How to Get Started with Amazon FBA: A Beginner's Guide

If, like us, you are fascinated by the world of e-commerce (online commerce) and you would like to get started with it, you have probably already heard about the famous business model that is so popular on social networks: Amazon FBA ( fulfilled by Amazon).

How does Amazon Fulfillment by Amazon work?

Fulfillment By Amazon (FBA) is a service provided by Amazon that provides storage, packaging, and delivery of products from sellers on the Amazon platform. The Amazon FBA program allows sellers to deliver their products to an Amazon fulfillment center where they are stored until the time of sale.

Amazon FBA is a program that allows online sellers and merchants to grow their business through traffic and impeccable service from Amazon.

To sell on Amazon, all you need is a product to sell and an Amazon seller account. It's that simple!

Whether you have a product ready to sell or just want to start selling on Amazon but don't know where to start, Amazon FBA makes it easy for everyone to get started in one place and gives you all the tools to to help with that. succeed on the platform.

In fact, remember that the more products you sell, the more money Amazon makes for you. Therefore, it is beneficial for them to maximize their conversion rate and the amount of their sales.

What are Amazon FBA prices?

Like most things that can make you money, Amazon FBA is not necessarily a free service. However, the cost for the service is not exorbitant.

But if you're a small seller, you still need to do everything you can to convince yourself that selling on Amazon FBA is in your best interest and that you don't lose money with every sale. Sometimes you even forget a simple number like storage cost in your calculations. This is especially the case for products that are really cheap.

As a seller in the Amazon FBA program, you must pay storage fees and order fulfillment costs (packaging and delivery). So, as you understand, the more inventory you have, the more it will cost you (you don't have to be a mathematician to do this quick calculation).

In addition, Amazon also has "hidden" fees that many sellers overlook. If your inventory stays in an Amazon fulfillment center for more than 180 days, your storage costs go up. Amazon uses this mechanism to "force" sellers to liquidate their inventory as quickly as possible.

In addition, Amazon locates all items that are in stock at one of its fulfillment centers, but are not currently for sale on the Amazon platform.

In this case, Amazon charges a storage fee for “stranded inventory” or “failed inventory.” You can receive this report at the same time as your other cost report on the platform.

Also, don't forget that you will have to pay a lot more for storage during the holidays, given the huge demand that the platform suffers every year.

You can also track and view all fees associated with your Amazon FBA account on the Amazon FBA Fee Dashboard. It's a great way to track your costs in real time and adjust your product prices to maximize your profit margin.

Basically, the idea is to optimize your inventory turnover rate so that you don't pay an empty inventory fee from Amazon.

How to Sell on Amazon Fulfillment by Amazon?

If you're ready to try out the Amazon FBA platform, all you need to do is head over to their website and start the signup process. Frankly, Amazon explains very well how the service works in the introductory video and in the many articles on the subject.

Therefore, we will allow ourselves to skip this part to venture to much more exciting questions for you.

How to sell on Amazon FBA without investment?

Does that sound impossible?

Well, it's not (almost, you only need a very small investment to create your account)!

This is our strategy for selling on Amazon FBA without any investment. After repeating this strategy a few times, you'll have enough capital to switch to the "classic" approach to selling on Amazon FBA (which requires some investment capital).

This is our strategy for physical products:

Create a professional Amazon FBA account. This account is used to sell through Amazon FBA and FMB (seller fulfillment).

Once that's done, you can now find one or two products that you think are "profitable" to resell on Amazon.

Go to a physical store and check whether you can actually buy the physical product there and especially that there is enough product in stock for the next few days.

Go home (without buying the product) and put it (almost) for sale on Amazon.

Wait a few days. If you have no sales, you can change the price or go back to step 3 and find another product.

Once someone has bought your product on Amazon, go back to the physical store and buy that product. Via the FBM program you can then deliver it directly to the customer.

Reinvest your profits using the same method until you have enough capital to buy inventory and finally sell your products on Amazon FBA.

This method is also a great way to test a marketing strategy and determine if the type of product you are selling is popular on Amazon or not.

Conclusion

Millions and millions of entrepreneurs use Amazon FBA to distribute their products online and earn billions of dollars every year. But that doesn't mean this service is perfect for everyone.

If you can find products with profitable product margins, Amazon is one of the best distribution channels available to ecommerce owners today.

If your online business has been stagnant for some time, Amazon FBA can rekindle the flame and take your business to another level.

But do your homework on Amazon services anyway.

The conditions for using the platform are multiple and the pricing system can be very complex depending on the products you sell.

In the end, you're not losing anything by trying Amazon FBA (except, of course, a few tens of thousands of dollars in registration fees).

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