If you’ve found your way to this blog, chances are you want to know how to become an Amazon seller using Fulfillment by Amazon (FBA). Selling your products on Amazon is a great way to turn a side hustle into a profitable venture and continue growing your business. With Amazon FBA, you can take fulfillment off your plate and increase your profit margins.
But how exactly do you start selling on the retail giant’s platform? Selling your products on a new platform can be intimidating, especially if you don’t know where to begin. We’re here to answer that very question with our Amazon FBA guide for beginners. In this post, we’ll go over everything you need to know about how to set up an account and sell products on Amazon FBA. Read from beginning to end for our step-by-step guide or use the links below to skip to the sections that interest you.
- Amazon FBA business considerations
- Determine your first products and product categories
- Calculate Amazon revenue
- Find a supplier
- Open an Amazon Seller account and sign up for Amazon FBA
- Create and optimize your Amazon listings
- Create an FBA shipping plan
- Generate your first sale
- Get started with Amazon FBA
Amazon FBA business considerations
Before we jump into the guide, there are a few things to consider prior to selling on Amazon FBA. For example, creating an Amazon store is a great opportunity if:
- You’re looking to start a business or grow an existing one.
- You’ve got a great idea for a new product.
- You’ve decided to pursue your business full time.
- You have the financial backing to sell on Amazon FBA.
However, selling on Amazon FBA may not the right choice for you if:
- You want to start seeing cash flow immediately.
- You don’t want to invest time or energy.
- You’re not ready to expand your business.
Carefully assess the considerations above to see if selling on Amazon FBA is the best option for you and your business. With that said, let’s move into our step-by-step guide to selling on Amazon FBA.
1. Determine your first products and product categories
Spending time on product research and selection at the beginning will help you make informed business decisions further down the road. Take the time to look at existing FBA products from other Amazon sellers to select the most profitable products from your own offerings. It’s also smart to explore Amazon’s product categories so you’ll list your products under the correct tags. This helps your products find the right audiences.
2. Calculate Amazon revenue
Calculating Amazon revenue requires you to first estimate your monthly sales volume for Amazon products based on the product’s sales rank and current price. You can also add your shipping costs—don’t forget to include sales taxes!—and cost price to get your total revenue and potential profit figures. This will give you a sense for whether a product opportunity is worth pursuing before you identify and place an order with a supplier.
You can also use an inventory management system like QuickBooks Commerce to assess which products are overperforming across existing channels. You’ll gain valuable insights into your best sellers so you can make informed business decisions. After all, you want to make a profit, not lose money.
3. Find a supplier
Unless you manufacture your own products or have a private label, you’ll need to find a business to make or supply your products. There are a number of third-party sellers and supplier directories you can look into. Be sure to research any suppliers you find on an aggregator site thoroughly. Alternatively, you can reach out to other businesses you admire on Amazon and ask for recommendations.
4. Open an Amazon Seller account and sign up for Amazon FBA
Once you’ve identified your product range and found a good supplier, it’s time to sign up to sell on Amazon. First, you’ll need to register using one of the two selling plans that Amazon provides. You can sign up to sell as an individual if you anticipate selling fewer than 40 items and don’t need advanced tools. Or, you can sign up as a professional if you think you’ll sell more than 40 products. Each plan has different pricing models and FBA fees, so choose one based on your budget.
Here’s what you’ll need to start using Amazon FBA:
- Bank account information
- Credit card
- Government issued identification
- Tax information, such as your Social Security Number and Employer Identification Number
- Phone number
Once you’re an Amazon Seller, you’ll also need to sign up for FBA, which has a huge number of benefits, including:
- 2-day Amazon Prime shipping
- Managed customer service and returns
- Ability to send products from your supplier directly to Amazon
- Shipping costs from Amazon to your customer are included in your fulfillment fees
To sign up, head over to Amazon’s seller central and find your current inventory. Here, you can set up your account so that an Amazon fulfillment center takes care of your orders.
5. Create and optimize your Amazon listings
Product listings are one of the most critical aspects of your Amazon store, but unfortunately they don’t often get the love they deserve. For each listing, pay close attention to the following:
- Product title—Make it clear what the product is, and don’t forget the brand name if it’s relevant.
- Features and product details—Your product descriptions should be concise and contain related SEO keywords.
- Categories—List your products in all applicable categories and sub-categories.
- Images—Images should be high-quality and professional, and they should highlight the individual product.
- Online reviews—Encourage customers to leave feedback and product reviews.
- Ratings—Make sure you maintain a good rating on each of your products. If you don’t have good ratings, look at what you can do to improve the product or remove it altogether.
- SKUs—All products sold on Amazon are required to have SKUs, which you can either generate or have Amazon generate for you. Check QuickBooks Commerce’s guide to all you need to know about Amazon SKUs.
With the help of listing optimization, your offerings can stand out in a sea of products.
6. Create an FBA shipping plan
Before you send your inventory to Amazon’s warehouses, make sure they’re quality products in good condition. You’ll also want to be prepared with enough inventory to meet expected demand. When you’re ready to send them to a fulfillment center, follow Amazon’s packing guidelines and shipping and routing requirements. This includes information on shipping labels, UPC codes, and other barcodes. Once your inventory arrives at the fulfillment center, Amazon handles the rest.
Taking advantage of Amazon FBA passes benefits along to your customers, like free 2-day shipping for Prime members or free shipping on eligible orders. You customers will appreciate the savings on top of the convenience of buying on Amazon.
7. Generate your first sale
Here’s the fun part: making a sale! Now that your Amazon FBA seller account is up and running, keep an eye on which products are selling well and which ones aren’t cutting it. With the help of QuickBooks Commerce’s intuitive inventory management solutions, you can refine your offerings over time and sell products your Amazon customers want.
Get started with Amazon FBA
If you’ve been putting off opening an Amazon business, now is your time to pursue this worthwhile endeavor. While it may seem overwhelming at first, you can easily automate your business processes and keep track of your inventory on Amazon using QuickBooks Commerce. This platform seamlessly integrates with top e-commerce platforms like Amazon, Squarespace, Shopify, Etsy, and eBay to help you sell across multiple channels and grow your business. By investing in the latest technology, you can stay ahead of the competition and make more sales.
Do you need more help with selling on Amazon? Take a look at our tax guide for Amazon sellers.
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