How to Start Selling on Amazon FBA in 5 Simple Steps
If you’re interested in selling on Amazon FBA, you’re in the right place. Here’s a quick overview to get you started:
- Create an Amazon Seller Account
- Find profitable products to sell
- Source your products
- List your products on Amazon
- Ship your products to Amazon FBA
Selling on Amazon FBA (Fulfillment by Amazon) offers a fantastic way to reach millions of customers, streamline operations, and boost your business growth. With this service, Amazon handles storage, shipping, and customer service, which means you can focus on finding the right products and scaling your business.
StartupBros is here to guide you through each step, simplifying the process so you can succeed with confidence. Whether you’re new to online retail or looking to improve your e-commerce business, our goal is to make your journey smoother and more profitable.
I’m Will Mitchell, with over 20 years of experience in importing from China and selling products online. I’ve helped thousands of entrepreneurs start their e-commerce journey. This article will take you step by step through selling on Amazon FBA, ensuring you have the knowledge needed to succeed.
Selling on Amazon FBA vocab explained:
– what is amazon fba
– how do i sell on amazon
– amazon seller account
Step 1: Create an Amazon Seller Account
The first step to selling on Amazon FBA is creating an Amazon Seller Account. This will be your gateway to accessing Amazon’s vast marketplace. Let’s break down how you can set up your account and start your journey.
Choose a Selling Plan
Amazon offers two main selling plans:
- Individual Plan: This plan costs $0.99 per sale. It’s best for those who plan to sell fewer than 40 items per month.
- Professional Plan: This plan costs $39.99 per month regardless of the number of items sold. It’s ideal for those who plan to sell more than 40 items per month.
Pro Tip: If you’re just starting out, you might want to opt for the Individual Plan to minimize upfront costs. You can always upgrade to the Professional Plan as your sales grow.
Register for FBA
To register for FBA, you’ll need to set up your Seller Central account. Here’s how:
- Go to Amazon Seller Central: Visit the Amazon Seller Central website.
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Sign Up: Click on “Sign up” and provide your personal or business details. You’ll need:
- A bank account and routing number
- An internationally chargeable credit card
- Government-issued ID
- Tax information
- A phone number
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Choose Your Selling Plan: Decide between the Individual or Professional plan based on your sales expectations.
- Enter Your Information: Fill in the required fields with accurate details.
Once you’ve registered, you’ll have access to your Seller Central dashboard. This is your hub for managing your Amazon store, from listing products to tracking sales.
Configure Your Seller Central Account
After registration, it’s crucial to configure your Seller Central account to fit your business needs. Here’s what to set up:
- Public Seller Profile: Create a professional profile that customers can trust.
- Payment and Business Information: Ensure your bank details and business info are correct to avoid payment issues.
- Shipping and Returns Settings: Set up your shipping preferences and return policies.
- Tax Information and Settings: Enter your tax details to comply with local regulations.
- Notification Preferences: Choose how you want to receive updates and alerts.
- Login Settings: Secure your account with a strong password and two-factor authentication.
- User Permissions: If you have a team, you can add other users and assign specific roles.
Go Mobile
Consider using the Amazon Seller app to manage your store on the go. The app allows you to:
- Track sales
- Respond to customer inquiries
- Manage inventory
- Create listings
This flexibility can be a game-changer, especially when you’re starting out and need to stay on top of everything.
Register for FBA
To take advantage of Amazon’s fulfillment services, follow these steps:
- Hover over the Gear Icon in Seller Central and click on Account Info.
- Click Manage on the Seller Account Information page.
- Select Register for FBA: Follow the prompts to enroll in the FBA program.
By registering for FBA, you allow Amazon to handle storage, packing, shipping, and customer service for your products. This can save you time and help you scale your business more efficiently.
Next, we’ll dive into how to find profitable products to sell. This is a crucial step that can make or break your success on Amazon.
Step 2: Find Profitable Products to Sell
Finding the right products to sell is crucial for your success on Amazon FBA. This step involves thorough product research, market analysis, and understanding competition. Let’s break it down.
Use Product Research Tools
To make informed decisions, leverage specialized tools that can provide valuable data and insights. Here are some popular options:
- StartupBros Tools: Exclusive tools developed by StartupBros to help you find profitable product ideas and gain competitive insights. Look for metrics like the Opportunity Score and Listing Quality Score to evaluate potential products.
Analyze Market Trends
Understanding market trends is key to identifying profitable products. Here’s how you can do it:
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Seasonal Products: Some products sell better during specific times of the year. For example, dorm room supplies see a spike in demand during back-to-school season.
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Trending Items: Keep an eye on trending items that are gaining popularity. Use internal tools and resources to gain insights into what’s hot right now.
Competition Analysis
Knowing your competition is just as important as knowing your market. Here’s what to look for:
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Number of Sellers: High competition means more sellers are offering the same product. Use internal analytics to see how many sellers are in your niche.
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Product Reviews: Check the number and quality of reviews for competing products. Products with many positive reviews can be tough to compete with.
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Pricing: Analyze the pricing strategies of your competitors. Your price needs to be competitive but also profitable.
Pro Tip: Don’t just look for the best-selling items. Instead, focus on finding a niche where you can offer something unique or improved.
Step 3: Source Your Products
Once you’ve identified profitable products to sell on Amazon FBA, the next step is sourcing them. This involves finding reliable suppliers, ensuring product quality, and deciding between domestic and international sources.
Domestic vs. International Suppliers
When sourcing products, you have two main options: domestic suppliers or international suppliers. Each has its own benefits and challenges.
Domestic Suppliers:
– Faster Shipping: Products sourced locally can be delivered to Amazon’s warehouses quicker.
– Better Communication: No language barriers and easier to resolve issues.
– Higher Quality Control: Often, domestic suppliers adhere to stricter quality standards.
International Suppliers:
– Lower Costs: Manufacturing costs, especially in countries like China, are often lower.
– Variety: A wider range of products and customization options.
– Scalability: Easier to scale production for higher demand.
Quality Assurance
Ensuring the quality of your products is crucial. Here’s how you can do it:
Product Samples:
– Always request samples before placing a large order. This helps you verify the quality and make any necessary adjustments.
– Compare samples from multiple suppliers to choose the best one.
Inspections:
– Use third-party inspection services to check the quality of products before they are shipped. This is especially important for international suppliers.
– Inspections can include checking for defects, verifying the product matches your specifications, and ensuring proper packaging.
Certifications:
– Depending on your product, you may need certain certifications to sell on Amazon. For example, electronics might need safety certifications.
– Ensure your supplier can provide the necessary certifications to avoid issues later.
Step 4: List Your Products on Amazon
Once you’ve sourced your products, the next step in selling on Amazon FBA is listing them. A well-crafted product listing can significantly impact your sales and visibility on Amazon. Here’s how to create high-quality listings and optimize them for SEO.
Create High-Quality Listings
1. Titles:
Your product title is the first thing customers see. It should be clear, informative, and include your primary keywords.
- Formula: Product Brand/Description + Line/Collection + Material/Ingredient + Color/Size + Quantity
- Example: Blendtec Total Classic Original Blender with FourSide Jar, 75 oz, Black
2. Bullet Points:
These are your product’s key features and benefits. Use all five bullet points to provide essential information.
- Highlight Key Features: Mention unique selling points, dimensions, and any guarantees or warranties.
- Example: Powerful 1560-watt motor, 10-speed manual control, BPA-free
3. Descriptions:
Your product description should expand on the bullet points, providing detailed information and telling the product’s story.
- Incorporate Keywords: Use relevant keywords naturally within the description.
- Focus on Benefits: Explain how the product solves a problem or improves the customer’s life.
4. Images:
High-quality images are crucial. They should accurately represent your product and comply with Amazon’s guidelines.
- Main Image: Should be on a white background.
- Additional Images: Show the product from different angles, in use, and highlight key features.
- Minimum Size: 1000 x 500 pixels to enable Amazon’s zoom feature.
Optimize for SEO
Amazon’s A9 algorithm determines how products are ranked in search results. Optimizing your listings for SEO can help improve your visibility and sales.
1. Keyword Research:
- Tools: Use tools like Jungle Scout or Helium 10 to identify high-demand keywords.
- Primary Keywords: Include these in your title, bullet points, and description.
- Backend Keywords: Use the backend keyword fields in Seller Central to add relevant search terms that don’t fit naturally into your listing.
2. Amazon A9 Algorithm:
- Relevance: Ensure your keywords are relevant to your product.
- Conversion Rates: High conversion rates can improve your ranking. Make your listing compelling to encourage purchases.
- Customer Reviews: Positive reviews can boost your ranking. Encourage satisfied customers to leave reviews.
3. Backend Keywords:
- Fill All Fields: Use all available backend keyword fields in Seller Central.
- Avoid Repetition: Don’t repeat keywords already used in the front-end listing.
By following these steps, you can create high-quality, optimized product listings that stand out to customers and perform well in Amazon’s search results.
Next, we’ll cover how to ship your products to Amazon FBA efficiently.
Step 5: Ship Your Products to Amazon FBA
Shipping your products to Amazon FBA is a crucial step in ensuring your items are available for customers. Here’s how to prepare and send your inventory to Amazon efficiently.
Prepare Your Products
Before shipping, your products must be properly packaged and labeled. This ensures they arrive safely and are ready for Amazon’s fulfillment process.
1. Packaging Guidelines:
– Secure Packaging: Use sturdy boxes to prevent damage during transit. Follow Amazon’s guidelines for acceptable packaging materials.
– Protective Wrapping: Items should be wrapped securely to avoid breakage. Use bubble wrap, air pillows, or packing peanuts.
2. Labeling Requirements:
– FNSKU Labels: Each product needs an FNSKU (Fulfillment Network Stock Keeping Unit) label. This unique identifier helps Amazon track your inventory.
– Barcode Placement: Place the barcode on the outside packaging, avoiding edges or corners.
– Hazmat Labels: If applicable, ensure all hazardous materials are clearly labeled.
3. FBA Prep Services:
– Prep Centers: Consider using FBA prep services if you want professionals to handle packaging and labeling. This can save time and ensure compliance with Amazon’s requirements.
Send Inventory to Amazon
Once your products are prepared, it’s time to ship them to Amazon’s fulfillment centers. Follow these steps using the Send to Amazon workflow.
1. Send to Amazon Workflow:
– Access the Workflow: In Seller Central, hover over Inventory and click Shipments. Select Send to Amazon.
– Create a Shipping Plan: Enter your shipment details, including the number of units and packaging dimensions. Use case pack templates for efficiency.
2. Shipping Options:
– Small Parcel Delivery: Ideal for smaller shipments. You can use carriers like UPS, FedEx, or DHL.
– Less Than Truckload (LTL): Suitable for larger shipments. This option allows you to send pallets to Amazon’s fulfillment centers.
– Multi-Mode Shipping: Combine small parcel and LTL for flexible shipping solutions.
3. Amazon Partnered Carriers:
– Discounted Rates: Amazon offers discounted shipping rates through partnered carriers. This can significantly reduce shipping costs.
– Automated Tracking: Enjoy automated tracking and the convenience of purchasing and printing labels directly within the Send to Amazon workflow.
By following these steps, you can ensure your products are efficiently shipped to Amazon FBA, ready to be picked, packed, and delivered to customers.
Next, we’ll discuss frequently asked questions about selling on Amazon FBA.
Frequently Asked Questions about Selling on Amazon FBA
Is selling through Amazon FBA profitable?
Yes, selling through Amazon FBA can be very profitable. In 2023, US-based sellers sold over 4.5 billion items, averaging 8,600 items per minute. Profitability depends on several factors, including product selection, pricing strategy, and marketing efforts.
Statistics show that 57% of Amazon sellers achieve profit margins greater than 10%, and 28% earn at least a 20% profit margin. Many new sellers start this venture as a side hustle and grow it into a full-time business.
Can I start Amazon FBA with $100 dollars?
Starting an Amazon FBA business with just $100 is challenging but not impossible. Here’s a breakdown of some initial costs:
- Buying Initial Inventory: $150
- Opening an Amazon Account: $39.99/month for a Professional account or $0.99/item for an Individual account
- Buying UPC Codes: $10
- Investing in Product Photography: Free – $295
- Creating a Logo and Product Branding: $24
While the total startup cost can range from $224 to $518, you can bootstrap some of these costs to get started. For example, you can begin by selling used items or sourcing products with minimal upfront investment.
What is the average income of an Amazon FBA seller?
Income varies widely among Amazon FBA sellers. Here are some insights:
- 40% of sellers make between $1,000 and $25,000 per month.
- 30% of sellers report sales above $5,000 per month.
- 31% of sellers make under $500 per month.
In terms of profit margins, 57% of sellers achieve margins greater than 10%, and 28% earn at least a 20% profit margin. Additionally, 30% of sellers have seen lifetime profits over $50,000.
Given these statistics, selling on Amazon FBA can be a lucrative venture if approached strategically.
Conclusion
Selling on Amazon FBA can transform your business, providing access to a vast marketplace and simplifying logistics. By leveraging Amazon’s fulfillment network, you can focus more on growing your brand and less on the hassles of storage, packing, and shipping.
Benefits of FBA
Logistics Support: Amazon handles the heavy lifting—literally. They store, pack, and ship your products, allowing you to scale your business without the need for a warehouse or shipping team.
Prime Eligibility: Products enrolled in FBA automatically qualify for Amazon Prime, offering fast and free shipping to millions of Prime members. This can significantly boost your sales.
Customer Service: Amazon provides 24/7 customer support for FBA products, managing returns and customer inquiries, which can improve your customer experience.
Buy Box Advantage: FBA products are more likely to win the Buy Box, which is crucial since over 80% of Amazon sales come from this feature.
StartupBros: Your Partner in Success
At StartupBros, we specialize in helping entrepreneurs like you steer the complexities of e-commerce. Our expert guidance, based on years of experience, can help you find and launch your first product successfully. From product research to listing optimization, we provide the tools and support you need to thrive.
Next Steps
Ready to start your Amazon FBA journey? Here’s what you need to do:
- Create an Amazon Seller Account: Choose the right selling plan and register for FBA.
- Find Profitable Products: Use tools like Jungle Scout and Helium 10 to identify high-demand, low-competition products.
- Source Your Products: Decide between domestic and international suppliers and ensure quality control.
- List Your Products: Optimize your listings with high-quality images, compelling descriptions, and targeted keywords.
- Ship to Amazon FBA: Follow Amazon’s guidelines for packaging and labeling, then send your inventory using the Send to Amazon workflow.
Starting an Amazon FBA business can be a game-changer. With the right strategy and support, you can turn your entrepreneurial dreams into reality.
For more detailed guidance and expert tips, visit the StartupBros blog or join our next live webinar on launching a profitable Amazon FBA business from scratch.
Ready to take the plunge? Let’s get started and make your Amazon FBA venture a success!
