How to Sell on Amazon in 2025: Top FAQs Answered for Beginners

How to Sell on Amazon in 2025: Top FAQs Answered for Beginners Unknown Speaker: Thank you for watching. Speaker 1: What's up guys, welcome back to the channel. If you're new here, my name's Andre and I've been teaming up with AMZScout over the past two years, making comprehensive videos just like this one here to help elevate your Amazon business. Between myself and AMZScout, we receive a lot of questions about how to optimize your Amazon business and we thought it'd be a good time to just sit down, answer some of your questions and give you some of those specific details to really again, help elevate your business. We're going to get started. I'm actually just going to read the questions right from my phone and then give you some detailed answers. So if you're at any sticking points or parts of the process that you feel you need some help from, hopefully these questions will give you some detailed answers. Our first question is actually, are there still profitable opportunities for new sellers on Amazon in 2025? I think this is a great question and every single year it's a question that new sellers want to ask just because they don't want to invest in something that may not have a great return. And the reality of the situation is, is that there's a new products and niches coming to the Amazon platform every single day, which gives new sellers or even experienced sellers like myself, new opportunities to continue selling on the platform. What has changed though is the selling methods to be successful on Amazon. I think a lot of people may try and do the same thing that worked, let's just say five years ago, and you can't really do that. You have to be on the cutting edge of product research and how to stand out from your competition. Our next question is, is what is the highest amount you ever earned in a single day, week or month on Amazon? Again, another good question and a question that a lot of Amazon sellers want to know is like, what are the opportunities look like if I were to step into this endeavor? And it really is specific. Um, for me, the most I've ever made in a month, this is obviously profit. This isn't just a, you know, gross sales looks a lot different from net profit. A net profit. The most I've ever made was a little over $12,000, like 12,300. From my Amazon business and that looks like a lot, a lot, a lot of hard work and dedication, a lot of sales, a lot of negotiation with my suppliers in order to get my product cost down to that profitable mark. And a lot of work on my PPC campaigns in order to optimize them. So I'm spending less on ads, but still attracting, you know, a healthy amount of customers to generate that much in sales. All right. Our next question is, is how much time did it take you to reach a steady income? This is a great question because I think some folks may think that the steady income is something that happens right away. And I think there's always a period of selling on Amazon that really is like a learning process as well as building some equity or building capital. And what you're doing, right? And for a while I would make money and not even pull it out. I would just kind of reinvest it back into the business. Uh, so for me, how long did it take? I would say it took me about eight months before I was actually seeing a steady source of income and that income really was starting off small. Maybe I was just paying myself like a thousand dollars a month. It didn't happen overnight where I was able to make $12,000 in a month and pay myself that $12,000. It took a while to scale to that point, at least a year and a half's time, but about eight months until I was actually paying myself. from those products being sold. Our next question is, how can I sell on Amazon? The different methods, I'm assuming this question is really referring to. And honestly, there's quite a few different methods. There's retail arbitrage, there's wholesaling, there's dropshipping and there's private label. For me, my favorite model of selling on Amazon is Private Label and that's really where you take a product that has a high level of demand, lower levels of competition that already exists on the Amazon platform, you find and source that product and then you put a different brand on that product. You create a completely new brand that doesn't exist. This really differs from, let's say, retail arbitrage where you would go to different stores, maybe a TJ Maxx or a Walmart, And find a product that has high sales volume, that already has an existing brand. Buy that brand and then list it on Amazon, which again is even different from wholesaling, where you would go to a distributor who is making the product, you would buy it in a larger quantity, right? Buy it at a large quantity so that you could sell it individually again on Amazon, or even like dropshipping, where you're not touching any products at all, a supplier is sending them directly to your customer. Our next question is, is can you break down the key steps of starting an Amazon business? This is a really good question that honestly may kind of vary from state to state. I'm in New York, so I'm going to give you some of the key steps that work for me. And I really do think they're pretty general that you could start with these steps, even if you're in a different state. And the first one is filing a business entity. For me, I have an LLC, so that took about $800 and a few weeks of my time. Once I had my LLC, I was then able to open a business checking account. This is really important because Amazon is going to pay you and you want that money to go into a business checking account so there you can pay yourself, which really pushes us into the last step here, which is I hired a payroll company to go into my business checking account. They would first call me and say, Hey, Andre, how much do you want to pay yourself this week? Let's just say I wanted to pay myself a thousand dollars net. That's what I want to see after taxes. The payroll company would go into my business checking account and they would remove, let's say $1,400. So they would pay me the $1,000 and then they would have the calculated state and federal taxes that your state has. New York is obviously high, so they would pay the state and federal taxes and then they would write me a check with my LLC on it. So that way if I wanted to buy a car or a home, You know, they're going to ask me for proof of income. I now have a check that I can present to whomever needs it. All right. Our next question here is what's most important to Amazon's business profitability? This is a good question because there's so many different variables, but by far the most important variable is finding a great product. And there's a lot of different things that play into why a product is great. It can come into the search volume, indicating it has a high level of demand. It can come into the competition level, whether it's too saturated with other sellers. It can come into the brand expansion variability, which just means like, can you sell other products within that? And really what that comes down to is you have to analyze some of the different backend metrics of Amazon to establish, does the product have high search volume? Is there a lot of competition? Are there a lot of brands that don't have, um, you know, brand awareness, right? Where they're using like highly optimized pictures and videos to help sell their product. I look for those things when I'm saying, you know, what is a product looking like if it has a high profitability? All right, we're onto our next question here, which is how to find products to sell on Amazon in 2025. Now, I see a lot of folks trying to get into the Amazon space that may just think they can just go right on the Amazon platform, look to find a product and then just say, hey, this looks like a good product and sell it. Unfortunately, that cannot be farther from the truth. And the best way to find products is to use a specific tool that can analyze all the different metrics, all the different analytics of that product, of that niche. For me, I've used AMZScout now for years and I absolutely love it and has all the specific tools like the product research tab that gives you access to all the different analytics on a product or even use the product calculator to quickly calculate the profit margins on a different product. All those tools are right within that AMZScout warehouse that you can just use and pick from anytime you need. We're on to our next question here, which is what are the key criteria for identifying a profitable product? This is a great question because you can't just press search on the AMZScout platform and expect all the search results to match exactly what will work best for you. For me, what I found to work the best is to find a product that weighs anywhere between one and five pounds. This is just going to cut down on your Amazon fulfillment fees and when they ship the product to your product. To your customer. I also really like for my product to cost anywhere between $40 to $80. This gives me the ability to have the Amazon fulfillment fees not cut into too much of my profit margins, but also a product that's not too expensive so that customers are willing to buy it. I also like the average reviews for my product to be less than 100. This just gives me the opportunity to say that there isn't too much competition or it's not too saturated within a niche. We're on to our next question here, which is, which tools or services do you rely on for market analysis? Now, easy question for me to answer. It's AMZScout. I've used all different types of product research softwares and for me, AMZScout has the most direct access and is the easiest to use. If I want to find out the competition level, I can do so. If I want to find the search volume, I can do so. If I wanna find the conversion rate, like how many units are actually being sold on that keyword, I can do so. Not all of the different product research services offer all the tools that AMZScout does. I also feel like it's the most affordable. They really give you a broad access to the most amount of tools. It's the best bang for your buck in my opinion. We're on to our next question here, which is how should new sellers assess which fulfillment option is best, FBA or FBM? Now, another great question that I receive all the time between those two different services, if you didn't know, FBA stands for Fulfillment by Amazon and FBM stands for Fulfillment by Merchant, which just means that you yourself are fulfilling all the different orders. And the truth of the matter is, you should actually be doing both methods. If you didn't know, you can do both methods of selling on Amazon, FBA and FBM. I like to honestly allocate the majority of my inventory through FBA or fulfillment by Amazon because Amazon is a well-oiled machine that is gonna pick, pack and ship all your products extremely fast and efficiently. But then if that inventory comes down to a smaller amount or I'm gonna run out of inventory, I always have a very small stockpile of inventory at a storage unit or a home, wherever it may be, that I can use FBM, Fulfillment By Merchant, to fulfill those remaining orders if I run out at FBA. We're on to our next question here, which is, can you walk us through the process of finding a reliable supplier? Now, finding a supplier may feel kind of overwhelming at first, just because if you're using a platform like Alibaba, you'll find so many different suppliers for one product, which is honestly a really good thing. My kind of process that I like to do is I'll compose a message, a supplier outreach message that basically I just copy and paste and I'll send it to as many suppliers manufacturing the product that I'm looking to sell. Let's just say there's 50 on the Alibaba website. I'll reach out to all 50 of those suppliers. Then from there, I like to narrow down and filter down the suppliers that are verified on Alibaba. There's just a tab that you click that says verified supplier that will kind of shrink it down that list even more. From there, I'll start talking to all those different suppliers and getting a feel like how good is their English? How good is their response rate? How good is their price? How good is their custom packaging? How good is their shipping options? And then I really just start to narrow down and start eliminating suppliers that may have a high shipping cost or may have a very high MLQ that doesn't meet my budget. And really you kind of just get to pick the best supplier from there. Then at the very end, let's say if I have three or five suppliers out of the 50 that I initially reached out to, I'll do something where I'll start comparing and contrasting the prices and just telling them like, hey, supplier A, supplier B has a better price than you, but I like your custom packaging more. Can you price match them so that we can move forward with the order through you over supplier B? We're on to our next question here, which is, what are the most common mistakes new sellers make? This is a very easy question for me to answer because I see it all the time and I call it analysis paralysis. It's the number one mistake that new sellers make, which is just being afraid to make the commitment to buy that inventory and send it to the Amazon fulfillment centers and start selling that product. Is it the right product? Is the price too high? Is there too much competition? All of these things come into play when trying to sell for the first time on Amazon. My advice to you is actually just do it. Start small, don't invest too much money on your first product. Have it be like a learning experience so that you can move forward, you know, apply what you've learned into a future product. Off to our next question. I really like this question a lot and it's, what trends do you predict will have the biggest impact on Amazon sellers in 2025? I think some trends that will have the biggest impact on sellers in 2025 would be the incorporation of AI. Into product research, into product optimization. AI is amazing in so many regards and I use it every single day for so many tasks that I had to spend a lot more time doing. Now just optimizes my flow. It's a new generation of product research that we're in and that's why I love AMZScout. They have some new tools that incorporate AI into their product research, into optimizing All the information so that you can quickly kind of have a synopsis and really see, you know, what does three or four pages of product research say in three sentences. So I think AI is going to be a huge trend that will positively impact sellers in 2025. We're on to one of our last questions here, which is how would you approach selling on Amazon if you were starting today? You know, I get this question a lot and I think one of the things that really stands out to me that if I was going to restart this entire process would just be to be extremely patient and know that the money being made from selling these products is not my number one goal at first. My number one goal at first would be to learn the entire process from A to Z and not even focus on the money for your first six months. If you can do that, if you can just sell a product for six months and you're not worried about having 33% profit margins and making $10,000 in a month, You will learn the ins and outs in a much more detailed way that you can then apply so that you can make $12,000 in a single month from selling 1,200 units at $10 profit per unit, right? But you don't know what that looks like until you've gone through it. So starting as a new seller, don't focus as much on the money as you are on learning the ins and outs to be the best seller you can. Our next question is, what do you envision the future of Amazon will look like for new sellers? This is a good question. I think the future for Amazon and new sellers really looks bright if you take the right mindset to it. Again, I think there's so many different opportunities emerging on the Amazon platform every single day between new products, new niches, new automation through AI to help the whole product listing process. I think it looks very bright, but I think in saying that you have to stay with the times and you have to be really locked into what's current. You can't have practices from four or five years ago and think that you're going to be successful on Amazon now. It goes a lot deeper than that. We're on to our next question here, which is what advice would you give to those hoping to succeed on Amazon in 2025? This really just comes down to learning the entire process of selling on Amazon and not focusing as much on how much money you're going to make. And of course, we're doing this to make money, but that needs to be a goal that is later down the road. And at first, your success really is going to come from understanding how the Amazon platform works. How your fulfillment fees work, how to negotiate with suppliers, how to create optimized different images for your listing. Those things are what's most important for your success. The money will come if you have a high demand, low competition product with optimized listing images, with a good PPC campaign and you negotiated with your supplier on the price. All those things are gonna make you successful. Just because you want to make $12,000 in a month, doesn't mean you're going to unless you have all those things really locked in. Well, it's been a pleasure reading all of your questions. I really honestly appreciate you guys asking these different questions because it gives us as creators and those that are passionate about selling on Amazon, like AMZScout, the opportunity to help you and guide you in the right direction. I look forward to seeing you guys in the next one. Peace.