Fulfilment By Amazon Business Beginners Guide
You have probably read a few course descriptions about the Fulfilment By Amazon FBA opportunity. Lots of hype about how you can easily make thousands of dollars or pounds per month.
The truth is it has been done. The reality is that a lot of people will get started and make very a little money and after a few months or so they give up.
It is a simple enough process to get set up. There are a few things you need to think about before diving into the set up process. Let me explain:
You really need to be clear on what type of Amazon Store you want to create from two main options.
- Retail Arbitrage – you search for products through special offers, end of line deals, wholesale merchants. Even bricks and mortar stores that are selling up. You are looking for items that are priced lower than the same item that is listed on Amazon.
- Private label – here the business is very different. You research popular selling items and see if you can improve on the quality or add value to an item. Or you can be inventive and create a new listing for a product that is not being sold via FBA.
There are pros and cons to both of these methods.
Getting set up.
First things first: You should set up a new gmail account for you new business, so that you have a dedicated account that you can keep separate from all the other messages you receive. When you have done that, in order to get your FBA business up and running, you’re going to need to create an Amazon seller account. Go to Amazon’s website, scroll down to the footer and look for the heading marked “Make Money with Us.” Then, click on the link that reads “Sell on Amazon.”
You have to choose either an “Individual” or a “Professional” account.
When you sign up as an “Individual,” you will not be charged a monthly subscription fee.
To build a business over the long term, you really should sign up as a “Professional.” The first month is free, and after that, it’s $39.99 per month plus selling fees.
You just need to follow the instructions and prompts until you complete the sign up process. Now you have your account set up with your new gmail account you can go to the mobile app store and search for Amazon Seller Central, the app for sellers.
The app allows you to use your phone as a product scanner, it helps you to easily research and find products to sell. If you have decided to start with “retail arbitrage” you can use the mobile app in a store for example. It can also be used with a catalogue showing images of the products. Seller central is the back office of your new business you can keep track of your sales and inventory. Respond to buyer messages and stay up to date with price alerts.
The difference between retails arbitrage and private label. Starting out with retail arbitrage is the easy method. In the beginning you will be researching profitable items in various stores and wholesale merchants. You will need to pack and have the items labelled and shipped into your nearest Amazon depot. The instructions in the seller central back office can be a bit overwhelming so just take your time. This first method is a lower upfront cost to get started and is also lower risk.
The private label method. What does that mean? It is a way of putting your own brand on a product that you purchase in bulk, you will need some start up capital. You will be ordering products from overseas suppliers that may cost you several thousand dollars. But if you’re looking to build an asset that can later be sold, then this is the direction you want to go in.
Finding suppliers and manufacturers
I’ll leave you with a few resources that you can research for yourself.
Alibaba.com Directory of wholesale suppliers and manufacturers.
Aliexpress.com Similar to above but with a lower minimum quantity order
Made-in-China.com As above a place to find hundreds of products and suppliers
I recommend you buy a training course. Now I personally know friends who have paid thousands for live training events and membership sites that gave them access to videos and one on one support. Personally I did not go down that route when I got started. I did however have a step by step training which was delivered online in the form of a membership site. It was a very good training guide and was set up by a UK FBA seller who was having good results with “retail arbitrage.”
If you are serious about getting started with a home based e-commerce business through Fulfilment By Amazon then I have a very good offer for you here.
The Amazon FBA Blueprint.
This course will teach you what you need to know to get started, leaving out the “hype” and the “fluff.” It focuses on teaching you what matters in a simple and effective way. In just two hours you will have learned everything you need to know to get started with your own Fulfilment By Amazon business.
About the Author
Owner Manager of Student Rentals and Property Management Business for 10 years. Moved away from my home town of Sunderland 2015 to be with my partner Paul in York. Started an Amazon Prime Seller Account. Went out to Spain in April 2016 to oversee the work on our new Spanish home, and decided to sell out of Property Management and start over as a Digital Entrepreneur.