📦 Amazon FBA Newbies: A Comprehensive Guide to Starting Your Amazon FBA Business
Are you interested in starting your own Amazon FBA business but feeling overwhelmed by the many different steps and methods involved? As someone who has been selling on Amazon for almost two years and has made over 20 videos on Amazon FBA, I understand how confusing it can be to navigate the process. That's why I created this series called Amazon Newbies, where I'll be answering the most common queries from the comments section of my videos every month. In this article, I'll be providing a comprehensive guide to starting your Amazon FBA business, covering everything from the basics to advanced strategies.
Table of Contents
1. Introduction
2. What is FBA?
3. The Four Stages of an Amazon Seller's Journey
4. Minimum Cost for Starting an Amazon FBA Business
5. How to List a Product on Amazon
6. Choosing the Right Amazon Plan
7. Shipping Your Products to Amazon
8. Avoiding Infringement Notices from Amazon
9. Competitive Pricing Strategies
10. Will Amazon FBA Survive After a Recession?
11. Conclusion
What is FBA?
FBA stands for "fulfilled by Amazon," which means that Amazon sellers can send the products they sell to Amazon warehouses, where they will store them. Every time a customer orders a product through the seller, Amazon will pack and ship the product directly to the customer using Prime delivery. This means that sellers don't have to worry about packing and shipping the products themselves, as Amazon takes care of it for them.
The Four Stages of an Amazon Seller's Journey
There are four different stages of an Amazon seller's journey, and each stage has its own set of challenges and questions.
Stage One: FBA Newbies
These are FBA newbies who haven't started and are just looking for more information before they get started.
Stage Two: Sellers Who Have Made the Amazon FBA Account
These are sellers who have made the Amazon FBA account but are struggling to find the first product.
Stage Three: Sellers Who Are Ready to Ship Their First Product
These are sellers who are ready to ship their first product.
Stage Four: Sellers Who Are Looking to Expand the Amazon FBA Business
These are sellers who are looking to expand the Amazon FBA business.
Minimum Cost for Starting an Amazon FBA Business
The minimum cost to start Amazon Arbitrage is around 250 pounds, the minimum cost to start Amazon wholesale is around 1,500 pounds, and to start Amazon FBA private label, I would say you need a minimum of five thousand pounds. Storage fees are a smaller fee you'll be paying, which is usually around one to five percent of your sales revenue, depending on the time of the year.
How to List a Product on Amazon
If a product is not already on Amazon, then you will need to create a brand new listing. Creating a listing is not as easy as it sounds because first, you need to create an SEO-optimized listing, and then you will need to pay a lot of money for ads so that you can rank that listing on the first page of Amazon.
Choosing the Right Amazon Plan
When signing up on Amazon, there are two plans you're an option to choose from: the individual plan and the professional plan. If you're planning to do Amazon FBA, then I recommend you choose the professional plan, which will cost you 30 pounds a month, including VAT.
Shipping Your Products to Amazon
You can ask your supplier to directly ship the product to Amazon. However, make sure you ask the supplier to stick the Amazon barcode on every single product before they send it off.
Avoiding Infringement Notices from Amazon
When you start selling on Amazon, you won't be allowed to sell in certain categories as you will need to be ungated. In order to get ungated, you will have to buy at least 10 units of that product from a wholesaler and then upload the invoice which a wholesaler provides to the application, and you will be approved to sell every product in that category.
Competitive Pricing Strategies
On Amazon, you can set up an automatic price drop against your competitor. However, this is what you can do to tackle this issue: wait till midnight and then start dropping your price slowly.
Will Amazon FBA Survive After a Recession?
Whether there's a recession or not, people will always be buying stuff online, and that is the reason why Amazon FBA is not dying or going anywhere soon.
Conclusion
Starting an Amazon FBA business can be overwhelming, but with the right guidance and strategies, it can be a lucrative and rewarding venture. By following the tips and advice outlined in this article, you can set yourself up for success and achieve your goals as an Amazon FBA seller.
