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Amazon FBA Product Launch Guide
From the idea to the launch
In this Amazon FBA Product Launch Guide, we’ll explain the steps you can expect to take if you want to get started with Amazon FBA. From business registration, to product research, to the actual launch. Lorenz from eBakery gives you an overview.
Business registration and registration
At the very beginning, we assume here in the example that we want to sell of course in Germany, that behaves relatively identically for America and other countries, however, you see already in the first topic it should be about trade, tax number and Co. Very important: if you want to sell on Amazon as a new seller, you need a business in any case, what kind of company you create is not so important. Most new salespeople, of course, take a sole proprietorship. You can also establish a limited liability company, UG, GbR, whatever you like, which of course makes the most sense in your situation. With this topic “legal form” quasi perhaps also always a little look extra or a tax advisor to pull. There are many ways you would have to find out at that moment what would be the best for you. It is important that you also have a tax number and a VAT ID. As soon as you want to store products at Amazon in Germany, you are obliged to have a sales tax and to enter it in your account. If there is no VAT ID, your account will not work with FBA. So remember, “okay, don’t sell or register on Amazon FBA without a sales tax ID”.
Amazon FBA Product Launch Guide - More Signups
Furthermore, it would be important that we think about it at the very beginning, if we want to sell private label, that is under our own brand, I would also ask you to register a trademark at the DPMA, the German Patent and Trademark Office. It is generally possible without a trademark, however it will be much easier in quite a few of the next steps once we have registered a trademark with the DPMA. I think the cost of a brand is currently so far 300 or 400 euros so in the frame. Processing time is relatively long, but Amazon now also accepts trademarks that are still in the application process. are, even if they have not yet been fully audited or fully processed. As a brand owner, we then have many extra features and life as an Amazon seller becomes a bit easier. Accordingly, register business, tax number, VAT number, register trademark at the DPMA, Word mark or word picture mark depending on what suits you better, EORI number that means for importing the goods please apply for EORI number at customs. It also costs nothing but it still takes the whole Setup.
Amazon FBA Product Launch Guide - The Basics
Next topic is Amazon FBA Basics. What that means works also means how Amazon operates as a market, you need to learn before you do anything else: Whatexactly is Amazon FBA? Whatdoes FBA mean? What does Amazon do for me? What should I do? Where is the convenience, advantages and disadvantages with the FBA program? Also the costs of course quite important that you deal with it and then when the FBA program is relatively clear and also understood, I usually recommend that you deal with how selling on Amazon works, means virtually: Why do some sellers sell a lot, while others do not sell so much? Why are some products shown very high up in the search and some further down? What are search terms? What are different categories? Advantage and disadvantage of the categories, etc. We need to understand why some sellers are successful and many others are not, so that we then don’t make these mistakes and have a pretty good plan for the future, which direction to go and what to avoid now above all.
Amazon Account Setup
Of course you need an Amazon account, which we get at Amazon Seller Central Germany. The can in itself in the registration does not cost, after that you need the professional seller account, which costs about 40 € per month plus VAT. This is required for Amazon FBA. Without this professional account, our warehouse is super small, we have no advertising opportunities, etc.. Means the free account from Amazon makes no sense for us, that must actually be the professional. At least as long as you want to sell more than two or three products a month. The nice thing about the account setup is that there are different steps that are always cached. Amazon pretty much tells you what documents you want or you want. My tip at this point would be to just make sure that the documents are all correct and that what you enter in the browser is actually present on the document one-to-one. Means ID data, trade numbers, VAT ID, bank data, everything like that must really be one to one, otherwise the employee may not release the account and you then have more and more problems in the registration.
Amazon FBA Product Launch Guide - The Product Research
Fourth topic: product research. If you are new sellers, the first big problem is always what do I sell, there are many roads leading to Rome. Our motto at eBakery is that we are pretty data-driven. That means my recommendation would be that we look for products that are interesting to us based on the data on Amazon. Means, for example, the turnover is in the framework where we can play, so this is not a product that makes millions in sales, because the market is too strong for us simply, but is also not a product that sells only once a day. Next are search terms. Very for us always quite nice if there are several search terms for a product, that is, several ways through which the product can be found. Furthermore, the search volume, that is, how many people are looking for this product in a certain framework should be, etc.. Then also the price of the product, weight, size, category, very many topics and criteria virtually to the product. Also on this, we can gladly advise and help at eBakery of course, if there are questions: how do I find a product? Or, can you guys maybe find a product for me?
The analysis
Next is the analysis. In the research we sort of find ideas based on our criteria, in the analysis we now check: okay are these ideas good or bad? So that means do we have a chance to play here? Do we have a good chance of winning? Will this be a rather risky product? What are the chances of profit and loss? Turnover? And so on and so forth. The analysis is actually the most important thing. In the research we simply find ideas, that is still relatively easy. In the analysis it becomes a bit more difficult, because we have to look at a lot of data, especially related to the product, the market, the competition, search terms, trends, a lot of data that you then have to look at and also understand, and then draw conclusions: okay is this good or not?
Amazon FBA Product Launch Guide - Request Samples
I would recommend you if you are now a few thousand euros or more in hand to buy products, that we order samples to see, of course: Is the quality good? Furthermore, we can then also look directly that we might also create the photos of the products in the later course with these samples. Or we can look at “Okay, quality is good but maybe we can come up with some ideas for changes, suggestions for improvements” anything like that, and for you of course it’s nice when you launch the first product, or second, third, fourth. If one has the home again itself around then yes that simply to have and not only to sell, but also to own.
The production
Production can sometimes take zero days because the distributor has the whole or the producer has it in stock, can also sometimes take 4, 6 and 8 weeks. So there is not so much to say in production, the manufactures produce the product. Here it’s just important that we know the time frame, that we know what are the payment terms, what do we pay before and after production so we can estimate that. Much impact, so much really interventions on this issue we do not have now. The distributors and the producers have their pace we can hardly influence that, except maybe we pay more and there again you have to estimate is it worth it.
Amazon FBA Product Launch Guide - Where does the shipping go?
Next topic: Shipping. Many new sellers think they have to send all the merchandise to their home at the beginning, I did the same 6 years ago. Please do not do that! As a rule, that’s not efficient, that’s also not scalable, and I’d like to spare you from somehow sitting at home in the garage in the evening and labeling thousands of products. It’s not efficient, not at all. Means we really want to send directly from the Chinese companies to Germany in the Amazon warehouse, so that the whole thing runs as passively and efficiently for us as possible. The only thing where we might want products home is if we might have structure that we want to repackage ourselves at home or, that we’re taking pictures or something. The rest really means straight from the factory to the Amazon warehouse. With this topic then also different tax topics come again with purely, and a little more complicated relations who makes what in the dispatch, thus what makes the dealer? What do we do? What does Amazon do? We can make a video about this again as well. Generally quite important, but it usually makes no sense to send the goods to your home. Very rarely does this make sense, unless you have a super small order, then maybe.
What does content mean?
Next topic: Content. What do I mean by that? Texts for the product listing. Images for the product listing. Brand description, that is, if you have registered a brand, the normal description with text comes away and we replace it with images and texts that look a bit nicer and are more efficient in sales. Here it is important to know most sellers do not do it themselves. Most sellers don’t write their own copy or take their own photos. But it is important to understand how do good images look, how do good texts look, what is important. Especially with the texts, it’s not just that they sound good, but also that the SEO, that is Search Engine Optimization – means the keywords, that these are integrated in a way that makes sense and also has a positive effect on selling. To do this, you just need to know how the whole thing is structured approximately. You don’t have to be able to do it yourself, in my opinion.
The marketing
Topic 11: Marketing. Sadly, this is now the biggest issue of all. It used to be the case with Amazon that you could do well without very strong marketing skills and without spending a lot of money. In the meantime, I think this is rather difficult. Anyway, we see that very rarely means the marketing campaigns, the advertising in the Amazon account is a huge issue. In my opinion, the most important current and also what you can then influence the projects the most, both positively and negatively we can push with good marketing our product, generate visibility, scale, generate profits, but can burn quite a lot of money with bad marketing. Means most sellers have a good idea of how it works, but often do not switch it themselves. Usually what we see is that we actually do consultation with the new salesperson to explain the key moves of marketing so that there is a good overview. But as an agency, we would continue to optimize and manage the campaigns, and push the products and projects to where the whole thing is well worthwhile. New sellers simply have a very big risk that if you run the campaigns yourself quite a lot of money will be burned because there is no good campaign structure in place in most cases. Furthermore, data comes in through the campaigns and new salespeople don’t know exactly how to evaluate it, how to read it, how to act based on this data. That comes with time. Many sellers themselves also place the advertising later. Initially, however, I would not recommend it, simply because you can really give a lot of money to Amazon and you do not get so much out yourself unfortunately yes therefore there really pay very strong attention.
The final launch
The twelfth part is then the launch. Means we have the product in stock, we also have the campaigns on now, we’ve collected maybe two, three reviews already, here we go. And then, of course, you have to look at how sellers get in, how do I process the advertising campaigns, what do I have to pay attention to, and how can we scale the whole thing, generate rankings on Amazon, and then also generate our profits. Briefly in conclusion.
Amazon FBA Product Launch Guide - Summary
If I had to circle this now here which topics are, because really very important. Once the basics, means you need to understand how do keywords work, ranking on Amazon, what categories are good and bad for me, how do I read the data – that’s important. Product research and analysis are super important. You must have a good product that is simply the cornerstone of your project, and the product is let’s say poorly chosen, based on the data, the sale will also not be easy or easier, let’s put it that way. Next would be also sourcing, means you need to buy the products in a good quality and at the good price. If you buy much too expensive or in a much too poor quality, the sale will also be very difficult. We need a little margin, we also need good quality, we don’t want to have returns. Pay attention to sourcing and then the last two things: Content and marketing are extremely important. If the images and texts are not good, the advertising cannot do well. Means the basis for PPC marketing is the content, but it is usually edited once and then it is good, unless you do not do it so efficiently and have to rework. Normal case, but once decent images, decent texts and then the very biggest topic really marketing, so PPC campaigns in the account that’s a topic where you can work on it every day. All other themes are often one-time and then you don’t need again until the next launch. Marketing daily, weekly a topic and also what really determines the sale. So, that’s kind of the roadmap. These are the individual steps. I could talk about each step for another two or three hours, but I won’t on today’s video. It will be in the following videos next weeks on some of this again dealt with in detail, and then also I say times these topics explained in a bit more detail.
Amazon FBA Agency eBakery
If you are still looking for the right product and want experts to help you with the analysis, then feel free to check out our Amazon FBA Agency page for our services or make an appointment with our experts directly below.
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