How to Start Amazon FBA Business? [Ultimate Guide]

In the world of eCommerce, without any doubt, Amazon is the market leader with about 40% of the market share, which is increasing yearly significantly. Actually, it is not surprising why people more and more turn to Amazon for their business: it is easy and comfortable to shop. Besides, it is the best choice with a low start-up cost strat your online business. This post elaborates on how you can start an Amazon FBA business in detail and walks through all vital steps to becoming a successful seller.

What is Amazon FBA Business?

As a seller, by using an Amazon FBA business, you will have a setup to choose which products you want to sell, find a supplier, order, pack, and ship.

FBA or fulfillment by Amazon is one of the services that Amazon offers to third-party sellers to ship and fulfill their orders easier. Its rule is easy: you sell the product, Amazon ship it. In addition to shipping, Amazon stores your products packs them, or even follows up on customer complaints, including refunds and returns.

Amazon works with third-party sellers, but in 2020, nearly half of all Amazon sales came from third-party sellers and not straight from Amazon. But, customers will not realize any difference between buying from Amazon directly or from a seller using Amazon FBA.

Is Selling on Amazon FBA Worth it?

The short answer is “Yes,” but we describe to you why. In 2021, as the largest online marketplace, Amazon was estimated to have generated about 468.78 billion U.S. dollars. Almost half of that revenue is driven by third-party sellers. It is interesting to know that for managing their business, over 92% of those sellers use Amazon FBA. Besides, although the competition in online selling has increased rapidly, people still start their search from the Amazon platform. In addition, the number of people buying their needs has grown drastically and has become trendy because of the Covid-19 Pandemic. It is predicted this growth will continue in the coming years so it will be a great opportunity even for newbies. 

How Much Money Can You Make from Amazon FBA Business?

The Amazon supply chain is very powerful, and more sellers have recently begun to sell products on Amazon. Apart from massive customers, this is a common question that comes to mind of any new sellers, How much can I make selling on Amazon FBA? About 85% of Amazon sellers profit from Amazon FBA Business. Basically, Amazon sellers have an average income between $12,000 to $300,000 annually

Here are some stats have earned from selling products which are the early signs of success for new sellers. The monthly sales numbers are listed below table:

Monthly salesPercentage of Amazon sellers
I don’t know4%
More than $250,0006%
$100,001 – $250,0005%
$50,001 – $100,0005%
$25,001 – $50,00010%
$10,001 – $25,00012%
$5,001 – $10,00013%
$1,001 – $5,00020%
$501-$1,0009%
Under $50017%

As you see, the prospects for making money on Amazon in 2022 are still bright. 

How to Find Profitable Products to Sell on Amazon?

You have to find an inventory to sell before selling products on Amazon. There are various sourcing methods for selling on Amazon. Some sellers use only one of these methods, but evidence shows they can grow faster by combining techniques. Here, we narrow down the different sourcing ways, and you can explore which one is more useful for your online selling goals:

  1. Perform an Amazon Keyword Research Tool

For your Amazon-specific keyword research needs, it would be best to use a data-driven Amazon keyword research tool such as Jungle Scout. These tools make it possible to determine how many people look for a specific product. This information helps you decide whether the volume makes the product worth selling.

  1. Click the Best Seller Links on Amazon Product Pages
  2. Power Browse Amazon Listings with a Chrome Extension

These tools determine how well each product will sell on Amazon. Here are some of the top Chrome Extensions:

  • Jungle Scout
  • Helium 10
  • Unicorn Smasher
  • AMZScout Pro
  • AMZ Base
  • SellerApp
  • AmazeOwl
  1. Use Amazon Reviews to Find Product Market Gaps

You need to get a feel from customers about the product you decide to sell on Amazon. Not all vendors have the time and budget to get customers feedbacks for their desired products, so going through Amazon customer reviews is timely and cost efficient which you can see if customers like each product or not.

  1. Find Low Competition Keywords Triggering Product Ads on Google

You can find them by entering 5-10 product niche ideas into “Ahrefs Keyword Explorer.” Then you should click on “All Keyword Ideas.” Put filter to see the results to only include Shopping Results & Low Keyword Difficulty.  Click the “SERP” for each keyword, and find out low Domain Rank sites. A signal that shows the niche is less competitive is that you see several low DR sites on page “one” of Google.

  1. Use WatchCount to See What eBay Products Sell

By monitoring what is selling on eBay can also help you to find best selling products for selling on Amazon. In WatchCount.com, you can see hot sellers on eBay.

  1. Search Alibaba for White Label Products

Initially, you need to figure out what types of white label products are lucrative for selling on Amazon. After that you can search for them on Alibaba for white label products, which have overseas suppliers.

  1. Use Jungle Scout to Find Low Difficulty Niches

By using this tool, you can find out if the difficulty niche of each product. It will determine physical product opportunities, low competition, sufficient demand, additional monetizing opportunities. These factor ensure you that your chosen products situate within a low niche category.

  1. Research Trending Topics on Google Trends

To list the product options that will fly out the door when selling on Amazon, doing some research for trending topics on Google can be very helpful. Google Trends Highlight the popular products which can give you an idea to become the tope sellers in many categories.

How Can You Find Amazon FBA Suppliers?

Sourcing products for your inventory from trustworthy suppliers is very critical. Take a look to the below list to see the ways on how to find Amazon FBA Supplier?

  • Online marketplaces
  • Google
  • Product Sourcing Agencies
  • Trade shows
  • Online B2B wholesale websites
  • LinkedIn
  • Facebook groups

Final Thought

Amazon FBA is worth it, although product research and finding the proper supplier have become more challenging nowadays. In any case, sellers can still make money from the Amazon FBA business. The keys to success are perseverance and concentration, as always. 

Source: OABeans (https://oabeans.com/)