So, if you're wondering, yes, you can sell food on Amazon FBA. And, if so, how do I go about doing it? And what are some ideas and tips that have helped me succeed in selling food on Amazon? This article is for you. I'm going to walk you through the entire process, explaining these amazing tips step by step. Then I'll lead you over to my computer. And I'm going to show you how to use the Amazon FBA calculator to price your products exclusively for FBA.
Can I sell Food on Amazon ?
As I stated in the start, I'm quite thrilled to share this knowledge with you. If you want to scale a food business and sell your packages to food products through Amazon FBA, but you're not aware how it works, read on. You've probably heard of FBA. So this video is for any newbie who wants to sell a food product on Amazon, use Amazon's FBA service, and build their food business quickly. So, as you may or may not know, my name is Damian Roberti, and I'm the founder and CEO of a company that specializes in online food marketing. Together with my wife, I am a food entrepreneur. We run six food-related e-commerce enterprises. I've been selling on Amazon for around eight years, a little more than seven. And, thanks to Amazon, we've had a lot of wonderful success and have significantly increased our sales.
As a result, I'm bringing you marketing for an online YouTube channel to share my expertise with you. Let's get this party started. So, first and foremost, you should be aware that in order to enter the gourmet food area, you must first become ungated. To make it even faster, it's now ungated. I don't want to spend too much time explaining what it is in this video. It is a procedure in which you must get ungated. If you get the thumbs up, they will enable you to sell in that category. Not every Amazon category allows you to launch a store and start selling gourmet cuisine right away. One of them is one that has to be vetted. They require particular papers, such as food business licenses and PA business insurance policies, as well as invoices and other documents for the next three, four, five, or six months.
So there's a bit of a procedure to follow, but it's well worth it. If you want to use e-commerce to truly scale your business online. So the first thing you should do is figure out what your costs are. You could be thinking, "Well, Damien, that's kind of insignificant." No, it'll lead to something else eventually, I already knew. When I show you on the laptop, you'll see why this is so critical. What's more, how much does it cost to manufacture your goods? So, keep in mind that this video is for novices, and you want to know what the work entails. How much can a staff of people produce in a day if they generate a particular amount of those products, those individual packaged food items? How much are you paying the folks who create it, and then break it down every box, including the product's contents, the label, and even the packaging?
It doesn't matter if it's a bag, a bottle, or a jar; it all adds into your costs, but you need to know exactly how much it is. It's going to be crucial, and I'll show you what I'm talking about over on my desk in a minute. So, now that you've grasped the concept of cost per unit, let's move on to the following thing. Second, now is the time to learn about retail. And, once again, this will come in helpful in a moment. When I show you the FBA calculator, you should aim for a price range of $25 to $35. Our average sale price per transaction is roughly $27, according to what I've learned over the last 12 years or so of being online. So, if you can locate a pricing point in that range, you'll have to bundle the goods. You need to assemble some packaging items, but you don't want to sell them for $9.
And, once again, I'll explain everything when I show you the calculator, and you'll be surprised when I show you that if you sell a product for $9 and try to sell it on Amazon, it's not going to work, okay? It's not going to work out. If you offer a product for even $12, $15, you're going to be cutting it fairly close, depending on the cost of the goods, of course. Okay? So whatever you think you need to do to get it, the actual transaction, to be in that area, you'll be generating money. Okay? And I'll explain everything in a moment. And by that, I mean that selling a single unit of a food product is extremely unprofitable. But once you start bundling them, grouping them, or selling six at a time, 12 at a time, and so on, you'll start to generate money, and you'll have to keep a close eye on your costs.
Check out the next Part 2 Here.