A Step-by-Step Guide to Amazon FBA

A Step-by-Step Guide to Amazon FBA

Amazon is the number one marketplace in many countries throughout the world, with net profit in 2020 increasing by 38% up to a staggering $368 billion. One of the secrets to Amazon’s success is its platform for third-party sellers. There are currently 1.9 million active sellers on Amazon and plenty of room in the market for more.


The Fulfilled By Amazon (FBA) platform allows you to ship your items to the Amazon warehouse, and then Amazon will pick, pack and ship them out to their customers when they make an order. This is a hassle-free and cost-effective way to run your business. While there is a small fee for using this platform, the benefits are worth it as your customers receive their products quickly and have access to excellent customer service without you lifting a finger.


Signing up to Amazon, via their FBA platform couldn’t be easier. Keep reading to see our step-by-step guide that will get you selling your products in no time.


1. Work Out What You Are Selling
Before you sign up for an Amazon FBA account, you will want to decide what kinds of products that you want to sell. Spend some time on this process as this will help you make informed business decisions. Do your market research, looking at existing products on Amazon, how popular they are and how much they sell for. This will then allow you to work out your price range and profit margins per item.


2. Calculate your Amazon Revenue
If you have an idea of what products that you want to purchase, it is always best practice to work out whether the opportunity is financially worth it before placing an order with a supplier. To do this, you will want to estimate how many products that you plan to sell in your first month of trading, based on how similar items have sold and their current price. Once you have this figure, it is then important to deduct your expenses – including shipping costs and the initial price of the item.


3. Source your Supplier
Once you have decided on a product to sell, you will need to find a supplier for it. There are many supplier directories that you can use but be sure to research the seller and their reviews so that you know the product is of good quality. On the other hand, you may be wanting to sell products that you create yourself, in which case you can skip this step.


4. Create an Amazon Seller Account and register for Amazon FBA
Now that you know what you are selling, it is time to register with Amazon. Simply enter your details to sign up as a seller on the Amazon page and then sign up for Fulfilled by Amazon. This will allow you access to Prime shipping for your products, managed customer service and it means that you can send products straight to Amazon and they will dispatch them for you.


5. List your Products
This step is probably the most important one on our list. It is important to list your product correctly so that buyers can find it on the website, and to entice them into making a purchase. The Product Title should be simple and clear so that the product can be searched for easily, and the description should contain relevant keywords, but be concise. Link the product listing to all relevant categories and subcategories as this will also help its visibility.


Attached to your listing should be clear and professional images of the product and it should also have an SKU.


6. Decide on your Shipping Plan
You will have to decide on a shipping plan – again, check similar items for a guide on what price you should choose. Ideally, you want to set the shipping costs as low as possible to entice buyers into making a purchase. For more advice on creating a shipping plan, check out Amazon’s advice here.


7. Reap the Rewards!
Once you have set everything up, you just have to wait on your first order. If you are listing multiple items, it is important to keep an eye on the popular products and the products that aren’t doing well, as you will not want to re-order these. After you have made some sales, encourage your customers to leave reviews and feedback on your products as this will help build your profile.

We hope that this guide will help you start up your FBA business. The most important thing is that you do your research to help increase your chances of success. So, what are you waiting for? Start your FBA Amazon business today!


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