Whether you want to start a profitable side hustle or you’re ready to become your own boss, selling on Amazon provides a massive and lucrative opportunity. But despite what some online marketers would have you believe, it isn’t just a magical money-making scheme. When you sell on Amazon, you open a door of opportunity but also a long process of setting up and hard work.
To be successful, it takes an adequate budget, hard work, a lot of research, and some dedication. In actuality, a lot of people who start their Amazon journey quit before they ever have a chance to succeed.
But if you work hard and do your research, you can maximize your potential to start and build a successful business. In this guide, we’ll walk through how to become an Amazon seller step-by-step. Let’s hop into it!
How Amazon Handles FBA Sellers
Other than access to those amazing Prime buyers, there is another huge benefit to FBA: Amazon handles a large portion of the selling process for you.
Actually, they handle the most tedious and time-consuming parts!
Let me list the steps of selling a product on Amazon so you can see what parts the seller handles (that’s you) and what parts Amazon handles as long as you use FBA.
Things you need to do as a FBA seller:
- Find a product to sell on Amazon
- List the product on Amazon.com (it’s not for sale yet at this point)
- Prepare the items to send to Amazon warehouses (these are located all over the US)
- Ship the items to Amazon’s warehouses
What Amazon does:
- Unpack and then store your inventory in their warehouses
- Make your product available for sale on Amazon.com
- Indicate that your product is Prime Eligible on the product page
- When a customer buys your product, Amazon employees will find, package, and ship your product to the customer
- Prime buyers will receive their product either later that day or with 1- or 2-day free shipping (non-Prime buyers still get free “regular” speed shipping)
- The customer is happy!
- If the customer is unhappy, Amazon customer service reps handle all refunds, returns, and exchanges. The customer won’t even contact you.
Step 1: Determine your products and range
Spending time on product selection at the outset will help you make informed business decisions further down the track. Take the time to look at existing products from other Amazon sellers to make sure you have a good chance of being able to sell your products at a price that allows you to make a profit.
Step 2: Find a supplier
Unless you manufacture products yourself, you’ll need to find a business to make or supply your products. There are a number of supplier directories you can look for, but be sure to research any you find on an aggregator site thoroughly. Alternatively, you could reach out to other sellers you admire on Amazon and ask for recommendations.
Step 3: Sign Up for an Amazon Seller Account
In order to set up your Amazon Seller account and get started selling on Amazon, you’ll need to choose a seller plan, provide some information about your business, and understand Amazon’s Seller policies.
Choose a Seller Plan
When you sign up to sell on Amazon, you’ll choose one of three different selling plans, depending on the scale of your business:
- Amazon Individual Seller: If you own a very small business and plan to sell fewer than 40 items per month, you can sign up as an Amazon Individual Seller. This will cost you just $0.99 per sale, plus a few other transaction fees.
- Amazon Professional Seller: If you plan to sell more than 40 individual items per month, you’ll need to sign up for a Professional account. Amazon will charge a subscription fee of $39.99 per month, plus some transaction fees on each sale.
- Amazon Vendor: If you manufacture products yourself, you can sell these goods as a wholesaler to Amazon. They will handle product listings, fulfillment, and shipping, and when they run out of stock, they will order more from you.
Step 4: 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, play close attention to the following:
Product Title –Keep it clear
Features and descriptions – Should be concise, and contain relevant keywords
Categories – List in all relevant categories and sub-categories
Images – Should be high-quality and professional
Reviews – Encourage customers to leave feedback about your products
Ratings – Make sure you’re maintaining a good rating on each of your products, and, if not, 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 TradeGecko’s guide on all you need to know about Amazon SKUs.
Step 5: Ship Your Inventory To Amazon Fulfillment Centers
Once you’ve paid the suppliers, everything is packaged, labelled and ready to go – the next step on how to sell on Amazon FBA is to ship everything to Amazon.
I always recommend starting to sell on Amazon in the USA first, as this is where the biggest market is. I recommend you opt-in for Fulfillment by Amazon, so that Amazon will handle all of the fulfillment for you and ship your product to your customers.
Amazon will give you the details and locations of where to send your inventory to, in which case you’ll have your supplier ship things out for you.
Step 6: How to Sell Your First Item on Amazon
This is the easy part. Once you ship your package off to Amazon and they receive it, your items will be available for purchase.
Now, you sit and wait for your items to be sold.
If you are selling a more popular item, the wait isn’t that long. In my case, I listed 8 items, and they all sold within 15 days.
Amazon FBA Courses to sell on Amazon
All the information you need to start an Amazon FBA business is available for free. Yes, you heard that right, there are no secrets hidden inside Amazon FBA courses and many people are creating huge Amazon businesses without using a course.
But that doesn’t mean that courses can’t be useful. They provide curation, accountability, mentorship and community. All of which will increase your chances of creating a successful business.
Good luck! And we hope you find success in selling with Amazon!