How to Become an Amazon FBA Seller? -- A Beginner’s Guide

December 8, 2020
Written by Jayce Broda
Amazon fba seller

Amazon, the retail giant, has permanently transformed the eCommerce industry in the US and abroad. With its superior two-day delivery service and affordable items, businesses are jumping onto the platform to gain financial success. One of their popular programs for sellers is Amazon FBA. Being an Amazon FBA seller offers you several perks, such as access to Prime members and free delivery service. 

With Amazon starting their shipping service, Amazon shipping, we are confident that this retail giant has no plans of slowing down. Start selling on Amazon and leverage Amazon’s vast resources. You just need a small amount of money and a growth mindset to start selling on their platform. Better yet, apply for their Amazon FBA program!

Do you want to become an Amazon seller? This guide will show you how to become a seller on Amazon and the benefits you can receive from availing the program.

Get to know Amazon FBA

If this is your first time hearing about Amazon FBA, don’t worry. We’ll cover the basics for you to have a clear grasp of the program. 

FBA stands for Fulfillment by Amazon. This means Amazon handles the picking, packing, and fulfillment of your items. They’ll handle everything for you!

Here’s how it works:

  1. First, you contact Amazon to send and store your products in one of their fulfillment centers. These centers are warehouses run by Amazon employees. 
  2. Second, the hardworking Amazon employees take inventory and then  store your products. Don’t worry, because Amazon will take care of your items. If something happens, they will reimburse you the full value of the product! 
  3. When a customer places an order, Amazon shall pick the item from the shelves, pack it in a box, and ship it to your customers. 
  4. After shipping the package, Amazon contacts the customer to check  if they have received the package. Amazon’s customer service is available 24 hours a day for seven days a week to answer inquiries. They also handle  returns and refunds.

Based on this process, we can tell that the FBA business has a model that lets you leverage Amazon’s customer base and distribution network. Taking advantage of the program allows you to search for profitable products and focus on marketing them without the headache from fulfilling the orders. Amazon handles the packaging, fulfillment, and customer service on your behalf for a fee. 

These fees are due to  storage and fulfillment costs .. Before you start selling on Amazon FBA, you need to know about these fees because these will affect your pricing and computation of sales. 

Since Amazon handles the heavy lifting for you, what are the tasks that you need to do? 

  1. Pick the products.  It is up to you to pick which products to sell. 
  2. Maintain an adequate inventory level.  Amazon will contact you about the inventory level of your items. It is up to you to stock up and maintain inventory. 
  3. Market the products. You can’t sell your products without promoting them to consumers. It’s your job to develop creative marketing campaigns that will attract consumers to buy from your store. 

Why should you use Amazon FBA?

Amazon FBA is a fantastic program for eCommerce businesses. They help you navigate through the tedious process of fulfilling orders and shipping products promptly. Aside from this, Amazon enables you to keep track of and maintain your inventory. By eliminating these two challenges, you can focus on growing your business. 

Below are some of the other benefits of Amazon FBA

Frees Up your  Time: Through Amazon FBA, you can focus on growing your business rather than handling your orders' fulfillment. 

Effortless logistics and shipping: If you’ve ever experienced shipping your parcels, you'll know how tedious it can be. With Amazon FBA, they'll take the burden off your shoulders, so you can focus on running your business. 

Storage Space: Amazon has tons of warehouses where you can store your item. If you've been worrying about not having enough space in your home to keep your products, fear no more because Amazon will take care of it for you!

Access to Amazon Prime: Being part of the FBA program gives you access to Amazon Prime members. Prime members account for most of Amazon's sales, so you want to get your hands on them. 

Reputation: Amazon's got a reliable name, and many buyers trust it. When you work with Amazon and sell on its platform, it will increase your chance of making a sale. Plus, you can leverage its vast customer base. 

Returns: Processing returns can be a big headache on your part. With Amazon FBA, they'll be the ones to talk to your buyers and send them a new product. 

Fast delivery: We can't stress enough how fast the delivery is with Amazon. Customers love it when you quickly ship their orders. With Amazon FBA, they can avail of the two-day shipping and overnight shipping. Having a fast shipping system will earn you  positive reviews from your customers. FBA will even help you spread the word about your business. 

Amazon's Multi-channel Fulfillment: If you have your website and want Amazon to fulfill your orders, you can do so! Amazon offers their Multi-Channel Fulfillment (MCF) for sellers outside of Amazon who wish to avail of Amazon FBA. 

How much do sellers earn with Amazon FBA?

Now that’s a difficult question to answer because many factors come into play. Most sellers earn $1,000 per month in sales while others earn $250,0000 per month. There are FBA sellers who made $3,000 - $40,000 within the first 30 days of starting their Amazon FBA business. Only 23.7% of sellers earn under $1,000 per month. Essentially, these figures show you the massive potential of making deals with Amazon FBA. 

Steps to enroll in Amazon FBA

Now that we’ve got you excited about Amazon's fantastic opportunity, let’s get you started with your Amazon FBA business. Follow these easy steps, so you can get your business up and running. 

Step 1. Find a product to sell on Amazon

Before you create an Amazon FBA account, you need to know what niche and which products you will be selling. You may tend to want to sell every product you can think of, but it’s best if you pick one niche and determine the products you will be selling under that niche. The best way for you to choose a niche is to consider the areas you are most passionate about, list them down, and narrow that list down to 3 to 5 specific niches you are most passionate about. 

After picking the niche, you can start conducting product research. Though you are passionate about your niche and products, making a profit from offering these products can be difficult. Hence, you need to conduct product research. 

To conduct product research, you can do some general product searches to get a better idea about your products. Search for your product on Google and see what stores sell your product. If it is being sold between $10-$50, then that is a good product because consumers tend to buy between these price points. You may also check Amazon’s bestseller rankings (BSR) for you to know which products are popular and appeal more to the public. 

Another method is to use a keyword tool where you can determine the level of popularity and demand for the product. You can also determine if there is a sizable market for this product. Ideally, you want your product to be high in demand, but only several stores are selling the item. This way, you can sell it at a higher price and higher volume.

Once you have picked the niche and the products you wish to sell, you can start looking for your supplier. 

Step 2: Search for Product Suppliers

Before you start listing and selling your products, you must look for suppliers that can offer you high-quality products. Without product sourcing, you won’t have a product to sell. It is also time-consuming since you want to look for the best and most reliable supplier. 

Below are several ways you can look for a supplier: 

  • Overseas - Most sellers on Amazon source their products overseas, such as China. They look for wholesale suppliers on Alibaba, and they receive a 25% discount or less for the total purchases. 
  • Local Trade Shows - Local trade shows host industry leaders that can provide you with the products you need. You can source these products at a wholesale price. To look for trade shows, you can check newspapers and magazines. 
  • Local manufacturers - You may look for local manufacturers too instead of sourcing your products overseas. Promoting local manufacturers helps in boosting their business, and they will appreciate your efforts. 

After looking for product suppliers, you can start testing the product. Grab  hold of their product samples, so you can determine if they are of  high-quality.

The last step is to research  shipping companies and costs. This is important, especially if you are sourcing overseas. Your shipping costs can eat into your profit margin, so be sure that you factor in the shipping fee in your product pricing. Don’t forget to ask how fast the product can be delivered to you. A product can quickly run out of stock, and you need to be able to restock your inventory quickly. 

Step 3: Establish your brand

After choosing a product and taking care of the shipping, your next goal is to come up with your business name and brand. When you create a brand, you need it to be recognizable and identifiable. Below are the steps to create a unique brand. 

  1. Name your brand - When it comes to naming your brand, you need to consider what your business will look like in the future. It would help if you create a brand name that will cover your current and future business plans. To do so, brainstorm and list all the brand names you can think of for your business. Search Google if it is available. Afterward, pick one that suits your business and have the domain registered. 
  2. Create your brand logo - Your brand logo is important because it will be attached to your product images, and items. If you’re a graphic artist, you can create one yourself. If not, you can hire the services of a freelancer. Make sure to keep it simple because a more complicated logo can be a bit expensive when printing.
  3. Choose your brand colors - Aside from the brand name and logo, you need to pick your brand colors and tagline. The brand colors will make your brand distinct from other businesses while the tagline helps identify your brand and message. 
  4. Register your brand name and logo - Don’t forget to register under your brand name and logo to ensure that no one copies your business. 

Step 4: Set up Amazon FBA 

Before you can start applying for the program, you must have an Amazon seller account. Below are the steps to create an account. 

  1. Visit services.amazon.com
  2. Click Sell on Amazon and follow the directions.
  3. Select between “Sell as an Individual” or “Sell as a Professional.” An individual account doesn’t have a monthly subscription fee, but they will charge you $0.99 per sale. A professional account has a monthly subscription fee of $39.99 per month, but you won’t be charged for your first month.A professional account also doesn’t come with any other additional fees. 
  4. After setting up your Amazon selling account, add FBA to your account. 
  5. You can now start selling on Amazon!

Step 5: Create your product listings. 

To add your products on Amazon and create a product listing, follow these steps:

  1. Visit Amazon Seller Central and click Add product under the inventory drop-down menu. 
  2. Select Create a new product listing and choose the category of the products you will be selling. 
  3. Fill in the required information such as product title, description, brand, manufacturer, price, and Universal Product Code (UPC). If you don’t have a UPC yet, buy one before you start creating a product listing. 
  4. Click on Save and Finish

Optimizing your product listing is essential to help you gain sales, rank high on Amazon, and encourage organic traffic. 

Step 6: Prepare your products 

After creating a product listing, you can now prepare your items for shipment to Amazon’s warehouses. Properly package and label your items to ensure they are safe and can be transported properly to the fulfillment centers. You can hire the help of shipping services such as Stallion Express to help you ship your products to Amazon’s warehouse. 

Step 7: Ship your products to Amazon: 

After packing your products, your next step is to create your shipping plan, print Amazon shipment ID labels, and send your shipments to Amazon fulfillment centers. Once you have created a shipping plan, Amazon will decide which warehouse you will be sending your products. Send your products yourself or hire a shipping carrier. 

Once the fulfillment center has received your items, you can start marketing your products. You can reach out to Amazon services sellers to help you out, too. 

Step 8: Market your products

Market your products using social media, PPC advertising, and paid advertisements.

  • Social media - Social media platforms are powerful tools to utilize to market your products. This is where most of your potential customers are, and it’s easier to share information using social media. To market your products on social media, build up your brand profile by making it fun and exciting. You can utilize influencers and Facebook Ads to help spread the word. Keep in mind that social media can be  fickle, so don’t rely on it as your sole platform for advertising.  
  • Discount codes and coupons - Offer discounts and coupons to your first customers. This will help  spread the word about your product and encourage consumers to purchase an item. 
  • PPC advertising - A Pay Per Click Program (PPC) allows you to gain a broader set of audience because every time a person is searching for a product on search engine sites, your sponsored content will pop up. Once they click this pop-up ad, they will be redirected to your product listing. 
  • Hire a professional - Amazon FBA consultants can help you navigate  Amazon FBA. They are professionals who know the ins and outs of the business and will help you make sales. 

Conclusion

Becoming a seller on Amazon has its benefits and disadvantages. To eliminate your worries and streamline your business, here at Seller Interactive, we will handle everything from warehousing, fulfillment, and logistics. We will help you grow your brand on Amazon by working closely with your team to manage your Amazon account. If you wish to know more about our services, book an appointment today! 

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