How To Start An Amazon FBA Business

How to start an Amazon FBA business we will discuss in detail, and I will share with you the vehicle I used to do just that, and many are doing the same and are having the same results and better.

Today many online business people are venturing into the Fulfillment By Amazon or FBA business model as it is commonly referred to.

In fact, it is growing in popularity and this is for a good reason.

Fulfilment By Amazon is a business model. Many view FBA is the same as the traditional e-commerce business. However, instead of you focusing on fulfilling orders one by one, Amazon stores your products, picks, packs and even ship them to your customers.

The process makes it easier for you to build your business without having to worry about the logistics of warehouses, couriers, and packaging materials among others. With private labelling you have the opportunity to create and build your brand and website, therefore, increasing the value of your business.

So, are you raring to go? Discussed below is a basic guide on how to start an Amazon FBA business

fulfillment by amazonWhat is FBA (Fulfillment by Amazon)?

An FBA is a business model that allows you to leverage Amazon’s robust distribution network and client base. In addition, Amazon warehouses your products, packs, and delivers the products to the consumers.

What this means to entrepreneurs is you can act like a big corporation without having the problems of actually having one. Your main work is to look for opportunities while Amazon handles the rest of the work of distribution.

Create An Amazon Seller Account

In order to get your FBA business up and running, you will have to create an Amazon seller account. To do this, head to Amazon’s website, scroll down to the footer and locate the heading “Make Money with Us”, and click on the link that reads “Sell on Amazon.”

Here you can either register as an individual or as a professional. Notably, if you sign up as an individual you will not be charged the monthly subscription fee.

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However, if you are looking to build up a business over the long haul it is recommended you sign up as a professional. The sign-up process is pretty straightforward. Just follow the onscreen instructions and complete the setup.

How To Establish Your Own Private Label and Uncover Product Opportunities

There are different ways to leverage on FBA business model. However, the most widely used method is private labelling.

developing your own brand onlineThe idea is to establish a label or brand. Then apply it and sell the products on Amazon.

To start with, you will need to carry out product research. This is probably the most critical step.

If you get into an unpopular product category and sell the product at a price higher than your competitors, there is a possibility of losing money on the product. In order to thrive, conduct thorough product research.

Then do a competitive analysis. Study product reviews in order to determine if the niche will offer some good returns and indeed if the product can move i.e. be sold in the marketplace.

Additionally, you can sell products through retail arbitrage. This means buying a brand name product at a low price somewhere and flipping it on Amazon to make a profit.

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Tips On How You Can Scale Your FBA Business

Many people get started on Amazon with the goal of making a few extra bucks. As they begin to earn more profit the idea of growing a large business takes hold of them!

How can you do that?

1. Follow your passion. Certainly, if you like doing something you will stick in it for a longer time. Therefore, it is wise to choose a product category that excites and interests you.

2. Increase product offerings. You have to carry out a thorough research on the product you want to venture into. Besides, selling multiple products will help you spread the risk of having to depend only on one product.

3. Build a brand website. As you expand your private label you will require a professional and dedicated site for your business. It gives you the opportunity to market your products as well as make your business attractive.

A Few FBA Pros & Cons

There are many benefits to starting a business and using Amazon for product fulfilment. There are also some negatives to consider as well.

Pros Of FBA

getting your goods ready to be shipped1. Shipping. Without a doubt having Amazon handle shipping and returns is a big positive.

Being able to focus on sales and marketing is the fun part of making money anyway! 🙂

2. Amazon Prime. When you ship with FBA your sales automatically qualify for Amazon Prime free shipping which is a big plus to people used to buying from Amazon as prime members. This also encourages more people to join Amazon Prime.

Cons Of FBA

1. Getting products to Amazon. When you buy a product you have to ship it to Amazon’s warehouse. This will cost you money.

2. Stale inventory. It is your job to manage your inventory and keep it rotating. You will run into items not selling in the quantity you thought and run the risk of the products going stale.

Conclusion: Tips on Starting an Amazon FBA Business

Amazon is the largest online retailer in the world. They are even giving Wal-Mart a run for their money as the largest retailer period.

This right there, means you want to be able to sell on Amazon because when people go online to shop almost half of them buy from Amazon.

Use these tips to start your own Fulfillment By Amazon business and start partaking in the profits!

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Home » Make Money Tips » How To Start An Amazon FBA Business

16 thoughts on “How To Start An Amazon FBA Business”

  1. Online amazon fba is another way of making money through online, amazon is one of the largest company for shopping. Creating a niche and building a website are part of the essential needs for becoming amazon fba. This post has changed my thought and also helped me in legging out for multiple streams of income.I will stay around this website to learn more about making money online.  Thanks for the insightful information. Best regards. 

    Reply
    • Good that you see the benefits of owning an Amazon FBA business and what to look for when operating this business selling your own products or flipping someone else products to make a profit.

      If you need help setting this business model, please feel free and contact me, would be glad to lend a hand. Talk to you soon.

      Reply
  2. I appreciate your review on how to start an Amazon FBA. Your article is well explained and straightforward. Actually, I am just knowing about Amazon FBA. This is an opportunity I would love to take as well in making an extra buck online. I agree with you that following one’s passion, increasing product offerings and building a brand website are needed to be successful with Amazon  FBA. I will work all the guidelines you have given. Thanks for this informative article. 

    Reply
    • You can really run with the big companies by starting an Amazon FBA business if you have a product that you would like to get to the market place. When you are ready and need help setting it up you can reach out to me, would be happy to show you the process and the right way to get started.

      Reply
  3. Thanks a lot for another insightful and helpful post with loads of valuable information. To be honest, every time I read your post I get great and helpful insights. This is another great tip on how to start an Amazon FBA business which is an eye-opener for me. I am just getting to know about FBA and I appreciate the fact that you showed us the secrets on how to Establish our Own Private Label and Uncover Product Opportunities.

    Thanks for sharing

    Reply
    • Ola, it is easy to set up and the business is growing exponentially. Please do not take it lightly. Lots of my fellow Team members went on to make a full-time income with this business. Happy to present the value and how to start this business.

      Reply
  4. Hi David

    Is it true that customers on the Amazon sites can only order a product that is out of stock if you do the fulfillment via a third party / external party, and not if you opt for FBA? (I read somewhere that back-order option expires if you go for FBA.

    Regards,

    Samm

    Reply
    • Hey, Samm I am not sure if I understand you correctly. Can someone have the ability to order products out of stock if it is shipped by a third party? The answer to that question is yes. I heard that as well, but with Amazon Multi-Channel Fulfillment it is possible, but not in the case of International orders, unless is media items. Hope that I have answered your question.

      Reply
  5. Yes, this is a creative paragraph of yours. Here’s the involvement of Amazon and FB. Amazon is undoubtedly a major retailer in the world. Anyone who buys the product here creates a brand and website by itself, can be contacted internationally.

    The FBA created good relations between Amazon and its buyers. I learned a lot about Amazon after reading your passage. I think that on any web site we can be able to establish ourselves. This article encourages me a lot. I’ll note it. 

    Thank you.

    Reply
    • Anyone who decides to build a business around Amazon will have success with the proper training. Amazon is a major distribution company and is growing exponentially around the world.

      Now Is a good time to start an Amazon FBA business and get your products out in the marketplace letting Amazon do your heavy lifting. This will free up your time to market your business on the internet.

      Reply
  6. Wow! what a smart business idea Mr. Bishop.I’ve heard a lot about Amazon before. But there was no good knowledge about FBA business. Read this nice article on your writing and find out about this. You have very well understood the advantage and disadvantage aspects of this business. For which this platform has become more trusted to me. I am interested in starting the FBA business on Amazon. Of course, I will bookmark this page and share it with friends. Thank you.

    Reply
    • Irin, thank you for the comment band kind words. There are lots of people who make their own products and trying to sell as well and most time the business goes sour because of the challenges it takes in fulfilling orders. My goal is to let these businesses know that it is possible to have your fulfillment done by Amazon.

      Although there is a fee that you have to concur by getting your products to Amazon, after that, once you keep track of your products that you send, the hard work is over. Now they will have more time to market their products online. If you need help when you do start, please reach out to me, would love to lend a hand. Talk to you soon.

      Reply
  7. Hi David Bishop,

    Thanks for sharing the idea of making money online through Amazon. Well almost like everyone in the world knows about the Amazon(don’t know the Chinese knows or not😒). So it would be great to take that advantage as the business strategy, according to you. So it’s quite good.

    In your article you make a complete statement, what kind of huge convenience is waiting and for that really how minor adjustment should be made if someone starts his or her or their business on Amazon.

    Thanks again, Bishop.

    Reply
    • Badhan, yes, the Chinese people do know about Amazon. It is worldwide known and they are still growing exponentially.

      It is great what Amazon has done with the FBA business, they make possible that anyone can run like a professional business focusing on other main parts of their business. Will definitely expose this opportunity to the public all over the world. Thank you for dropping by and leaving such a positive comment.

      Reply
  8. Hi, Bishop.  this is an interesting post.  I didn’t know that Amazon offered this particular way to make money with them.  

    Wouldn’t it be simpler to have a niche website and promote products related to that niche and become an Amazon Affiliate?

    You said in your article that “Amazon stores “your products”, picks, packs and even ships them to your customers”.  A little further on you say that I have to buy a product or products and have it shipped to Amazon and they do the rest and that is presuming someone comes to my website and buys the product.

    If I understand that correctly, I don’t make any money on the product/s, I just purchased, until someone else buys it/them. So… If no one buys my product/s I’m out the money, well… I have a product but that’s all I have… No profits.

    I’m not saying that someone couldn’t do well in this kind of scenario but I think it would be far better to have an Affiliate Marketing website through Amazon.  Amazon has the links to all the products that go out of their warehouse and I would make a commission on anything that gets sold through my Affiliate link.

    Do I have it right or am I missing something?

    Wayne

    Reply
    • Wayne, it is Amazing what Amazon did, and I have a few of my business associates who are enjoying this service. One of the reasons I dug deeper into finding out about this service.

      i have literally know business owners who would stay in business if they had this service around in their time. Maybe they would give another try, who knows!

      That is true about making money with sales of your products. But that is the case with anything, a sale has to be made for someone to get a commission. There are proven products that have a track record that you can market. REMEMBER IT DO NOT HAVE TO BE YOUR OWN PRODUCT. hope you got that.

      It is impossible to have an affiliate website through Amazon. One of the criteria on becoming an Affiliate with Amazon is that you have to have an established website before you can be approved Another thing is better to have a brand when selling online. For rankings, it would be a good idea to sell computers and men’s clothing on the same website. Hope that helps.

      Reply

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