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FBM Money

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77 views31 pages

FBM Money

Uploaded by

6w8x8ytgbq
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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AVANTACHIEF

ROADMAP
TO SUCCESS
With

FBA/FBM
Introduction to Amazon FBA/FBM .............................04
CONTENTS
Amazon Best 4 Business Models .................................05

Setting up your Amazon Seller Account ...................08

Materials And Software that is needed to be


successful as a seller ................................................10

How To Get Ungated With Popular Brands ................12

How To Start Sourcing For Products ........................15

How to List Products For Your Inventory ................20

Sending your Shipment To Amazon .............................25

Payments .......................................................................28

Amazon Account Health ...............................................29


Dear Reader
Thank you for choosing my Amazon FBA/FBM eBook. Your support
means everything to me. I am excited to be part of your journey to
mastering Amazon Fulfillment. Let us make your Amazon business
thrive together!

First, my name is Darrelle Howard. I am a 24-year-old entrepreneur


from Cleveland, OH. I served 5 years in the US ARMY and was
honorably discharged August 2023. A few business ventures I
decided to take part in were creating my own clothing brand AVA
and business consulting. January 2024, I decided I wanted to
expand my income and start Amazon FBA. Initially I started
watching influencers on Instagram and YouTube going around
scanning items in the store, buying for low then selling for high on
Amazon. I realized this was something I could do full-time because
I love shopping anyway. I purchased my first product and about a
week later once I shipped to Amazon later my account balance
goes from $0 to 300. At this point I knew it was time to put this train
in motion. Ever since then It has been a wash & repeat cycle of
profit.

So, let's get into it!

03
INTRODUCTION TO
AMAZON FBA/FBM
Ever heard of Amazon FBA and FBM? They're
pretty cool for people selling stuff online.
Here is the scoop: With FBA, you send your
products to Amazon, and they handle the
storage, packing, shipping, and customer
service. It's like having a helper doing all the
hard work so you can focus on selling. On the
flip side, FBM means you handle everything
yourself—you keep your products, pack them,
and send them out when someone buys.

Think of FBA as having a silent partner taking


care of things, while FBM is like being
hands-on in your business.

FBA is super easy—like having a magic


shipping helper. FBM is more about doing it
your way—you're in charge.

In this eBook, we'll explore both FBA and FBM,


helping you decide which one suits you best.
It's all about finding what works for you in the
world of selling on Amazon.

04
Amazon Best 4
Business Models

Retail Arbitrage: Sellers purchase


products from retail stores or online
marketplaces at a lower price and
resell them on Amazon for a profit.
Retail arbitrage requires keen market
insight and the ability to identify
undervalued products with potential Online Arbitrage: Sellers search for
for resale. products on different online
platforms, including retail websites,
marketplaces, and clearance
sections, to find items available at
lower prices than their current
selling prices on Amazon.

Wholesale: Sellers partner with


wholesale suppliers or distributors
to purchase products in bulk at
discounted rates and resell them on
Amazon. This model offers
scalability and the ability to sell Private Labeling: Sellers source
well-known brands with established generic or unbranded products from
demand. manufacturers, customize them with
their own branding, and sell them
under their private label on Amazon.
This model offers control over
branding and pricing and can lead to
higher profit margins.

05
PROS & CONS FOR EA BUSINESS MODEL

Retail Arbitrage Online Arbitrage


PROS: PROS:

In Store sourcing Can be done from anywhere with an


internet connection.
Minimal upfront capital required
Wide range of products available online.
Wide range of products available
Potential to expand sales volume over
Potential for significant profits on
time.
discounted items.
CONS:
CONS:

Growing number of sellers in the market.


Requires significant time investment
Prices can change rapidly, impacting
Availability of discounted products may profitability.
be limited.
Must comply with platform policies to
Managing inventory and transportation avoid penalties.
can be complex.

06
Wholesale Private Label
PROS: PROS:

Access to large quantities of products at Ability to create and control your own
discounted prices. brand identity
Potential to scale business quickly with Potential for higher profits compared to
consistent product supply. reselling other brands.
Opportunities to establish long-term Building brand loyalty and repeat
partnerships with suppliers. purchases from customers.

CONS: CONS:

Significant upfront capital required for Significant investment required for


bulk purchases. product development, branding, and
marketing.
Competition from other wholesalers and
retailers. Challenges in building brand awareness
and competing with established brands.
Some suppliers may have minimum
order quantities. Requires time and resources to establish
brand recognition and customer trust.

For arbitrage a LLC is not required but highly recommended.


Private label you MUST form a LLC because you will be
establishing your own brand
Wholesale you will need to show your LLC, resellers certificate
and your EIN paperwork

07
Setting Up Your
Amazon Account
First things first you will want to start the sign-up process by going to the Amazon Seller
Central Website

https://sellercentral.amazon.com

Amazon offers two types of selling plans:

Individual and Professional.

Select the plan that best suits your business needs.

INDIVIDUAL: With the Individual plan, sellers pay a per-item fee for each product sold.

This fee is typically $0.99 per item, although fees may vary by category. You're also only
limited to 40 units per month.

PROFESSIONAL: With the Professional plan, sellers pay a flat monthly subscription fee of
$39.99 regardless of the number of items sold. However, sellers still incur other fees, such as
referral fees and fulfillment fees.

08
WHAT WILL BE NEEDED FROM YOU TO START
Enter your email address and create a password
for your Amazon seller account.

Enter your business information (IF APPLICABLE)

Amazon may require you to verify your identity by


providing additional information, such as your
social security number or tax ID number.

Set up your payment method by providing bank


account details for depositing your sales
proceeds

As you sign up for an account, you'll start by giving basic info like your name, address, phone,
and email. Next, you'll name your business store, It comes with rules but for the most part
AMZ lets you choose any name. If your business isn't registered officially, choose "Individual
Seller." Then, pick your marketplaces (like the US) and enter your billing details. Finally, there
will be a few questions about your business.

If you're selling brand-name products with existing barcodes, reply with YES when asked
about having universal product codes (UPCs) for your products. However, if you're in Private
Label and acquiring non-branded items in bulk from overseas, answer NO. In the case of
Private Label, you'll have to purchase UPCs for each product from GS1 or another website
that sells barcodes.

09
Materials and Software that is
needed to be successful as a seller
Thermal Label Printer (4x6 & 2x1 labels)
Required to print out FNSKU & Shipping Labels

Polybags W/Suffocation Warning


Packaging various items securely

4x6 Shipping Thermal Labels

Obtain for free through UPS Business Account or through Amazon

2x1 FNSKU Thermal Labels


Needed to label your products

Shipping Scale
Determines shipping cost of products

Label Holder
Securely holds labels in position, label holders facilitate smooth and consistent printing,

Shipping Tape
Secure packages

Fragile Labels
Alert handlers the delicate nature of the packages

Boxes
Get them for free at any local stores or USPS as long as they are under 25 x 25

Label Remover
Used to remove store labels from products

10
SOFTWARES THAT I HIGHLY RECOMMEND YOU GET

SELLERAMP: Sourcing tool that


Track key performance metrics
such as sales growth, profit
margins, and customer
satisfaction, enabling continuous
improvement and goal
achievement.

KEEPA: Tracks price history of


products on AMAZON. Identify trends
and price fluctuations over time.

IP ALERTS BY SELLER
ASSISTANT: Plays a
crucial role in enhancing
account security,
preventing unauthorized
access, and maintain
trust with customers.

11
How To Get
Ungated With
Popular Brands
Most new sellers can't get past the ungating process and end up giving on amazon when in
reality it is so simple! Here is how I get ungated with brands.

Step 1: Identify the specific brand or category you aim to enter for selling and as certain
whether it requires approval. For instance, if you intend to gain access to the "Grocery &
Gourmet" category, seek out a product within this category.

Step 2: Verify that the chosen product is actively selling on Amazon with an active listing.
Profitability is not a prerequisite at this stage; the aim is solely to facilitate

Step 3: Locate wholesalers offering the selected product. Purchase from a wholesaler or
distributor that issues invoices, which are essential for Amazon's approval process. Notable
wholesalers include Champs, Target, Dick’s Sporting Goods, Soccer.com, Frontier Wholesale.

**ENSURE IT SAYS INVOICE**

12
Step 4: Order 10 units of the product and
arrange for them to be delivered to your
home address, ensuring it matches the
address associated with your Amazon
selling account. Make sure that it is not a
store receipt because AMAZON will not
accept it.

Step 5: Upon receiving both the invoice


and 10 units, capture a photograph of the
contents and invoice.

Step 6: Copy the ASIN (Amazon Standard


Identification Number) of the product and
navigate to Amazon Seller Central. Within
the Catalog section, Click "Add Products,"
input the ASIN, and choose "New > Apply
to Sell.

Step 7: Choose the option that requires "At least 1 purchase invoice for products from a
manufacturer or distributor." Proceed to upload your pictures and complete all necessary
fields as per the requirements then submit your application.

Step 8: Amazon will review your application within 3 days but sometimes will approve or
reject on the spot. If you get denied review the application and reapply.

13
14
How To Start
Sourcing For
Products
SELLERAMP is one of the best apps to use for when your are sourcing for products. It offers
Amazon sellers a powerful tool for increasing visibility, driving sales, and maximizing their
advertising ROI on the platform.

Once you've found a product on Seller Amp, make sure you're allowed to sell it. The software
will tell you if you're already approved or if you need to request permission. If you can
manually get permission, you'll find the option in the alerts section. Clicking "Manual Ungate"
will take you to Seller Central, where you can apply to sell the item and see if you can get
approved automatically.

Pay attention to any alerts about hazardous or dangerous items. If the product is in that
category, it is best to avoid it because you might need to go through a separate application
process and waiting list.

Make sure to check if the product is meltable or not, if it is then you would want FBM because
that product may not do well in Amazon fulfillment centers.

15
Most importantly make sure that AMAZON or the BRAND is not on the listing for the product.
The reason being is because AMZ always sells at the lowest price and has a greater chance
of winning the buy box feature.

Once you get to list products you will notice the “BUY BOX” this is the primary purchasing
option displayed on product pages, where one seller is chosen by Amazon as the default
option for customers to buy from. Try to obtain the buy box every chance you get.

When you are seeking a product make sure the Best Seller Rank (BSR) is under 100k which
indicates the performance of the product.

In the Est. Sales panel, prioritize products with over 100+ monthly sales. However, don't
dismiss highly profitable products with around 50 monthly sales. Evaluate the offers panel on
Seller Amp to gauge competition.

It is essential to verify if the product is included in a variation listing offering multiple sizes,
flavors, packs, or colors. While Seller Amp's Est. Sales might display total monthly sales for
the entire variation, utilize Keepa software in the subsequent step to calculate the proportion
of sales attributed to the particular variation you intend to sell.

16
Utilize free IP Alerts by Seller Assistant or Seller Amp to check for any intellectual property
(IP) complaint alerts. If you receive an IP alert, it's crucial to investigate further.

Set prices to ensure a minimum $3 profit per unit and achieve an ROI of 25-30% or higher.
This strategy prioritizes volume sales for increased profitability. Check below for examples of
profitable products.

17
HOW TO READ A KEEPA GRAPH
When using Keepa, watch for price fluctuations: a rapid rise followed by a fall signals a
drop, while stable lines indicate price stability.

Focus on the pink line for Amazon Buy Box price stability. Aim for a green sales rank
line consistently under 100K.

Check "Buy Box Statistics" for seller competition and adjust pricing strategy
accordingly. Sellers with percentages under 50% are preferable, as a seller winning the Buy Box
99% of the time limits your chances.

Explore the variations panel if the item has multiple sizes, colors, or products in the same listing. To determine your
specific product's monthly sales, locate it in the variations panel, and check the Reviews/Ratings section. The percentage
of ratings compared to the total Est. Sales number from Seller Amp provides a more accurate estimate of your product's
monthly sales.

A GOOD GRAPH

A BAD GRAPH

18
CHECKLIST YOU SHOULD
KEEP IN MIND FOR
SOURCING PRODUCTS
Ungating: Confirm if you're ungated for this product.

Hazmat or Dangerous Goods: Check if the product poses hazmat or dangerous goods
concerns.

Meltable: Determine if the item is susceptible to melting.

Amazon/Brand Presence: Verify if Amazon or the brand is currently selling under this
listing.

Best Sellers Rank (BSR): Ensure the Best Sellers Rank is below 100,000.

Monthly Sales: Assess the monthly sales volume.

FBA Sellers: Confirm the presence of at least 2-3 FBA sellers.

Variation Listing: For variation listings, check the number of ratings to refine estimated
sales.

Sellers and Stock: Evaluate the number of sellers and their stock levels.

IP Issues: Utilize IP Alerts software and review recent offer count graphs for any
intellectual property concerns.

Profit and ROI: Ensure a profit margin exceeding $2 and ROI exceeding 25%.

Keepa Chart: Examine the Keepa chart for stability, with focus on the pink line.

Buy Box Statistics: Verify Buy Box Statistics to ensure they're under 50% across all
sellers.

19
How To List
Products For Your
Inventory
To include a product in your Amazon FBA
inventory, access your Seller Account, click on
the three lines located in the upper left corner,
and opt for "Catalog."

Locate the "Add Products" button, then insert


the ASIN of the listing you intend to sell. Select
"New" and "Sell this Product" once you've
chosen the condition.

On the subsequent page, keep the Seller SKU


field blank, enter your suggested sale price, and
specify the product's condition. Under
"Fulfillment Channel," designate "Amazon" for
FBA.

Proceed by clicking "Save and Finish." You have


the option to either "List as FBA" or "List as FBA
and Send to Amazon" if you are prepared for
shipping. Allow approximately 15 minutes for it
to appear in your inventory, initially displaying
as (Inactive; Out of Stock) until your products
are received and transitioned to active status.

20
How To Print Out Your FNSKU LABELS
Log in to Seller Central.

Navigate to "Inventory" and select "Manage FBA Inventory."

Choose the product and click "Print item labels."

Select "FNSKU" as label type and enter quantity.

Click "Print labels" and affix them to products.

Input the quantity & select thermal printing. Set the width to 58mm and height to
32mm.

Verify labels before shipment preparation.

Print & Apply Labels, affix them to your items, by covering the old barcode or placing
them on the outside of polybag.

21
Prep Your Products
Clear Label Placement: Verify that FNSKU labels are affixed clearly, positioned
accurately, and securely attached to each item.

Polybagging Compliance: Package products in polybags if they are sold in sets,


contain small or loose pieces, or as dictated by Amazon's guidelines.

Bundling Preparation: When bundling products, ensure they are appropriately


wrapped and labeled as a set on the exterior of the polybag.

Protection for Fragile Items: Utilize bubble wrap or padding to provide sufficient
protection for fragile items, reducing the risk of damage during transit.

Box Selection: Opt for sturdy shipping boxes capable of securely containing your
products. Boxes smaller than 25 x 25 inches are recommended.

22
23
24
Sending Your
Shipment To AMAZON
Proceed to "Manage FBA Shipments":

After labeling and packaging, head to the "Inventory" section and choose "Manage FBA
Shipments." Then, initiate a "New Shipment." Select Products and Quantity:

Pick the items intended for shipment, specify box quantities, and locate products using either
names or SKUs.

Adhere to Amazon's guidelines for shipment preparation, including considerations for box
weight, size, and preferred shipping method. Address Shipping Errors:

Should a yellow shipping error arise post dimension entry, proceed by clicking "continue."
Enter Shipping Date and Select Courier:

Indicate your desired "Ship Date" for dispatching the shipment.

Opt for a shipping service provider (e.g., UPS or FedEx) for transit to the designated Amazon
fulfillment center. Review Cost and Payment:

Review the shipment cost, where Amazon will utilize your account balance. Insufficient funds
may result in a negative account balance. Generate and Apply Shipping Labels:

Amazon will generate shipping labels; ensure adjustment to a 4 x 6-inch paper size.
Print two labels per box and affix them on the exterior side of the box.

Drop Off at Courier:

Deliver the boxes to the chosen courier, who will manage transportation to Amazon's
warehouse. Shipment Completion:

Your shipment process is now concluded!

25
26
How To Track Your Shipments
1. Obtain tracking details from the carrier post box
drop-off, allowing you to monitor the progress of your
shipment and estimate its arrival at the fulfillment center.

2. Track Shipments via Seller Central:Access Seller


Central, navigate to the menu icon, then select "Inventory"
and "Shipments" to receive updates on the status of your
shipment, including confirmation of Amazon receiving
your items.

3. Active Inventory on Amazon: Upon Amazon's scanning


of your units, they transition to "Active" status within your
inventory, enabling your items to be available for sale on
the Amazon marketplace.

Follow these guidelines to effectively ship your products


to Amazon's fulfillment centers and monitor the process
for a successful outcome.

27
Payments
Payment Frequency: Amazon vendors are paid every two weeks, receiving payments
bi-weekly.

Instant Payout Option: For individuals seeking faster access to funds, there is an instant
payout option, albeit with a nominal fee. However, it's advisable to opt for the standard
bi-weekly payout.

Checking Fees and Payout Date: To review fees and forthcoming payout information,
navigate to the "Payments" section by selecting the upper three lines icon on the homepage.

28
Amazon Reserve &
Account Health
Resemblance to a Savings Account:

Amazon's account level reserve operates similarly to a savings account, allocating a portion
of your funds for potential contingencies.

How it Works:

Amazon sets aside a small portion of your payments into a reserve fund.

This fund serves to cover expenses related to product returns or other issues.

In the event of a customer return, Amazon manages the refund without necessitating
immediate payment from you.

Refund Process:

As your account builds a positive selling history, Amazon gradually refunds the reserved
funds in subsequent bi-weekly payments.

Account Health

Ensuring compliance with Amazon's regulations is crucial for maintaining your status as a
seller on the platform. Failure to adhere to these rules can result in warnings, temporary
account suspension, or even permanent deletion. To monitor your performance effectively,
navigate to the "Account Health" page in Seller Central, found under the Performance Menu.

Amazon closely monitors various aspects of sellers' performance to ensure a positive


customer experience. This includes tracking the Order Defect Rate, negative reviews, A-to-Z
Guarantee Claims, Policy Violations, Intellectual Property Complaints, response times to
customer messages, and overall selling history. Maintaining a healthy account is essential
for smoother operations and building trust with customers. Regularly checking account
health is recommended to sustain success on the platform.

29
Whether you're using Fulfillment by Amazon (FBA) or Fulfillment by
Merchant (FBM), mastering how to sell on Amazon can transform
your business. These platforms offer access to millions of customers,
simplify operations, and help you grow. Just keep adapting,
improving, and making your customers happy. With dedication and
smart choices, selling on Amazon can lead to big success. So, don't
hesitate - dive in, explore, and let Amazon FBA or FBM take your
business to the next level!

Thank you! If you ever have questions or need assistance along your
Amazon selling journey, don't hesitate to reach out to me on
Instagram at @avantachief. Your success in your Amazon selling
journey means a lot to me, and I'm here to help in any way I can.
Wishing you all the best as you strive for greatness, and I'll be
cheering you on every step of the way!

30
THANK YOU

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