If you desire financial independence, a fun side hustle, or a business with endless scalability, you will need to learn how to sell on Amazon FBA.
How would you feel if I told you that you could purchase common retail items and profitably resell them on Amazon? Would the concept of earning money while shopping appeal to you?
If you answered yes, I have excellent news for you. Because buying and selling retail things on Amazon is a legitimate business. One that has brought me tens of thousands of cash. And you can also learn how to profit from selling on Amazon.
This guide will provide all the information you need to get started as an Amazon FBA seller.
This guide will teach you:
- What it means to sell on Amazon
- Why you must use FBA to build your business without becoming overworked
- How the FBA procedure operates (start to finish)
- Where to purchase inventory to sell on Amazon (hint: you don’t need thousands or tens of thousands to get started).
- The various Amazon business models, including the optimal approach for new sellers.
I want you to take action, so I’ll provide you with all the information you need to get started!
In light of this, I like to inform you that this blog post is quite lengthy. And I recognize your busy schedule.
Therefore, you seek an opportunity to achieve personal and financial independence.
So, before you spend any more time reading this piece, I’ll tell you who should (and who should not – no hard feelings!) read the entire thing.
You should sell on Amazon FBA if you are interested in…
Earning money as a side gig Substituting for a full-time 9-to-5 income Providing for your family (at home!) Creating a business that can expand as you do
Selling on Amazon FBA is NOT the right choice for you if…
There is no such thing as overnight success if you: Want a hands-off business
- Need a super fast return on your investment
- Are unwilling to put in the effort
Are we all in agreement now? Let’s get started immediately!
This article was written with U.S.-based sellers specifically in mind. Although it is possible to sell on Amazon if you live outside the United States, this approach is not for you.
THE BASICS OF SELLING ON AMAZON FBA
Before I lay out the step-by-step instructions, I want to explain what it means to sell on Amazon FBA.
Many individuals believe that in order to be successful as an internet reseller, you must develop your own website. Even if they have a basic understanding of how Amazon operates, they feel they must be opening their own Amazon store. Actually, that is not how it works.
When you sell on Amazon, you are the proprietor of an online retail store; nevertheless, your store is merely a section of Amazon.com.
This is possible because Amazon permits Third-Party Sellers (such as myself) to sell on their website. Not everything advertised on Amazon is actually sold by Amazon. The ability to list on Amazon affords third-party sellers the opportunity to operate their own Amazon enterprises!
You may not have even noticed that Amazon has third-party vendors (those other than Amazon itself)!
Amazon sells a LOT of products on Amazon.com as a seller. Here is a product for which Amazon is the actual seller.
You’ll see that I highlighted the text “Ships from and sold by Amazon.com”. That tells me that Amazon is both the seller and the one responsible for fulfillment (shipping).
Because it’s shipped by Amazon, I (as a buyer) can see that it’s eligible for free Prime shipping. Looks like I could get this later today! If I hit the “Add to Cart” button, it would add this exact offer (sold by Amazon) to my cart.
But Amazon doesn’t sell every item that’s listed on Amazon.com. If you start paying attention when you shop, you’ll see that LOTS of items are sold by third-party sellers like me.
Here’s a product that’s sold by a third-party seller:
Take a look at the highlighted text. This product is sold by a vendor called HealthyandBetterLife, not by Amazon. The item, however, is Fulfilled by Amazon.
And because Amazon is doing the fulfillment (FBA), as the buyer, I still get free Prime shipping and can have this thing later today!
As a result, I’m just as glad to order from HealthyandBetterLife as I am from Amazon the vendor. It makes no difference to me as long as the vendor is using FBA!!
This is the fundamental foundation of the Fulfillment by Amazon business concept. You sell the things, which are subsequently fulfilled by Amazon.
The most important thing to remember is that Amazon Prime members only get excellent privileges like free 1-day shipping when they shop from FBA sellers.
That means that if you want Amazon Prime members (the ultimate best Amazon customers) to buy from your Amazon store, you must use the FBA (Fulfilled by Amazon) service.
As an Amazon seller, you will have the option of shipping your things directly to your customers. But that’s not what we’ll be discussing today.
The remainder of this blog article will be entirely dedicated to the FBA program. Because only Amazon FBA allows you to establish a business that will continue to grow (and grow, and grow…).
WHAT AMAZON DOES FOR FBA SUPPLIERS
Aside from having access to those fantastic Prime buyers, FBA has another significant advantage: Amazon handles a large portion of the selling procedure for you.
Actually, they tackle the most time-consuming and unpleasant tasks!
Let me walk you through the steps of selling a product on Amazon so you can see what parts the seller (you) handles and what parts Amazon handles if you use FBA.
Things you need to do as a FBA seller:
- Find an Amazon product to sell.
- List the product on Amazon.com (it is not yet for sale).
- Prepare the products for shipment to Amazon warehouses (these are located all over the US)
- Deliver the goods to Amazon’s warehouses.
What Amazon does:
- Unpack your inventory and then store it in their warehouses.
- Put your goods up for sale on Amazon.com.
- Indicate on the product page that your product is Prime Eligible.
- When a customer purchases your product, Amazon personnel locate, package, and ship it to the customer.
- Prime members will receive their items later that day or with free 1- or 2-day delivery (non-Prime members will continue to receive free “normal” speed shipping).
- The consumer is pleased!
- If a consumer is dissatisfied, Amazon customer service representatives handle all refunds, returns, and exchanges. The client will not even contact you.
HOW TO GET STARTED ON AMAZON FBA
Now that you know what Amazon FBA is and how it may help you, let me show you how to get started!
APPLY TO BE AN AMAZON SELLER!
Even if you’re not completely convinced about selling on Amazon, this is the first step you should do.
By creating an Amazon Seller account, you will gain access to free tools that will allow you to test the waters on Amazon.
Go to this page to set up your seller account.
Before you push the huge yellow “Start selling” button, keep in mind that you must first choose one decision.
If you click the “Start selling” button, you will be creating a Professional seller account. This comes with a $39.95 monthly subscription cost. It comes with additional appealing benefits, but you will be charged immediately away.
If you’re only selling a few goods or are in the “testing the waters” stage of your business, an Individual seller account might be a better option. There is no monthly fee for this one. Simply scroll down till you see this…
Sign up to become a private seller.
You can always upgrade to Professional if you start with an Individual seller account. Furthermore, if you select Professional, you can later reduce to Individual. So don’t waste time worrying about this step!
FIND PRODUCTS TO SELL
There are various methods for locating merchandise to sell on Amazon. I’ll go into greater depth about that later.
Some vendors design and manufacture their own products. Others purchase in bulk from wholesale distributors.
Me? I simply buy everyday products from places like Walmart and Big Lots and resale them on Amazon. It’s just so much less expensive to get started this way (and I’ve been doing it for ten years!).
As previously said, more information will be provided later. But, for the time being, understand that it is your obligation as the vendor to find things that:
- Earn a profit!
- Actual Amazon sales (aka customers want to buy them)
Don’t worry, you won’t be left guessing. When you create your Amazon Seller account in the preceding stage, you will be given access to the free Amazon Seller App for your phone.
This App will be your secret weapon for locating profitable goods that buyers are interested in purchasing.
LIST YOUR PRODUCTS ON AMAZON
Following the purchase of goods, the following step is to list the items on Amazon.
If you use the methods I teach, this stage is actually quite simple. That’s because I’m listing products that are already for sale on Amazon.com when I buy retail items to resell on Amazon.com.
So, if you want to conduct your business in this manner, you will not have to…
Take pictures of your precise merchandise.
- Create a new listing page
- Create descriptions and keywords to help your things sell
- Spend money on advertising to persuade people to notice your products.
All you have to do is locate a current product listing that is a perfect match for the product you want to sell.
After you’ve identified the matching listing and entered your price and condition, you must also select your Fulfillment Channel. (You may need to activate “Advanced View” to view this option): Customers want to acquire profitable inventory.
This is your opportunity to pick the FBA option (the 2nd button). This is critical because if you choose the first button, your item will be offered for sale instantly. So, if someone purchased it, you’d have to send it to the client immediately away (which is time consuming and may be costly!).
The second critical aspect here is deciding on a pricing. In most cases, you’ll be matching the lowest price of other sellers that use the Fulfilled by Amazon program. Your major competitors are other Prime merchants.
Fortunately, you may change your pricing at any moment. So you can always list at one price and then go back and reprice your product once it arrives at Amazon.
SHIP THOSE ITEMS TO AMAZON
It’s time to submit your first batch of things to Amazon once you’ve listed them. But you can’t simply put them all in a box! There are a few procedures you must do as the merchant to prepare your merchandise.
The essential thing you must do is apply a unique barcode label to each of your items. Your Amazon selling account’s barcode label is unique. This is done so that when Amazon receives ten boxes of popcorn from ten different vendors, they will know which boxes belong to which seller accounts.
These labels may be generated and printed throughout the listing and shipping phases of generating your Amazon package. It is your responsibility to affix the label to each item.
Products may need extra prep work such as bubble wrap or bagging. When you apply, Amazon will provide you with detailed instructions.
When you’ve finished preparing your things, it’s time to submit them to Amazon!
Remember that one of the benefits of Amazon FBA is that you may send in a large number of things at once (instead of shipping one at a time to the customer).
For each shipment you make, Amazon will determine which warehouse(s) will receive your merchandise. They may request that you ship all of your things to a single warehouse, or they may give you three separate warehouses (this is more common than one warehouse).
You may then utilize Amazon’s partnered shipping rates with UPS to send your products at a much-reduced cost. This is MUCH less expensive than bringing the package to UPS and paying their usual prices. It contributes to FBA’s profitability.
You must send your purchases to the designated Amazon Fulfillment Center. If you reside close by, you cannot drive your merchandise to one of their warehouses. I realize that seems to be a technique to save money, but Amazon does not permit it!
Once you pack your boxes, purchase reduced shipping from Amazon, and drop them off with UPS (or schedule a pickup), the contents are largely in Amazon’s hand
AMAZON STORES YOUR PRODUCTS
Your package will enter the following phases within a few days after being shipped:
UPS has delivered the package to the designated Amazon warehouse.
Checked In: Amazon scanned the shipping label on the exterior of your package and confirmed receipt (es).
Receiving: At this point, Amazon employees are unpacking, scanning, and receiving your individual products. At this point, items will be available for purchase!
Received in Full/Closed: Amazon has received all of the products in the current shipment.
Once your things have been received in full, you should be able to sell them on the Amazon.com website. Exciting!!!
A CUSTOMER PURCHASES YOUR PRODUCTS
Live inventory means it’s time to sell!
Your goods, like the Lysine pet supplement I showed you earlier, will now appear as possibilities to Amazon buyers. They will notice “Sold by YourStoreName and Fulfilled by Amazon” next to your item. The Prime logo will also appear next to your offer for Prime Members.
Once you have merchandise on hand, sales will flow in at all hours of the day and night. It’s a lot of fun… particularly considering you don’t really have to do anything after an item sells!
AMAZON SHIPS YOUR ITEMS
When a buyer purchases one of your products, what happens next?
Firstly, there’s no obligation on your part.
Amazon will track down the product, pack it securely, and send it on its way to the buyer. Amazon will arrange for free two-day delivery (or same-day if possible) if the buyer qualifies (even if your product is in a warehouse in Virginia and the customer is in Montana). The customer’s shipping costs will not be covered by you.
After an item has been sent from Amazon, you will be credited the selling price less any applicable fees. Your total sales will increase proportionally as more products are sold.
Then, every two weeks, Amazon will send you a transfer of your available balance. You may celebrate your first “paycheck” from Amazon at this point.
CUSTOMER IS HAPPY
When you use FBA, most of the work will be done without your help.
When the customer gets their order, they will be happy that Amazon got it to them so quickly.
If there is ever a problem with an FBA order, the customer will contact Amazon directly. Amazon will let them send an item back or get a different one if they need to.
Amazon’s return policy is very easy to use, which annoys some sellers but makes buyers very happy. This is just one reason why so many people shop on Amazon.com: it gives them peace of mind.
A buyer could leave you Seller Feedback, but it doesn’t happen very often on Amazon. On Amazon, you don’t need a lot of Seller Feedback to make money.
WHAT TO SELL ON AMAZON
Now it’s your turn to do something!
If you’ve already made your Seller Account, the next step is to find things to sell on Amazon FBA.
People who want to sell things on Amazon use 5 main ways to find items to sell.
- Retail Arbitrage
- Online Arbitrage
- Private Label W
I want you to see that I crossed out Dropshipping in a big way. That’s because Amazon’s Terms of Service say you can’t do dropshipping. If you do, your account could be closed.
But there’s no reason to worry about dropshipping if you’re using FBA.
HOW I CAN HELP YOU SELL ON AMAZON FBA
As I already said, one of the best things about selling on Amazon is how easy it is to test the waters.
So you can definitely just go out and figure it out on your own. In fact, many YouTubers will tell you to just make it up as you go along until you start making money.
But if you want to learn twice as fast and avoid making mistakes that will cost you money, I have a course that would be perfect for you.
The Amazing Selling Machine was made for new sellers on Amazon like you who want a step-by-step plan for starting a profitable business on Amazon.
By the end of the course, you’ll know everything you need to know to get your Amazon business up and running.
You can learn as you go, which is the best part. Watch a module, do what it says, and sales will start coming in.
Things change a lot on Amazon, so I’m always making changes to the course materials to keep them up to date. You can get help from our private Facebook group if you ever have a question.
Click here to find out more about the course and get started with your Amazon business.