Most people have thought of starting their own online business at one time or another. And of all the options you have, starting an Amazon FBA business is one of the best ways you can go. This is because the profit potential is huge and you can easily scale and grow it once you become established.
While the idea of selling products on Amazon and building your own business can sound exciting, for many beginners the process can seem daunting. However, when you break it down it’s not as difficult as it seems. If you follow the right steps and put some time in you can start up a successful business on Amazon. You may even be able to quit your 9-5 job and work from home full-time, giving you plenty of flex time.
if you are wondering how to start a business selling on Amazon, you’ve come to the right place. We’ve created this complete guide to give you the best instructions and help you on your journey.
Initial Steps
Before you start selling products on Amazon there are a few initial steps you should take to give yourself the best chance at success. By doing your research and laying the groundwork early on you’ll make it a lot easier for yourself once you reach the later steps.
Set a Budget.
Like most businesses, you’ll need some capital to get started. If you don’t have a lot of money to spare you can still become start a business on amazon, but it will impact what strategies you can use to build your business.
Look at your current finances and decide how much money you can reasonably invest in your business. When setting your budget, make sure to factor in all the expenses you’ll be paying. These include the cost of purchasing inventory, shipping costs, the monthly fees for your Amazon Professional seller account, and the cost of any ads you may want to run to promote your products.
Determine Your Capabilities.
Before getting started a business on Amazon, you need to think about how much time you have to devote to your new business and what resources you have at your disposal. Are you going to be able to work on your business every day? Do you have any resources, supplies, or infrastructure (like a warehouse for example) in place to ship products to customers, or will you need assistance with this?
Consider these questions as you review the different Amazon business models so you can choose the approach that’s right for you.
Start a Company or an LLC.
You may be wondering what documents do you need to sell on Amazon, or if you need a business license. You don’t need anything like that, but it’s a good idea to start your own company or LLC. This will make your bookkeeping a lot easier come tax time.
Choose a Product to Sell.
This is where the fun begins. It’s time to start deciding exactly what types of products you’re going to sell. With so many options available to you this may seem overwhelming at first. Amazon sells practically everything including books, beauty products, shaving kits, and jewelry. So, how do you know what items to pick for your business?
Luckily, we have a few tips and a couple of helpful tools that will make the process a lot easier for you.
Pick Products Priced Between $15-100.
Any time you sell a product on Amazon’s website they’ll take a commission. So, you want to make sure the price of your product isn’t so low that it won’t cover this cost. And while the idea of selling high-priced items may seem appealing, in practice it doesn’t usually work since they don’t sell as much as lower priced items. That’s why it’s recommended to sell products priced between $15 - $100.
Pick Products that are Small and Light.
Remember, when you purchase your inventory you’ll need to get it shipped to you. This can be especially pricey if you plan to import items from China or India. This is the reason why it’s a good idea to choose items that are small and light, as they’re cheaper to ship.
Adding your products
What can you sell on Amazon? It depends on the product, the category, and the brand.
Some categories are open to all sellers, some require a Professional seller account, some require approval to sell, and some include products that cannot be sold by third-party sellers.
The table below provides an overview of Amazon product categories, but visit Seller Central Help to learn more about restrictions, and how to request approval. If you ship orders with Fulfillment By Amazon, be sure to review the specific list of FBA product restrictions.
We have always emphasized the importance of having a good website for your company because it can act as your best tool for marketing and sales. A poorly designed website can repulse people from your business and can cause you to lose customers before you even have them. Get in touch with HyperEffects to work on creating, enhancing, and making the website of your company more user-friendly.