Amazon FBA for startups

Amazon FBA (Amazon Fulfillment-by-Amazon) is one of the most trusted fulfillment platforms in the world.

With its number of users, your products can reach locations with Amazon FBA you won’t be able to with just a physical store. Amazon stores your products for you, pack it after a customer placed an order for it, then ship it to their door-step.

How do I start an Amazon FBA business?

First things first, you need to sign-up for an Amazon Seller account. This step can be delayed for later but doing this first gives you more time to explore the Amazon Seller features, its user interface, and how it works. You need to have a good knowledge of the platform you are planning to use before launching your Amazon FBA business.

Next will be to do some research and pick your product niche. It would be an advantage if you pick a niche related to your hobby or passion, that way you have a starting knowledge of the niche and might lessen your research effort. After you have decided on the niche, it is time to list down all the possible products you can sell in via Amazon FBA. Last on the product research is to narrow down your list into a few categories or niche. It would be helpful to start with a very specific niche so that you would not have a hard time writing marketing materials for your products.

After you have done your niche and product research, you should check the FBA fees. Fees vary depending on the type of product you will sell. It is ranging from 45 cents to $1.35 per unit, while if you subscribe for the professional account, the FBA fee can be about $39.99 per month.

Next is to find the best suppliers for your business, you should consider the cost and the quality of the products. Suppliers can be within your area or from other countries. It is best to check B2B platforms like Alibaba and request samples before partnering with a supplier for your Amazon FBA venture.

Lastly, establish your brand. Name your business and have a professional design your logo. Upload your products in Amazon and promote your shop. 

How much money do you need to start?

It might cost you around $3,000 to initialize your Amazon FBA inventory. On average, a product sold on the platform costs about $20 each, and manufacturing cost can be more or less $5 each. If you are to order around 500 stocks, it will cost you around $2,500, factor in the expenses you made by ordering samples for testing as well.

Is selling on Amazon FBA worth it?

Some sellers suggest starting with a very specific niche or a few products to lessen the risk of loss. But it all depends on the approach you will take; the most important part is the research. Thorough research should be done before you put your money into Amazon FBA, or in any kind of business.