Have you ever heard of Fulfillment by Amazon (FBA)? If you’re an online retailer, there’s a good chance that you have. In fact, I’d venture that you thought about selling on Amazon at some point in your shop’s history. But why limit yourself to just one platform when there are so many? After all, the most significant opportunity in eCommerce is only sometimes the most profitable. It’s the biggest – and if your goal is increasing sales long-term, opening up your inventory for sale on Amazon Prime is something you should consider. This guide will show you how Amazon FBA works for beginners so you can start today!
About Amazon FBA
Amazon FBA, or fulfillment by Amazon, is a service the eCommerce giant offers. It allows you to send your products to their warehouses and have them stored, packed, and shipped.
The most significant benefit of Amazon FBA is that it takes care of all shipping for you. This includes packaging, printing, labeling, and shipping costs. With Amazon FBA, you don’t need any experience with shipping or fulfillment. You send your products to Amazon and let them take care of everything else!
Amazon Business Model Options
When you want to conduct business on Amazon, there are various alternatives available. You can decide what best serves your objective or the kinds of things you sell. You can select from the following models:
You purchase goods at wholesale prices and then resell them on Amazon to make a profit. You don’t have any control over the products you sell since you are buying them from other people or companies selling them in bulk quantities.
You buy items at retail prices, so you must research what products will sell well on Amazon before making any purchases.
When you resell these products on Amazon, your profit margin will be much higher than if you were only purchasing wholesale items.
However, this method requires more capital investment, so it may not be suitable for beginner sellers.
This is the most profitable option for beginner sellers because it requires no additional capital investment and allows you to control all aspects of your business. From marketing to shipping and customer service, without relying on third-party sellers for support. Private labeling also gives you more control over pricing since you can dictate what price points work best for each product category.
This is where you don’t keep any inventory but instead fulfill orders by shipping from the supplier directly to your customer.
Dropshipping is a good option for beginners as it allows you to start selling without having to stock any inventory. It is also very cost-effective because you don’t have to purchase inventory upfront – pay for shipping each time an order comes in.
If you want to sell handmade products, Amazon FBA can be an excellent way of reaching customers worldwide without needing inventory or storage space!
Instead, you will send your finished product directly to Amazon, which will take care of storage and shipping your product out to customers once they have ordered it online.
Is Amazon right for you?
As a beginner, you might wonder if Amazon suits you. There are several benefits to selling on Amazon, including access to millions of customers and the ability to reach customers worldwide. The following are the most common questions we hear from people considering selling their products on Amazon:
Do you intend to make investments in your company?
Selling on Amazon can be expensive if you need to be more careful. You need to spend money on product research and sourcing, marketing, packaging, shipping, and more. If this sounds like too much work, then selling on Amazon might not be your best option.
Are you willing to learn?
If this is your first time selling anything online or offline, then FBA may not be the best place to start because it requires a lot of time spent learning new things. You’ll need to learn about marketing and product research as well as how to ship products efficiently using Fulfillment by Amazon (FBA).
Factors To Consider Before Investing In Amazon FBA For Beginners
When you think about selling on Amazon, the first thing that comes to think about is how much money you can make. However, there are a lot of other factors that you should consider first.
Before selling on Amazon, here are some things that you need to consider:
The audience for Amazon FBA is very broad. You can sell almost any product on Amazon, including grocery items, clothing, and electronics. Suppose your product fits within one of these categories. In that case, consider selling on Amazon FBA if you’re interested in selling online.
Costs of Competing On Amazon
The costs of competing on Amazon are high. The more competitive your product is, the more expensive it will be for you to sell it on Amazon. For example, if you have a product already being sold at a low price, then your price needs to be even cheaper than theirs for customers to buy from you instead of theirs.
This means that if your product has low demand or there’s already an established brand doing well in that market, then it’s going to be difficult for you to compete with them because they already have their own loyal customers and will be able to charge higher prices than what they’re currently charging.
The biggest drawback to selling on Amazon is that specific categories have very strict requirements for what products may be sold through them. For example, only certain types of clothing can be sold through Amazon Fashion, or only specific brands or types of books can be sold through Kindle Direct Publishing (KDP).
If your product fits into one of these categories or if there are other limitations placed on it by the category’s requirements, then you won’t be able to sell it through this channel.
Amazon requires all sellers to register as a business, so you can’t just sell on Amazon as an individual. This should be fine if you already own a business or want to start one.
Suppose you’re thinking about starting a side business or want to try selling on Amazon without fully committing yourself. In that case, there may be better choices for you.
Costs of Selling On Amazon
You have to pay for storage and shipping costs every time you sell an item on Amazon. When you sell on eBay or even Etsy, you don’t have to pay these additional costs because they are charged by the seller rather than the buyer. However, if your products are popular and in demand, then this is a small concern for you.
Benefits of an Amazon FBA business
Save Time & Money
You can save time and money using Amazon FBA as a fulfillment method. When you sell on Amazon, you don’t have to worry about customer support because it’s taken care of by Amazon.
All you need to do is send them your products, and they will handle everything from there. This can save you a lot of time to concentrate on other aspects of your business.
Amazon’s fees are very reasonable compared to other marketplaces, and you can use them to your advantage by choosing products that have high margins. Suppose you’re selling a product that is priced higher than its competitors. In that case, you can make a lot more money per sale than you would if you were selling something at the same price point as all of your competitors.
Start Selling Fast
When you sell on Amazon, it’s easy for customers to find your products and purchase them quickly. If they are satisfied with their purchase, they can return it easily and painlessly.
This means you don’t have to worry about building an eCommerce website or having your own website! You need a good product and some decent photos (if necessary).
Amazon’s platform takes care of the rest, making it easier for new sellers to start immediately without worrying about the technical aspects of running an online store.
You don’t need to have any money to start. You can buy your inventory wholesale and then sell it on Amazon at a retail price. The only thing you need is a product people want to buy.
If you can find a profitable product, the rest is easy. You don’t need to worry about suppliers going out of business or delivery times being delayed because you are buying directly from Chinese manufacturers.
You also won’t need to worry about finding employees or paying rent for office space. Amazon handles all customer service issues, returns, taxes, and other administrative tasks so that you can focus on growing your business and making more money.
Get access to a worldwide market. Most other eCommerce platforms are limited to selling in a single country. If you want to sell internationally, you will need to learn how to use multiple platforms and work with different payment gateways. With Amazon FBA, you get access to over 200 countries!
Low Overhead Costs
Finding the funds for a warehouse or fulfillment center can be difficult if you are starting out and need more capital. With Amazon FBA, you don’t have this problem! Amazon handles all of the warehousing and fulfillment for you at no cost. This lets you focus on marketing and sales instead of worrying about logistics.
Focus On Products
If you need to be more technical or need to learn more about sourcing products, this is the perfect business for you.
Suppose you have a passion for a specific product category and have some knowledge of how to source products. In that case, you can do well in this business.
The best thing about Amazon FBA is that you don’t have to worry about shipping, logistics, and customer service. Amazon handles all of that for you.
Peace Of Mind
The comfort that comes from knowing that Amazon will handle everything is immeasurable! You won’t have to worry about anything from shipping to returns or customer service. You must focus on finding the right products and getting them into Amazon’s warehouses.
Eligible For Prime
Amazon offers sellers two types of membership plans: A professional selling plan ($39 per month) and an Individual selling plan ($0). The Individual selling plan is free for up to 40 items in your inventory at any time.
However, it does not include access to Fulfillment By Amazon (FBA). Therefore, we recommend choosing the Professional selling plan if your goal is to grow into a full-time entrepreneur selling on Amazon.
How To Start Selling On Amazon
Amazon FBA is an excellent way to start selling on Amazon. It’s easy to start, and you can start making money quickly. Here are some tips you need to follow:
Set Up Your Amazon Seller Account
To sell on Amazon, you need an account with the company. To get started, go to the Amazon website, fill out the required information under the seller account, and submit it.
Once your application is approved, you will get an email with the link to log into your seller central account. It is crucial that you take note of the password for this account, as it will be used for all future activity on Amazon’s website.
List Your Products
To list your products on Amazon, you’ll need to create an account with them. Once you do that and log in, you can go to the inventory section of your account and add each of your products to the system.
You can then choose whether to sell directly or through another third-party seller. If you choose the latter option, Amazon will notify them when they receive an order for one of your items.
Optimize Your Content
The most important part of your listing is the title and description. It’s what shoppers see first, so it’s essential that you use it to catch their attention. If you need help with writing copy, try using the Amazon catalog or a competitor’s product page as inspiration.
You’ll notice that many descriptions are similar in length and format. This is because Amazon has specific guidelines for product content. Make sure yours follows these guidelines!
Name Your Price
Before selling on Amazon, you need to think about how much money you want to make from each product. This is called your margin, and Amazon allows sellers to set their own margins.
This means that if you need to make more money from each sale, then you can set a higher margin. If you’re going to sell more products, lower each item’s price so that buyers will buy more items at once.
Decide How You’ll Fulfill Orders
When someone buys one of your products, they don’t actually buy it from you – they buy it from Amazon FBA (fulfilled by Amazon). This means that Amazon takes care of all the shipping and customer service issues associated with selling physical products online.
However, two fulfillment methods are available: FBM (fulfilled by the merchant) and FBA. When using FBM, you handle all aspects of shipping yourself – including packing.
Publish And Start Marketing Your Products
Publishing your product is a very important step in the process. This is when you make your product available to Amazon’s millions of customers. After you publish your product, it will be available for purchase within minutes.
To publish a product, you must first list the UPC or EAN barcode number on the appropriate field in your seller account. Once you’ve done that, click on “Save & Close” and wait for Amazon to review and approve your listing.
Your listing will appear on Amazon within a few hours (sometimes days). You can track its progress by clicking on “Inventory” and selecting “Manage Inventory” from the drop-down menu.
12 Steps On How to sell on Amazon FBA for beginners
Amazon FBA is a great way to make money online. You are selling other people’s products, and they are taking care of the shipping and customer support. This gives you more time to focus on what matters most – growing your business! Here are 12 steps on How to sell on Amazon FBA for beginners:
Make Sure You Have Sufficient Capital
Before selling on Amazon, ensure your bank account can sustain the business’s costs. The initial outlay for starting an eCommerce business can be quite high, especially if you want to do things right from day one.
An excellent rule of thumb is that you should have at least $2000– $30,000 in working capital before starting any business in today’s economy. Suppose you don’t have this kind of money sitting around your bank account waiting to be used as startup capital for your new business venture. In that case, it will be better to wait until you do before starting out with this type of project.
Set Up Your Business Entity
Prior to beginning to sell on Amazon FBA, you must create a company organization. You can register as a sole proprietor or an LLC (Limited Liability Company).
You’ll be responsible for all your business’s tax obligations as a sole proprietor.
Suppose you’re considering setting up an LLC for your Amazon FBA business. In that case, it’s essential to understand that some significant tax advantages are associated with operating as an LLC regarding your Amazon FBA business.
In addition, if you’re starting and don’t have much capital, consider setting up your company as a sole proprietorship until you’ve accumulated more money to invest in inventory and other expenses associated with running an eCommerce business.
Choose Your Selling Model
Amazon FBA stands for Fulfilled by Amazon. It means that Amazon will fulfill your orders and sell them on their website. This can be done in three ways:
- Inventory storage: You store the inventory in an Amazon warehouse and ship it directly to the customer.
- Inventory storage with shipping fulfillment: You store the inventory in an Amazon warehouse and ship it from there, but you can also ship from your own warehouse if needed.
- Full service (or direct) fulfillment: You manage all aspects of shipment fulfillment using your own warehouse or a third-party provider (like us).
Learn how to sell on Amazon
Getting started might seem like a huge task if you’re interested in selling on Amazon. But once you know how to sell on Amazon FBA for beginners, it can be a very rewarding experience.
Selecting a product and adding it to your Amazon listing is just the beginning of selling on Amazon. You must understand how to pick the best product, locate a supplier, bargain, get the goods from the manufacturer to Amazon, and position your product to give it an unfair edge over rivals.
If you still need to, you’ll merely be marketing another identical product that won’t outperform your rivals. Here, appropriate education and training are crucial. Making the appropriate listening choice is essential to your success. It truly has the power to create or ruin your company.
Create Your Brand Name
This can be done by using your first and last name or any other word or phrase you want to use as your brand name.
Once you have decided on a name, you need to make sure that no one else owns it so that when you start selling on Amazon, there is clarity about who owns the product.
This can be done by searching for it using Google or checking if it is available through other online sources like Shopify or Etsy. If it is not available, then you can use it as your brand name!
Get Your Brand Name Trademarked And Brand Registered With Amazon
You do not need to worry about trademarking if you have a unique brand name and logo. However, if your brand name is common or generic, you should trademark it. This will prevent another person from using your brand name and selling similar products under that brand name.
The same goes for logos as well. Suppose you have a unique logo representing your brand name. In that case, you don’t need to worry about registering it with Amazon or anywhere else. However, your logo needs to be more generic or something else. In that case, it might be best to register it so no one else can use it without your permission.
Choose A Product To Sell
When making plans to start selling on Amazon, You need to decide which product or products you want to sell.
The more competitive an item is, the more difficult it will be for you to make good money from it because many other sellers will try to sell the same thing.
However, if your product is unique and this is the first time anyone else has one like it, this can be an excellent way of making money fast!
Find A Supplier For Your Product
Another essential step in selling on Amazon FBA For Beginners is finding a supplier for your product. Hundreds of suppliers are out there, but not all are good.
You want to find someone who has been around a while, has positive reviews, and ships quickly. Check their website and look at the other products they sell. You should go with them if they seem legitimate and have good customer service reviews!
Place A Small Test Order
Once you’ve found a supplier, place a small test order with them to ensure everything goes smoothly before placing larger orders. This will also give you an idea of how much time it takes to ship products and what kind of quality control they have over their products (if any).
Get Business Insurance
You need business insurance if you plan on selling on Amazon FBA. You wish to avoid getting caught up in an accident or having accidents happen while driving around with your product in your car. You should always be careful, but it would be nice if your insurance covers everything if something happens.
Launch Your Product On Amazon
Now that you’re insured, it’s time to launch your product on Amazon! First, head to Seller Central and click on “Manage Inventory” under the “Inventory” tab at the top of the page.
From here, click on “Sell” and then click “Start Selling Online” under the “Selling Online with Fulfillment by Amazon Program” section. This will take you through a few steps where you will input information about your products, such as their name, size, weight, and condition.
Once this step is complete, click “Save and Finish. This includes adding all the required information, such as a product description, images, and price point information. Remember it’s important to add reviews and social proof!
Promote Your Product On Amazon
Once all the above steps are done, you can promote your products. You can promote your products on Amazon by using the Amazon PPC (pay-per-click) option, or you can use some other social media platform to promote your product.
You can also use the Facebook ads platform to promote your products and have a higher chance of getting more sales.
How To Optimize Product Listings For Amazon SEO
Amazon SEO is one of the most important factors for ranking products on Amazon. If you have an optimized listing, your product will rank higher and more frequently than other listings.
SEO is optimizing your product listing for search results on Amazon. This includes optimizing the title, bullet points, description, images, and more.
The following are tips to help you optimize your product listings:
The title for a listing should include the brand name and model number if applicable – if not, then just the brand name is sufficient. This will help customers find their desired item easily when searching for it on Amazon or Google search results in pages.
The bullet points are displayed on the product page in bold text, so make sure they communicate the most important benefits of your product. Be sure to include key features or specifications that will help convince customers to buy from you instead of other sellers selling similar products. Make sure each bullet point has its own paragraph to stand out clearly on-screen.
The description should be written using SEO-friendly keywords related to your product, such as “t-shirt” or “dress shirt,” instead of just saying “shirt” or “dress” because this will make it easier for customers to find your products when searching online!
You’ll need to create a strong product description. You can utilize the following advice while creating your Amazon product details:
- Be aware of your target market.
- Describe the advantages of the product.
- Describe the history of the product.
- Use straightforward, everyday language.
- Make your Amazon SEO and search engine friendly.
The most important SEO strategy for your Amazon listings is to use the right keywords. This means using relevant keywords in the title and description of your listing and in the product title itself.
The best way to find these keywords is using a tool like Merchant Words. This will show you what people are searching for on Amazon, allowing you to choose the best keywords for each listing.
The most important aspect of SEO is images. Images are great for attracting attention, especially when they’re large and high quality (like the ones shown here). They also help with conversion rates because people spend more time looking at products with images than those without them (or with low-quality ones).
Amazon FBA is a fantastic way to get your products in front of new customers and sells on Amazon Prime. They provide you with easy-to-use software that handles almost everything else. Anyone can do it. It’s exciting, gives you more time to focus on your business, and is used by an increasing number of online entrepreneurs with a wide range of abilities from beginner to advanced. This article has shown you what a powerful tool Amazon FBA for beginners is for growing your business and how easy it can be.