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How to Write a Business Plan with Mikaila Ulmer

Learn how mastering finance terminology boosts communication and credibility with finance team and investors.

Get started with amazon business., how to write a business plan, why write a business plan.

The dream that I had as a four year old of changing the world with a lemonade stand is what drove the growth of the company. But what actually provided the backbone in the foundation for that dream was the fact that we had a business plan for each stage of our company's growth. And that's one of the many reasons you want to make a business plan. A clear business plan informs other parties, whether that's your internal team, your friends and family, potential investors, or strategic partners, about your company. It also sets clear goals for the future and allows you to dream like a kid, just as I did as a four year old in Austin. A study reports that you're 42% more likely to accomplish the goals that you write down.* A business plan is essentially a way of listing your goals and backing it up with data and research. You also include your current team key factors about your business, and the industry as a whole. It establishes a roadmap for your business.

Key Reasons to Write a Business Plan

  • Helps you understand key factors of business and industry
  • Establishes roadmap for business
  • Provides information for other parties such as potential investors, internal teams, friends & family
  • Sets clear goals for the future and allows you to dream like a kid
  • Make you 42 % more likely to accomplish the goals you write down*

Key Aspects of a Business Plan

  • Industry overview - a general market analysis
  • Company and business overview - introduces your business
  • Business strategy - clarifies what your strategy is for conducting business
  • Mission and vision - how your business is going to impact others in the world
  • Management and key personnel
  • Capitalization structure - how you fund and raise capital
  • Growth and goals?
  • What's next for your brand
  • Risks and mitigation - potential elements that could negatively impact your business and how you will mitigate those

Aspects of a Business Plan with Mikaila Ulmer

Company & Business

This section provides an overview and introduction to your business as a whole. Here's where you want to tell your founder's story, what's unique about your company, and what big problem your company solves. You want to list what your company structure is - are you an LLC or are you incorporated? Where are your principal offices located? Is it virtual or in person? And who are the management personnel? But not too much into the matter of personnel because there's another section for that. In this section, you want to include your business strategy, opportunities, and the target market.

  • The story behind founding your company
  • What's unique about your company
  • The big problem your company solves.
  • Company structure i.e. are you an LLC or are you incorporated?
  • Location of principal offices - is a virtual is it in person?
  • Management personnel - who are they? - but not too much into the matter of personnel because there's another section for that.
  • Business strategy - what is the opportunity and the target market?

Mission & Vision

I came across my vision and mission statement actually as an accident. I was four and a half years old. I got stung by two bees in one week. It was extremely painful and I was terrified of them. My parents said, ‘okay, how about you do some research?’ I learned that without the bees, our food supply would collapse. And I also learned that one out of every three bites of the food we eat comes from bee-pollinated plants. This definitely sparked an interest and I wanted to help protect them based on learning that the populations were dying at an alarming rate. So I decided, “Hey, I just got a cookbook from my great granny Helen (she wrote her favorite recipe for a flaxseed lemonade.) What if I took this recipe and add my own twist? What if I added mint? What if I sweetened it with honey, which I had just learned that bees made? And what if I donated a portion to organizations that would seem to bees?” That’s how my mission orginated. I wanted to create lemonade that tastes good and does good. I wanted to make a measurable impact on saving bee populations. While that's what it started as, it has since grown into something more. Yes, it saved bees, but it's also teaching and encouraging social entrepreneurship. Mission and vision may sound the same, but they're pretty different and they're both equally as important. Your vision statement is your reason for being. It's who you are at your core. It can be inspirational and emotional. The goal is getting others to see your vision and believe in it, to garner hearts, attention and interest. Your vision statement should attract and engage passionate individuals both within and outside of your organization.

Business Plan Mission and Vision

Vision Statement

A vision statement is your reason for being - who you are at your core.

  • Can be Inspirational - getting others to see your vision and BEE-lieve in it
  • Can be emotional - to get hearts, attention and interest
  • Should be a short statement

Mission Statement

The mission statement is where you want to clarify what the scope of your work is. What you do, how do you do it, and for whom. This is where you help people understand how you achieve the vision that you already mentioned.

Industry Overview

In the Industry Overview section, you want to list what differentiates you from your competition. State your business's economic sector on a local, regional and national level. You want to list who the current leaders and trendsetters are in your industry; you could do this through a side by side competitor analysis. You want to forecast where your industry is headed to in the future. Industry Overview Highlights

  • What differentiates you from the competition?
  • Local level
  • Regional level
  • National level
  • Side-by-side competitor analysis
  • Describe sectors growth
  • Opportunities for your business to expand
  • Overall goal is to determine your target market and what separates you

Business Plan Competitor Section

Management and Key Personnel “Your Hive”

The next section is the “Your Hive” section or Management and Key Personnel. Here's where you want to outline your business's management structure and their qualifications. This could be owners, key personnel board, etc. You don't need to have a large team. You just want to emphasize what proficiencies, personalities and skill sets your team has. So whether you're a solopreneur or you're listing people who you go to for help that as my hive. In general, you want to emphasize the capacity of your team through a variety of skill sets and identify key functions that are required to help achieve the vision for your business. One challenge that we had as a small business was that it was hard to bring on full time employees. I was the founder and CEO of Queen Bee. I brought on my parents as Chief Operating Bee and Chief Marketing Bee, but we still needed help. And so we realized that by listing what skills our current team had in our management and personnel section, we were able to understand the skills that we need to outsource. We eventually went to outsourcing specific team members such as brokers, accountants, manufacturers and just finding people who can wear multiple hats to help us run the day-to-day. The great thing about your hive is that it's not just people who work for your company. As I grew my business, there were so many people who wanted to be part of my hive.

Management and Personnel Highlights

  • Key personnel
  • Identify key functions required to help achieve vision for business (and timing)
  • Emphasize the capacity of your team through a variety of skillsets
  • Proficiency & Personality

Capitalization

The next section of your business plan is Capitalization. How are you going to fund this idea, this company, and where will that money go in the future? This is where you want to list what your initial funding will be, whether it's friends and family, angel investors, venture capitalist or your local bank. You also want to set forth the capitalization of the company on a pro forma basis. So how much capital is needed to pursue the next steps of your business strategy and what form of capital is that going to be in? Are you going to have equity based investments, loans, line of credits, etc.? One of the challenges that we had as a small business was that there were opportunities to scale, but we were unable to take advantage of them. When we looked at our capitalization structure, we realized in order to launch into these retailers or in order to go into these states, we needed freight, we needed higher manufacturing abilities, and we didn't have those items at the item. We realized we needed capitalization. We established exactly what sources we were going to get that capital from. Then, we were able to create a convincing pitch and slide deck to attract potential investors. And so that's what led us to going on That led us to Shark Tank in 2016 and landing a deal with Mr. Daymond John. Also in 2018, we got investments from around ten NFL players. Even today, where we are looking to grow the company and get more rounds of funding.

Capitalization Highlights

  • Friends and family
  • Angel Investors
  • Venture Capitalists
  • Set forth capitalization of the company on a pro forma basis

Business Strategy

In the business strategy section., you want to list how your business will earn a profit through creating a value for your customers. What are your value propositions? Is it newness? Is it brand, status. reduced cost, convenience, or customization? What needs of your customers? Is your business going to satisfy you?

Channels List your channels. How are you going to reach your customers? Which channels work best and which channels are most affordable? This is very important.

Revenue Streams List your revenue streams. There are multiple types from subscription based to renting or leasing, licensing, advertising, etc. Once you establish those revenue streams, how are you going to price your product or your service? Is it list price, negotiation based, customer dependent, value dependent, etc.?

Business Model What's your business model? How are you planning on making a profit and whom you are trying to sell to: be the be B2B business, B2C business, etc. A great example of how a business strategy was helpful to Me & the Bees was when we were shifting from just being a lemonade stand to actually being a bottled product. A local pizza shop said, “Hey, if you can find a way to bottle your product, we'll carry it.” Now that we had that opportunity, we had to figure out how our business strategy would change. It changed a lot. Instead of trying to target individual customers, we now had to shift our target to retailers in restaurants and cafes to sell the product. And then we also realized that this meant a different pricing model and different channels that we were trying to reach. Thankfully, we had a very clear business strategy section that helped us throughout that transition. Business Strategy Highlights

  • Value propositions (ex: newness, brand/status, reduced cost, convenience/usability, customization)
  • What customer needs are you satisfying? 
  • Which channels work best?
  • Which are most affordable?

Revenue Streams

  • Types: subscription, renting/leasing, licensing, advertising
  • Pricing: list price, customer dependent, negotiation, volume dependent

Business model  (how do you plan on making a profit?)

A tool you can use:  Strategyzer.com

Business Plan Business Strategy Section

Growth & Goals

The growth and goals section is where you can dream like a kid and can be fearless in the possibilities of where your business can go in the future. How are you going to expand your position? This could be increasing velocity at current locations or selling new products or new variations of your current products. Another example - what promotions, marketing or social media campaigns are you going to do? When I started Me & the Bees, all we offered was one flavor. As we grew, based on the growth and goal section, I decided I wanted different flavors. So we have ginger, prickly pear, and black cherry now. I also established that I wanted different products, such as lip balm, skin care, snacks, etc. After growing the company and after getting that lemonade to a nationally distributed point, I decided I want to start a nonprofit so that I can save the bees through research, education and protection. I wanted to publish a book so that I can help inspire the next generation of changemakers. I also wanted to connect with current changemakers around the world, whether it's in Singapore or Cape Town, and figure out how we can make a difference when it comes to saving pollinators, when it comes to increasing the amount of social businesses in the world, and helping inspire others.

Growth & Goals Section Highlights

  • Expand where you are – increase velocity at current locations
  • Future Promos, marketing, social media
  • Sell current products at new locations
  • Offer new variations of current product

Business Plan Growth Section

A Word of Encouragement for Small Business Owners

Dreaming like a kid is where a lot of the passion and excitement for growing my brand originated from. And that passion made it so much easier to overcome many of the challenges that every small business faces. For example, managing and navigating the COVID 19 pandemic, balancing being a student and being an entrepreneur at the same time, and so much more. And so in general, it was the dream of, “Hey, this is where I want my business to go in the future.” And yes, it was the backbone and foundation of that dream through business plan, but it was also the resiliency and the grit that all entrepreneurs have. And so this quote is one that I came up with during one of those times of challenges. And I think that this is applicable to being a small business owner, so entrepreneur, but also so many other parts of life in general. There's going to be things, there's going to be challenges. But I think the most powerful point is when you actually get back up, when you're able to face those challenges and overcome them and then tell stories about it, inspire others in the future.

“Don't be discouraged by life's little stings, get back up and spread your wings.“

— Mikaila Ulmer, Founder & CEO, Me & the Bees

And I think that this is applicable to being a small business owner, so entrepreneur, but also so many other parts of life in general. There's going to be things, there's going to be challenges. But I think the most powerful point is when you actually get back up, when you're able to face those challenges and overcome them and then tell stories about it, inspire others in the future.

About Mikaila Ulmer

Mikaila Ulmer is founder and CEO of Me & the Bees Lemonade. Using her Great Granny Helen’s flaxseed honey lemonade recipe, Mikaila launched her business in 2009, at a youth entrepreneurial event and then sold her lemonade at a stand in front of her home in Austin, Texas. Today, the award-winning lemonade is buzzing off the shelves at retailers in all 50 states. In 2018, Mikaila launched the Healthy Hive Foundation non-profit where a percentage of net profits from the sale of her lemonade goes to saving the bees. Mikaila’s first book, Bee Fearless: Dream Like a Kid , was released by Penguin Random House in 2020.

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2023 Analysis: Amazon Business Plan & Market Dominance

01 2023 analysis

With a net sales revenue of $513.98 billion  in 2022, Amazon is one of the world’s largest and most successful companies. According to FINBOX , for the next five fiscal years , Amazon’s revenue is projected to increase by an average of  713.7 billion . What makes Amazon successful?

This dominance, however, is not achieved by chance or luck, and it results from an intensive business plan  refined over the years to achieve unprecedented success . The Amazon business model is designed to ensure that the company can achieve its goals while maintaining its position as a leader in the e-commerce industry . The plan includes strategies for revenue growth, cost reduction, and customer acquisition and retention, among other things.

The success of Amazon’s business plan is a testament to the importance of having a solid plan in place. While many factors contribute to a company’s success, a well-designed business plan is often the driving force behind it. As we deep dive into Amazon’s 2023 business plan, we’ll see how important this document is to the success of the world’s largest e-commerce company.

A Peek into Amazon’s Past: The Making of an E-commerce Behemoth

Let’s look at how Amazon transformed from a humble online bookstore to a global e-commerce powerhouse.

The Humble Beginnings of Amazon

In 1994 , Jeff Bezos  founded Amazon as an online bookstore. The company was initially named Cadabra, Inc, but Bezos quickly changed the name to Amazon, inspired by the vast South American River . The company began operations in Bezos’ garage to keep overhead costs low.

Amazon’s user-friendly website  and an extensive collection of books quickly resonated with customers. In its first month, Amazon shipped books to customers in all 50 US states and 45 countries . Amazon became the world’s largest online retailer in just a few years by focusing on customer satisfaction and continuous improvement.

From Bookstore to Diversified E-commerce Giant: The Evolution

Amazon’s journey from a simple online bookstore to a diversified e-commerce giant  includes strategic acquisitions and an expanding product range.

The company entered new markets, such as consumer electronics and apparel, and introduced new services like Amazon Prime and Amazon Web Services (AWS) , significantly increasing its overall revenue and reach.

Key factors contributing to remarkable transformation include:

  • Customer obsession : By prioritizing customer needs, Amazon ensured a seamless shopping experience and high customer loyalty.
  • Innovation:  Amazon continuously invested in research and development , enhancing its existing services and creating new ones.
  • Global Expansion : Amazon expanded its operations worldwide, catering to customers from different regions and cultures.
  • Diverse Ecosystem : Amazon developed a comprehensive ecosystem of products and services, from e-commerce and cloud computing to entertainment and logistics.

Amazon’s ability to adapt and evolve enabled it to establish a dominant presence in global e-commerce, transforming the industry.

Understanding Amazon’s Customers: Delivering Value Propositions

Amazon’s success has mainly been attributed to its ability to recognize and satisfy its consumers’ wants. By prioritizing the consumer experience, Amazon has built a solid reputation for providing value , which has helped them hold a leading position in the e-commerce sector.

This section will examine how Amazon recognizes its clients and the benefits they derive from the business .

The Wide Spectrum of Amazon’s Customer Base:

Amazon  caters to a diverse customer base across various age groups, regions, and demographics . This vast audience includes individuals , small businesses , and large enterprises .

By offering a myriad of products, services, and entertainment options, Amazon has established itself as a leading online marketplace .

The Unique Value Proposition Offered by Amazon

02 unique value proposition offered

The value Amazon provides to its customers is unparalleled . With the following key features, Amazon distinguishes itself from its competitors:

  • Convenience : Amazon’s user-friendly interface, quick delivery options, and easy returns policy make online shopping a hassle-free experience.
  • Wide Product Selection : Amazon offers a vast product range, ensuring customers can find what they want in one place, invariably saving time and energy.
  • Competitive Pricing:  The platform is known for offering competitive prices on products and services, making it a cost-effective option for buyers and sellers.
  • Customer Reviews : Amazon’s reliable and extensive customer review system helps make informed decisions , enhancing the shopping experience.
  • Amazon Prime: With Prime membership, you get exclusive benefits such as exclusive deals, free shipping, and streaming services, further enhancing the value offered to customers.

The Pillars of Amazon’s Success: Key Resources and Activities

A business plan provides direction and purpose , helps to align resources and efforts, and enables a company to measure progress and adjust course when necessary.

In recent years, Amazon has also made significant investments in technology and innovation, allowing them to stay ahead of the competition and continually improve its services.

Amazon’s Key Resources: From Technology to Human Capital

As an e-commerce giant, the technological infrastructure of Amazon plays a vital role in its success . You’ll find that their extensive use of data-driven approaches, combined with cutting-edge technology, helps them stay ahead of the competition.

Additionally, Amazon heavily invests in its human capital, understanding that a knowledgeable and efficient workforce is essential for continued growth.

The Launch of Amazon Associates

In 1996, the Amazon Associates Program  was introduced, revolutionizing affiliate marketing  in the e-commerce sector. This innovative program allowed website owners and bloggers to earn commissions by referring customers to Amazon .

By leveraging a diverse network of associates, Amazon effectively expanded its reach, increasing sales and brand visibility.

Amazon’s Key Activities and Their Impact on Growth

Amazon’s key activities mainly revolve around enhancing customer experience, investing in new technology, and diversifying its product offerings. These activities have contributed to the company’s substantial growth:

  • Customer experience : Amazon consistently prioritizes the user experience by focusing on fast shipping , a seamless online shopping platform, and customer-centric policies.
  • Technology investment:  From AWS to robotics in warehouses, Amazon’s cutting-edge technological adoption drives efficiencies and supports scalability.
  • Product diversification:  By expanding into different markets, Amazon has become a one-stop shop  for customers, ensuring continued loyalty and growth.

Amazon’s SWOT Analysis

Amazon is a global e-commerce and has become one of the most valuable companies in the world. We can perform a SWOT analysis to understand Amazon’s strengths, weaknesses, opportunities, and threats.

  • Strong brand recognition and reputation
  • Diversified revenue streams, including e-commerce, cloud computing, and advertising
  • Wide selection of products and services
  • High customer satisfaction ratings

Weaknesses:

  • Dependence on third-party sellers
  • Overreliance on e-commerce sales
  • Limited physical presence in some countries

Opportunities:

  • Expansion into new markets, such as healthcare and finance
  • Increased adoption of cloud computing services
  • Continued growth in e-commerce and online advertising
  • Intense competition from established companies and new entrants
  • Changing consumer preferences and behaviors
  • Government regulations and antitrust scrutiny

Amazon’s Diversified Patent Portfolio: A Testament to Innovation

You may already know that Amazon’s growth as an e-commerce giant is partly due to its persistent innovation. We can look at their diversified patent portfolio to see the extent of their creative efforts.

Let’s discuss the scope of Amazon’s patents and how this wide-ranging collection contributes to its competitive edge.

The Scope of Amazon Patents

03 scope of amazon patents

Amazon’s patent holdings cover many technologies, such as logistics, aircraft technology, robotics, machine learning, and drone deliveries. This extensive range reflects their drive to innovate in every aspect of their business.

To give you an idea, here’s a brief list of patent holdings in different fields:

  • 1-Click ordering system
  • Fulfillment center automation
  • Machine learning algorithms
  • Drone deliveries

How Does the Patent Portfolio Contribute to Amazon’s Competitive Edge?

Amazon’s vast patent holdings  showcase its innovative spirit , giving them a significant edge over competitors.

By having proprietary technology , Amazon can ensure constant advancements in user experience, making them the go-to  choice for online shopping. Their patents also create hurdles for competitors, making it difficult for them to catch up or duplicate Amazon’s success .

Amazon Web Services (AWS): The Cloud Computing Cash Machine

Amazon Web Services (AWS) has become a significant revenue driver for Amazon. In this section, we’ll explore the inception of AWS, its growth, and its impact on Amazon’s overall revenue.

The Inception of AWS Services

AWS began to take shape in the early 2000s when Amazon realized that its infrastructure could be utilized to provide cloud services to other businesses . They also saw the need for a scalable, flexible cloud infrastructure that could grow with the businesses using it.

AWS officially launched in 2006, with services like S3 for storage and EC2 for computing resources. This move allowed Amazon to diversify its revenue and leverage its expertise in managing large-scale  internet services for others to utilize and build upon.

AWS Growth and Its Impact on Amazon’s Revenue

Since its launch, AWS has experienced tremendous growth in both the number of customers and the services offered . This growth has been primarily fueled by the rising demand for cloud infrastructure services , enabling businesses to scale up or down as needed without significant upfront capital investments.

AWS is one of the market’s most prominent cloud services providers, boasting a diverse and extensive customer base ranging from  startups to enterprises . Now you might be wondering about the significance of AWS in Amazon’s overall revenue .

While historically overshadowed by its retail operations, AWS has significantly contributed to Amazon’s overall revenue. In recent years, AWS has accounted for about 10-15% of Amazon’s total revenue, and its net profit margins are significantly higher than those of Amazon’s core retail business .

According to Forbes , AWS increased sales by 41%  in the recent fiscal quarter year over year, pulling in  $7.6B . This growth has been instrumental in driving Amazon’s financial performance, and it shows no signs of stopping anytime soon.

Building Strong Customer Relationships: Reviews and Customer Service

As an e-commerce entrepreneur, you know the importance of building strong customer relationships. This section will cover how Amazon achieves this through reviews and excellent customer service.

The Role of Customer Reviews in Shaping Amazon’s Offerings

Customer reviews are essential in helping Amazon improve its offerings. They provide valuable insights into what customers like and dislike about a product, allowing sellers to adapt accordingly. Furthermore, reviews help other customers make informed decisions when shopping on Amazon .

Amazon encourages users to leave reviews by making the process user-friendly and seamless. The more reviews a product has, the more trust it garners, increasing the likelihood of future sales. In turn, this strengthens customer relationships and promotes loyalty.

Top-notch Customer Service in Amazon’s Business Strategy

Excellent customer service is crucial to the Amazon business model . They understand that addressing issues  and concerns can improve a customer’s experience, and providing top-notch customer service  impacts customer retention and overall satisfaction.

04 top-notch customer service

To maintain its commitment to customer service, Amazon has implemented various strategies , such as offering a comprehensive help center, easy returns, and a responsive customer support team. By prioritizing customer service, Amazon ensures your business thrives and maintains long-lasting customer relationships.

Exploring the Amazon Marketplace: A Platform for Buyers and Sellers

Amazon Marketplace is a platform for countless buyers and sellers worldwide, providing a digital space to conduct business and exchange products. In this section, we’ll discuss the purpose and benefits of Amazon Marketplace and how Amazon generates revenue from it.

The Purpose and Benefits of the Amazon Marketplace

Amazon Marketplace exists to  simplify and streamline  the buying and selling process. You can access a vast customer base as a seller, minimizing the need for advertising and marketing efforts. Using Amazon’s infrastructure reduces operational costs such as warehousing and fulfillment .

As a buyer, you enjoy the convenience of shopping from countless sellers in one location, with the added security of Amazon’s customer protection policies. This creates a seamless, trustworthy experience for both parties, contributing to customer satisfaction and trust.

How Amazon Makes Money from the Marketplace

Amazon generates revenue through fees , such as subscription fees , referral fees , and variable closing fees .

  • Subscription fees are charged monthly to professional sellers .
  • Referral fees are a percentage-based commission on products sold, applicable to individual and professional sellers . Most referral commissions range from 8% to 15% .
  • A variable closing fee is applied to specific categories, such as media categories.

Additionally, Amazon offers optional services, like fulfillment by Amazon (FBA) , which charges service fees in return for handling storage , shipping , and customer service  on behalf of the seller.

By offering these services and charging fees, Amazon continues to invest in and grow its Marketplace, maintaining its status as a global leader in the eCommerce market platform .

Amazon’s Multiple Revenue Streams: Diversification at Its Finest

Amazon’s success results from its ability to diversify its revenue streams. Rather than relying solely on one product or service, Amazon has developed multiple sources of revenue that complement and reinforce each other.

A. Breakdown of Amazon’s Primary Revenue Streams

As an e-commerce seller , you’re aware that Amazon generates revenue in various ways. One such income source is their online stores ( sales of products), where they are the retailer or a third-party seller .

Other income sources include:

  • Amazon Web Services (AWS) : Their cloud computing platform.
  • Subscription services : Like Amazon Prime and Kindle Unlimited.
  • Stores : Physical stores, including Whole Foods Market and Amazon Books.
  • Advertising services: Where advertisers pay to display ads to Amazon users.

Each stream contributes to the company’s success and allows them to remain dominant in the global market.

B. The Significance of Amazon’s Cash Conversion Cycle

Cash is king, and Amazon knows it. Their cash conversion cycle is a critical part of the Amazon business model. What’s the secret to Amazon’s cash flow success ? It’s all in their cash conversion cycle. Let’s explore why it matters.

Amazon has a negative conversion cycle ( CCC ) than its competitors, so they receive payments before paying to the suppliers. This efficiency allows them to:

  • Reinvest funds for growth.
  • Offer competitive prices to customers.
  • Expand their products, inventory, and services.

By maintaining a short CCC, Amazon capitalizes on its multiple revenue streams and sets itself apart in the crowded e-commerce landscape.

Diving into Amazon’s Product Ecosystem: From Alexa to Prime Video

This section will explore how Amazon’s diverse product ecosystem contributes to its business strategy . We’ll focus on two essential products: Amazon Alexa and Amazon Prime Video.

Introducing Amazon Alexa and Its Place in the Business Strategy

05 amazon alexa

Amazon Alexa, the voice-controlled virtual assistant  complements your daily life by allowing you to schedule appointments, set reminders, and control smart devices in your home.

By integrating Alexa into various products such as Echo devices  and Fire TVs , Amazon has created a seamless, innovative home experience for its customers.

Alexa makes daily tasks easier for users and benefits Amazon’s business strategy by connecting users to their services like Amazon Music and Prime shopping. This encourages brand loyalty and more time spent using Amazon’s platform.

The Role of Amazon Prime Video in the Overall Business Plan

Amazon Prime Video is another critical component of Amazon’s product ecosystem . As a Prime member, you can access a vast library of movies, TV shows, and original series . This entertainment platform gives you another reason to maintain your Prime membership, increasing subscription revenue for Amazon.

Moreover, Prime Video’s  original content diversifies Amazon’s offerings and contributes to the company’s revenue streams through licensing and distribution. In turn, this increased revenue allows Amazon to invest in other business areas, strengthening its overall position in the market.

Amazon’s Business Model: The Financial Backbone

Amazon’s financial structure is pivotal in its success, shaping its business model to maximize profits and growth .

How Amazon’s Financial Results Reflect Its Business Model

Amazon’s revenue comes from various sources, including its retail business, third-party marketplace, and cloud services . Their high-growth strategy focuses on reinvestment for long-term gains. By consistently investing in new technologies, infrastructure, and acquisitions, Amazon creates a competitive advantage that keeps rivals at bay.

As you examine Amazon’s financial results, you’ll notice that their profits are often thin or negative ( Amazon reported a net loss of 2.7 billion U.S. dollars in 2022 ).

This is because they prioritize market share instead of short-term profits . This approach has led to Amazon becoming a dominant global player in ecommerce and cloud services.

Amazon’s Cost Structure and Its Implications

Amazon’s cost structure is as complex as its business model. The key components are:

  • Fulfillment costs:  Warehouses, order processing, shipping, and customer support costs.
  • Marketing costs : Advertising, sponsorships, and promotions.
  • Technology costs:  Infrastructure development, R&D, and Amazon Web Services hosting.
  • Content costs:  Purchasing licenses for streaming media on Amazon Prime.

As you can see, Amazon invests heavily in these areas to sustain its market presence and growth. They also benefit from economies of scale, reducing per-unit costs as the company grows, and this cost structure allows the company to offer competitive pricing and maintain customer loyalty.

Mastering Logistics: Amazon’s Supply Chain and Fulfillment Options

As you navigate the world of ecommerce, it’s crucial to grasp how Amazon’s robust supply chain and an assortment of fulfillment options make it a leader in the industry.

The Various Amazon Fulfillment Options

Amazon offers a range of fulfillment options, each designed to cater to specific seller needs:

  • Fulfillment by Amazon (FBA) : Store and ship your products through Amazon’s fulfillment centers . They handle storage, shipping, returns, and customer service for you.
  • Fulfillment by Merchant (FBM):  You manage your product inventory and shipping but can use Amazon’s Multi-Channel Fulfillment service when needed.
  • Seller Fulfilled Prime (SFP) : Take advantage of Amazon Prime’s benefits by guaranteeing two-day shipping on eligible products while handling fulfillment in-house.

Becoming a Logistics Powerhouse: Amazon’s Renewed Business Playbook

Amazon has strategically invested in its logistics infrastructure, streamlining processes and enhancing customer experiences to stay competitive. Key initiatives include:

06 logistics powerhouse

Understanding these various fulfillment options and Amazon’s logistics strategies will contribute to your success in the ecommerce space, helping you make informed decisions as you craft and grow your business.

The Flywheel Effect: Jeff Bezos’s Vision for Amazon’s Business

The concept of the flywheel in amazon’s business strategy.

The Flywheel Effect  is critical to Amazon’s business strategy. You should understand as an e-commerce merchant. It represents the self-sustaining momentum generated through a series of interconnected elements  reinforcing each other.

Amazon’s Flywheel revolves around four core elements:

  • Customer experience,
  • Seller success ,
  • Infrastructure and operational efficiency,
  • Profitable growth.

As each element improves, the momentum of the Flywheel increases, creating a cycle of continuous growth and success for the company.

Amazon’s Flywheel Approach to Customer Experience Optimization

Amazon’s primary focus is enhancing the customer experience, and the Flywheel approach is instrumental in achieving this goal.

  • The company continuously improves the selection  and  availability of items , making it easy to find what you’re looking for.
  • Low prices  are another crucial aspect of this approach, allowing Amazon to provide customers like you with the best possible value for your money .
  • Driving down costs  while maintaining quality attracts more customers and increases sales for third-party sellers.

Amazon’s efficient , extensive logistics and fulfillment infrastructure ensures a reliable and fast delivery experience, leaving customers satisfied and eager to return. This relentless focus on customer experience strengthens the various aspects of the Flywheel, leading to long-term success and growth.

Acquisitions and Advertising: Amazon’s Pursuit of Expansion

From Whole Foods to Ring, Amazon’s acquisitions have allowed them to diversify and expand their offerings. Meanwhile, their advertising platforms have enabled them to reach new audiences and boost sales .

Analyzing Amazon’s Acquisitions and Their Connection to Its Goals

Throughout its history, Amazon has made  strategic acquisitions  to drive growth  and expand its offerings. Some notable examples include the purchase  of Whole Foods, Twitch, and Zappos. Each acquisition has played a pivotal role in helping Amazon achieve its long-term goals:

  • Whole Foods:  By acquiring this grocery chain, Amazon expanded its retail market footprint while enhancing its grocery delivery capabilities.
  • Twitch:  The acquisition of this streaming platform  allowed Amazon to strengthen its presence in the gaming industry and deliver engaging content to millions of users like you.
  • Zappos : As an online shoe retailer, Zappos enabled Amazon to improve its fashion offerings and provide better customer service to online shoppers like yourself.

The Growing Influence of Amazon Advertising Business

Advertising has become crucial to Amazon’s expansion strategy. Over the years, the company has evolved from primarily an e-commerce platform to a formidable advertising player, allowing businesses to reach millions of potential customers like you.

Amazon’s advertising services include sponsored products, display ads, and video ads , allowing you to discover relevant products and offers while shopping. With the rise of its advertising platform, Amazon has the potential to challenge significant advertising giants such as Google and Facebook in the future.

As the heart of the Amazon ecosystem, advertising generates significant revenue for the company and enhances the shopping experience for customers like you. By delivering personalized and timely ads, Amazon ensures you find the products you need and desire, making your shopping journey more enjoyable and efficient.

07 advertising business

In any business model, it’s vital to focus on customer-centric solutions  and leveraging the various services and tools provided by the platform. This will enable you to stay ahead in the highly competitive e-commerce market and successfully scale your business .

Remember to utilize data analytics and performance tracking to evaluate the effectiveness of your marketing strategies and optimize them accordingly. By staying data-driven and having a business model focused on customers, you can drive sustainable growth and maintain a profitable business model.

In a nutshell, the success of Amazon relies upon its ability to adapt  to the ever-changing e-commerce landscape . A well-developed business plan serves as the foundation for this adaptability. By staying true to these strategies and principles, you’ll position your business for long-term success on Amazon .

Frequently Asked Questions (FAQs)

Q. how does amazon’s business work.

Jeff Bezos Amazon operates as an online marketplace, connecting sellers with buyers . Sellers list their products, while buyers search and purchase items they need. Additionally, Amazon offers services such as Prime, streaming, and cloud computing  through Amazon Web Services (AWS).

Q. What is Amazon’s core business strategy?

Amazon is a customer-centric company  aiming to provide a seamless shopping experience. Amazon focuses on low prices , a vast selection, and fast delivery. By continuously investing in technology and optimization, they stay ahead of competitors.

Q. How significant is AWS to Amazon’s overall revenue?

AWS is crucial to Amazon’s income, accounting for a significant portion  of its overall revenue. AWS has become a primary profit driver  in recent years thanks to its high-margin business model and rapid growth in the cloud computing market.

Q. How does Amazon manage to keep its cost structure low?

Amazon keeps costs low by leveraging economies of scale , investing in automation , and using data-driven decision-making . They can reduce overhead and maintain competitive prices by analyzing customer data and optimizing supply chain management .

Q. What are some notable acquisitions? How do they align with its goals?

Over the years, Amazon has made several strategic acquisitions to expand its presence in various sectors and improve its customer experience.

Whole Foods Market: Acquired in 2017 to expand Amazon’s presence in the grocery sector and enhance its delivery capabilities. Zappos: Acquired in  July 2009  to strengthen its online shoe and apparel sales position. Kiva Systems:  Acquired in 2012 for warehouse automation, leading to the development of Amazon Robotics for improved efficiency in fulfillment centers. Ring: Acquired in 2018 to enhance their innovative home product offerings and bolster the connected home ecosystem.

These acquisitions align with Amazon’s goal of expanding its product and service offerings, improving customer experience, and increasing market share in various sectors.

Q. How does Amazon make money?

Amazon generates revenue through various sources, primarily e-commerce sales. They sell products directly to consumers through their website and mobile applications, as well as through third-party sellers who use Amazon’s platform to reach customers.

Besides e-commerce sales, Amazon generates revenue through cloud computing services, advertising, and subscription services, such as Amazon Prime, which offers free and fast shipping, movies and TV shows streaming, and exclusive deals.

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8-figure Amazon seller and serial online entrepreneur since 2015. Research and practice various online business models, and apply his in-depth learnings to further expand and grow his businesses as well as help others to achieve greater successes. Ex-VP of a high tech VC in Vancouver and a Management Consultant with over a decade of experience in the industry. Master's Degree from HEC Paris.

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Amazon FBA Business Plan Template

Written by Dave Lavinsky

Amazon logo with green background

Amazon FBA Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their Amazon FBA businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an Amazon FBA (Fulfillment by Amazon) business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your Amazon FBA business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes target market research to support your plans.

Why You Need a Business Plan

If you’re looking to start an Amazon FBA business, or grow your established business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your Amazon FBA business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Amazon FBA Businesses

With regards to funding, the main sources of funding for an Amazon FBA business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

Personal savings is the other most common form of funding for an Amazon FBA business. Venture capitalists will usually not fund an Amazon FBA business. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual Amazon FBA could never achieve such results.  With that said, personal savings and bank loans are the most common funding paths for Amazon FBA businesses.

Finish Your Business Plan Today!

How to write a business plan for an amazon fba business.

If you want to start an Amazon FBA business or expand your current one, you need a business plan. In the following Amazon business plan template, we detail what should be included in each section of your own business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of Amazon FBA business you are operating and the status. For example, are you a startup, do you have an Amazon FBA business that you would like to grow, or are you operating multiple Amazon FBA businesses or storefronts?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the Amazon FBA industry. Discuss the type of Amazon FBA business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of business you are operating.

For example, you might operate one of the following types of Amazon FBA businesses:

  • Reseller : this type of business finds products from other businesses to resell on Amazon.
  • Private Label: this type of business buys existing products and rebrands them to sell on Amazon.
  • Proprietary: this type of business is where a business creates a unique product to sell on Amazon.

In addition to explaining the type of Amazon FBA business you will operate, the Company Analysis section of your Amazon FBA business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, growth in product line, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the Amazon FBA industry.

industry growth outlook

While this may seem unnecessary, it serves multiple purposes.

First, researching the industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

  • How big is the Amazon FBA industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your Amazon FBA business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: Millennials, Generation X, and Baby Boomers.

As you can imagine, the customer segments you choose will have a great impact on the type of Amazon FBA business you operate. Clearly, Baby Boomers would respond to different marketing promotions than Millennials, for example.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, the customer segments may include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Amazon FBA Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other Amazon sellers.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes traditional brick and mortar stores, branded websites, or people who make their own product at home. You need to mention such competition as well.

competition

  • What types of customers do they serve?
  • What types of products do they sell?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide a broader range or higher quality product line?
  • Will you provide services that your competitors don’t offer?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an Amazon FBA business, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of Amazon FBA company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to your core product line, will you provide customization, or warranties, or any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the products or services you offer and their prices.

Place : Place refers to the location of your Amazon FBA company. Document your location and mention how the location will impact your success. For example, if you are offering a proprietary product, is your production facility located near an Amazon distribution facility, or near suppliers of the inputs needed to make the product, etc. Discuss how your location might be the ideal location to minimize order fulfillment time.

Promotions : The final part of your marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Digital Advertising
  • Partnering with applicable websites
  • Social media marketing
  • Amazon PPC ads

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your business, including managing, tracking, and restocking inventory, and customer service.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 1,000 th product, or when you hope to reach $X in revenue. It could also be when you expect to expand your business to a new product line.  

Management Team

To demonstrate your Amazon FBA business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in supply chain management or managing Amazon FBA businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing ecommerce shops or successfully running small businesses.  

Financial Plan

Your financial model should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement

expected sales figures

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your Amazon FBA business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key fixed and variable expenses needed in starting or growing an Amazon FBA business:

  • Production facility build-out including design fees, construction, etc.
  • Cost of equipment and supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

business costs

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your product line description or your branding portfolio.

Putting together a business plan for your Amazon FBA business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the Amazon FBA industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful Amazon FBA business.  

Amazon FBA Business Plan FAQs

What is the easiest way to complete my amazon fba business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Amazon Business Plan.

How Do You Start an Amazon FBA Business?

Starting an Amazon FBA business is easy with these 13 steps:

  • Choose the Name for Your Amazon FBA Business
  • Create Your Amazon FBA Business Plan pdf or doc
  • Choose the Legal Structure for Your Amazon FBA Business
  • Secure Startup Funding for Your Amazon FBA Business (If Needed)
  • Register Your Amazon FBA Business with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Amazon FBA Business
  • Buy or Lease the Right Amazon FBA Business Equipment
  • Develop Your Amazon FBA Business Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Amazon FBA Business
  • Open for Business

Learn more about how to start an Amazon FBA business .

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide For Small Businesses

How to start an Amazon business

Everything you need to finally start an Amazon business

A person lifting a packing box.

Benefits of starting an Amazon business

What you need to know before starting an amazon business, business setup and legal considerations, how much money do you need to start selling on amazon, which type of business is best on amazon, how to set up your amazon seller account, how to list and optimize your product, how to market and promote your product, how to provide excellent customer service, how to be successful with amazon business, how to make my amazon business profitable, chapter 1 .

- Amazon marketplace overview

- Benefits of starting an Amazon business

- What you need to know before starting an Amazon business

- Business setup and legal considerations

- How much money do you need to start selling on Amazon?

- Which type of business is best on Amazon?

- How to set up your Amazon Seller account

- How to list and optimize your product 

- How to market and promote your product

- How to provide excellent customer service

- How to be successful with Amazon Business

- How to make my Amazon business profitable

Amazon is the world's favorite online retailer, a place where hundreds of millions of customers spent $500 million+ a year on everything from electronics and entertainment to sports goods, clothing, beauty, home products, kitchen and almost anything else you can imagine.

The figures are staggering, but Amazon' isn't doing this all on its own. There are around 10 million sellers using the platform to market their own products worldwide, and if you have something to sell, you could get a share of profits.

This guide will walk you through the process of starting a business on Amazon, and offer tips on how to make it a big success.

Amazon marketplace overview

Amazon Marketplace is an e-commerce platform where third-party sellers can market their own products on the Amazon site. These are some of its benefits.

1. Large customer base : Amazon has an army of customers from around the world, and they regularly visit the site to search for products. Access to that kind of audience is perfect for generating sales and growing your business.

2. Reliability : Amazon has spent years in investing in its infrastructure, and the end result is a fast and reliable site which works exactly as its visitors expect, just about all the time.

The end result is a site which has earned the trust of hundreds of millions of buyers worldwide. Sell on Amazon and you immediately get a share of that confidence.

3. Global reach : If you're currently selling products in your own country only, Amazon's global reach could be a huge opportunity. You can easily list your business in dedicated marketplaces for specific countries, such as Amazon.com (United States), Amazon.co.uk (United Kingdom), etc. Even better, Amazon Marketplace gives you access to multiple languages support, you need not worry about how to create product descriptions, listings, and support in the language of the target audience.

3. Makes ordering easy and convenient : starting an Amazon business makes ordering easy and convenient, especially for your customers. Amazon has a user-friendly interface that makes it easier for shoppers to browse through the catalog of products and place orders with ease. The user-friendly interface makes it convenient for customers to find whatever products they are looking for in just a few clicks. With Amazon you can provide your customers with the necessary information they need on the products they want to purchase, this includes the product description, specifications, benefits, value, reviews, and virtual representation of the products.

This information helps the customer to know the kind of product they want to buy and also creates a picture of what the products look like and how it will benefit them in their mind.

 4. Payment options : you can choose which payment option is best for you. Shared or individual payments are available for you or another administrator of your Amazon Business account. Debit cards, credit cards, and the Amazon corporate credit line are the three types of shared payment options. The payment method may be utilized by any authorized user of your business account to make purchases on your behalf. While the card you add can be used by any authorized account users, just the last four numbers are visible to them to increase security.

Your user and management options are enhanced as a result of the Amazon corporate credit line. You can approve several buyers on a single account, get reports on your transaction history, and use a purchase order as payment. It has simple-to-comprehend statements and doesn't charge annual fees. Account administrators can control payment methods, including both private and shared ones, as well as delivery addresses, making ordering straightforward for all customers in your business.

5. Advertising support: There are various advertising opportunities in the Amazon marketplace. Amazon's advertising options include Sponsored Products and Sponsored Brands, which promote specific products in search results, increasing their discoverability and generating more sales. 

Amazon advertising allows sellers to increase their visibility, especially in a very competitive market, with sponsored products and brands, sellers can put their products on the front to appear in search results thereby increasing the chance of their products being seen by potential customers.

Smarter advertising helps sellers to target your ads based on factors like interest, demographics, location, age, keyword and more, ensuring your messages reach the most relevant people.

Access to Amazon tools and programs : Starting an Amazon business gives you access to many exclusive tools and programs. For example, the inventory management tool helps sellers effectively manage their stock, making sure that products are always available and avoiding stock-outs.

A+ content (also known as enhanced content) uses high-quality images, engaging videos and detailed descriptions to effectively communicate your product features, benefits, value, specifications, etc.

Other extras include a host of promotional opportunities such as Lightning Deals, Coupons, and Deal of the Day, ideal to increase customer engagement and boost sales.

Before starting an Amazon business there are things you need to know that will help you in your journey.

Here are factors you need to consider before starting an Amazon business.

Amazon seller account types: Before starting an Amazon business you should understand the types of Amazon sellers account, and think about which one is best for you. These are your two options.

Individual sellers account: this account is suitable for beginners and sellers that have low sales volume with less than 40 sales units per month. Here are some features:

1. Sellers pay per item fee for each product sold, therefore there isn't a monthly subscription fee for sellers in this account.

2. Access to tools and features is limited, unlike sellers in professional accounts.

3. Sellers that choose an individual selling account may not be eligible for certain programs and also may be restricted from using advanced selling tools.

Amazon individual sellers are charged $0.99 for each item sold. One disadvantage of an individual seller's account is that you cannot offer free shipping to customers to lure them to your store and you can't sell on Amazon restricted categories like personal care, grocery, clothing, health, footwear, watches, beauty items, etc. and also Amazon decides the shipping rate for you.

Professional sellers account: This is an ideal account for individuals who want to make huge sales on Amazon, and individuals who plan on making more than 40 sales each month. Here are some of the features of professional sellers' accounts:

1. It includes a monthly subscription plan of $39.99,

2. With this account, you have access to advanced tools to help in the management of your store,

3. There is an inventory listing tool that lets you create a listing page for your products.

4. It also gives you access to promotional opportunities and inventory management (but these may require paying extra fees.)

5. People using professional seller's accounts have access to restricted categories and Amazon APIs for integration.

Competitive analysis:  As a seller, you need to know who your competitors are on Amazon, how they list and market their products, how they market their products, their pricing strategies, and the feedback they get in customer reviews. Identify your competitor's weaknesses and strength, for clues on how to differentiate your business from theirs. 

Performing a competitive analysis serves as a guide to your path of business success, allowing you to identify market opportunities and gaps. It helps you to know the areas with less competition, and how you can position your business for greater success. 

It's just as important to learn who your customers are, and what they are looking for (you can't sell to people you know nothing about.)

Analyzing your direct competitors' reviews, pricing strategies and product offerings gives you insights on what your customers are after. Knowledge of this helps you understand how to channel your marketing strategy, pricing, and customer experience to serve your customers better and meet their expectations.

It's important to learn from your competitor's strengths and weaknesses. Analyzing their customers' feedback and reviews gives you insights between your customers' pain points, needs, issues, and products. By carefully studying these areas you can identify ways you can provide better customer service to your audience, and also avoid mistakes competitors may have made.

Conduct product research and selection: before starting an Amazon business you need to conduct thorough research on products to identify those with low competition, and high market demand. Conduct an analysis to know the trends, search volumes, and customers' preferences for a product before deciding your next move. 

To know how profitable a specific target market can be, thorough research is needed. You need to know the production costs of a product, pricing, Amazon fees, and profit margins to enable you to estimate the profitability of selling a particular product. Consider issues like seasonality, too: collecting this kind of detail is a vital part of identifying profitable and in-demand products, and ensuring the long-term success or your business.

Fulfilment method: you need to decide if it's best to use Amazon FBA (fulfilment by Amazon) or to use your fulfilment (FBM, or fulfilment by merchant). Although FBA comes with additional fees, it can have a lot of advantages for your business. 

Difference between FBA and FBM:

a) With FBA your logistics are insured. FBA takes care of your logistics including storage, packaging, and shipping while with FBM the seller is responsible for the logistics.

b) FBA provides customer service and support on behalf of the seller; with FBM, the seller handles the customer service and customer support.

c) FBA allows sellers to offer prime-eligible products to customers, because of its fast shipping and prime membership perks it attracts more customers. While with FBM, sellers can also offer prime eligible products to customers, but they have to be specific and offer products within timeframes.

d) With FBA sellers pay for storage, packing, and shipping service provided by Amazon. FBM sellers are more in control of their costs, since they handle fulfilment themselves, but they must still pay for their own warehousing, packaging material, and shipping costs.

Advantages of using FBA for sellers

Some of the benefits or advantages of using FBA for sellers include:

1. Prime eligibility: prime-eligible products bring customers fast to your doorstep. FBA allows sellers to offer prime eligible products to customers, which is of huge benefit to customers. Prime members prefer prime-eligible products because of their fast shipping benefits and free shipping. This is a huge benefit to sellers because it increases visibility, conversion rate and improves customer satisfaction.

2. Expanded customer reach: FBA has a huge advantage over sellers. By utilizing FBA sellers can reach thousands of customers worldwide. With FBA you can access Amazon shipping and delivery.

3. Trust and customer confidence: with FBA you can earn the trust and confidence of your customers. Amazon has made a name for itself worldwide and with its reputation your store can easily earn the trust and confidence of customers, especially with its fast and free shipping benefits.

4. Multi-channel fulfilment : FBA offers multi-channel fulfilment capabilities. Assuming you have an online marketplace or another channel apart from Amazon, with FBA you can fulfil orders from other channels, providing you with the ability to scale your business on different platforms. 

There are legal requirements that should be met if you don't want to lose your business when run into some legal or financial situations. Before setting up your business you need to decide on the business structure.

Determine the business structure

Your business structure is an important legal consideration which greatly influence how you manage your finances, pay tax and more. 

These are the two most widely recognized business types.

Sole proprietorship : This type of business managed by one person alone. This is the most common type of business structure and very simple to set up, all you need is to start selling something, and boom! You are already operating as a sole proprietorship. 

One huge advantage of a sole proprietorship is total control, you have authority over every affair of the business, and you don't need to consult anyone like shareholders, partners, etc. A sole proprietorship business is very easy. 

The problem is that you, as the sole proprietor, are personally liable for any debts, lawsuits or other legal issues your business may encounter. There's no legal protection.

Limited Liability Company (LLC): An LLC (Limited Liability Company) is a US legal structure that shields owners from financial obligations and other responsibilities. An LLC legally separates the owner(s) from the business, in contrast to a sole proprietorship. This means that any debts or legal actions that your company may face will be handled by the LLC, not you personally.

Unlike sole proprietorships, LLCs are allowed to have more than one member. 

You must submit documentation to the secretary of state of the state where you intend to conduct business to establish an LLC. If your firm is medium- or high-risk, you want to preserve your assets, or you want to pay less tax than you would with a corporation, this structure may be a good choice for you.

The main difference between the two is how much more security you have with an LLC. An LLC is a legal entity that can be used to run a business, open a bank account, borrow money, sue, and be sued. Real estate can also be bought and sold through it. 

If your LLC business is sued or incurs debts, then unlike a sole proprietorship, you are not personally responsible. Creditors of your firm cannot seize any funds or property that are not owned by the LLC, such as your house or personal savings.

Register your business and obtain the necessary permits and licenses

You don't need to register your business to start selling on Amazon marketplace, neither do you need a seller's permit, but your state government might want you to register your business. It's very important to comply with the legal requirements of your state or country which might include registration of your business and obtaining necessary permits and licenses. 

To register your business it's best you contact the legal and local business authorities to ensure you comply with the laws and regulations.  

Typically, you'll visit the appropriate government agency or website that is in charge of registering businesses in your country or region. This usually involves paying a fee and filling out some necessary documents. Moreover, you also need to provide some necessary information about your business like your business name, details, address, contact details, etc.

Getting a tax identification number usually depends on your location. For instance, in the US, the Internal Revenue Service (IRS) would require you to request an Employer Identification Number (EIN).

After obtaining a tax identification number depending on your location, you need to check i.e. conduct some necessary research to know the permits and licenses required to sell specific products in your region or country for example these licenses or permits can include basic business licenses, licenses for collecting sales taxes, permits for health and safety, or customized permissions for particular items. Consult the appropriate government authorities on this. Also if your region or country requires you to collect sales tax, then you need to set up a sales tax system to collect tax.

Set up a separate bank account and payment system

Setting up a separate bank account and payment system for your business is very important as there are a lot of advantages that come with it.

These advantages include:

1. Financial organization: if you separate your business bank account from your personal account it helps you to be more organized. It helps you track your profits, revenue, and all business expenses correctly, and makes your financial analysis much easier.

2. Legal and liability protection: it's very important you maintain a clear distinction between your business and personal bank accounts. This will help you separate and protect your personal account in case of any legal issues or disputes. 

3. Simplified bookkeeping: separation of your account simplifies your bookkeeping process. It helps you understand how your money is coming in, where it's coming from, and where it's going. The clarity separation of your account provides makes it possible to avoid unnecessary financial and bookkeeping errors.

4. Improved financial insights: This enables you to gain clarity and better visibility and understanding of your business. Separation of your account helps you effectively monitor cash flows, revenues, and expenses, and better understand the profitability of your business.

How much do you think you need to start selling on Amazon? Amazon ecommerce experts Jungle Scout reports that most sellers (69%) had an initial investment of around $5,000, but 32% started with less than $1,000, and 16% got started with $500  (or even less.)

Whatever your budget, it's important to consider the other outlays you might encounter when you're selling on Amazon.

1. Required costs: the necessary money you need to pay to start selling on Amazon.

2. Inventory cost: customers will expect you to deliver goods quickly, so you'll have to keep a stock of products to ensure they're immediately available. 

If you're just starting out selling on Amazon, you might be hesitant to invest a lot of money in inventory as you don't know for sure which products will be popular. Keep your spending low at first, until you know which products sell best and what your stock levels need to be.

3. Extra costs: You can see these as costs that you need to boost your business early. This includes Advertising costs (advertising on Amazon is less expensive. The current average cost per click on Amazon is $0.35).

Other factors which can affect your Amazon selling costs include:

1. Monthly subscription fees: For individuals that choose a professional seller account, you need to pay a monthly subscription fee of $39.99. then individuals who sell less than 40 units of products each month have to pay $0.99 for each product sold.

2. FBA fees: The prices you pay may vary per order if you're selling through Amazon FBA. For instance, you will be required to pay Amazon extra to complete a larger order.

There is a monthly storage fee associated with FBA, as you're using space in Amazon's warehouses. From January to September, you'll pay $0.69 per cubic foot, and from October to December, $2.40 per cubic foot.

3. FBM fees: Sellers using Amazon's Fulfilled by Merchant (FBM) program are in charge of fulfilling their own products, in contrast to FBA. Reduced fees are one of its key benefits as compared to FBA.

Amazon Professional selling plan members that use FBM can choose their shipping costs.

4. Referral fees : You must pay a referral fee of 6% to 20% for each item you sell on Amazon. The kind of products you sell in your Amazon store determines the referral fee.

For instance, you might anticipate paying an 8% fee if you sell any electronics in your store. On the other hand, if you're selling clothing, you'll be spending about 17%.

5. Customer returns fees: As a seller, there will be times when a customer will return a product either because it's defective or they are not satisfied with the product. You will be in charge of covering those costs. 

The best type of business to do on Amazon depends on your interest, market demand, and resources. Here are the types of businesses you can start on Amazon.

Private label

A private label is a type of business that involves getting a product from a third-party manufacturer, rebranding is as your own, and selling it at a higher price. This can be lucrative if you choose your products wisely and negotiate a good price, but you need to have experience in branding and marketing to make it a success.

Drop shipping

This is a very popular type of business and is commonly used by individuals who want a simpler way to start in ecommerce. Dropshipping is very easy to start and manage since you don't need to worry about inventory management, shipping, and packaging the products. All of these are handled by your supplier. 

Essentially, being a drop shipper on Amazon means you're selling a product on behalf of the supplier. Once a customer purchases from your store, you notify the supplier, who handles everything necessary to get the products delivered. 

It's essential to get a supplier you trust before going for drop shipping. If your supplier delivers poor quality products, or maybe runs out of stock and doesn't deliver at all, these can cost you the loyalty and trust of your customers.

Retail arbitrage

This involves finding products from physical stores and then selling them on Amazon for a higher price. This is a very popular model for entry-level business models. By purchasing items in quantity at a discount and raising the cost to sell on Amazon, the business model enables sellers to profit from in-demand products. It is a straightforward idea that, as you accumulate an inventory and learn which product lines offer the most sales prospects, can help you produce a sizable stream of income over time.

You must take into account the initial price of your product and the amount you are selling it for, less the typical Amazon fees, to determine the profits made via retail arbitrage. Make sure you conduct a lot of competitor research to discover what other merchants' price points are so you don't go too high or cheap.

Online Arbitrage

This is similar to retail arbitrage but here instead of products being sourced from physical stores, products are sourced from online retailers. Comparing prices online can be easier than doing it in physical stores. To find possibilities and determine whether each potential purchase is profitable, you can immediately compare prices with Amazon.

It's a surprisingly simple process, and there are more opportunities appearing all the time. Every day, more ecommerce websites are created, allowing you to find tiny or emerging businesses that might provide their goods for less money.

Handmade Products

This business is perfect for you if you are skilled in crafts. You can decide to open a store that sells unique handmade products.

Not every vendor has the ability to begin producing their goods from scratch. Even if you've the skills, you may not have a proper workshop, or the time to manufacture the goods. But this approach can be very successful if you're able to produce an in-demand product which can't be found anywhere else.

For the moment you have been waiting for? In this section, we'll give you a step-by-step guide on how to set up your Amazon seller account.

Choose the appropriate seller plan (individual or professional)

Before setting up your business you need to choose the appropriate seller plan that is right for your business.

Also, remember the plan you choose depends on what you want to use your account and do, but for serious sellers, we recommend choosing a professional seller's plan.

Individual sellers plan

This plan requires you to pay a fee of $0.99 for each product sold. This plan is for individuals that sell less than 40 units of products per month. It's ideal for individuals who aren't quite sure what they want to sell yet, but want to try out Amazon business to see if it works for them.

Professional sellers plan

This is a perfect plan for serious sellers who aim to sell more than 40 products each month. This plan costs $39.99 a month, which gets you benefits like shipping, brand registry, Amazon advertising options, free shipping, promotions etc.

Sign up for an Amazon Seller Central account

To get started with Amazon business, visit sellercentral.amazon.com and click on the SignUp button.

Choose a password, then provide and confirm your email address.

Read Amazon's signup instructions carefully, to make sure you know exactly what Amazon expects from you, and what you can expect from Amazon.

Finally, provide information about your business, such as its location and business type. Whatever choice you make affects the status of your account, so choose carefully.

To get your product found you need to optimize your product listings online. Amazon's algorithm to prioritize their product suggestions is based on seller conversion metrics, like price, performance, customer satisfaction & sales history. To optimize your product follow the steps below 

Create compelling product listings with high-quality images and descriptions

Create a rich product listing with detailed information about the products you are listing. Talk about the product's features, benefits and value, and include all the most relevant specifications in the product description. Always use clear and descriptive language.

When choosing images for your products, avoid low-quality blurry shots. We'd recommend high quality 500x500 or 1000x1000 images, where the product occupies 85% of the frame, and there's little or no unnecessary background to get in the way. Show the item from multiple angles if that would help others understand its attributes and benefits. If necessary, hire a professional photographer: it's an extra cost, but could pay dividends later.

Utilize relevant keywords for better search visibility

Effectively utilizing relevant keywords paves the way for your business success. To search for the right keywords to use for your product you don't need to go for another tool, Amazon has a mega power keyword tool that you can use to search for products, get insights on the best keywords to use for your product, and understand the search queries your customers are using to search for products.

To begin your keyword analysis, follow these steps.

  • Fill out the Amazon search bar with a range of words and phrases. Check out the drop-down choices after that, and begin constructing a list of pertinent keywords for comparable postings
  • As a beginning point for your listings, use competitor results. Try comparable searches on Amazon.com to see what is currently available. compare product search keywords next
  • For further inspiration, look through the Amazon-related and suggested item categories
  • Consider both long-tail (very specific, but low traffic) and short-tail keywords (very general and high-traffic) while making your list

Optimize pricing strategies to maximize profits

The price you set for your products is a huge influence on your sales growth and conversion rate. To optimize your pricing strategies, research what your competitors are doing, and look at how you can develop a compelling price for your niche.

This is a constantly moving target as sellers change their individual strategies, but Amazon has a pricing tool can help you automatically adjust your price.

Don't forget to include your shipping costs. For example, if a product costs $5- $8 and you charge $6 for shipping, customers may run off to what looks like a better deal.

Implement product reviews and feedback management strategies

Use Amazon's Review Automation tool to automatically request a review from buyers between 4 and 30 days after a product is delivered.

Positive reviews are ideal, and can go a long way to persuade potential customers that you're running a quality business.

Negative feedback and reviews aren't as much fun, but it's vital that you pay them very close attention. Some negative reviews will be unfair, but others could be giving you very important information that you really need to understand and address.

We will be looking at ways you can market and promote your product on Amazon.

Develop a marketing plan to increase product visibility

To effectively market your products you need to develop a marketing plan and its implementation tactics. What do you want to achieve with your marketing strategy and efforts? Write down what marketing plans you have and the tactics you intend to use to promote your product. Your marketing plan could include a mixture of traditional marketing, influencer marketing, social media marketing, email marketing, digital marketing, etc.

Utilize Amazon advertising tools (sponsored products, brand Registry, etc.)

Amazon has a list of advertising tools such as sponsored products, brand registries, etc. Amazon advertising works as a pay-per-click advertising model. Sellers only pay for the ad when a customer clicks on the ad, it doesn't matter if the product sells or not. Amazon advertising tools help to improve your brand awareness, it also teaches you the best way to reach your targeted audience, and how you can acquire customers at a given time.

Amazon-sponsored products use a type of Amazon advertising tool that appears on the product details page Oland on search results. It is a pay-per-click marketing model. To measure your sponsored products ads we recommend you use a reporting tool that displays your ads' clicks, and advertising cost of sales.

Another type of Amazon ads is Sponsored brand campaigns , this enables you to promote keywords targeted for multiple products. With this, you can direct customers to your store on Amazon. It's also a pay-per-click advertising model. We also have Product display Ads, this type of ads focuses more on upselling or cross-sell to your customers. This type of ad is available to all advertisers, not only to sellers on the platform. Unlike the first two types of ads mentioned, they are only available to advertisers on the platform. To measure the performance of your product's display Ads you can use reporting tools that show you details on your marketing campaigns' clicks, sales,  advertising cost of sales, detailed page views, average cost-per-click, etc.

There are other types of Amazon advertising tools like video ads, Amazon native ads, and Amazon stores.

Implement off-platform marketing strategies (social media, influencer collaborations)

Apart from Amazon advertising, you should implement off-platform marketing strategies like social media marketing, and influencer collaborations. Promote your business and product listings on social media platforms, websites, or blogs. Create compelling content on your social media platforms.

Influencer marketing is a very effective method to market your products. Collaborate with influencers in a similar niche like you who have enough followers and engagement on social media platforms like TikTok, Instagram, Facebook, YouTube , etc. This will help increase brand awareness, and generate more sales.

Monitor and analyze marketing performance to optimize campaigns

It's important to regularly monitor and analyze your marketing performance to optimize campaigns using Amazon's Seller Central or third-party analytics tools. Monitor your sales performance, clicks, and metrics. This will enable you to know how your marketing strategy is performing, it also gives you insights on the areas to make adjustments, based on feedback and data you received, you will improve your products performance.

Keep records of the key performance of your marketing activities such as traffic, conversion rates, sales figures, and customer feedback.

Providing excellent customer service can help you excel in a specific niche and also earn you the trust and loyalty of your customers. Every customer wants to be heard, they want to feel special and need to be treated that way. However, providing excellent customer service depends on your relationship with your customers. You need to build strong relationships with your audience if you want to earn their loyalty. In this section, we will be talking about how and why you should provide excellent customer service to your audience.

Be friendly: Sounds simple? This is the number one most important rule of providing excellent customer service to your audience. You have to be friendly to your customers when providing services to them. Sound friendly, use friendly emojis when talking to your customers online, and make them feel they are speaking with a human and not a bot. You need to be kind and show them you understand whatever might be going on in their mind, whatever issue they have on a particular product, don't scare them away, but rather embrace the issue and provide a solution.

Friendly customer service has a huge impact on your customers both on existing customers and potential customers. One of the worst things you can do to a customer is to ignore them when they need you and also sound rude to them.

Provide excellent customer service to enhance customer experience: According to statistics, 68% of customers will likely tell their families of any bad experience they had with a brand and also post it on social media. The way you carry your customers will determine if they will remain loyal or even be loyal. One thing about your customers you should know is that the way you treat your customers will affect your business either positively or negatively. When a customer receives poor customer service from you, they will likely tell the public, and post it on social media platforms, therefore, ruining your brand's reputation. To enhance your customer service and customer experience, you need to listen to them. Evaluate the kind of issues they have, and what they share with you and find out ways how to provide better service and solve their issues.

Monitor and respond to customer inquiries and feedback promptly

When attending to customer's queries be prompt. they won't want to wait forever to be attended to. In today's market, the quality of customer service you render is very important in determining the loyalty of your customers. The customer's unique experience cannot always be fully recorded and analyzed, but when combined with customer satisfaction surveys, this data, such as call recordings in contact centers, emails from customers, and interactions on social media, can help an organization better understand the customer experience. With the use of these data, businesses will be able to enhance customer happiness and boost brand loyalty by better serving clients and precisely tailoring items to their needs.

To improve your customers' experience keep an eye on interactions, you may hear from your customers. This is where analytics for the contact center is useful. Text analytics locates emails and chat conversations that need to be monitored, while speech analytics locates calls that are important for review.

Record every avenue of client feedback. Apply the same quality standard to text-based interactions like email and chat that are used for calls.

What does your customer think? Asking your customers what they thought of their experience will yield better results than utilizing your company's own metrics to assess the quality of a conversation.

Encourage customers to leave reviews and provide feedback

You can do this simply by asking, although, it can be tricky to get customers to leave feedback on a particular product purchased. Most customers don't like the idea of telling you if they are satisfied with your service or not, but does that mean you shouldn't try? Of course not, customer reviews are important for your store's search engine optimization . You either encourage customers to leave reviews and provide feedback by either asking directly or indirectly but using both methods can be the best. The best time to ask your customers is to ask shortly after a purchase, allow them to use the products first before asking. You can also ask after a repeated purchase. You can also ask for feedback and reviews by including review links in receipt and shipping emails. You could also ask for reviews in the delivery email (as it's ideal to do so after the product has been received).

Another way you can ask your customers for reviews and feedback is by reminding your customers how reviews and feedback help your business to grow. Customers who are happy with your products and services will likely be happy to leave a review and also be happy to promote your product to their friends and families. You can also encourage customers to provide feedback and reviews by giving them multiple ways they can leave a review either on Amazon, social media platforms, or email.

It's one thing to start up a business on Amazon, it's another thing to be successful in your niche. In this section, we will be providing you with 6 tips on how to be successful in the Amazon business.

6 tips on how to be successful in Amazon business.

1. Know what you need to sell: you need to determine what you want to sell. The niche you are interested in. This is the first step to success in Amazon. If you find the best niche you want to focus on then you can have a more specific audience. Choose a product that has high demand but low competition, and don't enter an already saturated market. Carefully research the niche or products you want to focus on, evaluate the pricing strategies of your competitors in that niche, read reviews of what customers think of the products they bought, and also it's important to check the seasonality of the products. Know which time of the month, holidays, or season the products experience more sales.

Once you know the products you want to sell, you need to know who the products appeal to. Who are your target audience, carefully define your audience, know who they are, their pain points, demographics, locations, etc.

2. High-quality products: to be successful in the Amazon business, you must sell high-quality products. Sell products that are of good quality. This will enable you to earn the trust of your customers. Make sure the product descriptions, specifications, and benefits you provide on the platform are what your customers will see when they make purchases. Keep them satisfied and come back for more.

3. Choose your sales channel: choose the place or channel you will market your products. There are many marketing channels, you can market your products on social media platforms, or through influencer marketing, traditional marketing, affiliate marketing, website, etc.

Social media can be a great marketing site for your products. If your audience is on Facebook or Instagram for example then you should leverage the power of these platforms to increase your brand awareness, and increase sales. You can also decide to run ads on these platforms, for example running ads on Facebook is very cheap, and you can run ads on the products you want to sell. In case you want to drive customers to your store, then you can run some ads, to increase your store traffic.  

Another channel you can utilize to market your product is influencer marketing. Influencer marketing is a type of social media marketing in which a brand collaborates with a social media influencer to sell or market its products to its followers. These influencers are not literally celebrities, they can be anyone with a large audience or followers on social media. Choose a marketing channel wisely.

4. Optimize your product listings: As I said earlier, optimize your product listings by creating informative, and compelling product descriptions, also high-quality photos. Optimize keywords effectively, and use relevant keywords on your site. 

Use the Amazon search toolbar to effectively search for popular keywords for a particular product. When creating an image for your product, go for high-quality photos. Avoid posting blurry images of your products, it's a big turnoff for your customers. Use 500 x 500 or 1000 x 1,000 pixels to increase listing quality. The ideal number of photos is thought to be 5 to 6.

5. Work on your Amazon SEO. You need to know the Amazon search algorithm to be able to be successful in your business. Amazon might have a similar SEO with Google but the difference is that Amazon is a buying platform and not a search engine. 

To work on your Amazon SEO you need to conduct keyword research to identify high and most-used search terms for your product. Make sure your keywords are incorporated into your product title. Another way you can work on your Amazon SEO is by writing compelling and informative product descriptions. Make sure you highlight the features, specifications, and benefits of the products. Use bullet points to highlight the features of your products and also include relevant information. Remember it's important to stay updated with the latest change in Amazon's algorithm.

6. Stay organized in bookkeeping and accounting:

Being organized especially in your bookkeeping is a very important step if you want to successfully run a business on Amazon. Accurate financial records allow you to keep track of your finances, expenses, assets, liabilities, and revenues. Keep your finances healthy by keeping accurate financial records. Staying organized in your bookkeeping gives you insights into your company's financial performance, it enables you to effectively evaluate your business performance. You will be able to know if you are headed down the drain or on the right track. With accurate and organized bookkeeping, you will be able to generate the profit and loss statement of your company, the balance sheets, and cash flow insights.

Products selection and sourcing:  To make your Amazon business profitable you need to select products that are in high demand and have good profit margins. To select products that have high demand, you need to conduct thorough research to identify the profitable niche you can venture into.

Streamline operational costs: You need to identify the areas where you can reduce some operational costs. Improve packaging and shipping procedures, negotiate with suppliers for lower prices, and look at less expensive fulfillment options like Amazon FBA (Fulfillment by Amazon). Pay attention to expenditures for shipping, storage, advertising, and other overhead charges.

Build your own brand : Although creating your own brand requires work and money, it can result in devoted customers. Amazon also provides brand owners with a wide range of resources and advantages. Enroll in Brand Registry if you're ready to take the plunge or if you already have a brand in place to have access to automated label protections and more brand management resources.

Enhance product listings: Your product listings should be optimized to increase conversion rates. Make use of crisp product photos, persuading copy, bullet points, and precise product information. Use relevant keywords to increase your search presence. An optimized listing can increase revenue by luring more customers.

Be competitive and know your competition : Monitoring what your competitors are doing is very important to the success of your business. Examine their product pricing, marketing strategy, method of presentation, method of product description, and frequency of new product offerings. Maintaining a competitive edge and remaining profitable requires keeping up with the market. 

Conclusion  

Starting a business on Amazon is quite easy, you just have to follow the steps and instructions in this article. Before you can succeed in business you need to outline your business plan, understand the market competition, know your competitors, and map out some business success tactics. 

However, starting a business on Amazon is very beneficial as Amazon is a platform that is widely recognized around the world. People from different countries come to buy from this platform because of its reputation, your business or brand can gain from this already-built reputation. With Amazon, your business can gain access to many potential customers, as most people prefer to shop on Amazon. Small businesses have the opportunity to boost their sales with Amazon because of millions of buyers that purchase the platform.

With Amazon Prime membership you can have access to free shipping on eligible items, deals, and other features. Follow these guides, conduct your research on the niche you want to enter, and make sure you don't enter an over-saturated market. 

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Kenneth C. Nzeogu

Kenneth is a freelance tech writer who's been in the sector for three years. He loves writing about new technology, focusing on web hosting, streaming, cybersecurity, and how it can benefit people's lives.

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Starting a Business | How To

One-Page Business Plan: The Step-By-Step Guide

Published July 2, 2020

Published Jul 2, 2020

Blake Stockton

WRITTEN BY: Blake Stockton

This article is part of a larger series on Starting a Business .

Right now you likely have a business idea. Awesome! Now you need to think through that idea by getting your thoughts on paper. The One-Page Business Plan will walk you through each step of planning your business idea. Once you know your financial projections, you can finish the basics of this plan in less than 15 minutes. Planning is a great way to thoroughly understand the costs and income potential of your business idea.

Before continuing, download our one-page business plan template:

One-Page Business Plan

Download the template and save it to your desktop for easy access. The fields in the PDF are editable. You can also print out the document and write by hand. Answer each question with one or two sentences—feel free to write in incomplete sentences.

If you need additional space to write then place your basic ideas on the template, and continue writing on a personal document.

Question: What problem will your business solve?

Every business solves a problem. What specific problem will your business solve for a customer? Try to get down to the core issue your customer is having.

For example, for a landscape company, “time wasted” maintaining a lawn may be a problem for your customer; however, if possible, make it more specific. For example, the specific problem may be an unkempt lawn. You can visually see an unkempt lawn—it’s much harder to see “time wasted.”

2. Solution

Question: What will your business provide to solve that problem?

You’ve identified the problem, now you need the solution. What specific action will you take to resolve the customer’s issue? This solution is your product or service. Don’t be afraid to get specific with your solution.

Going back to the landscaping example, your solution is to improve an unkempt lawn and maintain it. However, I challenge you to go one step further with your solution. Perhaps you’re creating a lawn that makes neighbors jealous, which is a solution tied to an emotion—very powerful.

Tip: If you’re starting a new type of business , try to test your solution on a small scale without spending a lot of money. This test makes sure customers will pay you for the solution. In entrepreneurship, a common saying for a struggling new business is that it created “a solution to a problem that doesn’t exist.” Don’t be that business.

3. Business Model

Question: How will your business make money?

For many businesses, its business model is straightforward. A product is sold or service is provided, and the company is paid.

You also want to outline how and where the products and services will be sold. Will they be sold in your own business or office. Someone else’s store or office? Will you be engaging in ecommerce—on your own website or an online marketplace such as Amazon?

During this step, you should also set your pricing—which basically means, how much will you charge? This can be difficult to figure out. Consider browsing competitor websites for pricing. You may want to call a competitor and ask for a quote.

4. Target Customers

Question: Who will purchase your products or services?

Your target customers are your ideal customers. The worst answer to who is your target customer is “everyone.” Not even some of the most popular companies started out for everyone—Facebook was for college students, Amazon sold books. Also, a common marketing saying is that if you’re “marketing to everyone, you’re marketing to no one.”

When thinking about who your target customers are, think demographics. Think about features such as age, income, gender, hobbies, and location.

When you’re clear on your target customers, your marketing strategy will become apparent as well—you’ll understand where and how to spend your marketing dollars.

5. Promotion

Question: How will target customers learn about your business?

List any strategies you will use to get potential customers to learn about your business. As a new business, it may be challenging to reach and persuade your first customers. How will you do it?

In-person networking and marketing for your business are often more effective than online marketing. However, some online marketing is free and can have the ability to reach a lot of people.

If looking for local customers, consider claiming and optimizing your free Google My Business (GMB) listing . Additionally, once you create your GMB listing, set up your free one-page website. Affordable!

6. Competitive Advantage

Question: What will your business do better than the competitors?

Before you can state your competitive advantage, study your competitors—learn their strengths and weaknesses. Once you know you can do better than competitors, choose one or two areas where you know you can outperform them.

For example, if you notice they have poor online reviews, you can have exceptional customer service. In fact, your marketing can even call that out, such as a satisfaction guarantee.

Or maybe you can be faster than your competitors—“done in two days or less!” Don’t be afraid to call out your competitors and state why your business has the best “X.”

7. Financial Projections

Question : How much money do you need to start?

One part of financial projections is called startup costs —how much money you need to open your doors. For this cost, simply list all the items and services you need to get your business started.

When estimating the startup cost, you’ll want to overestimate on the amount, rather than underestimate. Often, a new business owner may be unaware of certain startup costs. If you underestimate costs, you could run out of cash before you get your first customer.

Question : How much will you spend every month?

Calculate how much money your business is likely to spend every month. Make the calculations for the first 12 months.

This may take research. You may have to pick up the phone and request a quote for items such as raw materials, equipment, and insurance.

Question : How much will you earn every month?

Now for the fun part—the amount of money you expect to make. How many customers do you plan on having every month for the first 12 months? You should have your pricing from the business model step. Take the number of customers times the price to come up with an estimated income every month.

Depending on your type of business, you may expect to grow your customer base every month. You may expect to only have a few customers in your first month—by 12 months, dozens of new customers. However, you don’t have to grow. Some companies may be content with a few consistent customers every month.

8. Funding Required

Question: How much money do you need to both start and operate your business?

Funding required is the total amount of money you need to start and operate your business for at least six months. You typically should have more funding than just the amount to start.

What if the company doesn’t get the sales you initially predicted? Or a natural disaster hits such as a hurricane or pandemic? Does your business have enough funds saved up to get through a difficult time?

Now that you have the amount of funding required to start and operate for at least six months, you can go out and raise that money through various sources, such as:

  • Personal funds
  • Family and friends
  • Crowdfunding
  • Business credit cards
  • Personal loan

The One-Page Business Plan Alternative

If you’d like to create a more in-depth business plan after reading through this guide, remember, there are different types of business plans . For example, if you’re seeking funding from a bank or investor, you will need to create a traditional business plan . This type of plan requires more thorough market research and financial forecasting.

Bottom Line

Now that you have your one-page business plan created don’t put it in a drawer never to be looked at again! As you move forward with your business, revisit your plan often.

It’s a best practice to keep track of your income and expenses to see if your predictions played out correctly. Did you outperform your goals? What’s working well or not so well? Use your one-page business plan to reflect on your business’s current state and update it if necessary.

About the Author

Blake Stockton

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Blake Stockton

Blake Stockton is a staff writer at Fit Small Business focusing on how to start brick-and-mortar and online businesses. He is a frequent guest lecturer at several undergraduate business and MBA classes at University of North Florida . Prior to joining Fit Small Business, Blake consulted with over 700 small biz owners and assisted with starting and growing their businesses.

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How to Write a One-Page Business Plan

Single piece of paper with a lightbulb. Represents writing down your full business idea on a single page.

Noah Parsons

5 min. read

Updated January 30, 2024

What’s the most challenging part of writing a business plan? Getting started. That’s why you should create a one-page plan as a starting point.

The one-page business plan is simple to create, easy to update, and built for adaptation. It includes all of the essential components of a traditional plan but is far briefer and more focused.

Think of it like you’re tweeting about your business. You have a limited number of characters to work with and are intentionally making it easy to digest. If you need additional support, try downloading our free one-page plan template .

  • What is a one-page business plan?

The one-page business plan is a simplified version of traditional operational plans that focuses on the core aspects of your business. While it may be a shorter business plan, it still follows the structure of a standard business plan  and serves as a beefed-up pitch document.

There’s really not a lot of difference between a single-page business plan and a good executive summary. In fact, as you create a more detailed plan you may even be able to use it as your executive summary .

  • What to include in your one-page plan

Here are the eight necessary sections to include when developing your one-page business plan.

Try and keep each section limited to 1-2 sentences or 3-4 bullet points to ensure that you stay within one page. It’s always easier to add more later rather than cutting back from lengthy sections.

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The problem

A description of the problem or need your customers have and any relevant data that supports your claim.

The solution

Your product or service and how it solves the problem.

Business model

How you will make money—including the costs of production and selling, and the price that customers will pay.

What’s your biggest business challenge right now?

Target market.

Who is your customer and how many of them are there? Define your ideal customer by starting with a broad audience and narrowing it down. This provides investors with a clear picture of your thought process and understanding of the greater consumer market.

Competitive advantage

What makes you different from the competition? Explain how this will lead to greater success, customer loyalty, etc.

Management team

The management structure of your business, including currently filled roles, ideal candidates, and any management gaps.

Financial summary

Key financial metrics include your profit and loss, cash flow, balance sheet, and sales forecast. This section may be the most difficult part to condense, so try and focus on visualization and standard business ratios to get the point across. You can always share broader financial information if requested.

Funding required

Have what funding total you need front and center to clearly display what you are asking from investors.

Why you should start with a one-page plan

There are plenty of good reasons to write a business plan . There are even more reasons why your first step should be writing a one-page plan.

1. It’s faster

Instead of slogging away for hours, days, or even weeks tackling a formal business plan—the one-page format helps you get your ideas down much faster. It removes the complex formatting,

2. A great format for feedback

Need quick feedback from business partners, colleagues, potential customers, or your spouse? Provide them with a one-page plan instead of a lengthy in-depth version for better results.

The one-page plan is more likely to be read and reviewed. And since all of your business information is available at a glance, you’ll receive far more valuable and timely feedback.

3. Easy to update

Entrepreneurs never get things right the first time. You’ll constantly be learning and receiving feedback—requiring you to iterate and revise your business concept. Instead of updating a large document every time, you can do it in minutes with a one-page plan.

4. Direct and to-the-point

Learning to communicate your ideas clearly and directly is critical. You need to be sure that anyone can really understand the essence of your business. Delivering your entire business concept on a single page is a great way to practice this, as it forces you to be succinct.

5. Works as an idea validation tool

Initially, your business is just a set of assumptions that you need to validate. Do your potential customers have the problem you assume they have? Do they like your solution and are they willing to pay for it? What marketing and sales tactics will work?

As you validate these assumptions, you leave them in your plan. But, assumptions that end up being wrong will quickly fall off the page.

6. Becomes an outline for your detailed plan

By “detailed” we don’t mean “long.” If you do need to create a detailed business plan document for investors or business partners, you can use your one-page plan as your core outline. You will just expand and provide more details for each section.

7. No one really reads long business plans

A common problem with traditional business plans is that they are simply too long and overly complex. Even when investors ask for a detailed document, chances are that they won’t actually read every word. They may read certain sections, but often just want to see if you’ve thought through the details of your business, how it will operate, and how it will grow.

8. Useful for any business stage

A one-page plan is useful for business owners that are mulling over ideas, just starting, actively managing, or looking to grow a business. It can help validate a business idea, work as an internal strategy document, or as a flexible management tool that can be adapted over time.

Resources to help write your one-page plan

Check out our guide for quickly writing a one-page plan and download our free one-page plan template to kickstart the writing process.

How to write your one-page plan in under an hour

Still feeling a bit overwhelmed about creating a business plan? Check out this step-by-step guide to write a useful one-page business plan in as little as 30 minutes.

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Content Author: Noah Parsons

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

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With a return to simple values, simple truths, planning can be fun and creative. A little chicken soup for busy minds and tired souls!'. Paul and Sarah Edwards, The Self Employment Experts, Authors of "Working from Home, Getting Business to Come to You and Secrets of Self Employment": 'Writing a business plan is something every business guru advises but few actually do. Jim Horan's book helps the reluctant change good intentions into a plan'.

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  • Publisher ‏ : ‎ Capstone; UK edition (6 Feb. 2009)
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one page business plan amazon

Jane Horan is the founder of the Horan Group, a Singapore based strategic consultancy that shapes savvy cross-cultural work environments. She has lived in Asia for over two decades and previously worked for Kraft, Disney and GE in Organizational Leadership and Talent Development roles. Jane works with Fortune 500 companies, NGOs, and academic institutions in Asia, North America and Europe as an executive coach and facilitator in leadership, political savvy and bias awareness. Her book, “I Wish I’d Known That Earlier in My Career: the power of positive workplace politics” combines 20 years of work experience and research in political savvy and leadership.

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The One Page Business Plan for the Creative Entrepreneur Paperback – 31 July 2015

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  • ASIN ‏ : ‎ 1891315099
  • Publisher ‏ : ‎ The One Page Business Plan Company; 3rd edition (31 July 2015)
  • Language ‏ : ‎ English
  • Paperback ‏ : ‎ 98 pages
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one page business plan amazon

Jim Horan (1952-2019) was an experienced Fortune 500 executive, small business expert, consultant, and speaker. Over the past 20 years, through workshops, seminars, coaching and mentoring programs, he helped tens of thousands of entrepreneurs, business owners and corporate executives achieve significant breakthroughs in their businesses.

Mr. Horan spoke to audiences all across the United States, helping business owners and CEO's systematically make their businesses more profitable. Jim had the unique ability to take complex business situations and make them simple.

Jim was the author of the One Page Business Plan Book series consisting of six books including Entrepreneur, Executive, Non-Profit and Consultants editions. The books have been translated into at a number of different languages including Spanish, Korean and Croatian.

Tom Peters, the author of Thriving on Chaos and In Search of Excellence, calls Jim's books out and out winners... Period! Peters has been quoted as saying "It makes great sense to me as a so-called 'business thinker.' The One Page Business Plan = the proverbial better mousetrap!"

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Jeff bezos bags $8.5b after selling 50 million amazon shares over 2 weeks.

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Jeff Bezos has sold a total of 50 million Amazon shares during the past two weeks, bagging roughly $8.5 billion in cash, according to securities filings.

The 60-year-old e-tailing tycoon unloaded more than 14 million shares on Tuesday for about $2.37 billion — after selling 36 million Amazon shares in three transactions last week , according to a Securities and Exchange Commission filing earlier reported on by CNBC .

The four sales were executed under a prearranged trading plan that Bezos disclosed earlier this month, which said that he could sell up to 50 million Amazon shares before Jan. 31, 2025.

Amazon founder and executive chairman Jeff Bezos sold more than 14 million shares of his company on Tuesday, copleting his grand plan to unload 50 million shares by Jan. 31, 2025.

The selling spree marks the first time that Bezos has sold his stock in the e-commerce behemoth since May 2021, the year he stepped down as Amazon’s CEO and assumed the sole role of executive chairman.

It’s unclear what Bezos plans to do with his handsome windfall, which he will get a tax break on thanks to his recent Seattle-to-Miami move.

Bezos — also the founder of space company Blue Origin and the owner of The Washington Post — announced that he was leaving his longtime Seattle home in November, triggering a flurry of questions about whether the world’s second-richest person was looking to skirt higher tariffs.

Washington state imposed a 7% levy on capital gains on stocks or bonds upwards of $250,000 in 2022. Florida, however, has no such tax.

Had Bezos stayed in Emerald City — where he built a multimillion-dollar compound less than 10 miles from Amazon’s Seattle headquarters — he would’ve had to cough up $595 million to satisfy that capital gains tax.

The figure surpasses the $500 million Bezos doled out to purchase his superyacht, named Koru, which features a helicopter landing pad, swimming pool and a mermaid resembling his fiancée, Lauren Sanchez, adorning the prow.

Thanks to his Seattle-to-Miami move, Bezos does not hae the pay the 7% levy on capital gains Washington state imposed in 2022. Florida has no such tax, and requiers less in property taxes.

Aside from the capital gains tax breaks he’ll get, Bezos is also poised to save on property taxes now that he call’s Miami’s exclusive Indian Creek island, also known as “Billionaire Bunker,” home.

Property taxes are 0.89% in the Sunshine State — less than Washington’s real estate tax rate of 0.98%,  according to Rocket Mortgage.

Bezos bought a a $79 million, seven-bedroom, 14-bathroom abode in Miami in October — two months after buying the  three-bedroom, three-bathroom home next door  for $68 million.

Bezos bougha a $79 million seven-bedroom, 14 bathroom mansion on Miami's "Billonaire Bunker"— just weeks after spending $68 million on the property directly adjacent to it.

After scooping up two of only 40 reported waterfront properties on the ultra-exclusive island, Bezos reportedly has plans to bulldoze the $68 million pad and build a single megamansion with its neighboring eight-figure enclave.

It wasn’t immediately clear if he also has plans to tear down the $79 million, 19,064-square-foot home, though he’ll certainly be paying less property taxes than he did on his former primary residence in Seattle, where he executed a similar teardown project after accumulating a 5.3-acre property in the affluent Medina, Wash., neighborhood.

Also in Washington, deep-pocketed residents with assets valued at $2.193 million or more are also obligated to pay an estate tax ranging from 10% to 20% upon their death.

Bezos boat

If Bezos were to keep Seattle as his primary residence and maintain his current net worth, it would mean he’d have to give up as much as $38.8 billion in estate taxes upon his death.

Florida, meanwhile, does not charge residents estate tax, regardless of asset size.

Representatives for Bezos did not immediately respond to The Post’s request for comment.

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Amazon founder and executive chairman Jeff Bezos sold more than 14 million shares of his company on Tuesday, copleting his grand plan to unload 50 million shares by Jan. 31, 2025.

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The Trump fraud trial verdict goes well beyond ordering the ex-president to pay $355 million. Here's what the ruling means.

  • Trump, his eldest sons, and the Trump Organization must repay $364 million from a decade of fraud.
  • Friday's verdict also bars Trump from running a New York business for three years.
  • Judge Arthur Engoron wrote that Trump's frauds "leap off the page and shock the conscience."

Insider Today

In a scathing verdict that punishes a decade of deceit, the judge in Donald Trump's New York civil-fraud case on Friday slammed the GOP frontrunner, his two eldest sons, and his company with a nearly $364 million cash penalty.

"The frauds found here leap off the page and shock the conscience," the verdict by the New York Supreme Court Judge Arthur Engoron , who has presided over the case for more than three years, said.

While Trump is personally on the hook for almost $355 million of that penalty, Donald Trump Jr. and Eric Trump must pay $4 million each, and the former Trump CFO Allen Weisselberg must pay $1 million.

But the verdict hits way beyond just Trump's wallet. It targets his real-estate and golf-resort empire, the Trump Organization, in two ways that Trump has pushed against for years.

First, the verdict wrests control of the company further from the former president and his two eldest sons, leaving major company decisions to a yet-named "independent director of compliance" who'll operate under Trump's court-appointed monitor's continuing watch .

Second, it sets a three-year ban on Trump running the Trump Organization or any other business in the city and state where he made his name — and where he first seized a national spotlight as a brash real-estate mogul. For Trump, it's the commercial equivalent of being run out of town on a rail.

Significantly — and this is a big silver lining for Trump — the verdict reverses the most unfriendly elements of the judge's pre-trial " corporate death penalty " judgment from September.

He no longer has to surrender all of the Trump Organization's New York operating licenses, and the verdict does not mention the forced sale of any Trump properties.

The verdict caps a five-year effort by the office of New York State Attorney General Letitia James .

On Friday afternoon, James issued a statement celebrating the verdict.

She said that Trump has engaged in fraud for years to enrich his own family and company.

Now, he and his codefendants will have to pay more than $450 million, including interest.

"While he may have authored the 'Art of the Deal,' our case revealed that his business was based on the art of the steal," she said.

Trump is expected to immediately appeal, likely putting these and other punishments from the 92-page verdict on ice well past the November election.

But in the coming weeks, Trump will still have to spend millions on a surety bond — a bond guaranteeing performance of a contract or obligation — to guarantee he can pay whatever dollar figure, plus interest, an appellate court ultimately upholds.

Interest also applies to the penalties, potentially adding millions more to his ultimate verdict price tag.

"When confronted at trial with the statements, defendants' fact and expert witnesses simply denied reality, and defendants failed to accept responsibility or to impose internal controls to prevent future recurrences," Engoron wrote Friday.

The verdict holds Trump civilly liable, based on Engoron's three-month Manhattan bench trial, for leading a conspiracy to commit business and insurance fraud with help from his two eldest sons and a pair of long-standing Trump Organization executives.

"Their complete lack of contrition and remorse borders on pathological," Engoron wrote.

"They are accused only of inflating asset values to make more money," the verdict said.

"The documents prove this over and over again. This is a venial sin, not a mortal sin," he added. "Defendants did not commit murder or arson. They did not rob a bank at gunpoint. Donald Trump is not Bernard Madoff. Yet, defendants are incapable of admitting the error of their ways."

In a statement, a Trump Organization spokesperson decried the verdict as a "gross miscarriage of justice."

"Every member of the New York business community, no matter the industry, should be gravely concerned with this gross overreach and brazen attempt by the Attorney General to exert limitless power where no private or public harm has been established," the spokesperson said in the statement. "If allowed to stand, this ruling will only further expedite the continuing exodus of companies from New York."

Read Friday's verdict here .

"Today, justice has been served. This is a tremendous victory for this state, this nation, and for everyone who believes that we all must play by the same rules — even former presidents," James said in her statement Friday. 

" When powerful people cheat to get better loans, it comes at the expense of honest and hardworking people," James continued. "Everyday Americans cannot lie to a bank to get a mortgage to buy a home, and if they did, our government would throw the book at them. There simply cannot be different rules for different people .

Some lesser penalties

The verdict also bans Trump and the Trump Organization from borrowing from New York banks or purchasing real estate in the state for three years. James had asked for a five-year ban on such buying and borrowing in her lawsuit.

Donald Trump Jr. and Eric Trump are banned from running a New York business for two years. James had asked for five-year bans for the brothers.

And it bans the two former executives, the ex-CFO Weisselberg and the former Trump Organization controller Jeff McConney, from controlling another New York company's finances.

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Watch: Trump fights back as fraud trial begins

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  • February 23, 2024   •   25:48 Trump’s Cash Crunch
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  • February 9, 2024   •   34:05 Kick Trump Off the Ballot? Even Liberal Justices Are Skeptical.

Trump’s Cash Crunch

The ruling in former president donald j. trump’s civil fraud case could cost him all his available cash..

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Last week, when a civil court judge in New York ruled against Donald J. Trump, he imposed a set of penalties so severe that they could temporarily sever the former president from his real-estate empire and wipe out all of his cash.

Jonah Bromwich, who covers criminal justice in New York, and Maggie Haberman, a senior political correspondent for The Times, explain what that will mean for Mr. Trump as a businessman and as a candidate.

On today’s episode

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Jonah E. Bromwich , a criminal justice correspondent for The New York Times.

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Maggie Haberman , a senior political correspondent for The New York Times.

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Jonah E. Bromwich covers criminal justice in New York, with a focus on the Manhattan district attorney's office, state criminal courts in Manhattan and New York City's jails. More about Jonah E. Bromwich

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    The Booming Business of Cutting Babies' Tongues. ... February 15, 2024 • 29:38. How China Broke One Man's Dreams. ... Amazon Music. Last week, when a civil court judge in New York ruled ...