Amazon FBA (Fulfillment by Amazon) has made it easier than ever for entrepreneurs to launch ecommerce businesses. With FBA handling inventory storage, order fulfillment, and customer service, you’re free to focus on sales and growth.
This comprehensive guide covers how to start selling on Amazon FBA from scratch, including key steps every beginner should know.
Table of Contents
Step 1: Sign Up for an Amazon Seller Central Account
First, you need to register for an Amazon seller account, which enables listing products:
- Visit Amazon Services website and click “Start Selling Online”
- Select between Professional and Individual selling plans
- Enter your account info and credit card for verification
- Agree to Amazon’s policies and terms
It takes a few days for Amazon to fully activate your account after signup.
Step 2: Choose a Product to Sell
Conduct thorough product research to identify your first item to sell on FBA:
- Evaluate categories with strong demand and healthy profit margins
- Use tools like Jungle Scout to assess competition
- Validate demand through Google Trends and other data sources
- Order samples to test product quality firsthand
- Estimate potential profitability after fees
Avoid super saturated niches and unknown, unproven products.
Step 3: Secure an Inventory Source
Determine how you will source inventory for your chosen product:
- Find manufacturers within your product niche
- Contact distributors already importing those items
- Order small batches from a dropshipping supplier
- Purchase inventory in bulk from Alibaba or domestic wholesalers
Reliable access to inventory is essential for Amazon FBA success.
Step 4: Prepare and Ship Inventory to Amazon
Prep products to FBA requirements then ship in boxes to Amazon fulfillment centers:
- Apply FNSKU labels, polybag items, etc.
- Create shipment orders in Seller Central
- Pack boxes securely and attach FBA shipping labels
- Send boxes to the warehouse address specified
Amazon will store and fulfill orders once your FBA units arrive.
Step 5: Drive External Traffic to Listings
Don’t rely solely on Amazon for sales. Actively promote your listings outside of Amazon:
- Run Amazon PPC ads to your listings and product pages
- Promote to your email list and social media followers
- Pursue influencer partnerships and affiliate marketing
- Consider giveaways, contests, and coupons
- Submit deals to coupon sites when running promotions
More exposure means more sales and reviews to boost rank.
Step 6: Expand Your Amazon FBA Business
As your business grows, focus on expanding your catalog, increasing sales, and reinvesting revenue:
- Diversify into complementary products and categories
- Lower costs by ordering larger inventory quantities
- Consider private label manufacturing for exclusivity
- Automate more processes to increase efficiency
- Hire virtual assistants to help manage operations
Scaling up intelligently over time leads to a highly profitable FBA business.
While launching an Amazon FBA business requires significant effort, this guide provides the key steps for getting started right as a beginner. Stay persistent through challenges and your success will grow.
FAQs About Starting an Amazon FBA Business
How much does it cost to start an FBA business?
Plan for around $1000-$5000 in startup costs, including initial inventory, tools, marketing, and other expenses. Bootstrap even lower if possible.
What tools do I need?
Useful tools include Jungle Scout, Helium 10, Teikametrics, and Zapier. Start with the bare necessities and add more as you scale.
How long does it take to become profitable?
Many FBA businesses reach profitability within 6-12 months. But allow at least 12-24 months to fully optimize processes and costs.
Should I start as sole proprietor or LLC?
You can test as a sole proprietor. Form an LLC once profitable for liability protection and tax benefits.
What’s the minimum I must sell per month?
No minimum sales required, but aim for at least 25-50 sales monthly for momentum. FBA fees incentivize higher volumes.
Launching an FBA business provides incredible opportunities today. Use this guide to start your ecommerce brand the right way.