Looking To Start an Amazon FBA Business? Here Are 3 Lessons From a 7 Figure Amazon FBA Seller

With Amazon growing at a staggering rate, it’s no surprise that more people are starting a business on Amazon. But just how easy is it to do so?

Today, we spoke with Benjamin Tan, an active Amazon seller who has generated over 7 figures within his first year, and founder of AMZ Family, a leading training community specializing in helping people to start a hyper profitable Amazon business and the 3 biggest learning lessons that he had to face while growing his Amazon business.

Don’t Be Emotionally Attached To Your Product

“When you’re just starting out, it’s easy to fall into the trap of being emotionally attached to the product. For example, you spend days looking for a product and you come across one that you really like. You think that it’ll make you a million bucks, but after you launch it, you’re barely making any sales. But because you’re so attached to it, you try all ways to make it work and end up investing way more than you should. This is a very common mistake for beginners. Find a product, give yourself a budget to test with, if it doesn’t work, move on and test a new product!”, said Benjamin Tan.

Reduce Your Risk (start with lower capital)

A piece of common advice that Benjamin gives his students in the AMZ Family, is to “manage your risk!”

He advises his students to start with much lower capital, somewhere between US$2,000 to US$3,000. To do so he teaches his students how to get their inventory from Chinese wholesale websites for pennies on a dollar.

“You can easily find a product on Amazon that’s US$30 - US$40, on Chinese wholesale websites for US$5 or less, that’s the beauty of wholesale websites!” laughs Benjamin.

By using this method, many of his students were able to start their Amazon FBA journey for as little as US$2,000 and have gone on to generate upwards of 5 figures a month (with one of his students selling over US$800,000 in her 1st year alone!)

Focus On Your Customer Lifetime Value (CLTV)

Ignoring your customer lifetime value is a mistake that the majority of beginners and even experienced sellers make. To give you a quick explanation, Customer Lifetime Value (CLTV) refers to how much an average customer spends during their lifetime of shopping with you. For example, if a customer shops with you for 5 months and they spend $50 every month, then their lifetime value is $250.

Many have the bad habit of spending money to acquire the customer, and after they buy, they just leave it as it is, and never contact the customer ever again.

Top Amazon sellers know that this is a huge no-no, because increasing your CLTV is one of the best ways to increase your profits as getting the customer to come back and buy from you doesn’t require any paid advertising efforts. This means that you don’t have to spend a dime on ads for them to buy from you over and over again, making it much more profitable.

One of the best ways to increase your CLTV? “Give a world-class customer experience! If they love your product and service, they’ll naturally come back to you over and over again”, said Benjamin.

Whether you’re an experienced Amazon FBA seller or a total beginner, following these 3 tips will definitely set you on the right path. Just by judging the number of success stories that are coming from Benjamin’s training community, AMZ Family, we have no doubt that these 3 tips work. If you’re looking to start a profitable Amazon FBA business, we encourage you to check out AMZ Family.