3 Things To Know Before Starting an Amazon FBA Business In 2021
Entrepreneurs rave about the business and its sales opportunities that would otherwise be out of reach with other e-commerce sites
Starting an online business in the world of e-commerce might be seen as risky to some considering it’s one of the fastest-growing markets this world has seen in decades, meaning it can be hard to stay up to date with its constant changes. Just because there's a lot of competition, however, it doesn’t mean we’re destined to fail. There's always room for more winners, as long as you understand what you’re getting yourself into first.
I first came across Amazon FBA (Fulfilment By Amazon) businesses a year ago when a couple of close friends were running their businesses out of Bali, Indonesia. Since then I’ve come across a handful of other entrepreneurs who rave about the business and its sales opportunities that would otherwise be out of reach with other e-commerce sites, including Benjamin Tan, the founder of AMZ Family. The more I learn about this business, the more it seems like an investment worth considering.
Amazon FBA offers its sellers a way to get their products in front of customers without expending resources in renting out space, and the hassle of inventory storage and shipping.
According to Statista, 73 per cent of Amazon.com sellers in the US were found to utilize FBA.
Like with any business, however, there are certain aspects we must learn and consider before starting in order to avoid costly and unnecessary mistakes.
Benjamin Tan taught me 3 things to know before starting an Amazon FBA business in 2021. I’m open to his advice as he learned from the best in the industry and in his first full year in 2017, his company sold over $1,000,000 of products on Amazon and as of today his company has now reached sales in the multiple millions.
Work on the business, not in the business
Most entrepreneurs when starting out don't realize that there is a major difference between working ‘on’ the business and ‘in’ the business.
Every time we find ourselves working on tasks that can be outsourced or delegated, we must ask ourselves if that time could be better spent planning and strategizing towards the bigger picture. For example, when it comes to running an Amazon FBA business, your time can be better spent learning how to rank higher in the search, how to use keyword tools effectively, treating customers as a priority, and understanding the competition.
As Benjamin Tan shares, “Value your time. Only do what you can do and outsource/delegate the rest. Prioritization is essential to any business success. It is your competitive advantage that will lay the foundation for everything, including your sales plan and marketing strategy”.
If you're not careful, your time can be spent doing administrative tasks such as managing finances which will take away your precious hours needed for developing new strategies and ideas.
Seek guidance and mentorship
Like many, in my early days of entrepreneurship I was foolishly under the impression I could create a successful, thriving business from consuming free courses or content on the Internet alone without taking into consideration my personal growth and development. It took me a few failures to learn that when one area of my life was lacking or depleted, it heavily influenced all other areas.
When it comes to starting your own Amazon FBA business, this goes without saying: when seeking out guidance and mentorship, find someone who will not just teach you the basic tactics of how to run an Amazon FBA business, but also timeless principles and how to excel in all areas in life. Because how you do anything is how you do everything. Your health, family, relationships, finance, fitness and wealth are all intertwined and have an impact on one another.
What I admire about AMZ Family is that they train aspiring Amazon FBA business owners not just the step by step processes and tactics, but also how to think. Mindset is a key factor in any business and is a strong determination of whether you succeed or not.
Be aware of these common mistakes
Just because you start an Amazon FBA business, it doesn’t mean you are guaranteed success. The same goes for any business. Common mistakes are often overlooked, however if we take the time to learn what the mistakes are before jumping in head first we can avoid unnecessary costs and unwanted consequences.
5 common mistakes from Amazon FBA sellers are:
- Sellers break rules or violate Amazon’s Terms of Service
- Over ordering stock
- Having multiple seller accounts
- Not leveraging or asking for customer reviews
- Underestimating the competition
There's no shortage of obstacles faced by entrepreneurs who choose to launch their own business venture as an Amazon FBA seller, but there are steps one can take to prevent these pitfalls before it’s too late. One thing many of these aspiring entrepreneurs don't think about until after diving headfirst into entrepreneurship is to learn from the mistakes, failures and successes from those before us, that way we are better prepared for what lies ahead in the highly lucrative world of e-commerce.