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Amazon FBA allows people all over the world to run a successful online business and build real, sustainable passive income from the comfort of their own home.
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If this is the first time you’ve heard about Amazon FBA, don’t panic – we’re going to take you through the basics and help you to understand exactly how it all works.
How Do I Start Selling On Amazon's Fba?
Amazon FBA is short for Fulfilled-by-Amazon, and it allows you to sell products on Amazon, the most successful eCommerce site in the world, without having to worry about stock, inventory, returns, customer service or logistics whatsoever.
In other words, it lets you focus on the brand-building aspects of eCommerce, the parts you want to focus on because they encourage growth.
As a result, your margins when selling on Amazon FBA will be lower than on your own site, but your exposure to the market and potential conversion rates will be much higher.
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With these numbers in mind, we’re sure you can understand why selling your products on Amazon FBA is a very good idea, even if your website is doing good sales numbers with better margins.
If you decide to sell your products via Amazon FBA, there will be a few hoops you have to jump through to make it work, but as long as you do everything by the book, it’s a very simple process.
Once you’ve settled on the products you want to sell, it’s time to ship them to Amazon to get stored in their warehouse.
How To Start An Amazon Fba Business With Little Money In 2023
In the case of private label products, you can get your supplier or manufacturer to send the products directly to Amazon, meaning you don’t need to get involved at all.
You will need to provide full details to Amazon such as the number of products, the number of cartons, their dimensions and weight, the address the shipment is being sent from, etc.
This is the only official source of barcodes, and while many other sites offer them, there is a risk of them providing previously used barcodes or false ones which can lead to some serious issues or even your stock being misplace in Amazon’s warehouse, for good.
Guide To Starting An Amazon Fba Business [2023]
Of course, another crucial aspect of selling on Amazon FBA, arguably one of the most important, is optimizing your listings for the best possible conversion rate.
If you are completely new to selling online, we highly recommend checking out our guide on conversion rates in 2019 to get a solid understanding of this before continuing.
This seems to be the part people get wrong most often, but we struggle to see why, as it’s pretty simple and the most important aspect by a large margin.
How To Start An Amazon Fba Business
Choosing effective keywords and ranking for them well is the foundation of doing well on Amazon, and if you can’t do it, the rest is pointless.
We would highly recommend using an Amazon keyword research tool that is able to get live data from Amazon itself – our favourite is KeyworX.
Whether you’re going with a tool like KeyworX or doing it manually, this video will break down the exact Amazon keyword research strategy that we’ve used to get hundreds of our clients to 1st place positions in competitive niches:
How To Make Money On Amazon Fba
A good strategy is to make each bullet point focus on a specific benefit of the product – giving a reason your product is unique, then mentioning the benefit of that benefit…for example, your gardening gloves aren’t just “
Remember that the vast majority of people won’t read your listings in their entirety, so it’s a great strategy to write the bullet points to be scannable, with the key features and benefits being immediately eye-catching.
If you need more help with your bullet points and product descriptions, our post on how to add a product to Amazon features a full breakdown of each step and includes screenshots of each step to make the entire journey as easy as possible.
Amazon Fba Get Started Guide
Product photographs are a crucial part of your product listing because many people will use them instead of your written descriptions to get an understanding of your product.
High-quality, professional photographs that show your product in detail are a must here, but you should also use close-ups, different angles, show your product in use in a realistic situation, and even use text to sell the benefits of your products in the images.
This avoids wasting space and ensures that potential customers who don’t read any of the text in your listing are still aware of these benefits.
Fulfillment By Amazon
Our full guide to Professional Photography on the Cheap breaks down everything you need, from equipment and backgrounds to camera settings and hiring professionals, so give that a quick browse if you’re ready to go more in-depth and improve your photography skills considerably.
Outside of that, you should write for the reader and include as many details about your products and answers to questions they might have as possible.
…can all help increase sales, as any confusion or uncertainty about exactly what you’re offering will result in them simply browsing to the next product.
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Amazon FBA is likely to be right for you if you’re a small startup or sole trader, as it allows Amazon to handle a lot of time-consuming, fiddly stuff such as refunds and shipping while you focus on sourcing new products, marketing, optimization, building your audience – things that contribute directly to growth and profit.
Since Amazon FBA can also fulfil your products through other channels, it can also be a huge benefit if you sell through multiple channels and want to set up a fulfilment network through FBA that will also benefit your other sales channels.
Selling on Amazon FBA is actually cheaper than you might think, and is certainly not a limiting expense, at least when you start out.
How To Start An Amazon Fba Business With Little Money
There are some extra fees for certain things, however, and you can get a bit more involved yourself with things like labelling in order to save some money, or you can pay a little more to let Amazon handle everything.
At least when you first start out, the only cost you’ll have to worry about is whether or not it’s worth signing up for a professional account.
Amazon does charge inventory fees, but they vary quite a lot depending on the type of products you sell and the time of year.
Do We Need Amazon Fba Business Now That We Have?
If your products sit around in their warehouse and waste space without selling, you can expect to be stung by long term storage fees, which is why you have to do your research and make sure anything you send to Amazon FBA has a good chance of selling.
This is the act of finding cheap products in discounted sections of supermarkets, at garage sales and flea markets and selling them on Amazon one by one.
This is too time-consuming and the profits are too small for it to ever be scaled enough to become a sustainable business, but if you are looking to start an Amazon FBA business and don’t have the investment capital to get started, this can be an amazing way to build it up while gaining valuable experience.
How To Build A Successful Amazon Fba Business
If you are particularly skilled at finding cheap products in your local area, the margins you can achieve might just surprise you too.
This is when you buy previously existing branded products in wholesale to get them as cheap as possible, then sell them on Amazon for a profit.
It can be a good strategy to quickly make a good profit without having to worry about creating your own product, but chances are if it’s a product with high demand, somebody is already selling it from the exact supplier you’ve sourced it from – meaning to offer it for cheaper than the competition, you will need to buy some seriously large quantities.
A Guide To Start An Amazon Fba Business
It is by far the best way to sell on Amazon FBA as it allows you to have complete control over your product and find ways to make yours better than the competition.
Whereas it’s the most time consuming and costly at the start, in the long run, this is by far the most scalable and profitable model and the one you should be aiming for, even if you need to use the other models first to work your way up to it.
In fact, once you’re up and running, it quickly becomes the easiest method, since you only have to worry about your inventory levels and restocking, as opposed to managing tons of different products as you might with retail arbitrage.
Starting Your Own Amazon Fba Business
Private label products also provide the best opportunity for passive income – if you can get several decent products set up, or one that’s very profitable, you can make 4-5 digits per month in profit from just a few hours work per week.
Now that you understand everything about how Amazon FBA works and how to launch a product, the next question is how to handle the ranking situation.
Even if you do your product research as well as can be expected and launch your product into a niche where there isn’t too much competition, you never know when
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