Self-Employed Jobs: How to Be Your Own Boss in 2023

Make 2023 a year of personal and professional growth, development, and financial freedom with these ways to be your own boss in 2023.

New year, new you?

While the saying’s become a meme, the arrival of a new year marks an excellent opportunity to take action on ways to improve yourself.

Since New Year’s resolutions are often made to solve problems, it would be no surprise if many make their resolution related to business. Over the past few years, volatility across a myriad of financial markets has created a chaotic situation where timing, vulnerability, and pure luck have significantly impacted the current and future outlook for millions around the globe.

The continual blows to global markets – the impact of COVID-19, inflation and rising interest rates, and energy vulnerability – have shifted the way we think about our decisions, especially regarding finances.

For this reason, many seek financial independence to end the stress and anxiety of economic vulnerability and start paving a greater path for themselves. Although everyone has individualized goals and purpose, the allure of being your own boss in 2023 is crystal clear for everyone.

No matter your motivation, there are plenty of ways to take control of your professional and economic situation. Below, we’ve highlighted a few popular self-employed jobs that allow you the opportunity to be your own boss in 2023.

Create an Amazon business

Photo by James Anthony on Pexels.com

Chances are you’ve bought an item off Amazon before, but did you ever think about how it got on Amazon in the first place? Whether a name-brand item like an Apple Watch or Nintendo Switch or a generic product such as a phone charger or heated blanket, it’s on Amazon because someone took a business to Amazon or started their own online business.

And many don’t know just how easy starting your own Amazon business can be with the Fulfillment by Amazon (FBA) program. Amazon uses its world-class logistics platform for FBA, making it as easy as ever to create and manage your online business. In this program, Amazon handles the logistics of your online business (storage, picking, shipping, delivery, etc.) in exchange for a fee, much of which is reliant on the success of your business.

To learn more about how to sell on Amazon, check out our step-by-step guide about how to sell on Amazon.

Find a product to sell, a supplier to make and ship it, and optimize your listing, advertising and overall offering to the best of your abilities to become one of the many who have made their entrepreneurial dreams come true thanks to Amazon and hard work.

Sign up today for our FREE How To Sell On Amazon course for beginners to start your new career on the right foot.

There are quite a few ways to make money on Amazon, so you can go all-in on Amazon or find your own Amazon FBA side hustle.

Freelance writing and editing

Photo by Leah Kelley on Pexels.com

Do you have a way with words and find writing a strength? Turn your skills or passion for writing into a business with one of the most popular self-employed jobs from home (or the coffee shop), freelance writing and editing.

You can find hundreds of potential opportunities to bring home the dough by creating a profile on freelancing networks such as Fiverr and Upwork, which connects freelancers to businesses or people with projects.

With opportunities ranging from translations, articles and blog posts to proofreading and editing, it’s never been easier to flex your writing skills and expand your portfolio while bringing home some extra cash. Whether you aim to be a jack-of-all-trades or master a niche, there are plenty of self-employed jobs in the writing and editing world.

In addition to creating compelling written content, you’ll want to make sure your professionalism, communication, and ability to nail your deadlines are on-point to ensure happy customers so you can garner positive reviews to keep the projects coming.

Drive for a ride-sharing company

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While it may blur the line of what constitutes being your own boss, driving for a ride-sharing app like Uber or Lyft is technically and legally considered self-employment. After all, these drivers are listed as independent contractors who get to set their own hours, create their work environment (within their vehicle, of course), and provide a direct service for a large market.

Similar to how Fiverr or Upwork connect clients with potential servicers, driving with Uber or Lyft connects drivers with passengers. This option can significantly appeal to those looking to make quick money without the dedication of long, set hours. While it lacks the more typical “sky is the limit” reward of entrepreneurship, this method certainly does have its perks.

At its core, anyone with a car that meets the minimum age requirement with at least one year of driving experience who can clear a background check can get started. At the very least, this self-employed job’s a great way to make a quick buck without a significant time commitment.

If this doesn’t scratch your entrepreneurial itch, it may be an effective method to bankroll your next money-making opportunity!

Create your own clothing shop

Photo by Julia M Cameron on Pexels.com

Whether you have the fashion design skills to make your own gear or an uncanny understanding of the trends, creating a clothing shop could be your calling.

For those with design skills, an abundance of online marketplaces exist to turn your ideas into a profitable business. From cutting-edge fashion designs to mastering a skill in clothing, such as tie-dying or bleaching, to creating graphics for a niche market, making your own clothing business can be quite profitable.

In addition to the money, creating something tangible and potentially seeing it out in the world can be an extremely rewarding feeling.

If you have more of a passion for fashion and are savvy about the markets, but perhaps lack the design skills, thrifting and reselling could be a hit for you. Setting up a resale shop on websites like Etsy and Shopify, or local marketplaces such as the Facebook Marketplace makes it convenient-as-can-be to make the most of your thrifting skills.

In the thrifting world, one man’s trash can truly be one man’s treasure.

If you’re a sneakerhead with an eye for which kicks go for the most, you can spot market inefficiencies by being a regular at thrift spots such as Goodwill and Plato’s Closet. Follow the trends and tastemakers to stay up-to-date on what’s hot and not and scout out your local and online stores for used gear, and you might be surprised at how well it can pay.

Either way, running your own clothing shop provides an excellent opportunity. It ranks as one of the most coveted self-employed jobs from home, especially as more online marketplaces continue to increase accessibility.

Selling Handmade Items

Yet another way you can craft an opportunity to be your own boss is by creating and selling handmade items. From carving wood to sculpting to knitting to creating unique pieces of art, this self-employed job lets you turn a hobby into cold hard cash.

Photo by Natallia Rak on Pexels.com

On top of being an incredibly cool and useful skill, the intrinsic reward of visualizing and creating a good that people want never gets old. If you possess the materials needed for your items, selling made-by-hand goods can be one of many self-employed jobs from home that allow you to add to your bank account without leaving the house.

Amazon Handmade and Etsy shops have become increasingly popular in recent years, as people search for decorative art and handcrafted items in place of mass-produced goods from Walmart, Target, and other popular retailers. Whether your artisan skills are already top-notch or you are considering a new skill, being a quality craftsperson comes in handy for anyone who wants to be their own boss.

Conclusion

Of course, the options above are just a few ideas for how to work for yourself. If you possess a very particular set of skills that can create value, there’s a way to capitalize on it. At the end of the day, it’s all about finding the method of money-making right for you.

When weighing out the optimal self-employed job for you, be sure to consider the time and money you’re willing to put into your operation. Also, think about your personal risk tolerance to ensure you can move forward in confidence with your chosen direction.

Like many New Year’s resolutions, the challenge isn’t starting, but sticking with it. Once you weigh the best self-employed job for you and your available resources, it’s easy to stick with it and create something long-lasting for yourself.

Congratulations on making it to the new year and we wish you the best of luck as you sift through self-employed jobs on your pursuit of financial freedom!

Amazon FBA Tips: How To Prepare for Black Friday 2022

As the clock ticks closer to the holidays, here are the key dates and tips and tricks for how to prepare for Black Friday.

Believe it or not, the most wonderful time of the year is upon us yet again.

With Halloween officially behind us, the always-hectic holiday season spearheaded by Black Friday is near. For those selling on Amazon, hopefully, you’ve already taken time and steps on how to prepare for Black Friday and crush it for the remainder of 2022 and start 2023 off right.

Whether you’re on top of your planning or an inexperienced seller unsure of the best Black Friday and Cyber Monday seller tips, we’ve got you covered with important dates and details to make this holiday season one to remember.

Should Amazon sellers prepare differently for Black Friday?

Unquestionably and without a doubt, yes.

When ranking the biggest shopping days of the year, Black Friday likely comes to your mind first. For decades, Black Friday has established the Friday after Thanksgiving as a day for shopping.

Steep discounts and special one-day-only deals make it a prime choice for shoppers to start or finish their holiday shopping. Every year, news stories about customers lining up at stores hours before they open and the ensuing pandemonium once doors are opened command attention across the United States.

Beyond the obvious influx of traffic and sales to be made on Black Friday, the date is also important for secondary reasons. Black Friday marks the beginning of the holiday shopping season, with days rivaling Black Friday sales showing up over the next few weeks.

Cyber Monday and Super Saturday (also known as Panic Saturday, the Saturday before Christmas) are both on the calendar’s short list of top sales days. When we mention being prepared for Black Friday, we also mean being prepared for the rest of the major sales events that follow Black Friday.

How to prepare for Black Friday and Cyber Monday 2022

  • Check your inventory restock limits
  • Ensure your inventory can meet the increased consumer demand
  • Be aware of shipping deadlines
  • Optimize your product listings
  • Plan your advertising strategy
  • Consider creating coupons and promotions
  • Monitor performance and adjust accordingly

Check your inventory restock limits

While utilizing all of your inventory limits throughout most of the year can be costly, it may be worthwhile or necessary during the busiest time of the year. To find out what your restock limits are, go to Inventory > Shipments in Seller Central. Below, we’ve included a few links to updated 2022 fulfillment fees.

If your inventory restock limits are less than satisfactory, you may consider going outside FBA and looking into third-party logistics (3PL) services as soon as possible.

Check out our podcast with Michael Sene from Deliverr one of the most popular 3PL providers for Amazon sellers and more.

Ensure your inventory can meet the increased consumer demand

If you’ve been selling for more than a year on Amazon, go back to your reports for last year’s holiday season and see how your sales were impacted by the holiday season.

If this is your first year in FBA, it might serve you well to check out a product research tool with historical sales data such as Market Intelligence.

Market Intelligence shows a peak for the “bartender kit” over the holiday season, showing the need for increased inventory during the period.

Because we know not all sales are distributed evenly in a category, you may want to look into how specific sellers have fared in the past over the holidays if their business is mature enough to have historical data.

When comparing sales with individual products, look for common competitors or similar-sized sellers in your market.

The seller in the 10th organic rank position for “bartender set” in Market Intelligence’s sales over the past two years.

Be aware of shipping deadlines

Unfortunately, it’s too late if you haven’t already made your fulfillment order for Black Friday or Cyber Monday. The last day an arriving order could be guaranteed in stock by Black Friday and Cyber Monday was November 2nd.

On the bright side, you can do your part to avoid any issues for Christmas by making sure your inventory arrives at Amazon’s fulfillment center by December 1st to ensure your product is available and stocked up by Christmas to avoid your product being out of stock for holiday shoppers.

While Amazon is usually very thorough with these dates, it never hurts to stay on top by checking Seller Central’s announcements periodically to keep track of any changes.

Optimize your product listings

Often overlooked until it’s too late, ensuring your product listing is optimized can be incredibly valuable during the holiday season. Additionally, the term “optimized” can admittedly be vague when used as a catch-all term, so let’s get specific on what that means.

When we say optimized regarding your listing, we mean a few different things. Overall, you want your products to be presentable, easily understandable to customers, informative, attractive to shoppers, and visible to anyone looking for your product.

You can achieve these aspects by enhancing your product photography and copy. The perfect product photography for your product listing takes care of the presentability and attractiveness while helping with the informative aspect by showing potential use cases for your product. Also, it’s a good time to double-check that your product photography meets Amazon guidelines and avoid any potential issues during this critical time.

The other half of optimizing your listing involves the written copy on your product detail page. This entails utilizing tools such as Keyword Research, Listing Builder, and Listing Analyzer to make certain your listing indexes for all search keywords customers might use to find your product. Just remember your customers are human beings, so don’t sacrifice readability for keyword indexing and utilize all the space Amazon gives you to inform and sell your product.

Plan your advertising strategy

Recently, we took a look into how sellers should handle advertising during major sales events in the run-up to the Amazon Prime Early Access Sale. Check it out for key insights and invaluable data on how significant increases in traffic and sales can skew your advertising campaigns juxtaposed to more standard sales periods.

Needless to say, the competition for eyeballs will be fierce. Understanding how the math and trends will change during Black Friday through New Year’s Day will yield dividends by preventing wasteful spending and racking up sales through the right strategies.

Consider creating coupons and promotions

It’s easy to lose track as a seller, but consider how you make your purchases. Putting yourself in the customer’s shoes is often overlooked with all that’s on a seller’s plate during these hectic times.

And we all love a good deal, right?

Especially during the holiday season as sales volume can increase drastically, it may be worth including coupons and promotions to increase sales.

A major chunk of the Black Friday and holiday shopping audience are hunting for deals, steals, and major markdowns. Giving them what they’re looking for can give your product the edge over the competition, especially those with a cheaper price, brand name, or better reviews.

Of course, selling on Amazon is a business so don’t go too crazy with the coupons. But depending on your product, the sales volume could very well lead to more profits for your business by providing your product at a cheaper price. For many shoppers, seeing that markdown price and the money saved by buying now is one of the most important factors that can lead to a purchase.

Monitor performance and adjust accordingly

As always, monitor sales performance throughout the holidays and adjust your plans appropriately. And not just the performance of your own products, but the competition as well.

Tracking competitors in Competitor Intelligence becomes even more crucial during this time when the stakes are the highest.

The Competitor Intelligence dashboard shows a variety of key performance metrics for your competition.

Within Competitor Intelligence, you’ll be able to track rank changes, price changes, and virtually everything you could want to know about a competitor. You can even set up notifications, so you can stay informed and react accordingly to competitors offering deals.

Wrapping It Up

Although time is running thin to make changes to make Black Friday 2022 one to remember, there’s still plenty you can do to go into the core of the holiday season with confidence.

By checking off these steps and monitoring performance, and making intelligent, data-backed decisions, you can put your products in a prime position to walk away from this season as a major winner.

Best of luck to you this Black Friday and beyond!

Get started for FREE with the entire Viral Launch software suite today!

Amazon Makes It Official: The Prime Early Access Sale Is Slated For October 11-12

This week, Amazon confirmed rumors of a second Prime Day-like sales event titled the Prime Early Access Sale with a press release announcing the event. As previously reported, the Prime Early Access Sale will take place for 48 hours on October 11th and 12th.

The Prime Early Access Sale marks the first time the e-commerce superpower will hold two major sales events in one calendar year. However, it’s not the first time Amazon has held a major sales event in October, as Prime Day 2020 took place from October 13th to 14th after being pushed back from its usual July date as a result of the COVID-19 pandemic.

After years of wondering if or when Amazon would look to go beyond Prime Day for annual sales holidays, the Early Access Sale appears to answer those questions. But what exactly is the Prime Early Access Sale, and what can Amazon sellers expect?

Part Prime Day, Part Black Friday?

Perhaps the most notable part of the announcement outside of the announcement itself, is it appears to serve as a kickoff for the quickly approaching holiday season.

“We are so excited to help Prime members kick off the holiday season with Amazon’s new Prime Early Access Sale—an exclusive opportunity for members to get deep discounts on top brands we know they are looking for this time of year. And members can start enjoying exclusive Prime benefits and offers now, plus find gift ideas for the family with our holiday gift guides and this year’s Toys We Love list.”

Jamil Ghani, vice president of Amazon Prime

A significant chunk of the press release focuses on kicking off the holiday season with access to thousands of deals exclusively for Prime members. While Black Friday has long served as the unofficial beginning of the hectic holiday season, the Prime Early Access Sale seeks to get the party started six weeks before Black Friday.

Additionally, shopping for the holidays a little earlier this year may have additional benefits beyond saving a few bucks during the promotional period. Due to the uncertainty brought on by the COVID-19 pandemic and ensuing supply chain disruption that continues to have ripple effects, crossing items off your shopping checklist over a longer period helps smooth out the always-chaotic holiday blitz starting on Black Friday and lasting for weeks.

More Money, More Benefits

This year, Amazon announced a price hike for the first time in years for their signature Prime subscription for customers, with rates going from $13 per month to $15, and $119 annually to $139.

The Prime Early Access Sale indicates the subscription’s price hike comes with additional benefits, so the roughly 160 million Amazon Prime subscribers get more bang while spending more bucks.

One of the most ballyhooed benefits recently added to the Prime membership is GrubHub+, with rewards and savings on the popular food delivery service. While this may not appear like news for Amazon sellers, the additional benefits outside of the Amazon marketplace for Prime members only makes the consumer base grow even larger. With benefits such as the aforementioned GrubHub+, Audible, Prime Video, Amazon Music Unlimited and countless more perks, the Prime membership base is strong and strengthens the Amazon marketplace further.

Full Steam Ahead Into 2023

Although the event’s existence had been hinted about, the official announcement adds intrigue to what should be an interesting Q4. After two years of uncertainty and constant disruption, things are as close to “normal” as they’ve been in years.

While concerns about consumer spending linger internationally, the Prime Early Access Sale and subsequent holiday season provide a worthy source of optimism for Amazon sellers looking to close out 2022 on a positive note.

Even if the time for you to prepare for the Prime Early Access Sale is ticking, it goes without saying that sellers should not shrug off tactics to maximize visibility and sales during a period of skyrocketing sales.

Because it’s the first-ever Prime Early Access Sale, it’s difficult to know what to expect. However, if Prime Day is any indicator, this has the potential to be absolutely massive.

Amazon Prime Day sales by year, since 2015.

For Prime-eligible products, sellers can submit a Prime Exclusive Discount or Coupon before October 11, 2022 to participate in the Prime Early Access Sale.

Any measure sellers can take to put their product in a position for success should be taken, as a wave of sales during the event is sure to put you in *ahem* prime position to ride a wave of sales through the holiday season.

Consider what quick opportunities you can take to refine your business, from pricing to your product description to advertising. Now is the perfect time to check out tools like Competitor Intelligence, Viral Launch’s tool that gives you unparalleled insight into your competition so you can out-smart the competition and stop leaving dollars on the table.

Amazon Marketplace with Ecom Dave: Following the Data

Are you getting started in the Amazon Marketplace or thinking about launching your own online business? We spoke with Ecom Dave to discuss how to kickstart an Amazon business in 2021 and how to avoid common mistakes that get in the way.

Over the past 18 months or so, the Amazon marketplace has made plenty of waves. Whether it’s been about record-setting numbers, expansion into new countries, or competitors such as Shopify or Walmart looking to duplicate its success, there’s plenty of buzz on the topic. Here are some tips to getting started on amazon.

To anyone who likes making money (and who doesn’t?), this may seem like your signal to get in on the action. There’s plenty of opportunity on Amazon and the industry is still growing rapidly.

But before jumping in headfirst, there are plenty of considerations to make.

As with most things that go through massively evolving growth, things change quickly. As recently as 5 or 10 years ago, just starting an Amazon business may have been enough to fast track your success.

With a more mature marketplace, new sellers must enter more strategically than in the past.

That’s why we spoke with Ecom Dave, a superstar seller and seller mentor in the Amazon community. He takes us through his journey as a seller, how Amazon has evolved over the years, and how sellers can build their business the right way.

Tune in to the whole conversation for a free-flowing conversation packed with plenty of helpful Amazon Marketplace tidbits!

HIGHLIGHTS

Get to know Ecom Dave and his experience with e-commerce. (0:00)

If you aren’t familiar with Ecom Dave, take a second to learn his fascinating journey from bartending and failing at his first attempt at selling on Amazon to launch a successful online business and becoming one of the biggest names in the Amazon seller community.

What mistakes are the new wave of Amazon sellers making? (9:31)

When learning a new skill, knowing what not to do can be as critical as knowing what to do. Steering clear of common missteps can make the difference between a dud and a stud, with thousands of dollars at stake. Dave walks us through his process and thinking while assisting new sellers and where many are going wrong.

How getting started on amazon impacted Dave’s lifestyle? (13:25)

Let’s be real. Most of us don’t work because we love the work. We work to afford the best lifestyle we want.

One of the main allures of selling on Amazon is the ability to be your own boss, build your business, and live the life you’ve always wanted. That’s certainly the case for Dave, who walks us through his daily routine compared to before he began selling on Amazon.

Dave walks us through what aspects he believes have personally contributed to his Amazon business? (22:10)

A seller’s mentality at approaching their business plays a tremendous factor in the outcome of the business. When running your own business, your business’s success or failure and overall imprint becomes inescapably related to person running it.

The Amazon seller community is quite diverse in terms of mentality and approach, so while there certainly is no “one-size-fits-all” mentality, each person’s strengths or weaknesses can make an impact on their business. Getting started on amazon can have a large impact. Dave explains how his personality and experiences played a role in his ultimate success.

Before we say goodbye, Dave offers some final advice for Amazon sellers who are kicking off their FBA careers. (27:00)

If we were to dive into all the aspects that go into selling, the Follow The Data podcast would be longer than an episode of the Joe Rogan show. So before the conclusion of this conversation, we asked Dave what other tips or topics he’d like to cover that hadn’t been covered already.

A huge thanks to Dave for taking the time to share his valuable expertise. For more tips and tricks to starting and succeeding on Amazon, check out his website! You can also connect with Dave on Instagram, LinkedIn, and Facebook.  

As always, drop your email below to receive the latest Amazon seller news and updates!

Ways to Start, Grow, or Scale Your Amazon Business with $1400

As the largest and latest round of stimulus checks make their way into bank accounts across the USA, we take a look into how you can use it as an investment into your business.

According to the IRS, about 90 million Americans were sent their $1,400 stimulus checks on Wednesday alone, with more to be sent in the coming weeks.

The newfound financial flexibility creates opportunities previously not afforded for those fortunate enough to receive the $1,400 as “extra” money. One popular way to view the stimulus check is as an avenue into investing, but investing isn’t limited to stocks.

Instead of investing in another company, why not invest in your own?

Whether you’re a longtime seller, beginner, or considering leaping into FBA, there are plenty of ways to rejuvenate or jumpstart your Amazon business with $1,400. By investing in your e-commerce business, you could easily turn your stimulus check into a long-term money-making machine.

[YOU MAY ALSO BE INTERESTED IN: 10 Ways You Can Make Money with Amazon]

We should mention this isn’t necessarily a guide. Every seller’s journey is different. The options we’ll highlight below are merely a few options you may want to consider. With prudent planning, these options present a promising opportunity for you to get a great return on investment from your stimulus check.

Without further ado, let’s dive into it!

Elevate Your Product Research Game

When it comes to selling on Amazon (and in most aspects of life), having the luxury of reliable data to base your decisions on is a tremendous luxury. For Amazon sellers, this is made possible through product research.

Whether you’ve yet to begin your FBA journey or have a catalog full of successful products, product research is crucial for sustained profitability. When you have access to comprehensive market data, it’s almost like having the answers to a test.

While reliable Amazon sales data is crucial at all stages, it’s especially vital for beginners. The research that goes into deciding upon your first product serves as a foundational aspect of your Amazon career. Choosing to source and sell a product without conducting intensive research with data you can trust is a surefire way to make your first product your last product.

So if you’re beginning to look into FBA, test out a few software providers. Most software providers will offer a free trial, giving you time to see if they’re right for you.

How to Find Successful Amazon Products with Viral Launch

Feel free to test trials from different software providers simultaneously to compare and contrast the data. If you notice any inconsistencies, don’t be shy. Ask their customer service team how they arrive at their numbers. With such an important decision that can pay off handsomely, don’t leave any stones unturned.

Aspiring Amazon entrepreneurs aren’t the only ones who can take their product research game up a notch. Often, Amazon sellers don’t utilize all tools within their toolset.

Whether there are underutilized tools in your current software plan or an opportunity to upgrade your plan for additional access, there’s no better time than now to explore unfamiliar tools. Amazon is constantly evolving, so sellers must evolve with it.

Boost Your Business with Captivating Creatives

It’s springtime! You know what that means. Spring cleaning!

For Amazon sellers, the seasonal cleaning isn’t limited to dusting ceiling fans, clearing out the refrigerator, and giving your home a good deep cleaning. It may be worth considering if your listing creatives are due for an upgrade.

Do your listing’s copy and product photography abide by Amazon requirements and follow the style guidelines? Is your competition doing something with their photos that seems to be working? Are you maximizing your visibility by having a keyword-optimized product listing, or are you missing out on indexation for keywords customers are using to products like yours?

These are just a few of the questions you should ask yourself when considering updating your creatives.

Even if your product photography is in tip-top shape, additional photos can still provide plenty of benefits for your business. For example, possessing extra product images opens the door for creative advertising.

One way you can spruce up your advertising with enhanced photos is Amazon Posts, a relatively new option to increase brand visibility. Amazon Posts is a social media-like platform within Amazon that allows brand registered sellers to flex their advertising muscle. Appearing on product detail pages selected by Amazon, brands get the ever-important chance to poach customers from competing listings.

How Amazon Posts appears to shoppers.

The best thing about Amazon Posts? It’s totally free. Well, submitting your Posts is free, anyway. You’ll still want professional photos capable of enticing customers to earn a click. Since Amazon Posts is somewhat new, it’s flying under the radar of many sellers, but can be an incredibly efficient weapon for stealing customers from the competition.

Additionally, having extra photos come in handy if you sell outside of Amazon or may consider selling elsewhere at a later time.

Lastly, having extra photos at your disposal provides an even better opportunity to experiment for peak optimization. Once you’ve got premium product photography, don’t forget to split test! With a plethora of split testing sites to choose from, it’s an easy step to maximize your conversions and profitability!

Flex Your Marketing Muscle with PPC

Another great way to invest your stimulus money into your business is by using it to take the next step with Amazon PPC (pay-per-click) advertising.

Although Amazon debuted PPC advertising in 2012, it has grown considerably over the last 2-3 years and shows no sign of slowing down. With Amazon expected to net nearly $13 billion in advertising in the United States marketplace alone, the company has every reason to continue pushing and developing PPC.

Whether this means finally taking that PPC course, creating your first campaign, or trying out an unexplored ad type, doing it with a bonus $1,400 makes it a prime opportunity to experiment with PPC.

For sellers currently selling, it especially makes sense to test out new campaigns now as plenty of customers are flush with their stimulus money and tax season right around the corner.

Want to know more about Amazon PPC? Enroll in our FREE PPC Playbook Course.

After all, you’re not the only one receiving the stimulus. More customers shopping with more money is a recipe for more customer searches. As your product appears more frequently through search and on competitor listings, the sample size for your campaigns grows larger and, thus, more reliable.

Fortunately, the options are flexible for you regarding your PPC campaigns. Set your budgets as low or as high as you feel comfortable with, and barring disaster, let them run until the reporting data begins to stabilize. Once they’ve matured, you’ll have real data on your performance that you can use to optimize to your advantage.

Scale Your Store by Expanding Your Brand

Suppose you feel like you’ve squeezed nearly all the juice you can out of a product. First off, congratulations! It’s every Amazon sellers’ goal to reach and maintain peak performance, but what do you do once you’ve achieved it? For many, it can be a never-ending pursuit of perfection.

However, it may be more beneficial to scale your brand by finding your next home run. Think of your stimulus check as $1,400 off the development of your next product, and this becomes especially beneficial.

Of course, this entirely depends on your goals, resources, and risk appetite. Ideally, the learning curve for launching a new product shortens with each new product. If you’ve built a strong brand on Amazon, the likelihood of your next product being a success increases exponentially.

Instead of squeezing every penny possible out of your current storefront, dig into your sales reporting numbers and do your best to determine the best course of action for your business.

In Conclusion

Don’t miss out on the opportunity to supercharge your Amazon business! Whether jumpstarting your entrepreneurial career or looking to take your existing e-commerce operation up a notch, investing in your business with your stimulus money could provide an excellent, long-lasting return on investment.

No matter what you decide to do with your stimulus money, enjoy it! Without a doubt, extra cash in your pocket is nice. But creating long-lasting, sustainable sources of income is even better.

Thanks for reading! Want Amazon news sent directly to your inbox? Just drop your email below.

Follow The Data: Growth & Expansion Through Amazon International

Ryan Cramer walks through his perspective on where international e-commerce is headed and how sellers can take advantage of the growing seller momentum around the world.

At Viral Launch, we constantly hear from Amazon sellers who want to take their business to the next level. The option to sell internationally on Amazon is a low-risk, high-reward opportunity that’s being underutilized in the seller community.

Why is selling internationally such a promising proposition? Follow the Data host Cam Yoder chats with Ryan Cramer of PingPong Payments to find out!

PingPong helps e-commerce businesses sell worldwide by providing international payment solutions. Since 2015, more than 600,000 e-commerce merchants have entrusted PingPong with their cross-border payments, resulting in more than $10 billion processed for global sellers.

With experience in sales, marketing, and e-commerce, Ryan expertly explains the benefits of going global and how you can take full advantage of growing seller momentum around the world, so you can expand your business as Amazon continues to grow. Don’t miss out on growing with Amazon international!

HIGHLIGHTS

Get familiar with what PingPong does for sellers and Ryan’s extensive background in e-commerce (0:12)

Ryan lets us in on his professional journey to PingPong Payments and how it fits in with his goals. With a background featuring a steady mix of sales and e-commerce, Ryan provides an insightful perspective on where those fields overlap.

Ryan, on how he sees international fitting into the typical Amazon seller’s strategy (10:39)

Quietly, Amazon has been steadily expanding around the world. As e-commerce continues to grow at different speeds globally, it allows yet another way for Amazon sellers to scale their business. Ryan breaks down why it’s worth keeping an eye on international opportunities, and why it should be on the minds of current or prospective sellers.

With Prime shipping, Amazon changed the way we buy online in the U.S. Is changing the way the world buys online up next? (12:57)

The future of selling is closer than it may appear. Amazon is rolling out programs to provide the same revolutionary two-day shipping program in its international marketplaces. For many U.S. sellers, the idea of selling internationally can seem quite foreign. Ryan lets us know about these programs, what they may mean, and why now may be the best time to take your business global.

So you want to sell internationally. What are the prime marketplaces to target? (15:57)

While selling internationally might be easier than you think, there certainly are important decisions to be made before getting started. We discuss the importance of locating emerging markets, understanding cultural differences, local habits, and more aspects to consider before taking your business abroad.

More money is being poured into buying Amazon businesses than ever. What does this mean for the traditional Amazon seller in the near future? (23:14)

With millions upon millions of venture capital money going to companies that buy Amazon businesses, are the days of the traditional Amazon seller numbered? Ryan doesn’t think so in the slightest and believes it’s actually a great opportunity for more traditional sellers.

Lastly, a huge thanks to Ryan for coming on the show and sharing his knowledge with us!

Check out PingPong to save a LOT of money if you sell internationally!

Don’t be the last to know! Subscribe to our email list to receive the latest Amazon news to stay informed on all things Amazon.

Want to Know How Much Your FBA Business is Worth? Start Here

Chances are, you probably sell on Amazon because you recognize the huge potential ROI there.

But have you ever stopped to think about your next step after your FBA business? Many FBA owners have never considered selling their business—or even know the option is on the table!

We wanted to share why selling your FBA business could help you build an even better business and be the best thing for your entrepreneurial journey. Let’s explore the reasons FBA owners sell their businesses.

The Truth about Selling Your FBA Business

Selling an FBA business boils down mainly to personal or business-related reasons. 

In terms of personal reasons, we’ve seen sellers exit because of an event or goal that meant they no longer had time to manage the business. Some of these reasons include a death in the family or wanting to spend more time with their kids.

Business-related reasons tend to revolve around raising capital for another project or losing motivation to stay with the business. 

Whatever their reason for selling, some FBA sellers have received two to four years of net profit in cash in one payment. That’s the biggest windfall many entrepreneurs have ever received in one go.

But don’t start counting your chickens before they hatch: first, let’s dive into understanding how FBA businesses are valued.

FBA Business Valuation

Online business brokers and individuals working in mergers and acquisitions (M&A) usually value businesses by a multiple of earnings before interest, tax, depreciation, and amortization (EBITDA). EBITDA represents a business’s annual profit, and it is multiplied in the range of two and four times.

The valuation formula we use is:

Valuation = 12-Month Average Monthly Net Profit x Multiple

There’s not much difference between the two formulas. We stick to the average monthly net profit because it gives a more granular view of an FBA business’s performance than an annual profit figure. 

While average monthly net profit is easy to calculate, determining the multiple is a bit more complicated as it takes into account the business’s age, traffic sources, branding, product line, and pricing window.

Age of FBA Business

A profitable older brand tends to be valued more highly than a younger one because it has survivability.

Unexpected market demands and changes place stress on FBA businesses, which can seriously affect cash flow and average order values.

A business’s ability to scale and grow through these challenges shows buyers that it’s resilient. While you can’t directly influence your business’s age, the takeaway here is that age works in a seller’s FBA business’s valuation, which is why a long-term Amazon selling strategy pays off more than a short-term plan.

Diversity of Traffic Sources

One of the greatest advantages of selling on Amazon is being able to leverage their brand, which customers love and trust.

However, selling on a single marketplace can lower a business’s multiple because if that source of traffic is shut down, there’s a higher risk that the business will be negatively impacted.

Amazon is well known for delisting products and shutting down stores for minor infractions. While you can prepare to ensure you fulfill Amazon’s requirements, increasing the number of traffic sources through multichannel selling is a good way to minimize your business’s risk and increase its multiple.

Branding

Branding has a smaller influence on the multiple than the other factors listed here since it’s hard to quantify how strong a brand is .

That said, the number of customer ratings and reviews, as well as how high the ratings are, play a part in determining the multiple. If people mention the FBA brand on social media, the context is also taken into consideration. Are customers raving about a store’s products and recommending them to their friends? Or are their experiences mixed, with varied reactions toward the customer service or the product’s functionality?

A strong brand is an attractive asset to a buyer, but it has less weight than the other factors that affect a multiple.

Product Line

There isn’t a perfect number of products that will help you gain the highest possible valuation. A couple of key things to keep in mind are the amount of work it takes to manage your product range and the diversity of the revenue generated by the products.

Let’s compare two FBA businesses in the home niche, both selling kitchen products. Business A has only one product, while business B has 50, and both generate $100,000 in revenue from sales each month.

Business A’s single product has the same risk as a single traffic source: if the product is delisted, the business’s cash flow is completely cut off. 

While it might look like business B won’t suffer from this issue, there are a couple of issues with its product range. For instance, if a single product generates over 50% of the business’s revenue, this is also cause for concern from a revenue-by-product basis. Managing all those listings could also consume most of your productive hours, time that could be spent growing the business in other ways.

We’ve seen the ideal range of products to diversify sales and be manageable without being overwhelming is between three and eight products. 

Of course, there are exceptions to the rule. Some buyers with large capital reserves won’t mind paying for a single-product FBA business because the potential ROI of a future flip may outweigh the risk. These types of buyers will probably make strategic acquisitions and have a team of optimization ninjas to increase the value of their assets.

Buyers who can afford to buy only a few FBA businesses will be much more cautious about a business with a product range that’s too large or small. They are likely to be solopreneurs who manage operations on their own, so the stakes would be much higher if the business didn’t work out as hoped.

Pricing windows 

Another thing to keep in mind is for how long you’ll calculate the average monthly net profit.

12 months is the golden standard because it provides a good view of the business’s traffic and revenue earnings and takes fluctuations in buyer demand, aka seasonality, into account.

If you started your FBA business less than 12 months ago, we’d recommend waiting before considering a sale. While you could shorten the pricing window to three or six months to reflect the profits, buyers will look at the business holistically and see that only a short window of data is available to help them decide whether to buy your business.

Again, there are exceptions to this rule. Some buyers with more capital means or a higher risk tolerance might make an offer for newer FBA brands.

Shorter pricing windows narrow the buyer pool, making it harder to find the right buyer who’ll offer you a reasonable deal. You might receive only a single offer and find yourself settling for a much lower offer than you wanted to ensure you close the deal.

Who Would Buy Your Site?

Now that you have a basic understanding of FBA businesses are valued, you might be wondering who would be interested in buying one. 

There’s a wide range of buyers with different levels of available capital and time, but all buyers recognize the power of selling on Amazon, and they want a piece of the ecommerce pie.

FBA businesses offer a lower barrier to entry for ecommerce entrepreneurship than full-blown ecommerce, which requires owners to manage many different moving parts. Instead of building a business from scratch, a buyer can acquire an existing FBA brand that’s generating steady profit.

To increase your chances of receiving a great offer and landing a successful deal, let’s discuss how to widen the buyer pool.

5 Ways to Optimize Your FBA Business

Buyers are much more likely to put down an offer after doing their due diligence if they think a business is a deal they just can’t pass up. So how can you make your business an asset that buyers will compete for?

By making it as hands-off as possible.

This is not to say that a less optimized business will attract zero buyers, but an FBA business that requires minimal work from the owner to maintain will be more attractive.

There are already some great tips for selling on Amazon, so we’ll focus on a few other ways you can improve your FBA business.

1. Use a Third-Party Logistics (3PL) Service Provider

Many sellers ship their inventory directly to FBA fulfillment centers, so storage and fulfillment are managed in one place. While it might be easier to allow a manufacturer to ship their products to FBA warehouses, it could be costlier than using a 3PL service provider.

Spend some time shopping for reputable 3PL solutions to see if there’s a more cost-effective route.

Another thing to consider is if you should use a 3PL as an additional storage facility. If stock doesn’t sell within six months, Amazon will charge long-term storage fees.

Depending on your products’ average turnover time, it might be better to hold stock in a warehouse and send batches of inventory to FBA centers according to your inventory forecasting.

While additional expenses sound like they should bring down your business’s valuation, removing essential services will in turn add extra burden and responsibility for the owner to manage and make the business a less attractive option.

A common mistake we see FBA sellers make is to cancel their 3PL solutions services, which brings down overall costs but adds 10–20 hours of work each week. The initial valuation price may increase but at the expense of making your business more hands-on.

2. Nurture Great Supplier Relationships

If you have exclusivity with your suppliers, ensuring that agreement will be carried over to the next owner makes purchasing your FBA business a more attractive prospect.

Establishing a strong relationship with suppliers saves the buyer the time and energy required to find reliable manufacturers, giving them one less thing to worry about, so they can focus on expanding the business in other ways.

Diversifying the number of suppliers the business owner can call on also works in a seller’s favor. The ability to order from multiple suppliers helps avoid dreaded out-of-stock situations for your top-selling products, especially during peak seasons.

We’re not advocating for drop surfing, where you’re encouraging suppliers to compete for your business by undercutting each other to offer the lowest price. Developing good relationships with more than one supplier opens up other manufacturing channels in case your usual supplier has production issues.

3. Optimize Product Listings

Creating a great product is only half the battle. Getting it in front of the right eyes is the other half.

Increase the chances that your products will appear to your target audience by optimizing the listings for SEO.

Search engine optimization will involve keyword research and the placement of target keywords in your copy’s title and body. Just don’t stuff the keywords in; Amazon’s search algorithm will deprioritize your listings if it detects too many keywords.

As an FBA seller, you can leverage Amazon A+ Content (formerly known as Enhanced Brand Content) to enrich your ASIN descriptions. A+ Content doesn’t get indexed by Amazon’s search engine but can increase conversion rates, leading to more sales.

4. Automation

Hiring virtual assistants or outsourcing time-consuming tasks frees you up to focus on your growth strategy. 

A great way to improve your own efficiency and automate more of your processes is by creating standard operating procedures (SOPs).

Well-documented SOPs will help a buyer keep the business running as it currently does, so it doesn’t drop performance after changing hands. SOPs are especially helpful to solopreneurs, streamlining the transition period by providing a resource they can refer to at any time.

If the new owner decides to outsource, they can use SOPs to train freelancers to operate the business as you did.

5. Build a Monetized Email List

Many FBA owners overlook using an email list as part of their marketing strategy, but to understand the power of email marketing, the real value lies in the audience it builds.

Gathering subscribers looks great, but the number remains a vanity metric if the list isn’t used properly. When you consistently deliver value to an audience through curated content, the email list becomes a valuable asset in itself because you don’t rely on search engine algorithms for your content to be found and you can address your audience any time.

However, if you are considering selling your FBA business and haven’t started an email list, I’d recommend that you use your time and resources to bolster your business’s strengths instead. 

Email lists take a lot of time, energy, and patience to get right.

You’re nurturing an audience from scratch, so you’ll need to experiment with the type of content you send out and to get all the elements aligned for the highest conversion rate.

The Myth of Timing the Sale

Deciding when to sell can be hard. Some sellers think they can time the sale like a stock based on market conditions and whether the forecast is bullish or bearish.

In reality, it’s extremely difficult to succeed with this approach. We’d recommend selling your FBA business when it’s at its strongest and performing optimally on the capital means available.

A buyer may be willing to pay a premium price for an FBA business generating steady sales that has products with Amazon’s Choice or Best Seller status in their subcategories. 

A business’s value is how much a buyer is willing to pay for it, which is why it matters where you list your business for sale if you want to succeed in landing a deal.

Best Places to Sell Your Business

There are really only two options: selling privately or using a broker.

A third option is to use a DIY marketplace, but we’d strongly recommend against using this type of service. DIY marketplaces charge a commission comparable to that of brokers, and you have to do a lot of the work to source deals and market your business yourself.

If you’re selling for the first time, a broker is the optimal route (even though we might sound biased for saying so).

If you go for a private deal, you risk running into two of the worst kinds of buyers: the savvy kind, who know how to negotiate a low price, and tire-kickers, the sort who make inquiries and non-serious offers, wasting your time. There’s also the need to attract many qualified buyers, which can be tough if you don’t have a wide network of suitable connections.

Then you have to worry about marketing your business and making it as attractive as possible without overselling.

There’s a mixed bag of brokers available. A reputable broker will have processes in place to attract buyers who can prove their buying intent with verified liquidity. When shopping for a broker, do your due diligence to see if they have such a system, as it helps both sellers and buyers.

You can register for free on a broker’s marketplace to talk about selling your FBA business and how they’ll help you handle the administrative side of things so you can focus on managing the different offers that come your way.

What’s Next? Preparing for Life After an Exit

We hope that by this point you’re aware of the amazing potential that selling your FBA business holds.

One of those possibilities is to buy another FBA business and keep your momentum going. After all, no one said you had to hang up your FBA hat and call it a day! The skills and experience you’ve developed could be used to scale a series of smaller businesses, so they reach their potential. 

In time, you could flip them for a profit, creating a money-making engine that provides five figures of capital for each deal you make.

In time, you’ll have built up an ecommerce empire.

This is just one of the routes you could go down. Of course, you can reinvest the capital in any way you want.

Whether you pursue a passion project or put the money from the sale in your kids’ college fund, the possibilities start with the knowledge that your FBA business is a highly lucrative asset to the right buyer.

This insightful guide was brought to you from Empire Flippers. Do YOU want to contribute to the Viral Launch blog with your expertise? Simply complete our brief guest blog post form and we’ll contact you if it it seems like a great fit!

A Chat With Saqib Azhar, Leader of the Largest Amazon Seller Facebook Group in Pakistan

Saqib Azhar talks through his Amazon-focused growth strategies in 2021 and gives insight into how he built an enormous, highly engaged Amazon group on Facebook.

For the latest installment of Follow the Data, Saqib Azhar graciously shares his Amazon knowledge with host Cam Yoder. From starting your own business to training a country for taking on entrepreneurship, Azhar possesses one of the more influential voices in the Amazon seller community.

Azhar is the CEO and Co-Founder of Enablers and the leader of the world’s largest Facebook group for Amazon sellers.

At Enablers, Azhar’s mission is to combat unemployment in Pakistan by empowering and educating the youth to sell on Amazon. While most Amazon sellers seek to establish themselves, Azhar aims to lift a nation along with him.

With over a decade of e-commerce experience and a perspective unlike any other, Saqib has plenty of unrivaled knowledge to share. In other words, this is a must-listen for serious Amazon sellers.

Be sure to check out the show for advanced Amazon seller strategy from one of the world’s most knowledgable resources!

HIGHLIGHTS

Get familiar with Saqib Azhar and his unique experience as an Amazon seller and community leader. (0:00)

Enjoy the episode? Like and subscribe to our YouTube channel or wherever you listen to podcasts! Don’t miss out on the Amazon seller insights within our hundreds of episodes.

With years of experience in the Amazon space, how does Saqib plan on growing his business in 2021? (7:12)

As a long-time seller who manages one of the largest seller groups and teaches aspiring Amazon sellers, Saqib knows the ins and outs of Amazon in a way few others do. Don’t miss out on his valuable insights on how to take your Amazon business to the next level in 2021!

Saqib witnesses plenty of new sellers entering the marketplace. What common mistakes do beginner sellers make when starting out? (15:13)

Like many aspects of life, the beginning stages are an excellent opportunity for a learning experience. However, beginners on Amazon quite literally can’t afford to commit beginning blunders. Saqib shares common beginner mistakes, so you can accelerate the learning curve and avoid rookie mistakes.

On how he grew his community so rapidly. (25:49)

As e-commerce continues to grow, the ability to build a community around a product or a brand allows for explosive results. Further, Saqib breaks down how what has powered the growth of his company.

Before we say goodbye, Saqib offers sage advice for Amazon sellers. (31:29)

The entrepreneurial spirit and desire to be self-sufficient leads many to Amazon. But that same mentality can be their downfall on such a wide-ranging platform. To wrap up the conversation, Saqib leaves us with sound advice.

A special thanks to Saqib for stopping by to chat! Be sure to check out Saqib’s website for more details on their offering and mission to expand Amazon to Pakistan. Check out the eCommerce by Enablers Facebook group.

Enjoy this episode? Like and subscribe to our YouTube channel for Amazon seller updates and conversations with Amazon’s brightest minds.

Lastly, drop your email below to receive the latest tips, tricks, and news about selling on Amazon!

Enroll in our FREE course on how to become an Amazon seller!

What It’s Like Starting an Amazon Business in 2020 & 2021 With Kae Peterson

Is it too late to start an Amazon business in 2021? Not at all! We spoke with Kae Peterson, an Amazon seller who launched her brand in the past year.

On Follow The Data, we aim to cover the hottest topics for Amazon sellers. In this episode, we tackle the most common question we receive from those interested in starting their own online business: Is it too late to get in the game?

The short answer: absolutely NOT.

In this episode, host Cam Yoder chats with Kae Peterson, who knows firsthand that starting an Amazon business remains an excellent opportunity for entrepreneurs.

Kae’s background and experience in the volatile entertainment industry pushed her to search for more consistent, reliable income sources.

With an entrepreneurial spirit and appetite for learning, Kae charted her own path into Amazon and eCommerce. After successfully launching her first product in the past year, she’s looking to expand her business and online presence in the new year.

Be sure to check out the video below to learn how Kae made her leap into the Amazon marketplace, her recommended best practices for starting from scratch, and some inspirational gems to get your mind right!

HIGHLIGHTS:

INTRO (0:06)

Get to know Kae! Although a newbie on Amazon, she’s no rookie in entrepreneurship. Dating back to 2013, she’s ran a brick-and-mortar store and experienced success with music and modeling. So what led her to selling on Amazon?

It’s one thing to consider the prospect of selling on Amazon, it’s another to go through the stages before selling your first product. Kae walks us through the evolutions of her learning experience. (5:26)

Even with Kae’s unique background, her learning experience is a fairly common one. Once you’ve decided to start your online business, it’s all about finding a process that works for you. Finding experts you can learn from and accurate, reliable tools to discover and validate clever product ideas makes all the difference.

Additionally, Kae includes one crucial mistake that taught her a vital lesson with the product-finding process.

The cost of starting up an Amazon business can be a major deterrent. But Kae didn’t let the start-up costs slow her down, funding her own business in a creative way. (9:56)

Faced with the issue of not having the funds to confidently start her Amazon business, Kae took matters into her own hands. While programs such as Amazon Lending exist, the prospect of taking out a loan can be scary. So Kae started her own business as a way to fund her bigger vision, becoming a perfect example of how you can grind your way to make your dreams reachable.

Possessing a big picture strategy and learning from past experience are crucial for growth. What’s in Kae’s roadmap for finding products in 2021? (14:15)

There’s no greater teacher than experience. With her first Amazon product experience down, Kae offers insight on the elements of a product idea that gained emphasis for future products.

You’ve started selling on Amazon, but what happens next? Kae outlines her goals for in regard expanding her brand after launching. (22:15)

Every seller jumps into Amazon with goals and a purpose that is driven from within. Those components can determine your path beyond your first product launch.

With so much emphasis on making sure your first product is a home run, it can be easy to feel lost once the product is launched. Listen as Kae breaks down her long-term goals and what’s in-store for her brand for the year ahead.

Certainly, 2020 presented a unique experience for Amazon sellers. What issues are on the radar for sellers in the new year? (27:34)

After the past year, we could all use a dose of optimism. 2020 showed that challenges, both foreseeable and unforeseeable, will continue to persist and the successful will take them as they come and persevere.

A special thanks to Kae Peterson for hopping on the show and sharing her experience starting an Amazon business to this point. Make sure to give her a follow in the links provided below to follow her on her Amazon journey!

Connect with Kae:
Instagram @Iamwankaego & @GetThatCoinSisCEO

🎧 Head here to stay plugged into the podcast: https://virallaun.ch/FTD

⚙️ Try the full suite of Viral Launch tools for FREE: http://virallaun.ch/FreeTrial

And as always, be sure to drop your email in the box below to receive the latest on Amazon!

Start an Amazon FBA Business or Buy an Existing One?

One of the most challenging aspects of starting a business is getting your product in front of the right audience. As Amazon owns about 49 percent of the U.S. e-commerce share, it makes sense to start an Amazon FBA business to sell your e-commerce products as your target market already prefers shopping there. 

Additionally, Amazon makes it easy for sellers to list, sell, and ship their products through their Fulfillment By Amazon (FBA) program. Here’s everything you need to know about an Amazon FBA business and whether you should start an Amazon FBA business or purchase an existing one.

What is FBA?

Some 73 percent of Amazon sellers in the U.S. use the FBA program, making it one of the most popular e-commerce sales options. Amazon FBA sellers receive immediate access to Amazon Prime customers, which can significantly impact the bottom line of the business. On average, Amazon Prime customers spend $1,400 per year on Amazon, whereas standard Amazon customers only spend $600 per year. 

The other reason why FBA businesses are popular is that it’s convenient. 

With an Amazon FBA business, you don’t have to ship, package, or store any goods yourself. Instead, you pay a small fee, and Amazon employees handle all of this for you.

Shipping fees are up to $5.26 for large items (items up to 21 pounds), and they also have oversized pricing options for much larger items. 

Storage fees are also reasonable at $0.69 per cubic foot for standard items January through September (October through December fees may be higher to accommodate increased demand during holidays).

You’ll also have to decide whether you want to be a professional seller or an individual seller. You aren’t required to have a professional seller account to have an Amazon FBA business, though it may be cheaper depending on how many items you plan to sell. A professional seller account pays a flat rate of $39.99 per month, whereas an individual account pays $0.99 per item.

Therefore, if you plan to sell more than 40 items per month, it’s likely more economical to purchase a professional seller account. 

So if you’re looking to own an Amazon FBA business, is it better to purchase an existing business or start one from scratch?

While there is no right or wrong answer, here are a few questions you should ask yourself to determine which is the best solution for your situation and goals:

Do You Have The Capital?

The first question you should ask yourself is if you have the means to purchase an existing business.

An Amazon FBA business usually sells for about two to three times its yearly net profit. In other words:

Annual Net Profit x Multiple (usually 2 or 3) = Valuation

Therefore, if you want to purchase a business that makes about $10,000 in annual net profit, you can expect to pay $20,000 – 30,000.

Unfortunately, if you don’t have any capital upfront, your only choice is to build one from scratch, which can still be quite profitable!

Is This a Long Term or Short Term Investment?

Another question you should ask yourself before getting started with an Amazon FBA business is how long you’re willing to invest in the project. 

If you’re willing to invest in this business for a few years, starting from scratch may offer you a more significant ROI. Getting started can be challenging as you’ll have to find your own suppliers and build reviews and a brand. Therefore, during those first several months, you may not make a dime, so you can’t expect to flip the store in a few months. 

On the other hand, if you are looking to purchase a store, sell for a few months, and then flip it quickly, an established store is a better option.

Building momentum in a brand new company takes time. Not all sellers are profitable in the first year of a new Amazon FBA business, making it difficult to flip for a reasonable price as your net profit may be zero or negative. 

However, once you pass a certain threshold of reviews and brand equity, exponential growth becomes possible.

What Skill Sets Do You Have? 

Some people entering the Amazon FBA world have a background in business or marketing. If this is the case, one of the best ways to decide whether you’ll purchase or start an FBA business is to play to your strengths.

For example, if you previously worked for an e-commerce store and understand how to grow it, you may perform better if you purchase an existing store and grow it.

However, suppose you worked at a startup company and understand how to be resourceful, play the long game, and hang in there during the first challenging year of zero profit. In that case, you might be more successful starting a business from scratch.

Building a business from scratch and taking a business from five figures to six or seven figures requires two very different skill sets, so play to your strengths.

What Kind of Risk Would You Rather Take?

Starting any business involves some risk. However, the type of risk you take differs based on whether you purchase an existing business or build one from scratch.

Building one from scratch requires zero capital risk upfront though your chances of becoming profitable are much lower.

If you purchase a business that is currently profitable, your chances of remaining profitable are much greater. However, if you suddenly run into problems with suppliers, knock-off items or pricing wars and your business falls apart, you’ll lose a larger investment.

Therefore, while the risks differ, both have risks. So would you rather gamble time or money? Here are your choices:

Buy a Business = Higher Probability of Profitability + Increase Capital Risk

Start a Business = Lower Probability of Profitability + Lower Capital Risk

What Is Your End Goal?

Ultimately, the right decision depends largely on your goals. Do you plan to grow businesses from scratch and then sell them? If that’s your end goal, starting a business from scratch is the best way to learn.

Above all, running an Amazon FBA business is similar to running any business. Regardless of whether you purchase one or start one from scratch, it requires a lot of time, dedication, and commitment, and you can’t give up on it after a few months. You’ll have to put out fires and appease angry customers, though the rewards of growing a thriving business are more than financial. Get started now, and commit yourself to keep going!

Ready to get in the game? Start your free trial with Viral Launch and gain access to the seller tools powering some of Amazon’s biggest sellers.

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