated automatically and referred to as the “check digit.” Each UPC is translated into a series of black bars and white spaces called a barcode. This allows for easy reading by scanning devices instead of requiring manual entry.

The barcode system we know today has been used since the mid 1970s. What began as a solution for brick and mortar stores has been carried over into the rise of e-commerce. If you want to sell products on a large scale whether in stores or online, you’ll have to obtain a UPC for it.

What’s the Difference Between a UPC and an FNSKU?

As a new seller, you may be encountering some confusing information about UPCs. If you’ve seen the term FNSKU thrown around, but aren’t sure what it means, we’ve got you covered. Some articles mistakenly use UPC and FNSKU interchangeably, but they’re two very different types of barcodes. Let’s break down the difference:

  • UPC: A global barcode assigned to any product that is to be sold in retail stores or online. Amazon requires you to have a UPC before you can create a listing or add a product to your Amazon inventory.
  • FNSKU: An FNSKU is a barcode Amazon generates for your product to keep track of it internally within their warehouses and databases. Once you’ve added the product to your inventory, Amazon will generate an FNSKU for it, which you must incorporate into the product packaging or have placed on your product by Amazon (for an additional fee). Once you have both barcodes, your UPC and FNSKU can also be tied together.

Source: Seller Tradecraft/Youtube

Pro Tip:

If you’re only planning to sell on Amazon, your UPC doesn’t have to be printed directly on your product or product packaging. Amazon only requires the product to have a UPC in order for an FNSKU to be generated. Once the FNSKU is generated, this is the barcode that must be placed directly on your product before it can be accepted at Amazon warehouses. Amazon will then use the FNSKU to identify your product at check-in as well as when it’s picked for an order.

Where do I Get a UPC?

In order to keep thorough records and prevent fraudulent UPCs, there’s a single legitimate producer of UPCs globally called Global Standard 1 (GS1). This non-profit organization has set the standard for UPCs and barcodes across the globe.

You may have seen ads for third-party businesses selling replicated or recycled UPC codes, or maybe you’ve seen someone selling a product UPC on eBay. Many times, recycled UPC codes are codes that were used for products that have since been retired, such as VHS tapes.

While in many cases you can successfully link these codes to your product, within certain retail systems, the old coding can remain which can cause issues with your inventory. It can often be tempting to purchase these types of UPCs because they are cheaper, but it’s usually not advised.

Amazon requires that your product UPC be tied to your company and your company alone. If you place a replicated UPC on your product and it’s still tied to another company, Amazon could take action. That’s not to mention there may also be legal consequences to using a replicated UPC.

It’s always best to know you’re purchasing a legitimate barcode by purchasing straight from GS1. This way there will be no questions of its legitimacy and you can be assured your UPC meets all requirements for Amazon.


Source: GS1 US/Youtube

How do I Get a UPC?

GS1 makes the process of applying for and obtaining UPC codes for Amazon and other retail stores relatively simple. You can usually complete the process in four steps:

1. Apply for a company prefix

The first step of this process is the most important. You must start by applying for a company prefix. Your prefix is usually the first six digits of the UPC but can be up to 10 digits long. It’s unique to your company and will appear the same on each of your products. So, if you plan on expanding your line, the prefix will remain the same. This prefix also identifies you as the manufacturer throughout the entire supply chain.

Some sellers get a little concerned about the cost of applying for this company prefix, especially if they have a large product catalog that will all need UPCs at the same time. Be sure to include this cost in your initial start-up budget.

According to GS1, the first-year cost of obtaining a company prefix ranges from $250 for up to 10 products to $10,500 for 100,000 products. Each year after that, there’s an annual license renewal fee which allows for continued use of the unique prefix number. Annual license renewal fees range from $50 to $2,100 depending on the number of products.

2. Assign each of your products a product number

Once your company prefix has been generated, GS1 will give you a digit length for your product number, also called a GTIN. The product number is usually the five digits after the six-digit company prefix. The length of the product number is based on the number of future products you indicated on your company prefix application.

Keep in mind that every unique product you have will need its own unique product number. For example, if you sell the exact same shirt in 10 different colors, each color variation will need its own product number. GS1 allows sellers to use their own numbering system for each product as long as it meets length requirements.

3. Determine how the barcode will be displayed on your product

Once you have your UPC, you can submit it to Amazon to generate the FNSKU. Then it’s time to figure out how to incorporate the FNSKU into your packaging. If you’re still in the early stages of production and your packaging hasn’t been printed yet, you have the opportunity to incorporate the FNSKU directly into the packaging, which will save you time and money.

Amazon allows you to obtain a digital file of your FNSKU barcode, which you can then send to your manufacturer to add to the package design. Many manufacturers have experience placing FNSKUs, so you can work with them to find a place on the package that you feel is best.

An FNSKU barcode needs to be placed where it will easily be seen and is easily scannable. Any unscannable items won’t be accepted at Amazon’s warehouses. Be sure to follow these guidelines for placement:

  • Place the FNSKU barcode on a flat surface of the product packaging; do not place it on a curve or corner
  • Allow for 0.25 inches between the edge of the label and the edge of the packaging
  • If you’re printing labels and adhering them to your product, be sure they’re not smudged or wrinkled as this can cause scanning issues

Pro Tip:

If you’re planning to sell on Amazon as well as in retail stores, you’ll also need to place the UPC somewhere on your product. The UPC is the barcode retail stores will scan when customers purchase the item in order to pull up the correct product and pricing information. The above rules should also be followed in the placement of UPC codes for Amazon. 

GS1 can also provide  a digital file of your UPC barcode, which you can use to incorporate the UPC into your packaging. You can also choose to place adhesive barcodes later. GS1 can connect you to a printing service through its Solution Partner program. Once you’re in touch with a printer, you can order barcodes that can be placed directly on your products. 

4. Place FNSKU labels

Though it’s more cost effective to have the FNSKU included in your product package design, sometimes that isn’t possible. If your product has already been manufactured and packaged, you’ll have to order barcode labels that can be placed on the outside of the packaging.

You can either choose to have these labels sent to your manufacturer and have them placed at the supplier warehouse (usually for an additional fee), or you can receive your product shipment before it’s sent to Amazon and place the barcodes yourself. There’s also the option to have Amazon place the FNSKU labels on your product, but this does come with an additional cost.

Prepare Your Product to Succeed

Obtaining UPC codes for Amazon products is just one small step in the Amazon selling journey, but it’s a crucial one. Once you have your UPC codes for Amazon, you’ll need to ensure you have the right tools, data and guidance to succeed.

At Viral Launch, we’re here to help you navigate the way in this journey. If you’ve got questions, we’ve got answers. Our software is some of the best on the market and was created to help Amazon sellers just like you. You can also talk to one of our experienced coaches or sign up for our creative services, including product photography and listing optimization. Whatever you need, we’re here to help!

How to Find Manufacturers for Amazon Products

The journey to selling on Amazon can be a long one. The first step is of course choosing a product that matches your budget in a market that you can confidently break into. Next up is turning your idea into a tangible product! You may be wondering how to find manufacturers, especially if you are a first-time Amazon seller, but it is easier than you may think.

Finding a supplier or manufacturer can be an intimidating process for experienced and first-time sellers alike. You want to find a supplier that will not only supply you with stock, but will also become a business partner with you as your company grows.

Domestic vs. Overseas

Your first step is to decide whether to buy from a domestic or overseas supplier. Most sellers will end up sourcing from China because the costs are so much cheaper, even after accounting for shipping and quality inspections. There are benefits and disadvantages to both, and it will ultimately come down to your personal preference and budget.

Advantages of sourcing overseas:

  • Cheaper production costs
  • More manufacturers to choose from
  • Wider variety of products

Disadvantages of sourcing overseas:

  • Turnaround time is longer
  • Harder to ensure the manufacturer’s legitimacy
  • Quality of goods is not guaranteed
  • Little to no legal safeguards or payment protections
  • Shipping is more expensive and must clear customs
  • Communication barriers and cultural differences may be hard to navigate

Advantages of sourcing domestically:

  • Quality is perceived as higher
  • Shorter turnaround and shipping times
  • Easier to verify the legitimacy of the manufacturer
  • More legal safeguards and payment protections

Disadvantages of sourcing domestically:

  • Production costs are dramatically higher
  • Fewer product options

You do not have decide between one or the other right away; just keep those factors in mind as you begin your search.

What to Look for in a Supplier

Your goal should be to find a supplier that you can have a lucrative long-term partnership with. As you begin searching for suppliers that can create your product, look for those who exhibit these traits:

Good communication: Do they respond to your messages in a timely manner? Do they ask for clarifications?

Helpful: Do they answer your questions completely? Are they honest about setbacks and shipping delays? Are they willing to have a quality control inspection done by a third party?

Reputable: What do other vendors in the space say about them? Will they provide copies of their business licenses and agree to a property inspection?

Experienced: Have they been in business for 3 years or longer? How many orders do they process every year?

Flexibility: If there is a problem with production, are they willing to work with you to find a solution?

Affordable: Do your profit margins allow you to work with them? Are they willing to negotiate prices?

In addition, look for suppliers who make a wide range of products and can keep up with your growing Amazon business. If your orders increase dramatically, or if you want to diversify your products, you want a supplier who will be able to meet your needs right now as well as in the future.

Finding a Supplier

Compile a list of at least 10 suppliers to make initial contact with so you can find the right partner as quickly as possible. The process may seem overwhelming at first, but there are multiple sources of information that can speed up your search and make it easier.

Directories

The internet is a great place to start looking for suppliers. Most online directories allow you to browse products and get in touch with suppliers worldwide, all in one place.

Alibaba is the largest online wholesale manufacturing directories and one of the most popular one-stop shops for sellers looking to source their products from overseas.

We actually just hosted a Webinar with Alibaba.com, talking a bit about Q4 but also about sourcing and manufacturing! Check it out in the video below:

Because counterfeit accounts are harder to track on such a massive database, Alibaba offers several supplier verification categories to protect buyers from fraud and increase payment security, including (but not limited to):

  • Trade Assurance: Your payment is protected if the supplier does not ship on time or if the product quality does not match what you specified in your contract.
  • Gold Supplier: Suppliers with a gold rating have gone through a verification process by an approved third party inspector.
  • Customs Data: You can access the public trading records of all the companies that have shipped into the United States.
  • Inspection Service: If you make an order through Trade Assurance, you have the option to get a quality control inspection from an Alibaba approved third-party inspection company.

To further narrow down your choices, you can filter search results by vendors that have Trade Assurance and Gold Supplier badges. You can also browse the supplier’s company profile to check their certifications, production capacity, and physical location to determine their legitimacy before making initial contact.

Other popular online directories include:

The Hong Kong Trade Development Council only has China based suppliers
For a fee, Sourcify will find a supplier for you
ThomasNet specializes in industry-specific products
Sellers on AliExpress can be manufacturers or individuals

 

Trade Shows

Trade shows offer buyers a chance to talk directly with a large number of potential suppliers at one time. The Canton Fair is the largest and longest-running trade fair in China and takes place twice a year. Most booths display finished products, but you should still ask if they can do custom orders. You can also collect free product samples instead of paying expensive airfare to ship them. Being able to communicate face-to-face with suppliers is essential for building trust and developing a better relationship for future orders.

Source: CantonFair.net

References

Ask businesspeople and other eCommerce sellers in your professional network about how to find manufacturers that would work best for your needs. You are more likely to get an honest assessment of a supplier’s capabilities from someone who has worked with them in the past. If you develop a rapport with a supplier who ends up not being a good fit, do not be afraid to ask them for recommendations.

Always keep your profit margins in mind as you look for a supplier. Pay attention to minimum order quantities, and add up the costs of production, including shipping and FBA fees to determine if you could actually make a profit.

You may be able to put yourself into a better financial position by negotiating prices with your supplier. For more tips on how to find and negotiate with a manufacturer, be sure to check out our Follow the Data podcast episode on the subject.

Final Thoughts on How to Find Manufacturers

Finding the right manufacturer takes patience, perseverance and a little elbow grease, but by the end you will be one step closer to making your Amazon dreams a reality. Here at Viral Launch, we want to provide you with all the information you need to become a successful Amazon seller. For more on Amazon selling strategies, we encourage you to subscribe to our blog, check out our Youtube channel, and listen to our Follow the Data podcast.

Setting Up an LLC: A 3-Step Guide to Forming Your Own Business

If you’re looking to start selling on Amazon, setting up an LLC is a great place to start. Creating your own LLC will help you to establish your own private label brand. This is highly popular for people looking for a side hustle or larger opportunity to help make money from home.

What is an LLC?

LLC stands for Limited Liability Company. It is a legal entity that separates and protects your personal assets if your business is sued (fingers crossed that doesn’t happen!).

While the concept of forming your own company might seem daunting, creating your own LLC does not have to be scary or overwhelming.

Here are the 3 main steps to setting up an LLC:

  1. Pick a state
  2. Pick a name
  3. File the paperwork

Let’s dig in deeper so you’re ready to go!

1. Pick a State

Where should you form your LLC?

The first step in setting up an LLC is picking a state. There is such a thing as “hype states” however, so take caution here. Every state has its own set of rules and requirements regarding LLCs, so make sure you choose the right one for you. States like Delaware and Nevada are often hyped up as great places to form LLCs, but unless you are a resident of those states, they will only increase your costs and double your paperwork.

So which state is the best state to organize your LLC in?

The short answer: the state you live in is the best state!

The long answer: when deciding on which state to register your LLC in, there are two questions you should consider.

  • Where do you live?
  • Will your business have a physical presence outside of the primary location?

Keep in mind that LLC regulations vary per state. Make sure you double check your state’s laws, regulations, and fees before you start the process. You can find all that information at its Secretary of State’s Office or online with a quick Google search.

If you’re using a website to find that information, make sure the url ends in “.gov” or the state’s abbreviation. This ensures the information you will be receiving is accurate and up to date on your state’s LLC best practices, rules, and regulations.

Where do you live?

What is your physical address? Where does your mail get delivered to? Wherever it is, that is the state and location where you should form your LLC. Why?

Well, there are a lot of reasons, but the short answer is it saves on fees and paperwork.

What if you want to form it someplace else?

If you want to form an LLC that is outside of the state you live in, you most definitely can. What you would need to file for is a Foreign LLC. If you choose to go this route, make sure you have a full understanding of what it means to form a Foreign LLC. When you form an LLC in the state you live in, you are forming a Domestic LLC. If you form an LLC in a state you do not live in, you are forming a Domestic LLC and a Foreign LLC.

For example, if you live in Indiana but want to do business in Wisconsin, you would file for a Domestic LLC in Indiana. Once your Domestic LLC is filed and certified by the state of Indiana, you would then move forward with filing a Foreign LLC in Wisconsin.


While forming a Foreign LLC has its own benefits, it will have a higher price tag and require more paperwork.

Forming a Foreign LLC essentially means you have 2 LLCs, one in your home state (domestic) and one in a different state (foreign). This leads to you doubling what you would have to do if you were only establishing a Domestic LLC.

With a Foreign LLC, you would have:

  • 2 LLCs (Domestic and Foreign State)
  • 2 state filing fees
  • 2 annual report fees
  • 2 registered agents (one in each state)

As you can see, setting up a Domestic LLC in your home state is the most cost-effective way to go!

What if your LLC will have a business presence outside of the primary state? 

A business presence could be a storefront, office, or even a sales representative. If you have any of these outside of your primary state, filing for a Foreign LLC is a must! While it involves extra costs and paperwork, it is a small price to pay to make sure your LLC is legal in all states.

Other reasons for forming a Foreign LLC include:

  • Having a business bank account in another state
  • Selling in a state through an agent, distributor, or manufacturer
  • You transact or hold business in that state

What if it is all online?

As for a business that is 100% online, like many third-party Amazon sellers are, the answer is still a Domestic LLC. This is because the majority of online businesses are run from people’s homes. Even if you travel while working, you should register your LLC in the state you have the biggest connection to.

To determine which state that is, ask yourself the following:

  • Where is your primary address?
  • What state do you file taxes in?
  • What state are you a resident of?

The answer to those questions will lead you to the best state to file in. Once you have determined what state you will be filing in, the next step in setting up an LLC is finding a legal name!

2. Pick a Name

What should you name your LLC?

A good LLC name is valuable because it helps customers remember and distinguish you from other competitors.

When it comes down to it though, deciding on your LLC name is more than just picking something that sounds cool. Yes, you want something that is unique which your customer base will remember, but you want to make sure you do it right.

Is it legal?

The official name that appears on file with the state is your LLC’s legal name. This is a crucial asset to your LLC so make sure your name is legal.

  1. It cannot include state-prohibited words such as Bank, City, or Insurance.
  2. It must include Limited Liability Company or an acceptable abbreviation (LLC, L.L.C., Ltd. Liability Co.) at the end.
  3. The legal name cannot be the same as an LLC that already exists on file.

Each state has its own list of prohibited words. These are in place so your LLC will not get confused with official government agencies, offices, or businesses. There are also words that are restricted, pending state approval. These might include words such as Bank, Insurance, or Hospital. You can file to have approval to use those words, but it will cost a small fee and will lengthen how long it will take to fully register your LLC.

Is it available?

To find out if the name you want is available, you can do a name check. Your state’s LLC office will be able to tell you if your proposed name is available or not. Websites like LegalZoom also offer services including checking LLC name availability. If it is, great! You can move forward with filing. If not, it’s unfortunately back to the drawing board.

Source: LegalZoom

If your name is available but you are not quite ready to file, one thing you can do is reserve your LLC name. Most states will allow you to reserve an LLC name for a short period of time for a fee.

The final step to take in setting up an LLC might seem like the least fun, but will actually take you the least amount of time.

3. File the Paperwork

What paperwork is the right paperwork?

After deciding on your state and LLC name, next comes the paperwork. And let’s be real, paperwork is not fun. It can be time consuming and confusing. Thankfully, the paperwork for registering an LLC is actually very user friendly! On average, it will only take you a half hour to an hour to complete it.

What you will be filing is known as Articles of Organization and an LLC Operating Agreement.

Articles of Organization

Articles of Organization is a formal legal document that needs to be filed to establish a limited liability company at the state level.

Forming and filing this paperwork should take less than an hour. You can either do it yourself or consult an experienced attorney. Most states’ Secretary of State websites contain pre-printed forms for you to use so you can just fill in the blanks. Companies that specialize in helping people file for LLCs also offer free Article of Organization forms that are user friendly. So if you want to do it yourself, you are certainly able to. Plus you’d be saving on attorney fees!

Just do a quick online search to find the one that best fits your LLC. Wonder. Legal offers a great online template that allows you to select the state you want to form your LLC in and updates the template accordingly.

 

Source: Wonder.Legal

 

Having trouble finding Articles of Organization in your state? Try searching for a Certificate of Organization or Certificate of Formation. Same thing, just different names.

Here’s what information is included:

  • Name of the LLC
  • Address of the LLC (principal place of business)
  • Type of Legal Structure (i.e. a Limited Liability Company)
  • Purpose of the LLC’s business (use broad language to avoid limiting future prospects)
  • Name and address of the registered agent
  • Name(s) of manager(s) and members of the LLC (if known at the time of filing)
  • Effective Date
  • Duration

Registered Agent

Every business that is registered with a state as a legal entity must have a registered agent. Also called a statutory agent or agent of process, a registered agent is the person who will accept federal and state legal documents and service of process.

Be careful about companies telling you to hire them as your registered agent. Some trick people into thinking they need an experienced company, but that just results in more money out of your pocket.

Anyone can be a registered agent! You, a friend, a family member, etc. As long as they have a business address in the state your LLC is located and are available during business hours, they can be your registered agent.

Once all of that information is gathered, all that’s left to do is sign and file. When filing, you also need to take into account the cost of filing fees.

Filing Fees

Make sure you check filing fees in your state. Articles of Organization can be filed with your state’s Secretary of State office or a similar state agency that can handle business registration. All states require payment of a corresponding filing fee. The amount varies depending upon the state of organization. While most states have modest fees averaging $50, other states such as Tennessee charge $300.

LLC Operating Agreement

An LLC Operating Agreement is rarely required to be filed by state law, but it is essential that one is still created. LLC Operating Agreements set rules of ownership and operation of business. It allows you to structure the financial and working relationships in a way that best suits your business. This can be for a single-member LLC or a multi-member LLC.

The operating agreement helps guard your limited liability status and ensures your business is governed by your rules.

Here are the main things typically included in LLC Operating Agreements:

  • Percentage interests of member(s)
  • Rights and responsibilities of member(s)
  • Voting powers
  • How profits and losses will be allocated
  • How the LLC will be managed
  • Meeting and voting procedures
  • What to do if a member wants to sell their interest dies, or becomes disabled

Many companies have created templates for LLC Operating Agreements so you do not need to start from scratch. The Northwest Registered Agent offers an amazing free LLC Operating Agreement pdf and/or Word download.

Next Steps for Setting Up an LLC

You’ve completed the 3 main steps to setting up your own LLC. Congratulations! So what comes next?

Publish a Notice (if required by state)

Depending on your state, there may be an additional step. A few states require you to publish a notice in a local newspaper. It is a simple notice that states you are forming an LLC. It must be published several times over a period of weeks and an “affidavit of publication” is then submitted to your LLC filing office. If you are having trouble with that, your local newspaper should be able to help you out.

Licenses and Permits

After filing, be sure to secure all licenses and permits before you open your doors. Not all businesses are the same, so what you need will vary depending on the purpose of your LLC.

Here are the most common licenses and permits you may need:

  • Business license (tax registration certificate)
  • Federal Employer Identification Number (EIN, Employer ID Number, Federal Tax Number, etc.)
  • Seller’s permit
  • Zoning permit

Annual LLC Fees

In addition to the one-time filing fee to form your LLC, each state requires an annual fee. The annual fee is called the Annual Report in the majority of states but can also go by these names:

  • Annual Certificate
  • Annual List of Members
  • Annual Registration Fee
  • Biennial Report
  • Biennial Statement
  • Business Privilege Tax Return
  • Decennial Report
  • Franchise Tax Report
  • Periodic Report

The average annual fee in the United States is $100. There is no way around this. You must pay this fee to keep your LLC in compliance and in good standing regardless of income or LLC activity. If you do not pay it, your LLC will be dissolved.

Did you know that Viral Launch Started as an LLC?

Casey Gauss was a fresh college dropout and coding with socks on his hands to stay warm when he co-founded Viral Launch as an LLC in 2014. It is now 2018 and that LLC has transformed into a tech company that has over 50 employees. Driven by the desire to help other people launch their own online businesses, Viral Launch continues to grow as an 8-figure corporation.

If Casey was able to do it, why not you?

Viral Launch is Here for You

As always, Viral Launch is here to help you in your Amazon journey. For more tips on Amazon advertising and selling strategies, we encourage you to subscribe to our blog, check out our Youtube channel, and listen to our Follow the Data podcast.

Q4 Selling Strategy: Viral Launch & Alibaba.com

Q4 Selling Strategy: Viral Launch & Alibaba.com

Q4 is already here. Are you prepared? In this episode of Follow The Data, Cameron talks through essential dates to take into consideration for your Q4 strategy, as well as how to launch your product to capture increasing sales. We also brought Alibaba.com onto the show to talk through manufacturing/sourcing strategy. Alibaba.com also has some deals in store for our listeners! Tune in, take note of those dates and strategy, and get ready for Q4. 

Access Alibaba’s Deals: bit.ly/Super-September

Keep up to take with VL on Instagram:
bit.ly/Cameron_Insta
bit.ly/Casey_Insta

Listen on iTunes   Listen on Stitcher

Seller Strategy Series | Tom Wang: Increasing Sales, Brand Development & Successful Mindsets

Seller Strategy Series | Tom Wang: Increasing Sales, Brand Development & Successful Mindsets

The goal of this series is to talk through high-level Seller Strategies from Amazon Sellers who are killing it in the CURRENT Selling Game. We’re talking through what they’re doing to scale their business: What’s currently working, what’s NOT working, where underpriced attention is, where you should be investing your time, and where Amazon is headed in general.

In today’s episode, I’m talking with Tom Wang, a Seller of his own who’s been implementing a lot of high-level strategy and is VERY in-tune with what other sellers are going through. Part of what we talk about in this episode involves developing a healthy entrepreneurial / Amazon-oriented mindset. Let’s dive in.

Check out our YouTube for more content: http://bit.ly/VLsubscribe
Subscribe & Comment on the latest video to see if you win a $50 Amazon Gift Card!
Get Connected To Tom here! EcomHub.com

 

Listen on iTunes   Listen on Stitcher

6 Best Amazon FBA Tools and Apps

When it comes to selling on Amazon, there’s always an abundance of items on the to-do list. As many brands are made up of just one person or a small team, there’s a lot to keep track of from picking a product and managing inventory to creating a listing and advertising… and everything in between. So how do you keep track of everything? Luckily, there’s an Amazon web app or tool for nearly every step of the selling process.

Here’s a list – in no particular order – of some of the best paid and free Amazon FBA tools and web apps designed to help you take your e-commerce business to the next level.  

1.Take your Business On-the-Go with the Amazon Seller App

Before we get started, we should first mention one smartphone app every seller should have.

This might be pretty obvious for more seasoned sellers, but it’s definitely an important one. This is essentially Amazon giving sellers a free tool to help make their selling experience a whole lot easier and organized even when you’re on the go. You’d be crazy not to take advantage of it, right?

  • What it does: In short – a lot. This is essentially Seller Central in your pocket. With this app, you can analyze sales, quickly make pricing changes, view fees, create listings, upload photos, manage orders, respond to messages and much, much more.
  • Why we love it: For starters, we love it because it’s free. It’s also great because it has many of the major features and functionality of Seller Central available to you at any time. With this app, you’ll be able to manage your business from just about anywhere.
  • How to get it: This app is available for free in the Apple or Android app stores.

Ok, now that we’ve covered the Amazon Seller app, lets get back to the best third-party web-based apps and tools for sellers!

2. Take the ‘Ew’ Out of Reviews with Feedback Genius

Amazon reviews are a touchy subject to say the least. That’s why finding any tool that helps sellers manage and gather reviews within Amazon’s terms of service is like coming across an oasis in the middle of the Sahara. One of the most popular review apps is Feedback Genius from Seller Labs.

  • What it does: Reviews serve as social proof on Amazon, and they’ve got a major impact on clicks and conversions. Therefore, reviews are extremely important, and sellers must have a solid review-gathering game plan. Feedback Genius is a powerful Amazon FBA tool to help sellers gather and manage reviews as well as communicate with buyers through automation and helpful notifications.
  • Why we love it: Feedback Genius is great because it takes a lot of the legwork out of review aggregation and management. This app allows sellers to automate the bulk of their messaging to buyers and set up notifications so you never miss a review or feedback.
  • How to get it: Visit the Seller Labs website and create an account. New users can also try out a 30-day free trial!

3. Track Inventory and Run Ad Campaigns with Teikametrics

Making sure you’re on top of your inventory and successfully managing your advertising campaigns are extremely important aspects of selling on Amazon. Knowing how much product you have left and when to restock helps you to maximize profits and maintain ranking. And getting in front of shoppers through sponsored ads expands your sales potential. Luckily, there’s an FBA-focused tool out there that can help you keep track of inventory and advertise your products called Teikametrics.

  • What it does: This tool helps Amazon sellers create and follow smart inventory systems and sponsored ad campaigns. Manage your investments, track replenishment, and find your true profitability with Teikametrics’ FBA platform. You can also automate your sponsored ad campaigns to increase profitability. It’s all in one place.
  • Why we love it: Teikametrics is great because it’s designed with the FBA seller in mind. You get help managing inventory to reduce stock-outs while also learning valuable strategies to improve sales velocity and ranking. And when it comes to PPC, Teikametrics’ automated bidding allows you to get the best placement for max profitability without lifting a finger.
  • How to get it: Visit the Teikametrics website to create an account and get started.

4. Utilize Viral Launch’s Suite of Tools to Launch your Business into the Stratosphere

Here at Viral Launch, our mission is to provide sellers with the best information and tools out there for their selling journey – whether it’s from us or not. So with that being said, please forgive us for this shameless plug. Our Viral Launchpad (see what we did there) is based around 4 main tools:

  • Product Discovery: Our product finding tool allows you to find individual products that meet your criteria, review initial keywords, discover successful brands, and search subcategories for up-and-coming products. It also has advanced filters allowing you to customize your research process to get personalized results.
  • Market Intelligence: Once you’ve used Product Discovery to find a few products you’re interested in, it’s time to use Market Intelligence to verify your choices. This tool lets you verify demand for products by showing you estimated sales numbers, keyword search volume, trends, market conditions and much more.
  • Keyword Research: Like we mentioned earlier, finding the right keywords to include in your listing is huge. Our tool allows you to search a general keyword associated with your product and then presents you with a list of other possible keywords. Along with the keyword list, you’ll also get data like Search Volumes, Priority Score, Relevancy Score, Opportunity Score, Trends and more.
  • Launches: Also known as giveaways, launches are a great way to help move your product up in keyword ranking. At Viral Launch, our clients work with one of our Amazon Seller Coaches to target a major keyword for their product with a lot of search volume. Then, we determine what number of units to give away at a discounted price and for how long. Amazon recognizes these sales which in turn moves the product up in rankings for the major keywords, getting it in front of the eyes of more shoppers.

5. Own Your Taxes with Avalara

Is there anything more fun than doing your taxes? Oh, wait, there is? That’s right, unless you’re a CPA or an Excel whiz, taxes are tedious at best and massively confusing at worse. As an FBA seller, taxes can get even more confusing as changing legislation makes things increasingly difficult. Not to fear, Avalara is here with tax tools designed specifically for the needs of Amazon sellers.

  • What it does: Among other tax solutions, Avalara software automates sales tax compliance. Amazon sellers can easily understand how much they owe in each state that they have nexus. Avalara can even prepare and file your returns according to a filing calendar. It’s like having your very own accountant on your payroll!
  • Why we love it: Avalara provides real-time rate calculation and automatic return filing. No more manually entering data and other tax information… with Avalara’s sales tax engine, the right rates and rules will be applied every time!
  • How to get it: It’s simple, visit the Avalara website, sign up and get started!

6. Make Accounting Easy with Quickbooks

Whether you’re a solo Amazon seller or part of a small team, there’s a lot to keep track of. From expenses to taxes and everything else, that’s a lot of work to put on the shoulders of one, or in some cases, a few people. But with Quickbooks Online, you can keep track of all the important aspects of your business all in one place.

  • What it does: It might be better ask what Quickbooks Online doesn’t do. Sellers love this tool because of the wide range of services it offers. With Quickbooks Online, you can keep organized books with everything in one place. Automatically import and categorize your transactions, and you can even share your books with your accountant for seamless collaboration. This way, when tax time rolls around, you’re set up for a painless experience.
  • Why we love it: To be successful in any business, you need to know how much cash you’ve got on hand and how much cash you’re spending. Quickbooks Online allows you to see in real time how much money you’re making and spending… all in one place.
  • How to get it: Visit the Quickbooks website and sign up for the plan that best fits you and your business! There’s also an option for a free 30-day trial. If you’re having trouble setting up Quickbooks for your Amazon FBA business, get help from the pros. Find a bookkeeper like CapForge Bookkeeping Pros, who specializes in FBA, and they can help you set up your books correctly. After a free consultation, you’ll understand how CapForge can simplify your Quickbooks for peace of mind.

 

Bonus Round: International Sellers

7. Take Your Business Worldwide with WorldFirst

One of the main reasons Amazon provides sellers such a massive opportunity is because of the sheer size of their user base. Millions of shoppers from around the world are browsing Amazon every single day. But with different rules and regulations in each overseas economy, selling worldwide can be tricky. With the help of WorldFirst, you can build your business overseas and easily bring your money back home.

  • What it does: Amazon requires you to open a bank account in any country where you sell products, which can cause logistical headaches and great confusion. WorldFirst allows you to set up Amazon receiving bank accounts in overseas marketplaces like USD, JPY, CNY, GBP, EUR and CAD.
  • Why we love it: One of the best things about WorldFirst is that it’s extremely cost effective. For starters, it’s free to open an account which makes it easy to get started. There are also no fees for receiving money and no monthly charges.
  • How to get it: All you have to do is visit the WorldFirst website and sign up for an account.

Combine Amazon FBA Tools and Web Apps with Hard Work and Dedication

While the Amazon FBA tools and apps listed in this guide are great resources, they aren’t the end-all-be-all for whether or not you’ll be successful on Amazon. By that, we mean that merely signing up or using these tools won’t ensure success. It’s also completely possible these or other popular tools just aren’t right for you and your business – and that’s fine!

The best way to maximize your chances of successfully of being a successful seller is to combine Amazon FBA tools like these with hard work and plenty of research. It’s also important to make sure you stay up to date on any changes that may be taking place within the Amazon marketplace.

The great thing is a lot of this information can be easily found online, it just takes some effort on your part to find them. Like we mentioned above, Viral Launch hopes to be your source for information about all things Amazon. We encourage you to subscribe to our blog, check out our Youtube channel or listen to our podcast Follow the Data.

Amazon Brands: How Many Exist & What’s their Revenue?

We’re all aware that Amazon sells its own line of products on their ecommerce site, but you may be surprised to learn just how many Amazon brands exist. Some are quite obviously owned by Amazon, as their name includes a reference to the company. But many others are marketed under completely different brand names with no hint that they belong to one of the largest online retailers in the world.

Amazon began their journey into manufacturing and selling their own goods in 2009 with the launch of its AmazonBasics line. According to Recode, since that time they have grown to offer products in nearly 80 different brand names, with 60 alone being added since the beginning of 2017. Many of the recent lines have been focused in the clothing, shoe and jewelry markets.

Are Amazon Brands Profitable?

This recent push to add more brands has made Amazon’s intention of growing their product lines pretty clear. This means even more revenue for the already multi-billion dollar company. But just how much are these private label brands bringing in for Amazon?

Reported by CNBC, a SunTrust analyst estimates that Amazon’s private label sales should produce $7.5 billion on the online marketplace in 2018. This is up 108% from their previous estimation of $3.6 billion in 2017. Though this is small in comparison to some of Amazon’s other areas of business, it’s still a significant money maker that is expected to grow even more in future years.

How Do Amazon Brands Compare to Others?

Amazon’s private label brands compete well with other major brands in the online marketplace. The same SunTrust analyst reports that Coresight Research has discovered Amazon brands are the fourth most purchased clothing or footwear line on the online retailer. Its clothing brands are only surpassed by market giants Nike, Under Armour and Hanes.

Current Amazon Brands

Amazon is silently releasing more and more brands without any public announcement of these new launches. The company already has lines of clothing, shoes, jewelry, baby products, snack foods and many household items. Recode reports that Amazon offers products under 75 different brand names. Quartz adds that Amazon has also trademarked or applied to trademark as many as 800 other names, suggesting that the company plans to keep growing their product lines.

According to Recode’s reports, the 75 Amazon brands include:

Clothing, Shoes & Jewelry

206 Collective

7Goals

A for Awesome

Amazon Essentials

Arabella

Buttoned Down

Cable Stitch

Camp Moonlight

Clifton Heritage

Coastal Blue

Comfort Denim

Outfitters

Core 10

Crafted Collar

Daily Ritual

Denim Bloom

Emma Riley

Essentialist

Good Brief

Goodsport

Goodthreads

Hale Denim

Haven Outerwear

Hayden Rose

Indigo Society

Isle Bay Linens

Kid Nation

Kold Feet

Lark & Ro

Leather Architect

Lily Parker

Madeline Kelly

Madison Denim

Mae

Mariella Bella

Mint Lilac

Moon and Back

Ocean Blues

Painted Heart

Paris Sunday

Peak Velocity

Plumberry

Quality Durables Co.

Rebel Canyon

Rugged Mile Denim

Savoir Faire

Scout + Ro

Signature Society

Smitten

Social Graces

SomethingForEveryone

Spotted Zebra

Stocking Fox

Suite Alice

The Fix

The Lovely Tote Co.

The Luna Coalition

The Plus Project

The Slumber Project

TheCambridgeCollection

Trailside Supply Co.

True Angel

Ugly Fair Isle

Velvet Rope

Wild Meadow

Wood Paper Company

Cross-Category

AmazonBasics

Grocery

Happy Belly

Wickedly Prime

Health & Household

Amazon Elements

Mama Bear

Presto

Home & Kitchen

Pinzon

Rivet

Prime Members Only

Along with these 75 brands come some stipulations on who can purchase. There are many Amazon clothing brands that are exclusive to Prime members, so the average non-Prime shopper will never see them. This makes Prime memberships all the more appealing as you now have access to free shipping and more products.

Additionally, in 2017 Amazon rolled out Prime Wardrobe, a shopping service that sends clothing items to your home so you can try them on before purchasing. This makes their clothing items even more accessible. Since there are already several successful online businesses that provide similar services, it makes sense that Amazon would want to get in on this.

What Does This Mean For Sellers?

As we can see, it appears that Amazon has some major plans for further product line expansion. Just how far they plan to go and the effect on the market as well as other sellers remains to be seen. While their products are competitive in a variety of categories, smaller brands with proper marketing tactics and effective product listings are still able to come out successful as well.

It’s still important to be cautious as you enter into markets where Amazon is present as a seller. Often, Amazon will be able to compete on price, kick-starting price wars and lowering margins for other sellers in the space. If you’re considering entering into a market where an Amazon brand is present, just be aware that you may need to lower your price in order to stay competitive. Keeping a competitive edge through listing optimization will increase your ability to compete in a market that Amazon has entered.

To ensure your listing has all the elements to stay competitive, talk to an Amazon Seller Coach at Viral Launch. Our experience working with over 8,000 brands has given us the tools and knowledge to help you succeed.

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