May 19, 2023
min read
Written by: 
Ecommerce Basics

How to Start an Amazon FBA Business in 2023

The Fulfillment by Amazon program (FBA) helps businesses of all sizes take advantage of Amazon's vast resources to increase sales, improve customer service and reduce delivery time by storing, packing, and shipping products through its fulfillment centers.

Learning how to start an Amazon FBA business is vital if you want to discover how to sell and profit on, one of the world's largest ecommerce sites.

This step-by-step guide will help you start an Amazon FBA business and provide tips on maximizing the Fulfillment by Amazon service to benefit your business.

Why should you build an Amazon FBA business?

Fulfilling your Amazon orders or adding a new Amazon sales channel to your current ecommerce business takes time and effort.

There's much to familiarize yourself with and learn, from product listing to managing inventory and shipping.

Online sellers can also find new customers on Amazon, streamline their business operations, and benefit from a quick delivery service. Here are some of the best benefits of selling products on Amazon with FBA:

It Maximizes Retail Profits

Amazon's online sales process is efficient, and they know how to encourage buyers to purchase items, which helps you maximize your profits.

Millions of customers shop on Amazon, and they're familiar with the company, so you don't need to spend time and money trying to get them to your retail website. Instead, customers can easily find your products and purchase from your brand on a site they already trust.

The Amazon FBA Program Makes Fulfillment Easier

Rather than managing shipping and handling processes in-house, you can store and ship your products with the Amazon FBA program.

One of the significant benefits of the fulfillment program is that it removes the tedious parts of online selling, such as product packaging and delivery, and allows you to focus on growing your business.

Plus, Amazon Associates completes returns and provide customer service for your products, removing the hassle of dealing with time-consuming tasks.

It Provides Flexibility

You can store multiple sizes and quantities of products with Amazon, allowing you to expand your business as much or as little as you want. Additionally, the FBA program provides access to the Global Fulfillment Network, meaning you can ship orders to customers in different countries without setting up multiple warehouses.

All of these are incredible benefits to the Amazon FBA program. So, how can you start your own business and enjoy these advantages? Here's a step-by-step guide that will take you through the process.

How to start an FBA business on Amazon

Being an Amazon FBA seller is much like selling on other ecommerce platforms but with the added benefit of Amazon's fulfillment service. 

Whether you're a retail business looking to expand or a new entrepreneur considering selling products online, the following guide will help you get started with your Amazon FBA business.

1. Decide what to sell

Locating the right products and avoiding risky items to sell on Amazon might seem like complicated processes. However conducting comprehensive product research and using the right tools, you can quickly identify profitable products and track their performance on Amazon. 

Gaining information about popular products that will generate profits before you launch your business can save you time and help you avoid costly mistakes.

Still, with the help of product research tools like AMZScout, it's easier than you think. 

2. Open a seller account

Select an Individual or Professional seller account based on how many units you plan to sell in a month.

If it's over 40 items, the Professional account is the best choice.

After registering as a seller, you can sign up for the Amazon FBA program using the Seller Central dashboard.

3. Source your products

You can source products in several ways, but the three most popular methods are reselling, wholesaling products from brand owners, or creating a private label.

Reselling products on Amazon involves finding popular products from other online marketplaces or brick-and-mortar retailers and selling them on the platform yourself.

This is a sales strategy known as arbitrage.

You'll compete for the Buy Box with other sellers, but you can differentiate your offer by being competitive on price.

Wholesaling products from a brand owner is another option for sourcing products to sell on Amazon.

To start wholesaling, you must find a reputable supplier specializing in the products you wish to sell.

You'll buy their products in bulk, and they'll provide permission to work as an approved reseller of those items on Amazon.

Another way to source products is by launching a private label. Manufacturers personalize popular products with the seller's name and logo while also helping create customized packaging for each private label brand.

Creating your private label is a great way to differentiate yourself from other sellers who list similar products on Amazon.

When starting an Amazon business, sellers often need capital to cover essential expenses such as product sourcing, inventory acquisition, packaging materials, branding, and photography.

Funding can provide the necessary upfront investment to get the business off the ground.

However, it's important for sellers to carefully consider their financial needs, evaluate different funding options, and ensure they have a viable plan to generate returns on the investment.

4. Package and label products for Amazon Warehouses

Products must arrive at an Amazon Warehouse safely and securely, so Amazon sets guidelines on packaging and labeling items to sell using the FBA program.

How you pack your products depends on which categories you're selling in, so check the requirements before shipping.

Amazon's shipping and compliance information page explains your products' packaging and labeling requirements. Following their guidelines ensures that items arrive at a warehouse without incurring additional costs from Amazon.

5. List the products on Amazon

The next step is to make a product listing or add your inventory to an existing listing page.

Then select the Fulfillment by Amazon option for each item you plan to send to an Amazon warehouse.

Completing this process will allow you to start the shipment process, where Amazon picks up inventory from your home, business, or directly from a supplier.

6. Ship products to FBA

After listing your products, you can use Amazon's shipping plan tool to schedule a shipment and print shipping labels directly from your Seller Central dashboard. 

Once you have your shipping labels, the next step is to pack the products in boxes and send them to an Amazon FBA warehouse.

7. Promote using PPC

After adding your products on Amazon and sending everything to a warehouse, you can promote your store and start making sales.

Amazon provides sellers with a powerful tool for advertising their products – the Amazon Pay Per Click (PPC) program.

With Amazon PPC, you can create targeted campaigns that reach your potential buyers when they search for related products on the platform.

Amazon PPC is the fastest way to get your products in front of potential buyers and achieve results. You can run as many campaigns as you want and track the performance of each one.

Now you know how to start an Amazon FBA business.

As you can see, starting an FBA business on Amazon is simple, but it takes time to master.

With the right tools, research, and patience, you can create your brand's store on the world's largest ecommerce platform.

Although conducting product research, preparing shipments to Amazon warehouses, and selecting your product offerings take some time, the FBA program offers a unique opportunity to sell goods at scale.

With Amazon's fulfillment services, you can focus on growing your business without worrying about product delivery logistics.

So, if you're looking for a new way to start selling online and reach a wider audience, FBA is the right choice.

Get started today!

Also interesting

This is some text inside of a div block.