Smith 
Everyone’s buzzing about the gold rush on Amazon. Every day, there’s something new about Amazon’s FBA program and the wave of sellers jumping onboard. Warehouses are popping up everywhere, and fleets of drones are ready to make eight-hour delivery a reality. Amazon’s customer base keeps growing, and it doesn’t look like it’s slowing down anytime soon. In some ways, Amazon is still just getting started.
So, what exactly is Amazon FBA, and how can it help those looking to earn some extra money? Forget about franchising or falling for multi-level marketing schemes. Amazon FBA businesses are real and attainable, letting people work from home.
Today, I’ll break down the basics of Amazon FBA and guide you on how to get started. With some effort, you could be making an extra $1,000 a month and, eventually, $100 a day. Let’s dive in!
Amazon FBA in a Nutshell
Amazon FBA stands for “Fulfillment by Amazon.” The core idea is simple: “You sell it, we ship it.” Amazon’s fulfillment network and warehouses are incredibly efficient. Sellers around the globe use Amazon’s FBA program to store, pack, prep, and ship their products. Amazon even handles returns, refunds, and customer service, making it a dream for e-commerce sellers.
How Does Amazon FBA Really Work?
Before you start selling on Amazon, you need to set up your seller account. Go for the Professional Seller Account, which costs $39.99 per month. This will give you full access to the platform. Spend some time getting familiar with the various tabs and features.
Creating a New Listing
When you’re ready to sell, the next step is to create a listing for your product. This is known as private labeling, and we’ll cover it in more detail later. For now, you’ll need a GS1 UPC code, pictures, a title, bullet points, a description, and keywords.
Shipping in Products
Once you’ve made the final payment to your factory, they will pack and label your units according to Amazon’s standards. Most new sellers use air shipping for smaller, initial orders but often switch to sea shipping for its cost-effectiveness as they grow. When your cartons arrive at Amazon warehouses, they will be scanned into the system, and you will see your inventory in your seller central account. Then, it’s showtime!
Amazon FBA = Your Employee
Now comes the best part—seeing sales come in while you sit at home. Most sellers never even see their inventory. Since you’re using the FBA program, your listing will automatically get the Prime badge, unlocking fast shipping options for customers. You won’t have to deal with order processing or shipping; Amazon handles everything.
Why Amazon FBA Is a No-Brainer
Amazon FBA saves time and boosts business efficiency. Instead of dealing with the headache of fulfillment, brand owners can focus on expanding product lines and planning inventory. Amazon handles almost every common complaint e-commerce business owners have.
Multi-Channel Fulfillment Is Your Best Friend
Many sellers don’t realize they can use Amazon’s Multi-Channel Fulfillment (MCF) to fulfill orders from other platforms like Shopify, eBay, and Etsy. This eliminates the need for a third-party warehouse, and customers generally don’t mind if their order comes in Amazon Prime packaging. Plus, MCF orders usually come with discounted fees.
Private Label and Why It’s Your Path to Freedom
Private labeling allows you to easily scale your business and potentially exit in the future. By controlling the trademark and design patents, you have full control over your product and brand, giving you the freedom to innovate.
How to Find a Product to Sell on Amazon FBA
The key to success on Amazon is finding a good product through proper research. Instead of chasing trends, focus on evergreen products that sell year-round, like phone chargers, kids’ toys, and office supplies.
Follow These Key Guidelines for Amazon FBA
- Choose a product you’re passionate about, leading to an established brand with multiple product lines.
- Ensure the product brings innovation or solves a need.
- Opt for products low in risk for end-users; avoid hazardous items.
- Prioritize products smaller than a shoebox, lightweight, and selling over $40.
- Aim for a net profit margin of at least 25%.
- Check for a competitive environment without too many established competitors.
- Look for a balanced revenue distribution among sellers.
- Avoid products with existing utility or design patents.
- Choose products that can be effectively showcased on social media.
- Target estimated sales volume between $25K and $100K.
Sourcing Basics for Dummies
After finalizing your product idea, the next step is sourcing. Alibaba remains the best place to find a factory. Create a professional-sounding email and send out a request for quotation (RFQ) to multiple factories. Include detailed product information, ask for sample charges, and be clear about your intention to scale quickly.
Journey to Your First $1000 Month
Let’s take a simple case model. If your product has an estimated monthly revenue of $5,000 and a net profit of 20%, you’re already making your first $1,000 a month. It’s better to aim for products with monthly potential in the 25-100k range for better handling of price compression and scaling.
Reinvesting Profits
Most successful Amazon sellers reinvest their profits back into their business. Initially, it’s advisable to reinvest every dollar of profit for rapid growth. Over time, as you start paying yourself, keep it modest and scale as your business grows.
Wrapping Up
I hope this guide gives you a solid foundation to launch your first product on Amazon. The Amazon FBA and private label business models offer endless opportunities. There’s no reason why you can’t turn this into a second income or even replace your current income. Happy selling!
