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How To Start An Amazon FBA Business

By Bubuy Balangue | 17 May 2022 | 6 mins read


Thinking about how to start an Amazon FBA (Fulfillment By Amazon) business? It’s feasible even if you have a limited budget. We know how disappointing it is when your planning is complete but you lack the funding to launch. 

The good news is that you don’t have to wait anymore. You start your Amazon FBA transactions with what you have and use fulfillment centers.

Why Use Amazon FBA?

There are many benefits that most people can get by selling on Amazon FBA.

Scalability

The overall cost of opening an Amazon FBA store is lower than that of a traditional store or even a warehouse. The overall cost is reduced because Amazon manages the inventory. Private dealers may need more budget than online mediator sellers.

Amazon’s Massive Customer Base

With Amazon FBA, you can take advantage of Amazon’s huge customer base and huge market to get better deals, which can be big for the business. Over the years, Amazon has won thousands of customers around the world who consider it to be a trusted brand. You earn trust by listing your ideal product on Amazon. You cannot search for customers, but you can start leveraging existing customers with your products.

Getting Started Selling on Amazon FBA in a Few Steps

Starting on Amazon FBA is quick and easy. All you need to do is identify a standout and profitable resale item, decide where to find your ideal product, open an Amazon seller account, and start selling. You should first familiarize yourself with all Amazon rules and regulations. Failure to comply may result in penalties. It is also important to attend training courses to understand what works and what doesn’t. Comprehensive training video courses are a great way to do this. 

These are the basic steps to starting selling most private label products on Amazon:

You can also get started with online arbitrage or wholesale business models.  You can leverage the branding and popularity that another product line has already achieved. This is a much quicker way to help you generate some cash flow for your business.  Private labels can have a longer cycle to generate a return, whereas online arbitrage can earn you a profit in less than a month for the right products and prices.

Knowing Your Costs and Fees Before You Get Started 

After you’ve successfully identified and selected the products you want to sell, you should familiarize yourself with all of Amazon’s costs. These costs will vary depending on various aspects of the product, such as size, shape, weight, and special handling or storage requirements. Costs often include merchandise sales fees, FBA fees, storage fees, shipping fees, customs fees, excise fees, VAT, and related taxes. 

Engaging in e-commerce blindly without adequately assessing the possible costs of your business can result in losses. Taking all costs into account will help you set the right price for your product for maximum profitability. You should strive to keep your costs as low as possible.

12 Must-Have Budget Tools for Success

Business owners need a broader business perspective in order to launch an online business model. You don’t have to spend a lot of money when choosing the free or cheap option.

1. Computer or Tablet

Its sole purpose is to provide easier access to your merchant account, so there is no need to upgrade. You can use your old computer or opt for a second-hand product. You can also use a computer from a nearby library. Smartphones can also work in a pinch. Starting with Amazon’s online business model keeps costs as low as possible. 

2. Smartphone

A smartphone is a great option for convenient use in consideration of portability other than a computer. This allows you to search for products in the store on the go. With your smartphone, you can access your account and search for products from anywhere in the world with no location restrictions. A simple smartphone with a viewing function is sufficient.

3. Shipping boxes

You need boxes if you deliver physical products directly to Amazon’s warehouse. Like dealing with various physical products, a variety of sizes of boxes are required for a variety of supplies in small areas. It is a cheaper option to reuse old private boxes at home or ask friends and family. You can also find boxes at your local grocery store. When recycling used boxes, be sure to remove or cover any old labels or barcodes to prevent Amazon employees from incorrectly scanning shipping barcodes.

4. Address Labels

The address label displays the products sent to Amazon. These are small labels that are used to cover the UPCS product code as part of the delivery process. After listing the product categories on Amazon, you will receive a PDF with a list of print labels. You can use a laser printer to print up to 30 address labels in one sheet. You will use one tag to cover the original barcode of the UPC entry. To save more money, choose generic brands in bulk.

5. Scanning app

An app can provide product information in real-time just by scanning. Get instant product performance based on a variety of metrics. A scanning app is an essential tool for using Amazon’s seller management services. This helps you get key product information such as pricing, estimated profitability, seller rank, and eligibility for product categories. The good news is that you don’t have to spend a penny on it. Once you have created an account, you can use the free Amazon Seller Shipping app. Use your mobile phone’s camera to download and scan millions of products available on Amazon.

6. Printer

You need a printer to print custom barcode labels for your product and shipping labels. Amazon recommends using a laser printer to prevent ink from smearing barcodes, but you can also start with an inkjet printer at home. Consider using a library printer, as your main goal is to keep costs down. You can also borrow from friends and relatives. If the only option you have is to buy, then start with a basic laser printer.


7. Shipping labels

In addition to the small address label, the shipping box also requires a large shipping label. When you create a shipment on Amazon, you will receive a printable shipping label for the box. When you open a PDF file with shipping labels, there are two labels for each sheet. One is for actual shipping and the other contains a unique barcode scanned by an Amazon employee. These two labels need to be affixed to the outside of the box. These labels are available at a low price from Amazon’s brand, Amazon Basics. UPS can also send these labels free of charge.

8. Packing tape

To avoid loss or damage of items, you need to invest in packing tape appropriate for your boxes. Tape-sealing the box not only ensures the safety and damage of the product in transit but also facilitates transportation. You’ll need sturdy tape that can hold large boxes together. You can also get a tape dispenser and easily attach the tape to the package.

9. Shipping scale

Amazon requires us to provide the weight of each box, so we need a scale to weigh the boxes we ship. A scale with a capacity of up to 50 pounds is recommended to obtain accurate transport weight. The scale must also be large enough to hold a large shipping carton. Amazon will calculate the shipping cost based on that, so make sure you get the correct weight. If the shipping weight is incorrect, you may be penalized. If you have limited funds, however, a bathroom scale can work with care.


10. USB barcode scanner

This is another important tool that can save you a lot of time, though it’s not imperative. Instead of manually entering the time-consuming product details, this scanner allows you to scan barcodes and capture all product details at once. Time is important in your online Amazon business. Therefore, owning this scanner will boost your business. You don’t have to break the bank for this. Instead, look for an affordable scanner that will get the job done for beginners.

11. Amazon FBA Revenue Calculator

Amazon FBA Revenue Calculator is a useful tool for all Amazon FBA sellers. It helps you calculate charges, shipping, handling, and other costs to estimate your profits. This tool helps you calculate competitive product prices and clearly define selling prices for FBA products. You can use this calculator when you are looking for a new profitable product to sell on Amazon. It gives you a clear picture of potential profit estimates and FBA fees associated with these additional products. The best part is that this calculator is free.


12. Box resizer

When packing products for shipping, there is a lot of space at the top of the shipping carton. Pillows and kraft paper can be used to fill these gaps, but in the end, they can turn out to be very costly. Box resizers are cheaper because you can save money by cutting off excess cardboard to make a box of the correct size. UPS calculates shipping based on dimensional weight rather than the actual weight, so you can save on shipping by using the right box.

Selling on Amazon FBA is a profitable endeavor. Amazon handles all inventory issues for you, so you can focus all your effort and time on developing strategies to grow your business. 

This also means you don’t need a lot of money to get started. With some basic tools and some practical steps, you can start and run your business right away. Well, there’s everything you need to know about starting a low-cost Amazon FBA business! What are you waiting for? Start with the little things you have and make your dreams come true.

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