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How to start an Amazon FBA business from New Zealand?

January 27, 2021
Julia Rezner
11
Jeff Bezos smiling and posing on a background showing New Zealand with a kiwi and amazon on it.

Do you find yourself wanting to start your own business, but you’re unsure how and what to do? It might seem overwhelming at the beginning. So many options to choose from, but which one is the best? One of the best options is to sell products online. Instead of creating your website from scratch, you can take advantage of the already existing brand with big recognition- Amazon.

What is the meaning of Amazon FBA?

FBA means Fulfilment By Amazon (FBA). It simply means that you sell your product on Amazon’s website by using their warehouse (closest ones are in Australia) to store your products. They also take care of delivery and customer support for you. It’s fairly easy to start, plus you’ll enter the online selling market- currently one of the fastest-growing markets on the planet. To make sure things aren’t too confusing, in this article we’ll give you an easy explanation of how to start your own FBA business in New Zealand.

What to sell on Amazon?

This is the first question that you will need to ask yourself before starting your FBA business. Usually, you must choose between something that you’re passionate about or something very profitable. In case of the first option, if you’re creating your artwork like stickers or paintings, your profits might be lower, but the satisfaction of selling something that you made is huge. However, if you simply look for things that will bring you profit, then you will have to start with a bit of research. It’s always good to start with checking bestsellers on the Amazon website and then look at reviews that the customers leave- that’s where you can find your hints on what to upgrade and do better in your product than your future competition. Whichever niche you will choose, it’s important to remember one simple rule- don’t just sell cheaper than others, sell desires.

Where to get products from for FBA business?

Now that you know what you want to sell, it’s time to look for a manufacturer to create and deliver your products. Where do you find them? The best choice is to look for them on the largest platform that’s connecting suppliers with buyers- Alibaba.

How Alibaba works?

The way this platform works is pretty similar to Amazon, with the small exception that you can’t buy single units of products. All your orders need to come in bulk. After all, you will be buying directly from manufacturers, and they’re not interested in selling small amounts of their product. Small hint- always remember to bargain. Both the price and minimum amount to order can be changed if you contact the producer. For your FBA business to work, you will need to ensure you sell good quality products. It’s good to ask for a small sample at the beginning, and then order more if you’re satisfied with the quality.

What is custom packaging and why do you need it?

So far you know what to sell and where to get it from. But equally important to the product itself is what your future customer will see when they get their product. That’s why custom packaging is so important- to stand out from competitors and create an attachment to your brand, you will need to design your own, unique packaging. Due to that, you will need your brand logo. It’s worth taking your time and creating unforgettable packaging for your products - you never get a second chance to make a first impression!

How to succeed at Amazon FBA?

Let’s be real- Amazon is a highly competitive place. Many ambitious people look for income on this website. When you’ll join this race, you will need to fight for customers' attention. That means you will have to ensure that your FBA business stands out from the crowd. There are few tricks to increase your chances of doing so.

Competition

High competition is what usually stops people from entering a specific market. At first, it might seem overwhelming- almost every niche already has few companies offering a variety of products. The key to success is good competition research. Check out who holds the biggest share of your chosen market and see what they do right, then try to do it even better. Listen to what customers have to say- their voice is the most important one. See what they need, what they like and wish for. If you do it well enough, even the most crowded market will have a space left for your company!

Photography and design - the beauty of your brand

The aesthetics aspect of your brand is the first thing your potential customer will notice. Consistency in the way you present your products is key to creating a long-lasting impression. Make sure your pictures are the best quality. Good design is equally important. After all, your logo will be displayed everywhere, from the product itself, your website, to your product packaging. It’s important to make it as good as possible.

SEO and copy writing

Those two terms mean nothing else but catching your customers' attention and making sure they will learn about your product. You need to invest in good SEO and copywriting. It will make your website stand out and be the suggested answer to a customer question. The higher is your position on google search results, the bigger is your chance to get a new client. Good copywriting will show your customers that your product is exactly what they need and wish for.

FBA vs FBM

Now that you know what FBA means and how it works, it’s worth learning about an alternative. To take advantage of the FBA program, you’ll need to pay Amazon for their services. In the case of big companies with a great volume of orders, those costs are acceptable. However, if you think your volume won’t be as big, it might turn out that what you need to pay Amazon is bigger than what you earn.

What does FBM mean?

FBM stands for Fulfilment By Merchant. As the name suggests, you will be responsible for most of the steps in selling your product. While you will use Amazon’s website to sell, the question of storage, packaging, sending out and customer service is on you. It might be more profitable when you start small, but over time, when you gain recognition and sell more, FBM might be a much better option for your business. Money is time, so make sure you don’t waste it on things that could be done for you by Amazon.

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